[Federal Register Volume 84, Number 159 (Friday, August 16, 2019)]
[Notices]
[Page 42039]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-17664]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36340]


Watco Holdings, Inc.--Continuance in Control Exemption--Wisconsin 
Rapids Railroad, L.L.C.

    Watco Holdings, Inc. (Watco), a noncarrier, has filed a verified 
notice of exemption under 49 CFR 1180.2(d)(2) to continue in control of 
Wisconsin Rapids Railroad, L.L.C. (WRR), a noncarrier controlled by 
Watco, upon WRR's becoming a Class III rail carrier.
    This transaction is related to a verified notice of exemption filed 
concurrently in Wisconsin Rapids Railroad--Lease & Operation 
Exemption--Line of Wisconsin Central Ltd., Docket No. FD 36339, in 
which WRR seeks to lease from Wisconsin Central Ltd. (WCL) and operate 
approximately 1.1 miles of rail line extending from milepost 0.4 at 
Plover Road to milepost 1.5 at Biron Drive in Biron, Wis.
    The transaction may be consummated on or after September 1, 2019, 
the effective date of the exemption (30 days after the verified notice 
of exemption was filed).
    According to the verified notice of exemption, Watco currently 
controls indirectly 37 Class III railroads \1\ and one Class II 
railroad, collectively operating in 27 states.\2\ For a complete list 
of these rail carriers and the states in which they operate, see the 
August 2, 2019 verified notice of exemption at page 8. The verified 
notice is available at www.stb.gov.
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    \1\ Watco states that Geaux Geaux Railroad is a trade name for 
Bogalusa Bayou Railroad, L.L.C.; however, it is unclear whether that 
is the case. Geaux Geaux Railroad may be an additional, distinct 
carrier. See Watco Notice of Exemption, 8-9, Watco Holdings, Inc.--
Continuance in Control Exemption--Savannah & Old Fort R.R., FD 36337 
(listing ``Geaux Geaux River'' as an additional Watco carrier); see 
also Watco, https://www.watcocompanies.com/services/rail/geaux-geaux-railroad-gogr/ and https://www.watcocompanies.com/services/rail/bogalusa-bayou-railroad-bbay/ (separately listing Geaux Geaux 
Railroad and Bogalusa Bayou Railroad as apparently distinct 
carriers). Moreover, Watco's exemption to continue in control of an 
additional entity, Savannah & Old Fort Railroad, on its becoming a 
Class III railroad is scheduled to become effective on August 29, 
2019. See Watco Holdings, Inc.--Continuance in Control Exemption--
Savannah & Old Fort R.R., FD 36337 (STB served Aug. 15, 2019).
    \2\ Although Watco's verified notice indicates that the carriers 
it controls operate in 25 states, the notice lists 27 different 
states.
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    Watco represents that: (1) The rail line to be operated by WRR does 
not connect with any of the rail lines operated by railroads in the 
Watco corporate family; (2) this transaction is not part of a series of 
anticipated transactions that would connect WRR with any railroad in 
the Watco corporate family; and (3) the transaction does not involve a 
Class I rail carrier. The proposed transaction is therefore exempt from 
the prior approval requirements of 49 U.S.C.11323 pursuant to 49 CFR 
1180.2(d)(2). Watco states that the transaction will allow it to 
exercise common control of its existing rail carrier subsidiaries and 
WRR and that, in turn, the control exemption will allow WRR to proceed 
with the lease and operation of the Line as contemplated in Docket No. 
FD 36339.
    Under 49 U.S.C. 10502(g), the Board may not use its exemption 
authority to relieve a rail carrier of its statutory obligation to 
protect the interests of its employees. Because the transaction 
involves the control of one Class II and one or more Class III rail 
carriers, the transaction is subject to the labor protection 
requirements of 49 U.S.C. 11326(b) and Wisconsin Central Ltd.--
Acquisition Exemption--Lines of Union Pacific Railroad, 2 S.T.B. 218 
(1997).
    If the verified notice contains false or misleading information, 
the exemption is void ab initio. Petitions to revoke the exemption 
under 49 U.S.C. 10502(d) may be filed at any time. The filing of a 
petition to revoke will not automatically stay the effectiveness of the 
exemption. Petitions for stay must be filed no later than August 23, 
2019 (at least seven days before the exemption becomes effective).
    All pleadings, referring to Docket No. FD 36340, must be filed with 
the Surface Transportation Board either via e-filing or in writing 
addressed to 395 E Street SW, Washington, DC 20423-0001. In addition, 
one copy of each pleading must be served on Watco's representative, 
Audrey L. Brodrick, Fletcher & Sippel LLC, 29 North Wacker Drive, Suite 
800, Chicago, IL 60606-3208.
    According to Watco, this action is categorically excluded from 
environmental review under 49 CFR 1105.6(c) and from historic reporting 
requirements under 49 CFR 1105.8(b).
    Board decisions and notices are available at www.stb.gov.

    Decided: August 13, 2019.

    By the Board, Scott M. Zimmerman, Acting Director, Office of 
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2019-17664 Filed 8-15-19; 8:45 am]
 BILLING CODE 4915-01-P