[Federal Register Volume 85, Number 31 (Friday, February 14, 2020)]
[Page 8620]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-03031]



[Docket No. FD 36383]

3i RR Holdings GP LLC, 3i Holdings Partnership L.P., 3i RR LLC, 
Regional Rail Holdings, LLC, and Regional Rail, LLC--Control 
Exemption--Carolina Coastal Railway, Inc.

    3i RR Holdings GP LLC, 3i Holdings Partnership L.P., 3i RR LLC, and 
Regional Rail Holdings, LLC (collectively, 3i RR), and Regional Rail, 
LLC (Regional Rail), all noncarriers, have filed a verified notice of 
exemption under 49 CFR 1180.2(d)(2) to acquire from Douglas S. Golden 
the stock and control of the Carolina Coastal Railway, Inc. (CLNA), a 
Class III rail carrier that operates in North Carolina and South 
Carolina.\1\ According to the verified notice, the proposed transaction 
will allow Regional Rail to acquire direct control, and 3i RR to 
acquire indirect control, of CLNA.\2\

    \1\ The verified notice states that CLNA operates generally 
between: (1) Chocowinity, N.C., and Raleigh, N.C.; (2) Phosphate 
Junction, N.C., and Plymouth, N.C.; (3) Rocky Mount, N.C., and 
Spring Hope, N.C.; (4) Belhaven, N.C., and Pinetown, N.C.; (5) 
Morehead City, N.C., and Radio Island, N.C.; and (6) Blacksburg, 
S.C., and Kings Creek, S.C.
    \2\ On January 31, 2020, 3i RR and Regional Rail filed a motion 
for protective order under 49 CFR 1104.14(b), which will be 
addressed in a separate decision.

    According to the verified notice, 3i RR Holdings GP LLC controls 3i 
Holdings Partnership L.P., which controls 3i RR LLC, which controls 
Regional Rail Holdings, LLC, which controls Regional Rail. Regional 
Rail is a holding company that directly controls the following six 
Class III rail carriers: (1) East Penn Railroad, LLC, which operates in 
Delaware and Pennsylvania; (2) Middletown & New Jersey Railroad, LLC, 
which operates in New York; (3) Tyburn Railroad LLC, which operates in 
Pennsylvania; (4) the Florida Central Railroad LLC, which operates in 
Florida; (5) Florida Midland Railroad Company, Inc., which operates in 
Florida; and (6) Florida Northern Railroad Company, Inc., which 
operates in Florida (collectively, the Subsidiary Railroads).\3\ 3i RR 
and Regional Rail certify that the proposed transaction does not 
involve an interchange commitment.

    \3\ See Regional Rail Holdings, LLC--Acquis. of Control 
Exemption--Regional Rail, LLC, FD 35945 (STB served Aug. 7, 2015); 
3i RR Holdings GP LLC--Control Exemption--Regional Rail Holdings, 
LLC, FD 36289 (STB served Apr. 19, 2019); 3i RR Holdings GP LLC--
Control Exemption--Fla. Cent. R.R., FD 36365 (STB served Nov. 22, 

    The verified notice states that: (1) CLNA does not connect with the 
Subsidiary Railroads; (2) the acquisition of control of CLNA is not 
intended to connect with any other railroads in 3i RR's corporate 
family; and (3) the proposed 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. See 49 CFR 
    The earliest this transaction may be consummated is March 1, 2020, 
the effective date of the exemption (30 days after the verified notice 
was filed). The verified notice states that the parties intend to 
consummate the transaction on or after March 1, 2020.
    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. However, 49 U.S.C. 11326(c) 
does not provide for labor protection for transactions under 49 U.S.C. 
11324 and 11325 that involve only Class III rail carriers. Because this 
transaction involves Class III rail carriers only, the Board, under the 
statute, may not impose labor protective conditions for this 
    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 to stay must be filed no later than February 21, 
2020 (at least seven days before the exemption becomes effective).
    All pleadings, referring to Docket No. FD 36383, 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, a 
copy of each pleading must be served on applicants' representative, 
Louis E. Gitomer, Law Offices of Louis E. Gitomer, LLC, 600 Baltimore 
Ave., Suite 301, Towson, MD 21204.
    According to the verified notice, this action is categorically 
excluded from environmental review under 49 CFR 1105.6(c) and from 
historic preservation reporting requirements under 49 CFR 1105.8(b).
    Board decisions and notices are available at www.stb.gov.

    Decided: February 10, 2020.

    By the Board, Allison C. Davis, Director, Office of Proceedings.
Kenyatta Clay,
Clearance Clerk .
[FR Doc. 2020-03031 Filed 2-13-20; 8:45 am]