[Federal Register Volume 85, Number 127 (Wednesday, July 1, 2020)]
[Notices]
[Page 39659]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-14168]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36413]


MB Rail IB, LLC--Acquisition and Continuance in Control 
Exemption--Chesapeake & Indiana Railroad, Vermilion Valley Railroad, 
Camp Chase Rail, LLC, and Youngstown & Southeastern Railroad, LLC

    MB Rail IB, LLC (MB Rail), a noncarrier holding company, has filed 
a verified notice of exemption under 49 1180.2(d)(2) to control four 
Class III railroads: Chesapeake & Indiana Railroad (CIR), Vermilion 
Valley Railroad (VVR), Camp Chase Rail, LLC (Camp Chase Rail), and 
Youngstown & Southeastern Railroad, LLC (YSR) (collectively, the 
Controlled Railroads).\1\
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    \1\ On June 15, 2020, MB Rail also filed a motion for a 
protective order under 49 CFR 1104.14(b), which was granted on June 
16, 2020.
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    The verified notice states that MB Rail has established Camp Chase 
Rail and YSR as new noncarriers for the purpose of acquiring and 
operating the railroad assets currently owned by Camp Chase Railway 
Company, LLC (CCRY), and Youngstown & Southeastern Railroad Company 
(Y&S), respectively. The verified notice further states that Indiana 
Boxcar Corporation (IBC) currently owns and controls CIR, VVR, CCRY, 
and Y&S. According to MB Rail, it has entered into an agreement with 
IBC under which MB Rail will acquire from IBC all of the equity in CIR 
and VVR, and MB Rail's two newly formed non-carrier subsidiaries, Camp 
Chase Rail and YSR, will purchase and operate the rail lines and other 
assets of CCRY and Y&S, respectively.\2\ Thus, MB Rail seeks to acquire 
control of CIR and VVR, and to continue in control of Camp Chase Rail 
and YSR when they become rail carriers upon acquiring the rail lines of 
CCRY and Y&S. MB Rail states that the proposed transaction will not 
impose any new interchange commitments.
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    \2\ According to the verified notice, CIR's line is located in 
Indiana; VVR's line is located in Illinois and Indiana; Camp Chase 
Rail will operate over a line located in Ohio; and YSR will operate 
over a line located in Ohio and Pennsylvania.
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    This notice of exemption is related to two concurrently filed 
verified notices of exemption under which MB Rail's new subsidiaries, 
Camp Chase Rail and YSR, seek authority to purchase and operate the 
rail lines owned and operated by CCRY and Y&S, respectively. See Camp 
Chase Rail--Acquis. & Operation Exemption--Camp Chase Ry., Docket No. 
FD 36414, and Youngstown & Se. R.R., LLC--Acquis. & Operation 
Exemption--Youngstown & Se. R.R. Co., Docket No. FD 36415.
    The verified notice states that: (1) The lines of the Controlled 
Railroads do not connect with each other; (2) the proposed transaction 
is not part of a series of anticipated transactions that would connect 
the Controlled Railroads; 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 1180.2(d)(2).
    The earliest this transaction may be consummated is July 15, 2020, 
the effective date of the exemption (30 days after the verified notice 
was filed).
    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 
transaction.
    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 July 8, 2020 
(at least seven days before the exemption becomes effective).
    All pleadings, referring to Docket No. FD 36413, 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 MB Rail's representative, 
Charles H. Montange, Law Offices of Charles H. Montange, 426 NW 162nd 
Street, Seattle, WA 98177.
    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: June 25, 2020.

    By the Board, Allison C. Davis, Director, Office of Proceedings.
Regena Smith-Bernard,
Clearance Clerk.
[FR Doc. 2020-14168 Filed 6-30-20; 8:45 am]
BILLING CODE 4915-01-P