[Federal Register Volume 85, Number 201 (Friday, October 16, 2020)]
[Notices]
[Page 65896]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-22967]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36440]


OPSEU Pension Plan Trust Fund, Jaguar Transport Holdings, LLC, 
and Jaguar Rail Holdings, LLC--Acquisition of Control Exemption--
Cimarron Valley Railroad, L.C.; Southwestern Railroad, Inc.; Texas & 
Eastern Railroad, LLC; Washington Eastern Railroad, LLC; and Wyoming 
and Colorado Railroad, Inc.

    OPSEU Pension Plan Trust Fund (OP Trust), Jaguar Transport 
Holdings, LLC (JTH), and Jaguar Rail Holdings, LLC (JRH) (collectively, 
Jaguar), all noncarriers, have filed a verified notice of exemption 
under 49 CFR 1180.2(d)(2) to acquire control of Cimarron Valley 
Railroad, L.C. (CVRR); Southwestern Railroad, Inc. (SWRR); Texas & 
Eastern Railroad, LLC (TERR); Washington Eastern Railroad, LLC (WERR); 
and Wyoming and Colorado Railroad, Inc. (WYCO) (collectively, Western 
Railroads) \1\ each a Class III rail carrier.
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    \1\ Jaguar states that CVRR is located in Kansas, Colorado, and 
Oklahoma; SWRR is located in New Mexico, Texas, and Oklahoma; TERR 
is located in Texas; WERR is located in Washington; and WYCO is 
located in Oregon. On October 6, 2020, Jaguar supplemented its 
verified notice of exemption with a map depicting SWRR's Shattuck 
Subdivision. According to Jaguar, it learned that SWRR sought and 
obtained abandonment authority for the Shattuck Subdivision but did 
not give timely notice of consummation under the Board's 
regulations, although that trackage has been removed and the 
corridor sold. (See Verified Notice of Exemption 4 n.2.) 
Accordingly, Jaguar acknowledges that SWRR maintains a common 
carrier obligation over the Shattuck Subdivision. Id.
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    The verified notice states that OP Trust invests and manages one of 
Canada's largest pension funds and indirectly controls JRH and JTH, 
which in turn controls West Memphis Base Railroad, L.L.C (WMBR), a 
Class III rail carrier located in Arkansas. According to the verified 
notice, pursuant to an as-yet unexecuted Stock and Membership Interest 
Purchase Agreement among Snowy Range Cattle Company, Inc., and David L. 
Durbano on behalf of the sellers and JRH as the buyer, JRH will acquire 
direct control of SWRR, TERR, and WYCO and, through JRH's acquisition 
of control of WYCO, indirect control of CVRR and WERR.\2\
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    \2\ Concurrently with its verified notice, Jaguar filed a motion 
for protective order under 49 CFR 1104.14(b), which will be 
addressed in a separate decision.
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    The earliest the transaction may be consummated is October 30, 
2020, the effective date of the exemption (30 days after the verified 
notice was filed).\3\
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    \3\ Jaguar states that it intends to consummate the proposed 
transaction on November 1, 2020.
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    The verified notice states that: (1) WMBR would not connect with 
any of the Western Railroads, and none of the Western Railroads connect 
with each other; (2) the subject acquisition of control is not intended 
to connect the Western Railroads to one another or with WMBR; and (3) 
the proposed transaction does not involve a Class I carrier. Therefore, 
the transaction is exempt from the prior approval requirements of 49 
U.S.C. 11323. See 49 CFR 1180.2(d)(2).
    Jaguar states that the proposed transaction will promote Jaguar's 
investment objectives and sustain the Western Railroads' efficiency, 
financial strength, and ability to meet the needs of shippers.
    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. Accordingly, 
the Board may not impose labor protective conditions here because all 
of the carriers involved are Class III carriers.
    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 October 23, 
2020 (at least seven days before the exemption becomes effective).
    All pleadings, referring to Docket No. FD 36440, 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 Jaguar's representative, Robert 
A. Wimbish, Fletcher & Sippel LLC, 29 North Wacker Drive, Suite 800, 
Chicago, IL 60606-3208.
    According to Jaguar, this action is categorically excluded from 
environmental review under 49 CFR 1105.6(c) and from historic review 
under 49 CFR 1105.8(b).
    Board decisions and notices are available at www.stb.gov.

    Decided: October 13, 2020.

    By the Board, Scott M. Zimmerman, Acting Director, Office of 
Proceedings.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2020-22967 Filed 10-15-20; 8:45 am]
BILLING CODE 4915-01-P