[Federal Register Volume 86, Number 244 (Thursday, December 23, 2021)]
[Notices]
[Pages 73085-73086]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-27909]


-----------------------------------------------------------------------

SURFACE TRANSPORTATION BOARD

[Docket No. FD 36503]


Grand Elk Railroad, Inc.--Acquisition Exemption--Lines of 
Wisconsin Central Ltd. in the State of Michigan

    Grand Elk Railroad, Inc. (Grand Elk),\1\ a Class III carrier, has 
filed a verified notice of exemption under 49 CFR 1150.41 to acquire 
142.64 miles of rail lines owned by Wisconsin Central Ltd. (WCL) in 
Michigan, consisting of 95.38 miles of active line and 47.26 miles of 
line over which WCL previously discontinued service (the Lines). 
Specifically, the Lines consist of (1) the Newberry Subdivision between 
Trout Lake, Mich., at milepost 27.5 and Munising Jct., Mich., at 
milepost 117.0, and between Munising Jct. at milepost 5.88 and 
Munising, Mich., at milepost 0.0, a total of 95.38 active route miles, 
and (2) the portion of the White Pine Subdivision located in Michigan 
between White Pine, Mich., at milepost 254.6 and the Michigan/Wisconsin 
border at milepost 302.36, a total of 47.26 miles that have been 
inactive since 2015.\2\
---------------------------------------------------------------------------

    \1\ Grand Elk is an indirectly controlled subsidiary of Watco 
Holdings, Inc. (Watco Holdings), a noncarrier Delaware limited 
liability holding company.
    \2\ In 2015, WCL discontinued service over the White Pine 
Subdivision, including the portion extending into Wisconsin. See 
Wis. Cent. Ltd.--Discontinuance of Serv. Exemption--in Ashland & 
Iron Cntys., Wis., & Gogebic & Ontonagon Cntys., Mich., AB 303 (Sub-
No. 45X) (STB served Dec. 3, 2014) and notice of consummation filed 
on January 9, 2015.
---------------------------------------------------------------------------

    Grand Elk's acquisition is part of a larger transaction pursuant to 
which, in addition to Grand Elk's acquisition, (1) Fox Valley & Lake 
Superior Rail System, L.L.C. (Fox System), a newly created noncarrier 
subsidiary of Watco Holdings, would acquire from WCL approximately 
328.52 miles of active rail lines and 180.75 miles of rail line over 
which WCL had discontinued service, all in the State of Wisconsin; \3\ 
and (2) Fox System would transfer three segments of those lines, 
totaling approximately 42 miles, to Wisconsin & Southern Railroad, 
L.L.C. (WSOR), a Class II subsidiary of Watco Holdings.\4\
---------------------------------------------------------------------------

    \3\ See Fox Valley & Lake Superior Rail Sys., L.L.C.--Acquis. & 
Operation Exemption--Lines of Wis. Cent. Ltd. in the State of Wis., 
Docket No. FD 36504. Additionally, to continue in control of Fox 
System once it becomes a carrier, Watco Holdings filed a petition 
for exemption in Watco Holdings, Inc.--Continuance in Control 
Exemption--Fox Valley & Lake Superior Rail System, L.L.C., Docket 
No. FD 36506.
    \4\ See Watco Holdings, Inc.--Exemption for Intra-Corp. Family 
Transaction--Fox Valley & Lake Superior Rail Sys., L.L.C., Docket 
No. FD 36505.
---------------------------------------------------------------------------

    The effective date of the exemptions sought in Docket Nos. FD 
36503, FD 36504, and FD 36505 was tolled to consider questions raised 
and solicit additional information. See Grand Elk R.R.--Acquis. 
Exemption--Lines of Wis. Cent. Ltd. in the State of Mich., FD 36503 et 
al. (STB served Apr. 27, 2021). In a decision served on December 20, 
2021, the Board held that the exemptions in Docket Nos. FD 36503, FD 
36504, and FD 36505 could proceed and granted the petition for 
exemption sought in Docket No. FD 36506. See Grand Elk R.R.--Acquis. 
Exemption--Lines of Wis. Cent. Ltd. in the State of Mich., FD 36503 et 
al. (STB served Dec. 20, 2021).
    Grand Elk certifies that its projected annual revenues as a result 
of this transaction will not exceed those that would qualify it as a 
Class III rail carrier. Pursuant to 49 CFR 1150.42(e), which applies 
``[i]f the projected annual revenue of the rail lines to be acquired or 
operated, together with the acquiring carrier's projected annual 
revenue, exceeds $5 million,'' Grand Elk certified on April 1, 2021, 
that notice of the transaction was posted at the workplaces of current 
WCL employees on the Lines and was being served on the national offices 
of the labor unions for those employees.
    Grand Elk further certifies that the proposed transaction does not 
involve, and the purchase agreement does not include, any provision or 
agreement that would limit future interchange with a third-party 
connecting carrier.
    The transaction may be consummated on or after December 31, 2021, 
the effective date of the exemption.
    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 December 27, 
2021.
    All pleadings, referring to Docket No. FD 36503, should be filed 
with the Surface Transportation Board via e-filing on the Board's 
website. In

[[Page 73086]]

addition, a copy of each pleading must be served on Grand Elk's 
representative: David F. Rifkind, Stinson, LLP, 1775 Pennsylvania 
Avenue NW, Suite 800, Washington, DC 20006-4605.
    According to Grand Elk, this action is categorically excluded from 
environmental review under 49 CCFR 1105.6(c) and historic preservation 
reporting under 49 CFR 1105.8(b).
    Board decisions and notices are available at www.stb.gov.

    Decided: December 20, 2021.

    By the Board, Scott M. Zimmerman, Acting Director, Office of 
Proceedings.
Eden Besera,
Clearance Clerk.
[FR Doc. 2021-27909 Filed 12-22-21; 8:45 am]
BILLING CODE 4915-01-P