[Federal Register Volume 86, Number 244 (Thursday, December 23, 2021)]
[Notices]
[Page 73086]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-27989]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36505]


Watco Holdings, Inc.--Exemption for Intra-Corporate Family 
Transaction--Fox Valley & Lake Superior Rail System, L.L.C. and 
Wisconsin & Southern Railroad, L.L.C.

    Watco Holdings, Inc. (Watco Holdings), has filed a verified notice 
of exemption for an intra-corporate family transaction under 49 CFR 
1180.2(d)(3) for the benefit of Fox Valley & Lake Superior Rail System, 
L.L.C. (Fox System), a Watco Holdings affiliate that is currently a 
noncarrier, and Wisconsin & Southern Railroad, L.L.C. (WSOR), a Class 
II carrier also controlled by Watco Holdings. Through this exemption, 
Fox System would transfer the following rail lines to WSOR for WSOR to 
operate as part of its system: (1) The Eden Spur from Eden, Wis. 
(milepost 138.7) to Fond du Lac, Wis. (milepost 146.04), a distance of 
approximately 7.34 miles; (2) the West Bend Subdivision from Granville, 
Wis. (milepost 99.5) to West Bend, Wis. (milepost 114.42), a distance 
of approximately 14.92 miles; and (3) the Saukville Subdivision from 
Mill (North Milwaukee), Wis. (milepost 95.18) to Saukville, Wis. 
(milepost 114.8), a distance of approximately 19.62 miles.
    This intra-corporate family transaction is part of a larger 
transaction involving Watco Holdings, Fox System, and Grand Elk 
Railroad, Inc. (Grand Elk), a Class III carrier also controlled by 
Watco Holdings, in which Fox System and Grand Elk would acquire several 
hundred miles of rail lines in Wisconsin and Michigan, respectively, 
from Wisconsin Central Ltd. (WCL).\1\ The verified notice states that 
once Fox System consummates its acquisition of WCL lines contemplated 
in Docket No. FD 36504 (which lines include the Eden Spur, West Bend 
Subdivision, and Saukville Subdivision) and Watco Holdings obtains the 
authority to continue in control of Fox System pursuant to the 
exemption sought in Docket No. FD 36506, Fox System and WSOR expect to 
enter into an agreement for the transfer of the Eden Spur, West Bend 
Subdivision, and Saukville Subdivision from Fox System to WSOR.
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    \1\ 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; Grand Elk R.R.--Acquis. Exemption--Lines of 
Wis. Cent. Ltd. in the State of Mich., Docket No. FD 36503. To 
continue in control of Fox System once Fox System 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.
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    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).
    The verified notice states that the proposed transaction does not 
impose or involve any interchange commitment by or affecting the 
parties, nor are any of the transferred rail lines subject to any 
agreement that imposes an interchange commitment.
    Unless stayed, the exemption will be effective on December 31, 
2021.
    The verified notice states that the proposed transaction is within 
Watco Holdings' corporate family and will not result in adverse changes 
in service levels, significant operational changes, or a change in the 
competitive balance with carriers outside the corporate family. 
Therefore, the transaction is exempt from the prior approval 
requirements of 49 U.S.C. 11323. See 49 CFR 1180.2(d)(3).
    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 one Class II rail carrier 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 December 27, 
2021.
    All pleadings, referring to Docket No. FD 36505, should be filed 
with the Surface Transportation Board via e-filing on the Board's 
website. In addition, a copy of each pleading must be served on Watco 
Holdings' representative: David F. Rifkind, Stinson, LLP, 1775 
Pennsylvania Avenue NW, Suite 800, Washington, DC 20006-4605.
    According to Watco Holdings, this action is categorically excluded 
from environmental review under 49 CFR 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.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2021-27989 Filed 12-22-21; 8:45 am]
BILLING CODE 4915-01-P