[Federal Register Volume 87, Number 102 (Thursday, May 26, 2022)]
[Notices]
[Pages 32067-32068]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-11289]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36599]


Great Walton Railroad Company d/b/a Hartwell Railroad Company--
Acquisition Exemption; Hartwell Railroad Company

    By petition filed on March 17, 2022, Great Walton Railroad Company 
d/b/a Hartwell Railroad Company (GWRC) seeks an exemption under 49 
U.S.C. 10502 from the prior approval requirements of 49 U.S.C. 11323 to 
acquire ownership and control of Hartwell Railroad Company (HRC). As 
discussed below, the Board will grant the exemption.

Background

    HRC, a Class III carrier, owns a rail line that extends between 
milepost 0.5 at Toccoa, Ga., and milepost 48.8 at Elberton, Ga. (the 
Toccoa-Elberton Line). (Pet. 2; id. at Attach. A.) GWRC, a Class III 
carrier, owns and operates a rail line that extends between Hartwell, 
Ga. and Bowersville, Ga. (the Hartwell Line) and connects to the 
Toccoa-Elberton Line at milepost 24.5 in Bowersville. (Pet., Attach. 
C.) \1\ In 1995, HRC granted GWRC trackage rights to operate over the 
Toccoa-Elberton Line. (Pet. 3; id. at Attach. C.)
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    \1\ GWRC provides a map with the petition at Attachment D.
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    In support of the petition, GWRC asserts that the proposed 
transaction will not result in any changes in service levels, 
operational changes, or changes in the competitive balance with other 
rail carriers.\2\ (Pet. 5.) GWRC states that the proposed transaction 
would perpetuate operations by GWRC that have been in place since 1995 
and that, therefore, no shippers will be impacted. (Id.) GWRC states 
that the purposes of the proposed transaction are to preserve the 
existing operations and future viability of the Hartwell Line and 
Toccoa-Elberton Line, and to facilitate their orderly disposition in 
the future. (Id. at 6.) On April 1, 2022, GWRC filed a certification 
that the proposed transaction does not involve any provision or 
agreement that may limit future interchange with a third-party 
connecting carrier.
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    \2\ GWRC notes that the proposed transaction does not qualify 
for the class exemption under 49 CFR 1180.2(d)(2) because the 
Hartwell Line and Toccoa-Elberton Line connect in Bowersville. (Pet. 
4.)
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Discussion and Conclusions

    Under 49 U.S.C. 11323(a)(3), the acquisition of control of a rail 
carrier by any number of rail carriers requires prior Board approval. 
Under 49 U.S.C. 10502(a), however, the Board must exempt a transaction 
or service from regulation if it finds that: (1) Regulation is not 
necessary to carry out the rail transportation policy (RTP) of 49 
U.S.C. 10101; and (2) either the transaction or service is limited in 
scope, or regulation is not needed to protect shippers from the abuse 
of market power.
    In this case, an exemption from the prior approval requirements of 
49 U.S.C. 11323-25 is consistent with the standards of 10502. Detailed 
scrutiny of the proposed transaction through an application for review 
and approval under 11323-25 is not necessary here to carry out the RTP. 
An exemption would promote the RTP by minimizing the need for federal 
regulatory control over the transaction, 10101(2); ensuring the 
development and continuation of a sound rail transportation system that 
would continue to meet the needs of the public, 10101(4); fostering 
sound economic conditions in transportation, 10101(5); encouraging 
efficient management, 10101(9); and providing for the expeditious 
resolution of this proceeding, 10101(15). Other aspects of the RTP 
would not be adversely affected.
    Regulation of the transaction is not needed to protect shippers 
from an abuse of market power.\3\ The record indicates that no shipper 
would lose an existing rail service option as a result of the proposed 
transaction. GWRC states that, since it would continue to operate the 
Toccoa-Elberton Line as it has since 1995, the proposed transaction 
would not result in any service level or operational changes. 
Accordingly, the transaction would not result in any shippers losing 
access to rail service or foreclose any transportation options 
currently available to shippers. Moreover, no shipper (or any other 
entity) has objected to the proposed transaction.
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    \3\ Given this finding, the Board need not determine whether the 
transaction is limited in scope. See 10502(a).
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    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 11324 and 
11325 that involve only Class III rail carriers. Accordingly, the Board 
may not impose labor protective conditions here because all carriers 
involved are Class III carriers.
    The proposed transaction is exempt from environmental reporting 
requirements under 49 CFR 1105.6(c)(1)(i) because it would not result 
in any significant change in carrier operations. The transaction is 
also exempt from the historic reporting requirements under 49 CFR 
1105.8(b)(3), because it would not substantially change the level of 
maintenance of railroad properties.
    GWRC states that the proposed transaction would be consummated on 
or shortly after the effective date of the exemption. The exemption 
will be effective June 22, 2022, and petitions to stay will be due by 
June 2, 2022. Petitions for reconsideration or petitions to reopen will 
be due by June 13, 2022.
    It is ordered:
    1. Under 49 U.S.C. 10502, the Board exempts from the prior approval 
requirements of 49 U.S.C. 11323-25 the transaction described above.
    2. Notice of the exemption will be published in the Federal 
Register.
    3. The exemption will become effective on June 22, 2022. Petitions 
to stay must be filed by June 2, 2022.

[[Page 32068]]

Petitions for reconsideration or petitions to reopen must be filed by 
June 13, 2022.

    By the Board, Board Members Fuchs, Hedlund, Oberman, Primus, and 
Schultz.
Aretha Laws-Byrum,
Clearance Clerk.
[FR Doc. 2022-11289 Filed 5-25-22; 8:45 am]
BILLING CODE 4915-01-P