[Federal Register Volume 87, Number 135 (Friday, July 15, 2022)]
[Notices]
[Pages 42536-42537]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-15196]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36529]


SMS Rail Service, Inc.--Change in Operator Exemption Including 
Acquisition by Lease--Salem Branch Line in Salem and Gloucester 
Counties, N.J.

    SMS Rail Service, Inc. (SMS), a Class III rail carrier, has filed a 
verified notice of exemption \1\ pursuant to 49 CFR 1150.41 to assume 
operations over approximately 19.4 miles of rail line extending from 
milepost 11.0 in Swedesboro, N.J., to milepost 28.4 in the Salem Rail 
Yard in Salem City, N.J., including the Glass House Branch Spur 
extending from milepost 0.0 to milepost 1.2 in Salem City, N.J. (the 
Line), which is owned by Salem County, N.J. (the County).\2\ Currently, 
U S Rail Corporation (U S Rail) and JP Rail, Inc. d/b/a Southern 
Railroad Company of New Jersey (JP Rail), both Class III rail carriers, 
possess Board authority to operate the Line.\3\
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    \1\ SMS submitted its verified notice of exemption on June 10, 
2022, and filed a supplement on June 29, 2022. In light of the 
supplement, June 29, 2022, is deemed the filing date of the verified 
notice.
    \2\ According to the verified notice, the trackage to be leased 
also includes approximately 0.8 miles of ``sidings, passing and yard 
tracks.''
    \3\ JP Rail acquired authority to operate the Line in 1995. See 
JP Rail, Inc. d/b/a S. R.R. of N.J.--Notice of Exemption--Operation 
of Salem Branch Rail Line in Salem Cnty., N.J., FD 32700 (ICC served 
Oct. 10, 1995). U S Rail acquired authority to operate the Line in 
2009. See U S Rail Corp.--Operation Exemption--U S Rail Corp. of 
N.J., FD 35317 (STB served Nov. 27, 2009); see also U S Rail Corp. 
of N.J.--Lease Exemption--Cnty. of Salem, N.J., FD 35310 (STB served 
Nov. 27, 2009). Neither rail carrier has sought Board authority to 
discontinue operations over the Line. See JP Rail, Inc. d/b/a S. 
R.R. of N.J.--Operation Exemption--Rail Line in Salem Cnty., N.J., 
FD 35596, slip op. at 1-2 n.1 (STB served Feb. 29, 2012).
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    According to the verified notice, SMS has entered into an agreement 
with the County to provide exclusive rail service over the Line, and JP 
Rail has consented to the proposed change in operators and 
discontinuance of its operating authority.\4\
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    \4\ According to the verified notice, SMS has attempted to 
contact U S Rail but the company is unreachable. Additionally, SMS 
states that it cannot confirm whether U S Rail currently operates in 
the region where the Line is located. However, an attachment to the 
verified notice shows that the Ohio Secretary of State website lists 
U S Rail as an active corporation. Because U S Rail has not 
consented to the discontinuance of its operating authority, this 
notice of exemption does not apply to U S Rail, and U S Rail retains 
its authority to operate the Line. However, U S Rail may seek Board 
authority to discontinue operations over the Line, or a third party 
may request that the Board authorize an ``adverse'' discontinuance 
of U S Rail's operating authority.
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    As required under 49 CFR 1150.43(h), SMS certifies that the 
proposed transaction does not involve a provision or agreement that may 
limit future interchange with a third-party connecting carrier.
    SMS certifies that its projected revenues as a result of the 
transaction will not result in the creation of a Class I or Class II 
rail carrier but also states that its annual revenues will exceed $5 
million following the transaction. Pursuant to 49 CFR 1150.42(e), if a 
carrier's projected revenues will exceed $5 million, it must, at least 
60 days before the exemption becomes effective, post a notice of its 
intent to undertake the proposed transaction at the workplace of the 
employees on the affected lines, serve a copy of the notice on the 
national offices of the labor unions with employees on the affected 
lines, and certify to the Board that it has done so. SMS states that it 
complied with the advance notice posting requirements of 49 CFR 
1150.42(e) on June 29, 2022, and that SMS has been advised that no 
labor union represents JP Rail employees.
    Under 49 CFR 1150.42(b), a change in operator exemption requires 
that notice be given to shippers. SMS certifies that it has provided 
notice of the proposed change in operator to the sole shipper on the 
Line.
    The transaction may be consummated on or after August 28, 2022, the 
effective date of the exemption (60 days after SMS's certification 
under 49 CFR 1150.42(e)).
    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 August 19, 
2022 (at least seven days before the exemption becomes effective).
    All pleadings, referring to Docket No. FD 36529, must be filed with 
the Surface Transportation Board either via e-filing on the Board's 
website or in writing addressed to 395 E Street SW, Washington, DC 
20423-0001. In addition, a copy of each pleading must be served on 
SMS's representative, Robert A. Klein, Berkowitz Klein, LLP, 629 B 
Swedesford Road, Swedesford Corporate Center, Malvern, PA 19355-1530.
    According to SMS, 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: July 12, 2022.


[[Page 42537]]


    By the Board, Mai T. Dinh, Director, Office of Proceedings.
Brendetta Jones,
Clearance Clerk.
[FR Doc. 2022-15196 Filed 7-14-22; 8:45 am]
BILLING CODE 4915-01-P