[Federal Register Volume 87, Number 246 (Friday, December 23, 2022)]
[Notices]
[Page 79034]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-28031]


=======================================================================
-----------------------------------------------------------------------

SURFACE TRANSPORTATION BOARD

[Docket No. FD 36642]


Patriot Rail Company LLC, SteelRiver Transport Ventures LLC, 
Global Diversified Infrastructure Fund (North America) LP, First State 
Infrastructure Managers (International) Limited, and Mitsubishi UFJ 
Financial Group, Inc.--Control Exemption--Delta Southern Railroad, Inc.

    Patriot Rail Company LLC (Patriot), SteelRiver Transport Ventures 
LLC; Global Diversified Infrastructure Fund (North America) LP; First 
State Infrastructure Managers (International) Limited; and Mitsubishi 
UFJ Financial Group, Inc. (MUFG) (collectively, Patriot Rail), have 
filed a verified notice of exemption pursuant to 49 CFR 1180.2(d)(2) to 
acquire control of Delta Southern Railroad, Inc. (DSRR), a Class III 
rail carrier.\1\ Through this transaction, Patriot Rail would acquire 
from West Branch Intermediate Holdings, LLC (West Branch), a 
noncarrier, a controlling interest in DSRR. Patriot Rail currently 
controls 31 Class III rail carriers (the Patriot Short Lines).\2\
---------------------------------------------------------------------------

    \1\ The verified notice states that DSRR owns and operates two 
lines: the first rail line begins at Tallulah, La., and continues to 
Lake Providence, La.; the second line extends from Monroe, La., to 
Sterlington, La. Maps depicting the DSRR lines are contained in 
Exhibit B of the verified notice.
    \2\ Exhibit C of the verified notice of exemption lists the 
short line carriers indirectly controlled by Patriot Rail. Maps 
depicting the Patriot Short Lines are contained in Exhibit D of the 
verified notice.
---------------------------------------------------------------------------

    The transaction may be consummated on or after January 6, 2023, the 
effective date of the exemption.\3\
---------------------------------------------------------------------------

    \3\ On September 28, 2022, Lake Providence Port Commission 
(LPPC) replied in opposition to the verified notice, requesting that 
the Board postpone the effective date and ``ultimately reject 
Patriot Rail's petition insofar as it would permit [West Branch and 
DSRR] to disrupt'' the feeder line application proceeding in Docket 
No. FD 36447, in which LPPC is attempting to acquire one of DSRR's 
lines. (LPPC Reply 1-2.) By decision served October 14, 2022, this 
proceeding was placed in abeyance until further order of the Board, 
and Patriot Rail, DSRR, and LPPC were directed to meet and confer on 
the issues raised in Docket No. FD 36647. Patriot Rail Co. LLC,--
Control Exemption--Delta S. R.R., FD 36447 et al., slip op. at 2 
(STB served October 14, 2022). By decision served December 20, 2022, 
the Board denied LPPC's request to reject the notice of exemption 
and lifted the abeyance in this proceeding.
---------------------------------------------------------------------------

    According to the verified notice, through a Stock Purchase 
Agreement, Patriot would acquire a controlling interest in DSRR through 
Patriot's purchase of all DSRR's issued and outstanding stock. Patriot 
states that the proposed transaction involves a stock acquisition and 
would have no effect on DSRR's corporate entity status.
    The verified notice indicates that: (1) none of the Patriot Short 
Lines connect with DSSR; (2) the transaction is not part of a series of 
anticipated transactions that would connect any of the Patriot Short 
Lines or DSRR; and (3) the transaction does not involve a Class I rail 
carrier. The proposed transaction is therefore exempt from the prior 
approval requirements of 49 U.S.C. 11323 pursuant to 49 CFR 
1180.2(d)(2).
    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. Because this 
transaction involves Class III rail carriers only, the Board, under the 
statute, may not impose labor protective conditions for this 
transaction.
    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 30, 
2022 (at least seven days before the exemption becomes effective).
    All pleadings, referring to Docket No. FD 36642, 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, one copy of each pleading must be served on 
Patriot Rail's representative, John M. Scheib, Gentry Locke, 919 E Main 
Street, Suite 1130, Richmond, VA 23219.
    According to Patriot Rail, this action is categorically excluded 
from environmental review under 49 CFR 1105.6(c) and from historic 
reporting requirements under 49 CFR 1105.8(b).
    Board decisions and notices are available at www.stb.gov.

    Decided: December 20, 2022.

    By the Board, Cynthia T. Brown, Acting Director, Office of 
Proceedings.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2022-28031 Filed 12-22-22; 8:45 am]
BILLING CODE 4915-01-P