[Federal Register Volume 88, Number 62 (Friday, March 31, 2023)]
[Notices]
[Pages 19348-19349]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-06727]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36683]


Fortress Investment Group LLC et al.--Continuance in Control 
Exemption--East Ohio Valley Railway LLC

    Fortress Investment Group LLC (Fortress), a non-carrier, has filed 
a verified notice of exemption under 49 CFR 1180.2(d)(2) on behalf of 
FTAI Infrastructure, Inc. (FTAI Infrastructure), Percy Acquisition LLC 
(PALLC), and Transtar, LLC (Transtar), to continue in control of East 
Ohio Valley Railway LLC (EOVR) upon EOVR becoming a rail common 
carrier.
    This transaction is related to a concurrently filed verified notice 
of exemption in East Ohio Valley Railway LLC-Acquisition & Operation 
Exemption-Ohio River Partners Shareholder LLC, Docket No. FD 36682. In 
that proceeding, EOVR has filed a verified notice of exemption pursuant 
to 49 CFR 1150.31 to acquire from Ohio River Partners Shareholder LLC 
(ORPS), and operate, a 12.2-mile rail line between milepost 60.5 near 
Powhatan Point, Ohio, and milepost 72.7 near Hannibal, Ohio (the 
Line).\1\
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    \1\ FTAI Infrastructure has a 50.1% equity interest in ORPS.
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    According to the verified notice, Fortress will indirectly control 
EOVR

[[Page 19349]]

upon its acquiring the Line and becoming a rail carrier subsidiary of 
Transtar. FTAI Infrastructure is managed by an affiliate of Fortress 
and indirectly controls PALLC and Transtar, which currently owns and 
directly controls five non-connecting railroad subsidiaries: Union 
Railroad Company, LLC; Gary Railway Company; Delray Connecting Railroad 
Company; Texas & Northern Railway Company; and The Lake Terminal 
Railroad Company. Another Fortress affiliate, Brightline Holding LLC, 
owns DesertXpress Enterprises, LLC (DXE), a common carrier railroad 
authorized to construct a high-speed passenger rail line in California 
and Nevada. See DesertXpress Enters., LLC--Constr. & Operation 
Exemption--in Victorville, Cal. & Las Vegas, Nev., FD 35544 (STB served 
Oct. 25, 2011).
    Fortress states that: (1) the Line does not connect with the lines 
of any of the rail common carriers currently owned by Transtar, nor 
would it connect with the proposed DXE passenger rail line; (2) this 
control transaction is not part of a series of anticipated transactions 
that would connect any of those rail common carriers; and (3) the 
transaction does not involve a Class I rail carrier. Therefore, the 
proposed transaction is exempt from the prior approval requirements of 
49 U.S.C. 11323. See 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.
    The earliest this transaction may be consummated is April 16, 2023, 
the effective date of the exemption (30 days after the verified notice 
was filed). 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 April 
7, 2023 (at least seven days before the exemption becomes effective).
    All pleadings, referring to Docket No. FD 36683, should be filed 
with the Surface Transportation Board 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 
Fortress's representative, Terence M. Hynes, Sidley Austin LLP, 1501 K 
Street NW, Washington, DC 20005.
    According to Fortress, this action is 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: March 28, 2023.

    By the Board, Mai T. Dinh, Office of Proceedings.
Stefan Rice,
Clearance Clerk.
[FR Doc. 2023-06727 Filed 3-30-23; 8:45 am]
BILLING CODE 4915-01-P