[Federal Register Volume 88, Number 102 (Friday, May 26, 2023)]
[Notices]
[Pages 34205-34206]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-11342]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36702]


Chesapeake and Indiana Railroad Company, LLC--Lease and Operation 
Exemption--Northern Indiana Railroad Company, LLC

    Chesapeake & Indiana Railroad Company, LLC (CKIN), a Class III rail 
carrier, has filed a verified notice of exemption pursuant to 49 CFR 
1150.41 to continue to lease and operate 27.52 miles of rail line that 
extend between milepost CF 0.63, at or near Lacrosse, Ind., and 
milepost CF 15.23, at or near Wellsboro, Ind., and between milepost CI 
218.0, at or near English Lake, Ind., and milepost CI 230.92, at or 
near

[[Page 34206]]

Malden, Ind., in LaPorte, Porter, and Starke Counties, Ind. (the 
Line).\1\
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    \1\ By letter filed May 23, 2023, CKIN corrected the milepost 
description for the portion of the Line between Lacrosse and 
Wellsboro, indicating that all references in its verified notice to 
``milepost CF 0.23'' should be replaced with ``milepost CF 0.63'' 
and all references to the Line constituting ``27.92 miles'' should 
be replaced with ``27.52 miles.''
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    According to the verified notice, the Line is currently owned by 
Northern Indiana Railroad, LLC (NIRC), and operated under lease by 
CKIN. CKIN's predecessor, Chesapeake & Indiana Railroad, Inc.,\2\ first 
obtained authorization to operate approximately 32.97 miles of track 
(including the Line and an additional 5.45-mile segment) in 2004 
pursuant to a lease with the Line's former owner, the Town of North 
Judson, Ind. (the Town). Chesapeake & Ind. R.R.--Operation Exemption--
N. Judson, Ind., FD 34529 (STB served Aug. 20, 2004). An amended lease 
between CKIN and the Town was subsequently filed with the Board and 
went into effect in 2017. Chesapeake & Ind. R.R.--Amended Operation 
Exemption--N. Judson, Ind., FD 36147 (STB served Oct. 20, 2017). CKIN 
subsequently discontinued service on the additional 5.45-mile segment. 
Chesapeake & Ind. R.R.--Discontinuance of Serv. Exemption--in Starke 
Cnty., Ind., AB 1259X (STB served Nov. 28, 2017).\3\ In 2021, NIRC 
acquired from the Town the entire 32.97 miles of rail line (including 
the Line and the 5.45-mile segment over which service had been 
discontinued), see N. Ind. R.R.--Acquis. Exemption--N. Judson, Ind., FD 
36499 (STB served Apr. 2, 2021), and NIRC assumed the lease with CKIN. 
In connection with the sale transaction, CKIN and NIRC entered into a 
new lease agreement, amending the terms under which CKIN will continue 
its existing operations on the Line. CKIN states that the new lease 
agreement will become effective as of the effective date of this notice 
of exemption.\4\
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    \2\ CKIN was recently acquired by Gulf & Atlantic Railways, LLC 
(an affiliate of Macquarie Infrastructure Partners V GP, LLC). As 
part of that transaction, CKIN was converted to a limited liability 
company through an asset transfer. (Verified Notice 2 n.1 (citing 
Macquarie Infrastructure Partners V GP, LLC, Verified Notice 3 n.5, 
Macquarie Infrastructure Partners V GP, LLC--Control Exemption--Camp 
Chase Rail, LLC, FD 36685).) Both the current CKIN and its 
predecessor are referred to herein as CKIN.
    \3\ The discontinued segment extended between milepost CI 
212.55, at or near North Judson, and milepost CI 218.0, at or near 
English Lake, in Starke County. (See Verified Notice 3 n.4.)
    \4\ CKIN states that, because CKIN is a Class III rail carrier 
and is seeking to lease and operate the rail property of a third 
party over which CKIN already operates, the new lease transaction is 
within the scope of the exemption set out in 49 CFR 1150.41. 
(Verified Notice 4 & n.7 (citing C&S R.R.--Lease & Operation 
Exemption--Reading Blue Mountain & N. R.R., FD 36517 (STB served May 
28, 2021); Portland & W. R.R.--Amended Lease & Operation Exemption 
Containing Interchange Commitment--BNSF Ry., FD 36391 (STB served 
Apr. 16, 2020)).)
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    CKIN certifies that its projected annual revenues as a result of 
the transaction will not result in the creation of a Class II or Class 
I rail carrier and will not exceed $5 million. CKIN states that neither 
the new lease agreement nor the prior lease agreement contains any 
provision or agreement that may limit future interchange with a third 
party connecting carrier and that the Line is not subject to any 
agreement that imposes such an interchange commitment.
    The transaction may be consummated on or after June 11, 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 for stay must be filed no later than June 2, 2023 
(at least seven days before the exemption becomes effective).
    All pleadings, referring to Docket No. FD 36702, 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 
CKIN's representative, Terence M. Hynes, Sidley Austin LLP, 1501 K St., 
NW, Washington, DC 20005.
    According to CKIN, 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: May 23, 2023.

    By the Board, Mai T. Dinh, Director, Office of Proceedings.
Stefan Rice,
Clearance Clerk.
[FR Doc. 2023-11342 Filed 5-25-23; 8:45 am]
BILLING CODE 4915-01-P