[Federal Register Volume 88, Number 134 (Friday, July 14, 2023)]
[Notices]
[Page 45266]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-14982]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36712]


Carolina Coastal Railway, Inc.--Acquisition Exemption--Line of 
Clinton Industrial Switching District, Inc., d/b/a Clinton Terminal 
Railroad Company

    Carolina Coastal Railway, Inc. (CLNA), a Class III rail carrier, 
has filed a verified notice of exemption under 49 CFR 1180.2(d)(2) to 
acquire approximately 3.53 miles of rail line between milepost 199.0 in 
Moltonville, NC, and the end of the track at milepost 202.53 in 
Clinton, NC (the Line), from Clinton Industrial Switching District, 
Inc., d/b/a Clinton Terminal Railroad Company (CTR), also a Class III 
rail carrier.
    The verified notice states that CLNA will acquire the Line from CTR 
pursuant to an Asset Purchase Agreement entered into on June 28, 
2023.\1\ CLNA intends to operate the Line as a CLNA division, under a 
separate trade name and reporting marks.
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    \1\ A redacted version of the agreement was filed with the 
verified notice of exemption. An unredacted version was filed 
concurrently under seal, along with a motion for protective order 
pursuant to 49 CFR 1104.14(b). That motion will be addressed in a 
separate decision.
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    CLNA represents that: (1) the Line does not connect with the 
existing rail lines of CLNA or the lines of any rail carrier in the 
CLNA corporate family; (2) the transaction is not part of a series of 
anticipated transactions that would result in such a connection; 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.
    The transaction may be consummated on or after July 30, 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 July 21, 2023 
(at least seven days before the exemption becomes effective).
    All pleadings, referring to Docket No. FD 36712, 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 
CLNA's representative, Thomas J. Litwiler, Fletcher & Sippel LLC, 29 
North Wacker Drive, Suite 800, Chicago, IL 60606-3208.
    According to CLNA, 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: July 11, 2023.

    By the Board, Mai T. Dinh, Director, Office of Proceedings.
Eden Besera,
Clearance Clerk.
[FR Doc. 2023-14982 Filed 7-13-23; 8:45 am]
BILLING CODE 4915-01-P