[Federal Register Volume 78, Number 8 (Friday, January 11, 2013)]
[Notices]
[Page 2482]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-00443]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[Docket No. FD 35708]


Koch Industries, Inc.--Acquisition of Control Exemption--Texas 
South-Eastern Railroad Company

    Koch Industries, Inc. (Koch), a noncarrier, has filed a verified 
notice of exemption to acquire indirect control of Texas South-Eastern 
Railroad Co. (TSE), a Class III rail carrier.
    Koch states that the transaction is part of an agreement in which 
Georgia-Pacific Building Products, an indirect wholly owned subsidiary 
of Koch, is purchasing from International Paper Company certain assets 
used in connection with, and certain equity interest relating to, 
Temple-Inland, Inc.'s building products business. Koch intends to 
consummate the transaction on or shortly after February 1, 2013 (the 
effective date of the exemption is January 26, 2013, 30 days after the 
verified notice was filed).
    Koch currently controls directly or indirectly four other Class III 
rail carriers in the states of Mississippi, Kansas, and Texas: Blue 
Rapids Railway Company, LLC; KM Railways, LLC.; Old Augusta Railroad, 
LLC.; and Moscow Camden and San Augustine Railroad, LLC.
    Koch states that: (1) The rail line does not connect with any 
railroads owned or controlled by Koch; (2) this transaction is not part 
of a series of anticipated transactions that would connect any of the 
railroads controlled by Koch with TSE; and (3) the transaction does not 
involve a Class I railroad. Therefore, the transaction is 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. Section 11326(c), however, does 
not provide for labor protection for transactions under Sec. Sec.  
11324 and 11325 that involve only Class III rail carriers. Accordingly, 
the Board may not impose labor protective conditions here because all 
of the carriers involved are Class III carriers.
    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. Stay petitions must be filed no later than January 18, 2013 
(at least 7 days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 35708, must be filed with the Surface Transportation Board, 395 E 
Street SW., Washington, DC 20423-0001. In addition, a copy must be 
served on David H. Coburn, Steptoe & Johnson LLP, 1330 Connecticut Ave. 
NW., Washington, DC 20036.
    Board decisions and notices are available on our Web site at 
www.stb.dot.gov.

    Decided: January 8, 2013.

    By the Board, Rachel D. Campbell, Director, Office of 
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2013-00443 Filed 1-10-13; 8:45 am]
BILLING CODE 4915-01-P