[Federal Register Volume 78, Number 133 (Thursday, July 11, 2013)]
[Notices]
[Pages 41831-41832]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-16632]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[Docket No. FD 35744]
Charles Barenfanger, Jr.--Acquisition of Control Exemption--
Vandalia Railroad Company \1\
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\1\ In the verified notice of exemption initially filed on June
20, 2013, this proceeding was captioned as a ``continuance in
control'' exemption, with Charles Barenfanger, Jr. and Agracel, Inc.
(Agracel) as co-applicants. On June 25, 2013, however, Barenfanger
filed a letter supplementing and clarifying the verified notice of
exemption. As clarified, Barenfanger is the only party to whom the
exemption will apply, and the described transaction involves an
acquisition of control rather than continuance in control. See Class
Exemption for Acquis. or Operation of Rail Lines by Class III Rail
Carriers Under 49 U.S.C. 10902, EP 529, slip op. at 2 (STB served
Nov. 29, 1996); Nev. 5, Inc.--Control Exemption--GTR Leasing LLC, FD
35635, slip op. at 1 n.1 (STB served June 15, 2012). The proceeding
has been re-captioned accordingly.
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Charles Barenfanger, Jr., a noncarrier, has filed a verified notice
of exemption under 49 CFR 1180.2(d)(2) to acquire control of Vandalia
Railroad Company (Vandalia), a Class III rail carrier.
Under the proposed transaction, Barenfanger would acquire 51
percent of Vandalia.\2\ According to Barenfanger, he currently controls
Effingham Railroad Company (EFR), a Class III rail carrier in Illinois,
and Illinois Western Railroad Company (IWR).\3\
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\2\ Agracel, a company in which Barenfanger has no ownership
interest, would acquire 49 percent of Vandalia.
\3\ See Ill. W. R.R.--Change in Operator Exemption--City of
Greenville, Ill., FD 32853 (STB served Jan. 30, 1996). But see
Effingham R.R.--Pet. for Declaratory Order--Constr. at Effingham,
Ill., 2 S.T.B. 606 (1997), reconsideration denied (STB served Sept.
18, 1998), aff'd sub nom. United Transp. Union v. STB, 183 F.3d 606
(7th Cir. 1999). Barenfanger indicates that he owns 51 percent of
EFR and IWR and that Agracel owns 49 percent of these companies.
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Barenfanger states that the proposed transaction is scheduled to be
consummated no sooner than the effective date of the notice of
exemption, but no later than 30 days after the filing of the verified
notice of exemption. The earliest this transaction can be consummated
is July 25, 2013, the effective date of the exemption (30 days after
the verified notice of exemption was filed).\4\
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\4\ Barenfanger's verified notice of exemption is deemed to have
been filed on June 25, 2013, the date Barenfanger filed his
supplemental information.
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Barenfanger represents that: (1) The properties to be operated by
Vandalia and the properties operated by EFR and IWR do not connect with
each other; \5\ (2) the proposed transaction is not part of a series of
anticipated transactions
[[Page 41832]]
that would connect the carriers with each other or any railroad in
their corporate family; 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). Barenfanger states that the purpose of the transaction is
the achievement of operating efficiency and improved rail service in
Vandalia, Ill.
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\5\ In his June 25 letter, Barenfanger states that Vandalia
operates in Vandalia, Ill.; EFR operates in Effingham, Ill.; and IWR
operates in Greenville, Ill.
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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 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. Petitions for stay must be filed no later than July 18, 2013
(at least seven days before the exemption becomes effective).
An original and ten copies of all pleadings, referring to Docket
No. FD 35744, must be filed with the Surface Transportation Board, 395
E Street SW., Washington, DC 20423-0001. In addition, a copy of each
pleading must be served on John M. Robinson, Vinson & Elkins LLP, 2200
Pennsylvania Avenue NW., Suite 500 West, Washington, DC 20037-1701.
Board decisions and notices are available on our Web site at
``www.stb.dot.gov.''
Decided: July 5, 2013.
By the Board, Rachel D. Campbell, Director, Office of
Proceedings.
Derrick A. Gardner,
Clearance Clerk.
[FR Doc. 2013-16632 Filed 7-10-13; 8:45 am]
BILLING CODE 4915-01-P