[Federal Register Volume 79, Number 59 (Thursday, March 27, 2014)]
[Notices]
[Pages 17235-17236]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-06777]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[Docket No. FD 35800]
Genesee & Wyoming Inc.--Continuance in Control Exemption--Rapid
City, Pierre & Eastern Railroad, Inc
Genesee & Wyoming Inc. (GWI), a noncarrier, has filed a verified
notice of exemption pursuant to 49 CFR 1180.2(d)(2), to continue in
control of Rapid City, Pierre & Eastern Railroad, Inc. (RCP&E), a
noncarrier, together with other railroads in GWI's corporate family,
upon RCP&E's becoming a Class II railroad.
This transaction is related to a concurrently filed verified notice
of exemption in Rapid City, Pierre & Eastern Railroad, Inc.--
Acquisition and Operation Exemption Including Interchange Commitment--
Dakota, Minnesota & Eastern Railroad Corporation, Docket No. FD 35799,
wherein RCP&E seeks Board approval under 49 CFR 1150.35 to acquire from
Dakota, Minnesota & Eastern Railroad Corporation d/b/a Canadian Pacific
(DM&E) \1\ and to operate approximately 670 miles of rail lines known
as the DM&E West Lines.\2\ Upon consummation, RCP&E would own and
operate rail lines in Nebraska, Minnesota, South Dakota, and
Wyoming.\3\ RCP&E would also acquire approximately 219 miles of
incidental trackage rights over connecting lines of DM&E and other
carriers.
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\1\ In Canadian Pacific Railway--Control--Dakota, Minnesota &
Eastern Railroad, FD 35081 (STB served Sept. 30, 2008), the Board
approved an application allowing Canadian Pacific Railway Company
(CP) to acquire indirect control of DM&E and DM&E's wholly owned
rail subsidiary, Iowa, Chicago & Eastern Railroad Corporation
(IC&E).
\2\ The DM&E West Lines also are the subject of an ongoing
proceeding before the Board. In that proceeding, the State of South
Dakota, by and through its Department of Transportation (State),
filed a petition asking the Board to enforce three representations
allegedly made by CP during the 2008 acquisition-of-control
proceeding regarding investments that CP would make in DM&E and IC&E
(collectively in that proceeding, DME). The Board issued decisions
allowing the State to engage in discovery concerning those claims
and setting a procedural schedule. See Canadian Pac. Ry.--Control--
Dakota, Minn. & E. R.R., FD 35081 (Sub-No. 2) (STB served Dec. 20,
2013, and Mar. 10, 2014). Discovery remains ongoing in that
proceeding.
\3\ RCP&E will also be acquiring a line in Nebraska that is
currently leased to and operated by Nebraska Northwestern Railroad,
Inc.
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The purpose of this verified notice of exemption is to enable GWI
to continue in control of RCP&E, together with the other railroads in
GWI's corporate family, upon RCP&E's becoming a Class II carrier. GWI
points out that the transaction would allow RCP&E to take advantage of
the administrative, marketing, and operational support that GWI can
provide. In addition, according to GWI, as a long-term holder of short
line railroads, GWI's ownership of RCP&E should provide shippers with
the comfort of stable ongoing rail service.
Although this exemption could become effective on April 10, 2014
(30 days after the notice of exemption was filed), the parties do not
intend to consummate this transaction until the concurrently filed
notice of exemption in Docket No. FD 35799 becomes effective and all
other closing conditions have been met. That exemption could become
effective on April 25, 2014 (45 days after that exemption was
filed).\4\
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\4\ See 49 CFR 1150.35(e).
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GWI notes that it currently controls, directly or indirectly, one
Class II carrier and 100 Class III carriers operating in the United
States.\5\
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\5\ GWI was authorized, subject to conditions, to control
RailAmerica, Inc., and its subsidiary railroads in Genesee & Wyoming
Inc.--Control--RailAmerica, Inc., FD 35654 (STB served December 20,
2012). GWI provides with its notice of exemption a map showing the
locations of the GWI-controlled railroads.
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GWI represents that: (1) None of the railroads controlled by GWI
would connect with the rail lines being acquired by RCP&E, or with the
incidental trackage rights associated with RCP&E's acquisition; (2) the
continuance in control is not part of a series of anticipated
transactions that would connect RCP&E with the rail lines of any other
carriers in GWI's corporate family; and (3) the transaction does not
involve a Class I rail carrier. Therefore, the 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. As a condition to the use of
this exemption, any employees adversely affected by this transaction
will be protected by the conditions set forth in New York Dock
Railway--Control--Brooklyn Eastern District Terminal, 360 I.C.C. 60
(1979).
[[Page 17236]]
If the 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 would not automatically stay the effectiveness of the exemption.
Petitions for stay must be filed no later than April 3, 2014 (at least
7 days before the exemption becomes effective).
An original and 10 copies of all pleadings, referring to Docket No.
FD 35800 must be filed with the Surface Transportation Board, 395 E
Street SW., Washington, DC 20423-0001. In addition, one copy of each
pleading must be served on Eric M. Hocky, Clark Hill PLC, One Commerce
Square, 2005 Market Street, Suite 1000, Philadelphia, PA 19103.
Board decisions and notices are available on our Web site at
``www.stb.dot.gov.''
By the Board, Rachel D. Campbell, Director, Office of
Proceedings.
Derrick A. Gardner,
Clearance Clerk.
[FR Doc. 2014-06777 Filed 3-26-14; 8:45 am]
BILLING CODE 4915-01-P