[Federal Register Volume 65, Number 225 (Tuesday, November 21, 2000)]
[Page 69991]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-29608]



Surface Transportation Board

[STB Finance Docket No. 33957]

Kern W. Schumacher and Morris H. Kulmer--Continuance in Control 
Exemption--Kern Valley Railroad Company

    Kern W. Schumacher and Morris H. Kulmer, individuals (collectively 
applicants), have filed a verified notice of exemption to continue in 
control of the Kern Valley Railroad Company (KVR), upon KVR's becoming 
a Class III railroad.
    The transaction is scheduled to be consummated on or after November 
13, 2000.
    This transaction is related to STB Finance Docket No. 33956, Kern 
Valley Railroad Company--Acquisition and Operation Exemption--Trinidad 
Railway, Inc., wherein KVR seeks to acquire an approximate 30.0-mile 
line of railroad (line) in Las Animas County, CO, from Trinidad 
Railway, Inc. (TRI) and has agreed to assume TRI's common carrier 
railroad obligations pending the line's abandonment.\1\

    \1\ The line is the subject of a notice of exemption for its 
abandonment in Trinidad Railway, Inc.--Abandonment Exemption--in Las 
Animas County, CO, STB Docket No. AB-573X (STB served Sept. 21, 
2000). By decision served October 20, 2000, the Board postponed the 
effective date of that exemption until November 30, 2000, pending 
completion of the offer of financial assistance (OFA) process or, if 
the OFA process terminated, a period to provide for interim trail 
use negotiations.

    Applicants currently indirectly control one existing Class III 
railroad: Tulare Valley Railroad Company, operating in the State of 
    Applicants state that (i) the rail line of KVR will not connect 
with any other lines of a railroad under their control or within their 
corporate family, (ii) the transaction is not part of a series of 
transactions that would connect the railroads with each other or any 
railroad in applicants' corporate family, and (iii) the transaction 
does not involve a Class I 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. Section 11326(c), however, does 
not provide for labor protection for transactions under sections 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 
    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 will not automatically stay the transaction.
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 33957, must be filed with the Surface Transportation 
Board, Office of the Secretary, Case Control Unit, 1925 K Street, NW., 
Washington, DC 20423-0001. In addition, a copy of each pleading must be 
served on Fritz R. Kahn, Esq., 1920 N Street, NW., 8th Floor, 
Washington, DC 20036-1601.
    Board decisions and notices are available on our website at 

    Decided: November 13, 2000.

    By the Board, David M. Konschnik, Director, Office of 
Vernon A. Williams,
[FR Doc. 00-29608 Filed 11-20-00; 8:45 am]