Watco Companies, Inc., and Watco Transportation Services, Inc.-Continuance in Control Exemption-Michigan Central Railway, LLC, 41386-41387 [E7-14310]

Download as PDF 41386 Federal Register / Vol. 72, No. 144 / Friday, July 27, 2007 / Notices interagency coordination meeting will be held August 14, 2007 with federal, state, and local agencies. In addition, public information meetings and further meetings for community officials will be held to solicit public and agency input on the project coordination plan, the purpose and need for the project, and the reasonable range of alternatives. A location public hearing will be held to present the findings of the Draft EIS. Public notice will be given announcing the time and place of all public meetings and the hearing. The Draft EIS will be available for public and agency review and comment prior to the public hearing. To ensure that the full range of issues related to this proposed action are addressed and all significant issues are identified, comments and suggestions are invited from all interested parties. Comments and questions concerning this proposed action should be directed to FHWA or MoDOT at the addresses provided above. (Catalog of Federal Domestic Assistance Program Number 20.205, Highway Planning and Construction. The regulations implementing Executive Order 12372 regarding intergovernmental consultation on Federal programs and activities apply to this program.) Issued on: July 19, 2007. Peggy J. Casey, Environmental Project Engineer, Jefferson City. [FR Doc. E7–14572 Filed 7–26–07; 8:45 am] BILLING CODE 4910–22–P DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 35064] jlentini on PROD1PC65 with NOTICES Watco Companies, Inc., and Watco Transportation Services, Inc.— Continuance in Control Exemption— Michigan Central Railway, LLC Watco Companies, Inc. (Watco Companies) and its wholly owned subsidiary, Watco Transportation Services, Inc. (Watco Transportation) (collectively, Watco), both noncarriers, jointly have filed a verified notice of exemption to continue in control of Michigan Central Railway, LLC (Michigan Central), upon Michigan Central’s becoming a Class II rail carrier through its proposed acquisition and operation of certain rail lines in Michigan and Indiana. Michigan Central will be controlled directly by Watco Transportation, with a 67% membership interest, and indirectly by Watco, while Norfolk Southern Railway Company VerDate Aug<31>2005 16:53 Jul 26, 2007 Jkt 211001 (NSR) will have a noncontrolling 33% membership interest.1 This transaction is related to a petition for exemption for the acquisition and operation of these rail lines concurrently filed in STB Finance Docket No. 35063, Michigan Central Railway, LLC—Acquisition and Operation Exemption—Lines of Norfolk Southern Railway Company. In that proceeding, Michigan Central seeks an exemption under 49 U.S.C. 10502 from the prior approval requirements of 49 U.S.C. 10901 to acquire and operate some 299 miles of rail line owned and operated by NSR, and some 85.5 miles of trackage rights, in Michigan and Indiana.2 In the proposed acquisition, NSR will contribute these rails lines, trackage rights, and related assets to Michigan Central, subject to certain traffic restrictions, in exchange for its 33% interest. Watco Transportation will contribute over time $18 million in cash and locomotives to Michigan Central in exchange for its controlling 67% interest.3 This transaction also is related to a concurrently filed verified notice of exemption in STB Finance Docket No. 35065, Norfolk Southern Railway Company—Trackage Rights Exemption—Michigan Central Railway, LLC. There, Michigan Central has agreed to grant limited local trackage rights to NSR in Michigan and Indiana. The parties intend to consummate the transaction after the Board has issued a final decision granting the petition for exemption in STB Finance Docket No. 35063. Watco currently controls 16 Class III rail carriers: South Kansas and Oklahoma Railroad Company, Palouse River & Coulee City Railroad, Inc., Timber Rock Railroad, Inc., Stillwater Central Railroad, Inc., Eastern Idaho Railroad, Inc., Kansas & Oklahoma Railroad, Inc., Pennsylvania Southwestern Railroad, Inc., Great 1 Watco has filed a copy of the First Amended and Restated Agreement into which Watco Transportation, NSR, and Michigan Central will enter in connection with the consummation of the proposed control transaction and related transactions referenced in this notice. The agreement provides for the independent management of Michigan Central, according to Watco, under Watco’s control. 2 In STB Finance Docket No. 35063, Michigan Central also has filed a petition to revoke the otherwise applicable class exemption at 49 CFR 1150.31 for the acquisition and operation of rail lines by a noncarrier and a proposed procedural schedule. 3 A redacted version of the Transaction Agreement by and among NSR, Michigan Central and Watco Transportation was filed with the petition for exemption in STB Finance Docket No. 35063. The full version of the Transaction Agreement was concurrently filed under seal along with a motion for protective order. PO 00000 Frm 00102 Fmt 4703 Sfmt 4703 Northwest Railroad, Inc., Kaw River Railroad, Inc., Mission Mountain Railroad, Inc., Mississippi Southern Railroad, Inc., Yellowstone Valley Railroad, Inc., Louisiana Southern Railroad, Inc., Arkansas Southern Railroad, Inc., Alabama Southern Railroad, Inc., and Vicksburg Southern Railroad, Inc.4 Watco represents that: (1) The rail lines to be acquired by Michigan Central do not connect with any other railroads in the Watco corporate family; (2) these continuance in control is not part of a series of anticipated transactions that would connect these railroads with each other or any other railroad in the Watco 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. Because the transaction involves the control of one Class II and one or more Class III rail carriers, the exemption is subject to the labor protection requirements of 49 U.S.C. 11326(b). 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 effectiveness of the exemption. Petitions for stay must be filed no later than August 3, 2007 (at least 7 days before the exemption becomes effective). An original and 10 copies of all pleadings, referring to STB Finance Docket No. 35064, 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 Karl Morell, Of Counsel, Ball Janik, LLP, Suite 225, 1455 F Street, NW., Washington, DC 20005. Board decisions and notices are available on our Web site at: http:// www.stb.dot.gov. Decided: July 19, 2007. 4 A former Watco Class III railroad, the Appalachian & Ohio Railroad, Inc., was acquired by Four Rivers Transportation, Inc. See Four Rivers Transportation, Inc.—Control Exemption— Appalachian & Ohio Railroad, Inc., STB Finance Docket No. 34856 (STB served May 23, 2006). E:\FR\FM\27JYN1.SGM 27JYN1 Federal Register / Vol. 72, No. 144 / Friday, July 27, 2007 / Notices By the Board, David M. Konschnik, Director, Office of Proceedings. Vernon A. Williams, Secretary. [FR Doc. E7–14310 Filed 7–26–07; 8:45 am] BILLING CODE 4915–01–P DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Finance Docket No. 35065] Norfolk Southern Railway Company— Trackage Rights Exemption—Michigan Central Railway, LLC jlentini on PROD1PC65 with NOTICES Pursuant to a written trackage rights agreement, Michigan Central Railway, LLC (Michigan Central), a noncarrier, has agreed to grant limited local trackage rights to Norfolk Southern Railway Company (NSR), over certain lines to be acquired from NSR by Michigan Central extending between (a) Milepost KH 1.4 at Elkhart, IN, and milepost KH 27.4 at Three Rivers, MI; (b) milepost FB 27.3 at Three Rivers, MI, and milepost FB 101.5 at Grand Rapids, MI; (c) milepost KY 0.0 at Gibson, MI, and milepost KY 0.3 at CP BO in Kalamazoo, MI; (d) milepost MH 143.03 at CP BO in Kalamazoo, MI, and milepost MH28 at CP Ypsi; and (e) milepost LZ 0.0 at Jackson, MI, and milepost LZ 35.0 at Holt, MI.1 This transaction is related to a petition for exemption for the acquisition and operation of these and other rail lines concurrently filed in STB Finance Docket No. 35063, Michigan Central Railway, LLC— Acquisition and Operation Exemption— Lines of Norfolk Southern Railway Company. In that proceeding, Michigan Central seeks an exemption under 49 U.S.C. 10502 from the prior approval requirements of 49 U.S.C. 10901 to acquire and operate some 299 miles of rail line owned and operated by NSR, and some 85.5 miles of trackage rights, in Michigan and Indiana.2 This transaction also is related to a concurrently filed verified notice of exemption in STB Finance Docket No. 35064, Watco Companies, Inc., and 1 A redacted version of the proposed agreement between NSR and Michigan Central was filed with the notice of exemption. The full version was concurrently filed under seal along with a motion for protective order. As required by 49 CFR 1180.6(a)(7)(ii), the parties must file a copy of the executed agreement within 10 days of the date that the agreement is executed. 2 In STB Finance Docket No. 35063, Michigan Central also has filed a petition to revoke the otherwise applicable class exemption at 49 CFR 1150.31 for the acquisition and operation of rail lines by a noncarrier and a proposed procedural schedule. VerDate Aug<31>2005 16:53 Jul 26, 2007 Jkt 211001 Watco Transportation Services, Inc.— Continuance in Control Exemption— Michigan Central Railway, LLC, wherein Watco Companies, Inc. and its wholly owned subsidiary, Watco Transportation Services, Inc., jointly have filed a verified notice of exemption to continue in control of Michigan Central upon its becoming a rail carrier. The parties intend to consummate the transaction after the Board has issued a final decision granting the petition for exemption in STB Finance Docket No. 35063. Under the trackage rights agreement, NSR will retain the right to serve, under certain specified conditions, the General Motors facilities at Grand Rapids and Lansing, MI, and the RSDC of Michigan LLC automotive steel processing facility at Holt, MI, as well as any subsequent occupant(s) of any of these facilities. The agreement will permit NSR to serve these facilities with its own trains, locomotives, cars and equipment, and with its own crews, only if Michigan Central fails to meet the specified service standards under the conditions and over the timeframes set forth in the agreement. As a condition to this exemption, any employees affected by the acquisition of the temporary trackage rights will be protected by the conditions imposed in Norfolk and Western Ry. Co.—Trackage Rights—BN, 354 I.C.C. 605 (1978), as modified in Mendocino Coast Ry., Inc.— Lease and Operate, 360 I.C.C. 653 (1980). This notice is filed under 49 CFR 1180.2(d)(7). If it 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 August 3, 2007 (at lease 7 days before the exemption becomes effective). An original and 10 copies of all pleadings, referring to STB Finance Docket No. 35065, 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 G. Paul Moates, Sidley Austin LLP, 1501 K Street, NW., Washington, DC 20005. Board decisions and notices are available on our Web site at: http:// www.stb.dot.gov. PO 00000 Decided: July 19, 2007. Frm 00103 Fmt 4703 Sfmt 4703 41387 By the Board, David M. Konschnik, Director, Office of Proceedings. Vernon A. Williams, Secretary. [FR Doc. E7–14351 Filed 7–26–07; 8:45 am] BILLING CODE 4915–01–P DEPARTMENT OF TRANSPORTATION Surface Transportation Board [STB Docket No. AB–55 (Sub-No. 681X)] CSX Transportation, Inc.— Abandonment Exemption—in Orange County, FL CSX Transportation, Inc. (CSXT), has filed a notice of exemption 1 under 49 CFR part 1152 subpart F—Exempt Abandonments to abandon a 0.69-mile rail line on its Southern Region, Jacksonville Division, Sanford Subdivision, from railroad milepost ST 815.88 to railroad milepost ST 816.57, known as the ‘‘Mills & Nebraska Lead,’’ in Orlando, Orange County, FL. The line traverses United States Postal Service Zip Code 32803. CSXT has certified that: (1) No local traffic has moved over the line for at least 2 years; (2) any overhead traffic on the line can be rerouted over other lines; (3) no formal complaint filed by a user of rail service on the line (or by a state or local government entity acting on behalf of such user) regarding cessation of service over the line either is pending with the Board or with any U.S. District Court or has been decided in favor of complainant within the 2-year period; and (4) the requirements at 49 CFR 1105.7 (environmental reports), 49 CFR 1105.8 (historic reports), 49 CFR 1105.11 (transmittal letter), 49 CFR 1105.12 (newspaper publication), and 49 CFR 1152.50(d)(1) (notice to governmental agencies) have been met. As a condition to this exemption, any employee adversely affected by the abandonment shall be protected under Oregon Short Line R. Co.— Abandonment—Goshen, 360 I.C.C. 91 (1979). To address whether this condition adequately protects affected employees, a petition for partial revocation under 49 U.S.C. 10502(d) must be filed. Provided no formal expression of intent to file an offer of financial assistance (OFA) has been received, this exemption will be effective on August 28, 2007, unless stayed pending 1 The earliest date the abandonment can be consummated is August 28, 2007 (the effective date of the exemption). CSXT stated the consummation date as August 27, 2007, in the verified notice of exemption. CSXT has been notified concerning this correction of the consummation date. E:\FR\FM\27JYN1.SGM 27JYN1

Agencies

[Federal Register Volume 72, Number 144 (Friday, July 27, 2007)]
[Notices]
[Pages 41386-41387]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-14310]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 35064]


Watco Companies, Inc., and Watco Transportation Services, Inc.--
Continuance in Control Exemption--Michigan Central Railway, LLC

    Watco Companies, Inc. (Watco Companies) and its wholly owned 
subsidiary, Watco Transportation Services, Inc. (Watco Transportation) 
(collectively, Watco), both noncarriers, jointly have filed a verified 
notice of exemption to continue in control of Michigan Central Railway, 
LLC (Michigan Central), upon Michigan Central's becoming a Class II 
rail carrier through its proposed acquisition and operation of certain 
rail lines in Michigan and Indiana. Michigan Central will be controlled 
directly by Watco Transportation, with a 67% membership interest, and 
indirectly by Watco, while Norfolk Southern Railway Company (NSR) will 
have a noncontrolling 33% membership interest.\1\
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    \1\ Watco has filed a copy of the First Amended and Restated 
Agreement into which Watco Transportation, NSR, and Michigan Central 
will enter in connection with the consummation of the proposed 
control transaction and related transactions referenced in this 
notice. The agreement provides for the independent management of 
Michigan Central, according to Watco, under Watco's control.
---------------------------------------------------------------------------

    This transaction is related to a petition for exemption for the 
acquisition and operation of these rail lines concurrently filed in STB 
Finance Docket No. 35063, Michigan Central Railway, LLC--Acquisition 
and Operation Exemption--Lines of Norfolk Southern Railway Company. In 
that proceeding, Michigan Central seeks an exemption under 49 U.S.C. 
10502 from the prior approval requirements of 49 U.S.C. 10901 to 
acquire and operate some 299 miles of rail line owned and operated by 
NSR, and some 85.5 miles of trackage rights, in Michigan and 
Indiana.\2\ In the proposed acquisition, NSR will contribute these 
rails lines, trackage rights, and related assets to Michigan Central, 
subject to certain traffic restrictions, in exchange for its 33% 
interest. Watco Transportation will contribute over time $18 million in 
cash and locomotives to Michigan Central in exchange for its 
controlling 67% interest.\3\
---------------------------------------------------------------------------

    \2\ In STB Finance Docket No. 35063, Michigan Central also has 
filed a petition to revoke the otherwise applicable class exemption 
at 49 CFR 1150.31 for the acquisition and operation of rail lines by 
a noncarrier and a proposed procedural schedule.
    \3\ A redacted version of the Transaction Agreement by and among 
NSR, Michigan Central and Watco Transportation was filed with the 
petition for exemption in STB Finance Docket No. 35063. The full 
version of the Transaction Agreement was concurrently filed under 
seal along with a motion for protective order.
---------------------------------------------------------------------------

    This transaction also is related to a concurrently filed verified 
notice of exemption in STB Finance Docket No. 35065, Norfolk Southern 
Railway Company--Trackage Rights Exemption--Michigan Central Railway, 
LLC. There, Michigan Central has agreed to grant limited local trackage 
rights to NSR in Michigan and Indiana.
    The parties intend to consummate the transaction after the Board 
has issued a final decision granting the petition for exemption in STB 
Finance Docket No. 35063.
    Watco currently controls 16 Class III rail carriers: South Kansas 
and Oklahoma Railroad Company, Palouse River & Coulee City Railroad, 
Inc., Timber Rock Railroad, Inc., Stillwater Central Railroad, Inc., 
Eastern Idaho Railroad, Inc., Kansas & Oklahoma Railroad, Inc., 
Pennsylvania Southwestern Railroad, Inc., Great Northwest Railroad, 
Inc., Kaw River Railroad, Inc., Mission Mountain Railroad, Inc., 
Mississippi Southern Railroad, Inc., Yellowstone Valley Railroad, Inc., 
Louisiana Southern Railroad, Inc., Arkansas Southern Railroad, Inc., 
Alabama Southern Railroad, Inc., and Vicksburg Southern Railroad, 
Inc.\4\
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    \4\ A former Watco Class III railroad, the Appalachian & Ohio 
Railroad, Inc., was acquired by Four Rivers Transportation, Inc. See 
Four Rivers Transportation, Inc.--Control Exemption--Appalachian & 
Ohio Railroad, Inc., STB Finance Docket No. 34856 (STB served May 
23, 2006).
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    Watco represents that: (1) The rail lines to be acquired by 
Michigan Central do not connect with any other railroads in the Watco 
corporate family; (2) these continuance in control is not part of a 
series of anticipated transactions that would connect these railroads 
with each other or any other railroad in the Watco 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. Because the transaction 
involves the control of one Class II and one or more Class III rail 
carriers, the exemption is subject to the labor protection requirements 
of 49 U.S.C. 11326(b).
    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 effectiveness of the exemption. 
Petitions for stay must be filed no later than August 3, 2007 (at least 
7 days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 35064, 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 Karl Morell, Of Counsel, Ball 
Janik, LLP, Suite 225, 1455 F Street, NW., Washington, DC 20005.
    Board decisions and notices are available on our Web site at: 
http://www.stb.dot.gov.

    Decided: July 19, 2007.


[[Page 41387]]


    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. E7-14310 Filed 7-26-07; 8:45 am]
BILLING CODE 4915-01-P