C&NC Railroad, LLC-Lease Renewal Exemption-Norfolk Southern Railway Company, 39156-39157 [2011-16626]

Download as PDF 39156 Federal Register / Vol. 76, No. 128 / Tuesday, July 5, 2011 / Notices sought only involves the segment between milepost 0.95 (not milepost 0.144) and milepost 42.0. Thus, RJC Railroad Property indicates that the correct description of the subject line is that it extends between milepost 0.95 at or near Oneida and milepost 42.0 at or near Devonia. This correction is recognized here. All remaining information from the April 9, 2010 notice remains unchanged. The acquisition transaction is related to the notice of exemption in Docket No. FD 35364, R. J. Corman Railroad Company/Bardstown Line—Lease and Operation Exemption—R. J. Corman Railroad Property, LLC, in which R. J. Corman Railroad Company/Bardstown Line filed a notice of exemption to lease and operate the line. The description of the line in Docket No. FD 35364 also is being corrected by separate notice. Board decisions and notices are available on our Web site at http:// www.stb.dot.gov. Decided: June 29, 2011. By the Board, Joseph H. Dettmar, Acting Director, Office of Proceedings. Jeffrey Herzig, Clearance Clerk. that it extends between milepost 0.95 at or near Oneida and milepost 42.0 at or near Devonia. This correction is recognized here. All remaining information from the April 9, 2010 notice remains unchanged. This transaction is related to the notice of exemption in Docket No. FD 35363, R. J. Corman Railroad Property, LLC—Acquisition Exemption—NC Railroad, Inc., in which RJC Railroad Property filed a notice of exemption to acquire the line from NC Railroad, Inc. The description of the line in Docket No. FD 35363 also is being corrected by separate notice. Board decisions and notices are available on our Web site at http:// www.stb.dot.gov. Decided: June 29, 2011. By the Board, Joseph H. Dettmar, Acting Director, Office of Proceedings. Jeffrey Herzig, Clearance Clerk. [FR Doc. 2011–16701 Filed 7–1–11; 8:45 am] BILLING CODE 4915–01–P DEPARTMENT OF TRANSPORTATION [FR Doc. 2011–16700 Filed 7–1–11; 8:45 am] Surface Transportation Board BILLING CODE 4915–01–P [Docket No. FD 35529] DEPARTMENT OF TRANSPORTATION Surface Transportation Board [Docket No. FD 35364] srobinson on DSK4SPTVN1PROD with NOTICES R. J. Corman Railroad Company/ Bardstown Line—Lease and Operation Exemption—R. J. Corman Railroad Property, LLC R. J. Corman Railroad Company/ Bardstown Line (RJC Railroad Company), a Class III rail carrier, filed a verified notice of exemption under 49 CFR 1150.41 to lease from R. J. Corman Railroad Property, LLC (RJC Railroad Property), and operate approximately 42 route miles of rail line between milepost 0.144 at or near Oneida and milepost 42.0 at or near Devonia, in Scott, Campbell, and Anderson Counties, Tenn. The notice was served and published in the Federal Register on April 9, 2010 (75 FR 18,254), and became effective on April 25, 2010. On May 28, 2010, RJC Railroad Company filed a correction to the notice. According to RJC Railroad Company, the lease and operation transaction for which the exemption was sought only involves the segment between milepost 0.95 (not milepost 0.144) and milepost 42.0. Thus, RJC Railroad Company indicates that the correct description of the subject line is VerDate Mar<15>2010 19:00 Jul 01, 2011 Jkt 223001 C&NC Railroad, LLC—Lease Renewal Exemption—Norfolk Southern Railway Company Under 49 CFR 1011.7(a)(2)(x)(A), the Director of the Office of Proceedings (Director) is delegated the authority to determine whether to issue notices of exemption for lease transactions under 49 U.S.C. 10902. However, the Board reserves to itself the consideration and disposition of all matters involving issues of general transportation importance. 49 CFR 1011.2(a)(6). Accordingly, the Board revokes the delegation to the Director with respect to the issuance of this notice of exemption. The Board determines that this notice of lease renewal exemption should be issued, and does so here. Notice C&NC Railroad, LLC (C&NC), a Class III rail carrier, has filed a verified notice of exemption under 49 CFR 1150.41 to renew its lease of approximately 21 miles of rail line from Norfolk Southern Railway Company (NSR).1 The rail lines 1 C&NC originally filed its notice of exemption on June 3, 2011, as a lease renewal under 49 CFR 1180.2(d)(4). That provision, however, applies to lease renewals ‘‘where the Board has previously authorized the transaction and only an extension of time is involved.’’ Because the new lease includes a new credit provision and milepost adjustments, on June 17, 2011, C&NC filed a motion for the PO 00000 Frm 00089 Fmt 4703 Sfmt 4703 extend from (a) milepost CB5.4 at Beesons, Ind., to milepost 25.30 at New Castle, Ind., and (b) milepost R0.1 to milepost R1.16 at New Castle. C&NC has leased and operated the lines since 1997.2 The 1997 lease agreement, by its terms, expired on December 9, 2009, and C&NC and NSR agreed to continue operations under the terms of the 1997 agreement pending renegotiation of a new lease. On March 11, 2011, the parties executed a new lease.3 As required at 49 CFR 1150.43(h), C&NC has disclosed that the new lease agreement contains an interchange commitment provision that would provide for a lease credit whereby C&NC may reduce its lease payments by receiving a credit for each car interchanged with NSR. C&NC notes that NSR initially proposed a fixed rental payment with no option to reduce the rent, but C&NC requested a lease credit option to provide an opportunity for C&NC to earn a lower rental payment so it would be able to invest in improvements on the leased lines to increase traffic levels. According to C&NC, the interchange point with NSR is New Castle. C&NC certifies that the projected annual revenues as a result of the proposed transaction will not exceed those that would make it a Class III rail carrier and further certifies that its projected annual revenues would not exceed $5 million. The transaction is expected to be consummated on or after July 17, 2011, the effective date of the exemption (30 days after the exemption was officially filed). 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 8, 2011 (at least 7 days before the exemption becomes effective). An original and 10 copies of all pleadings, referring to Docket No. FD 35529, must be filed with the Surface Transportation Board, 395 E Street, SW., Washington, DC 20423–0001. In notice to be considered as filed under 49 CFR 1150.41 instead of 49 CFR 1180.2(d)(4). The motion also includes a revenue certification and caption summary in compliance with the requirements for the class exemption at § 1150.41. Accordingly, the notice will be considered as filed under § 1150.41 with a filing date of June 17, 2011. 2 See C&NC R.R. —Lease and Operation Exemption—Line of the Norfolk and W. Ry. and Ind. Hi Rail, FD 33475 (STB served Oct. 31, 1997). 3 C&NC has filed the new lease agreement under seal pursuant to 49 CFR 1150.43(h)(1)(ii). E:\FR\FM\05JYN1.SGM 05JYN1 Federal Register / Vol. 76, No. 128 / Tuesday, July 5, 2011 / Notices srobinson on DSK4SPTVN1PROD with NOTICES addition, a copy of each pleading must be served on Richard R.Wilson, Esq., 518 N. Center Street, Ste. 1, Ebensburg, PA 15931. Board decisions and notices are available at our Web site at http:// www.stb.dot.gov. It is ordered: 1. The delegation of authority to the Director of the Office of Proceedings, under 49 CFR 1011.7(a)(2(x)(A), to determine whether to issue a notice of exemption in this proceeding is revoked. 2. This decision is effective on the date of service. VerDate Mar<15>2010 19:00 Jul 01, 2011 Jkt 223001 Decided: June 28, 2011. Andrea Pope-Matheson, Clearance Clerk. By the Board, Chairman Elliott, Vice Chairman Begeman, and Commissioner Mulvey. Commissioner Mulvey dissented with a separate expression. lllllllllllllllllllll COMMISSIONER MULVEY, dissenting: I disagree with the Board’s decision to allow this transaction to be processed under the Board’s class exemption procedures. A lease agreement between C&NC and NSR has been in place since 1997. I can presume that the lease has been successful given the parties’ willingness to renew it for an additional term. However, the renewal lease contains a new provision that provides a disincentive for C&NC to interchange with PO 00000 Frm 00090 Fmt 4703 Sfmt 9990 39157 carriers other than NSR. C&NC’s pleadings do not provide an adequate justification for why this new competition-restricting provision is necessary. C&NC states that the interchange restriction, in the form of a ‘‘lease credit option,’’ will enable it to ‘‘invest in improvements on the leased lines to increase traffic levels.’’ But there is no reason to believe that C&NC did not have the same goal in the initial term of the lease, where C&NC did not see the need for an interchange restriction. Under these circumstances, I believe that the Board should be taking a close look at this transaction, the affected shippers, and the traffic flows, rather than allowing it to be consummated without regulatory oversight. [FR Doc. 2011–16626 Filed 7–1–11; 8:45 am] BILLING CODE 4915–01–P E:\FR\FM\05JYN1.SGM 05JYN1

Agencies

[Federal Register Volume 76, Number 128 (Tuesday, July 5, 2011)]
[Notices]
[Pages 39156-39157]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-16626]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[Docket No. FD 35529]


C&NC Railroad, LLC--Lease Renewal Exemption--Norfolk Southern 
Railway Company

    Under 49 CFR 1011.7(a)(2)(x)(A), the Director of the Office of 
Proceedings (Director) is delegated the authority to determine whether 
to issue notices of exemption for lease transactions under 49 U.S.C. 
10902. However, the Board reserves to itself the consideration and 
disposition of all matters involving issues of general transportation 
importance. 49 CFR 1011.2(a)(6). Accordingly, the Board revokes the 
delegation to the Director with respect to the issuance of this notice 
of exemption. The Board determines that this notice of lease renewal 
exemption should be issued, and does so here.

Notice

    C&NC Railroad, LLC (C&NC), a Class III rail carrier, has filed a 
verified notice of exemption under 49 CFR 1150.41 to renew its lease of 
approximately 21 miles of rail line from Norfolk Southern Railway 
Company (NSR).\1\ The rail lines extend from (a) milepost CB5.4 at 
Beesons, Ind., to milepost 25.30 at New Castle, Ind., and (b) milepost 
R0.1 to milepost R1.16 at New Castle. C&NC has leased and operated the 
lines since 1997.\2\ The 1997 lease agreement, by its terms, expired on 
December 9, 2009, and C&NC and NSR agreed to continue operations under 
the terms of the 1997 agreement pending renegotiation of a new lease. 
On March 11, 2011, the parties executed a new lease.\3\
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    \1\ C&NC originally filed its notice of exemption on June 3, 
2011, as a lease renewal under 49 CFR 1180.2(d)(4). That provision, 
however, applies to lease renewals ``where the Board has previously 
authorized the transaction and only an extension of time is 
involved.'' Because the new lease includes a new credit provision 
and milepost adjustments, on June 17, 2011, C&NC filed a motion for 
the notice to be considered as filed under 49 CFR 1150.41 instead of 
49 CFR 1180.2(d)(4). The motion also includes a revenue 
certification and caption summary in compliance with the 
requirements for the class exemption at Sec.  1150.41. Accordingly, 
the notice will be considered as filed under Sec.  1150.41 with a 
filing date of June 17, 2011.
    \2\ See C&NC R.R. --Lease and Operation Exemption--Line of the 
Norfolk and W. Ry. and Ind. Hi Rail, FD 33475 (STB served Oct. 31, 
1997).
    \3\ C&NC has filed the new lease agreement under seal pursuant 
to 49 CFR 1150.43(h)(1)(ii).
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    As required at 49 CFR 1150.43(h), C&NC has disclosed that the new 
lease agreement contains an interchange commitment provision that would 
provide for a lease credit whereby C&NC may reduce its lease payments 
by receiving a credit for each car interchanged with NSR. C&NC notes 
that NSR initially proposed a fixed rental payment with no option to 
reduce the rent, but C&NC requested a lease credit option to provide an 
opportunity for C&NC to earn a lower rental payment so it would be able 
to invest in improvements on the leased lines to increase traffic 
levels. According to C&NC, the interchange point with NSR is New 
Castle.
    C&NC certifies that the projected annual revenues as a result of 
the proposed transaction will not exceed those that would make it a 
Class III rail carrier and further certifies that its projected annual 
revenues would not exceed $5 million.
    The transaction is expected to be consummated on or after July 17, 
2011, the effective date of the exemption (30 days after the exemption 
was officially filed).
    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 8, 2011 
(at least 7 days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 35529, must be filed with the Surface Transportation Board, 395 E 
Street, SW., Washington, DC 20423-0001. In

[[Page 39157]]

addition, a copy of each pleading must be served on Richard R.Wilson, 
Esq., 518 N. Center Street, Ste. 1, Ebensburg, PA 15931.
    Board decisions and notices are available at our Web site at http://www.stb.dot.gov.
    It is ordered:
    1. The delegation of authority to the Director of the Office of 
Proceedings, under 49 CFR 1011.7(a)(2(x)(A), to determine whether to 
issue a notice of exemption in this proceeding is revoked.
    2. This decision is effective on the date of service.

    Decided: June 28, 2011.
Andrea Pope-Matheson,
Clearance Clerk.
    By the Board, Chairman Elliott, Vice Chairman Begeman, and 
Commissioner Mulvey. Commissioner Mulvey dissented with a separate 
expression.

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    COMMISSIONER MULVEY, dissenting:
    I disagree with the Board's decision to allow this transaction 
to be processed under the Board's class exemption procedures. A 
lease agreement between C&NC and NSR has been in place since 1997. I 
can presume that the lease has been successful given the parties' 
willingness to renew it for an additional term. However, the renewal 
lease contains a new provision that provides a disincentive for C&NC 
to interchange with carriers other than NSR. C&NC's pleadings do not 
provide an adequate justification for why this new competition-
restricting provision is necessary. C&NC states that the interchange 
restriction, in the form of a ``lease credit option,'' will enable 
it to ``invest in improvements on the leased lines to increase 
traffic levels.'' But there is no reason to believe that C&NC did 
not have the same goal in the initial term of the lease, where C&NC 
did not see the need for an interchange restriction. Under these 
circumstances, I believe that the Board should be taking a close 
look at this transaction, the affected shippers, and the traffic 
flows, rather than allowing it to be consummated without regulatory 
oversight.

[FR Doc. 2011-16626 Filed 7-1-11; 8:45 am]
BILLING CODE 4915-01-P