Ann Arbor Railroad, Inc.-Lease Exemption-Norfolk Southern Railway Company, 41993-41994 [2013-16782]

Download as PDF Federal Register / Vol. 78, No. 134 / Friday, July 12, 2013 / Notices 8. Perform surveys to determine the depth of cover over pipelines and the condition of any exposed pipelines, such as those crossing scour holes. Where appropriate, surveys of underwater pipe should include the use of visual inspection by divers or instrumented detection. Information gathered by these surveys should be shared with affected landowners. Agricultural agencies may help to inform farmers of the potential hazard from reduced cover over pipelines. 9. Ensure that line markers are still in place or replaced in a timely manner. Notify contractors, highway departments, and others involved in post-flood restoration activities of the presence of pipelines and the risks posed by reduced cover. If a pipeline has suffered damage, is shut-in, or is being operated at a reduced pressure as a precautionary measure due to flooding, the operator should advise the appropriate PHMSA regional office or state pipeline safety authority before returning the line to service, increasing its operating pressure, or otherwise changing its operating status. Furthermore, reporting a Safety Related Condition as prescribed in §§ 191.23 and 195.55 may also be required. Issued in Washington, DC on July 8, 2013. Jeffrey D. Wiese, Associate Administrator for Pipeline Safety. [FR Doc. 2013–16754 Filed 7–11–13; 8:45 am] BILLING CODE 4910–60–P DEPARTMENT OF TRANSPORTATION Surface Transportation Board [Docket No. FD 35726] mstockstill on DSK4VPTVN1PROD with NOTICES Transport Handling Specialists, Inc.— Continuance in Control Exemption— RSL Railroad, LLC Transport Handling Specialists, Inc. (THS), has filed a verified notice of exemption (Notice) under 49 CFR 1180.2(d)(2) to continue in control of RSL Railroad, LLC (RSL), upon RSL’s becoming a Class III rail carrier. By decision served May 15, 2013, the Board held the publication and effectiveness of the Notice in abeyance pending record supplementation and further Board action. THS supplemented the record on June 3, 2013, and June 17, 2013. The abeyance in this proceeding will be lifted upon service of this Notice. This transaction is related to a verified notice of exemption filed in RSL Railroad LLC—Operation Exemption—Massillon Energy & Technology Park, Docket No. FD 35672, VerDate Mar<15>2010 18:46 Jul 11, 2013 Jkt 229001 wherein RSL is seeking Board authority to operate an approximately 1.27-mile line in Massillon, Stark County, Ohio. The transaction may be consummated on or after July 26, 2013 (the effective date of this exemption). THS states that it has a 50% ownership interest in RSL, with the remaining interest equally split among three other individuals.1 THS states that it also owns 100% of Big Spring Rail System, Inc., a Class III rail carrier that operates in Big Spring, Texas.2 THS certifies that: (1) The rail line to be operated by RSL does not connect with any other railroads in the THS corporate family; (2) the continuance in control is not part of a series of anticipated transactions that would connect the rail line to be operated by RSL with any other railroad in the THS 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. 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 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. Stay petitions must be filed no later than July 19, 2013 (at least 7 days before the exemption becomes effective). An original and 10 copies of all pleadings, referring to Docket No. FD 35726, 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 Baxter Wellmon, 1554 Paoli Pike #179, West Chester, PA 19380. Board decisions and notices are available on our Web site at ‘‘www.stb.dot.gov.’’ Decided: July 9, 2013. 1 Notice 3 (Apr. 29, 2013); Notice, Ex. 3, Schedule A. PO 00000 2 Supplement Frm 00086 2 (June 17, 2013). Fmt 4703 Sfmt 4703 41993 By the Board, Rachel D. Campbell, Director, Office of Proceedings. Raina S. White, Clearance Clerk. [FR Doc. 2013–16741 Filed 7–11–13; 8:45 am] BILLING CODE 4915–01–P DEPARTMENT OF TRANSPORTATION Surface Transportation Board [Docket No. FD 35729] Ann Arbor Railroad, Inc.—Lease 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 under 49 U.S.C. 10502 for lease and operation 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 issuance of the notice of exemption for lease and operation of the rail line at issue in this case. The Board determines that this notice of exemption should be issued, and does so here. Notice Ann Arbor Railroad, Inc. (AARR), a Class III rail carrier, has filed a verified notice of exemption under 49 CFR 1150.41 to lease from Norfolk Southern Railway Company (NSR) two rail lines totaling 3.69 miles: (1) A line of railroad between milepost CS 1.26 and milepost CS 2.65 in Toledo, Ohio; and (2) a line of railroad between milepost GY 85.40 and GY 87.70 in Toledo (the Lines). According to AARR, it has entered into a Lease Agreement (Agreement) with NSR whereby AARR will lease the Lines from NSR. The term of the lease is 10 years. Pursuant to 49 CFR 1150.43(h), AARR has disclosed that the Agreement contains an interchange commitment in the form of lease credits, depending on the number of carloads interchanged with NSR in a given year.1 AARR states that the interchange commitment will enable it to ‘‘invest in improvements on the lines and increase traffic levels.’’ 2 1 AARR has filed under seal, pursuant to 49 CFR 1150.43(h)(1)(ii), a confidential, complete version of the Agreement. On July 1, 2013, the Brotherhood of Locomotive Engineers and Trainmen filed a motion for access to the Agreement. That motion will be addressed in a separate decision. 2 Notice 4. E:\FR\FM\12JYN1.SGM 12JYN1 mstockstill on DSK4VPTVN1PROD with NOTICES 41994 Federal Register / Vol. 78, No. 134 / Friday, July 12, 2013 / Notices The Lines connect with AARR at AARR milepost 0.0 (Galena Street) and AARR milepost 1.0 (Manhattan Junction) in Toledo. Traffic moving to and from the Lines will have access to AARR connecting carriers NSR, Canadian National Railway Company (CN), CSX Transportation, Inc., and Wheeling & Lake Erie Railway in Toledo; the Indiana and Ohio Railway and CN in Diann, Mich.; NSR in Milan, Mich.; and Great Lakes Central Railroad in Ann Arbor, Mich.3 AARR certifies that its projected annual revenues as a result of this transaction will not result in AARR becoming a Class I or Class II rail carrier but that its projected annual revenues will exceed $5 million. On June 24, 2013, AARR certified to the Board that it posted the notice required by 49 CFR 1150.42(e) at the workplace of the employees on the Lines, and that it served a copy of the notice on the national offices of the labor unions with employees on the Lines. The earliest the transaction can be consummated is August 23, 2013, (60 days after AARR submitted its certification to the Board). See 49 CFR 1150.42(e); Progressive Rail Inc.— Acquis. & Operation Exemption—Rail Lines of Crab Orchard & Egyptian R.R., FD 35656, slip op. at 2–3 (STB served Oct. 5, 2012). 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 would not automatically stay the effectiveness of the exemption. Stay petitions must be filed no later than August 16, 2013 (at least seven days before the exemption becomes effective). An original and 10 copies of all pleadings, referring to Docket No. FD 35729, 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, BALL JANIK LLP, 655 Fifteenth Street NW., Suite 225, Washington, DC 20005. Board decisions and notices are available on our Web site at ‘‘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. 3 Id. at 5. VerDate Mar<15>2010 18:46 Jul 11, 2013 Jkt 229001 Decided: July 9, 2013. By the Board, Chairman Elliott, Vice Chairman Begeman, and Commissioner Mulvey. Commissioner Mulvey dissented with a separate expression. Jeffrey Herzig, Clearance Clerk. Commissioner Mulvey, Dissenting I disagree with the Board’s decision to allow this transaction to be processed under the class exemption procedures because I believe that additional scrutiny of the interchange commitment is necessary. Although AARR asserts that the interchange commitment (which takes the form of a per car lease credit) will enable it to invest in the two leased lines, this is a generic rationale that sheds no light on how the interchange commitment will affect competition. Moreover, the leased lines, although short, contain many potential interchange points. The interchange commitment in the lease agreement creates a disincentive for AARR to interchange with the five other carriers with which it connects. The Board needs to take a closer look at transactions such as these that purport to increase investment incentives but also serve to limit competition that might otherwise develop.1 [FR Doc. 2013–16782 Filed 7–11–13; 8:45 am] BILLING CODE 4915–01–P DEPARTMENT OF TRANSPORTATION Surface Transportation Board [Docket No. FD 35672] RSL Railroad LLC—Operation Exemption—Massillon Energy & Technology Park On September 10, 2012, RSL Railroad, LLC (RSL), filed a verified notice of exemption (Notice) under 49 CFR 1150.31 to operate an approximately 1.27-mile line, in Massillon, Stark County, Ohio, from milepost 0.0 to milepost 1.27± (the Line), pursuant to an agreement with Massillon Energy & Technology Park (Massillon), the owner of the Line. By decision served October 3, 2012, on RSL’s motion, the Board held the Notice in abeyance pending record supplementation and further Board action. RSL supplemented the record on April 26, 2013, and June 4, 2013. The abeyance in this proceeding will be lifted upon service of this Notice. This transaction is related to a notice of exemption filed in Transport 1 In Information Required in Notices and Petitions Containing Interchange Commitments, EP 714 (STB served Nov. 1, 2012), the Board proposed new rules that would require carriers to disclose more information when proposing transactions, such as this one, that contain an interchange commitment. The comment period in this rulemaking closed in January 2013 and the matter remains pending at the Board. PO 00000 Frm 00087 Fmt 4703 Sfmt 9990 Handling Specialists, Inc.—Continuance in Control Exemption—RSL Railroad, LLC, Docket No. FD 35726, in which Transport Handling Specialists, Inc. (THS), is seeking Board authority to continue in control of RSL upon RSL’s becoming a Class III rail carrier. RSL states that it will operate over track that will be rehabilitated. RSL states that it intends to interchange traffic with ‘‘the NS Industrial line,’’ 1 and possibly with R.J. Corman Railroad. In addition, RSL states that the memorandum of understanding 2 between RSL and Massillon does not contain any interchange commitments, and that there will be no interchange commitments between RSL and its connecting carriers. The transaction may be consummated on or after July 26, 2013 (the effective date of this exemption). RSL certifies that its projected annual revenues as a result of the transaction will not exceed those that would make it a Class III rail carrier and will not exceed $5 million. 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. Stay petitions must be filed by July 19, 2013 (at least seven days before the exemption becomes effective). An original and 10 copies of all pleadings, referring to Docket No. FD 35672, 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 Baxter Wellmon, 1554 Paoli Pike #179, West Chester, PA 19380. Board decisions and notices are available on our Web site at www.stb.dot.gov. Decided: July 9, 2013. By the Board, Rachel D. Campbell, Director, Office of Proceedings. Jeffrey Herzig, Clearance Clerk. [FR Doc. 2013–16753 Filed 7–11–13; 8:45 am] BILLING CODE 4915–01–P 1 Notice 3 (Sept. 10, 2012). The reference is to Norfolk Southern Railway. 2 Because Massillon is not a common carrier subject to Board jurisdiction, RSL filed with the Board a copy of its memorandum of understanding with Massillon. See Anthony Macrie—Continuance in Control Exemption—N.J. Seashore Lines, Inc., FD 35296, et al., slip op. at 3 (STB served Aug. 31, 2010). E:\FR\FM\12JYN1.SGM 12JYN1

Agencies

[Federal Register Volume 78, Number 134 (Friday, July 12, 2013)]
[Notices]
[Pages 41993-41994]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-16782]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[Docket No. FD 35729]


Ann Arbor Railroad, Inc.--Lease 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 under 49 U.S.C. 10502 for lease and 
operation 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 issuance of the notice of exemption for lease 
and operation of the rail line at issue in this case. The Board 
determines that this notice of exemption should be issued, and does so 
here.

Notice

    Ann Arbor Railroad, Inc. (AARR), a Class III rail carrier, has 
filed a verified notice of exemption under 49 CFR 1150.41 to lease from 
Norfolk Southern Railway Company (NSR) two rail lines totaling 3.69 
miles: (1) A line of railroad between milepost CS 1.26 and milepost CS 
2.65 in Toledo, Ohio; and (2) a line of railroad between milepost GY 
85.40 and GY 87.70 in Toledo (the Lines). According to AARR, it has 
entered into a Lease Agreement (Agreement) with NSR whereby AARR will 
lease the Lines from NSR. The term of the lease is 10 years.
    Pursuant to 49 CFR 1150.43(h), AARR has disclosed that the 
Agreement contains an interchange commitment in the form of lease 
credits, depending on the number of carloads interchanged with NSR in a 
given year.\1\ AARR states that the interchange commitment will enable 
it to ``invest in improvements on the lines and increase traffic 
levels.'' \2\

[[Page 41994]]

The Lines connect with AARR at AARR milepost 0.0 (Galena Street) and 
AARR milepost 1.0 (Manhattan Junction) in Toledo. Traffic moving to and 
from the Lines will have access to AARR connecting carriers NSR, 
Canadian National Railway Company (CN), CSX Transportation, Inc., and 
Wheeling & Lake Erie Railway in Toledo; the Indiana and Ohio Railway 
and CN in Diann, Mich.; NSR in Milan, Mich.; and Great Lakes Central 
Railroad in Ann Arbor, Mich.\3\
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    \1\ AARR has filed under seal, pursuant to 49 CFR 
1150.43(h)(1)(ii), a confidential, complete version of the 
Agreement. On July 1, 2013, the Brotherhood of Locomotive Engineers 
and Trainmen filed a motion for access to the Agreement. That motion 
will be addressed in a separate decision.
    \2\ Notice 4.
    \3\ Id. at 5.
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    AARR certifies that its projected annual revenues as a result of 
this transaction will not result in AARR becoming a Class I or Class II 
rail carrier but that its projected annual revenues will exceed $5 
million. On June 24, 2013, AARR certified to the Board that it posted 
the notice required by 49 CFR 1150.42(e) at the workplace of the 
employees on the Lines, and that it served a copy of the notice on the 
national offices of the labor unions with employees on the Lines.
    The earliest the transaction can be consummated is August 23, 2013, 
(60 days after AARR submitted its certification to the Board). See 49 
CFR 1150.42(e); Progressive Rail Inc.--Acquis. & Operation Exemption--
Rail Lines of Crab Orchard & Egyptian R.R., FD 35656, slip op. at 2-3 
(STB served Oct. 5, 2012).
    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 would not automatically stay the effectiveness of 
the exemption. Stay petitions must be filed no later than August 16, 
2013 (at least seven days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 35729, 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, BALL JANIK LLP, 655 Fifteenth 
Street NW., Suite 225, Washington, DC 20005.
    Board decisions and notices are available on our Web site at 
``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: July 9, 2013.

    By the Board, Chairman Elliott, Vice Chairman Begeman, and 
Commissioner Mulvey. Commissioner Mulvey dissented with a separate 
expression.
Jeffrey Herzig,
Clearance Clerk.

Commissioner Mulvey, Dissenting

    I disagree with the Board's decision to allow this transaction 
to be processed under the class exemption procedures because I 
believe that additional scrutiny of the interchange commitment is 
necessary. Although AARR asserts that the interchange commitment 
(which takes the form of a per car lease credit) will enable it to 
invest in the two leased lines, this is a generic rationale that 
sheds no light on how the interchange commitment will affect 
competition. Moreover, the leased lines, although short, contain 
many potential interchange points. The interchange commitment in the 
lease agreement creates a disincentive for AARR to interchange with 
the five other carriers with which it connects. The Board needs to 
take a closer look at transactions such as these that purport to 
increase investment incentives but also serve to limit competition 
that might otherwise develop.\1\
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    \1\ In Information Required in Notices and Petitions Containing 
Interchange Commitments, EP 714 (STB served Nov. 1, 2012), the Board 
proposed new rules that would require carriers to disclose more 
information when proposing transactions, such as this one, that 
contain an interchange commitment. The comment period in this 
rulemaking closed in January 2013 and the matter remains pending at 
the Board.
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[FR Doc. 2013-16782 Filed 7-11-13; 8:45 am]
BILLING CODE 4915-01-P

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