New Mexico Central Railroad, LLC-Acquisition and Operation Exemption-Southwestern Railroad, Inc., Whitewater Division, 9108-9109 [2017-02284]

Download as PDF 9108 Federal Register / Vol. 82, No. 21 / Thursday, February 2, 2017 / Notices mstockstill on DSK3G9T082PROD with NOTICES Railroad, L.C. (CVR), and Clarkdale Arizona Central Railroad, L.C. (CACR). According to the Parties, Durbano, individually and through his control and ownership of Western Group and Snowy Range Cattle Company, both noncarrier holding companies, currently owns and controls WYCO, SWRR, CVR and CACR.2 WYCO operates in Oregon doing business as the Oregon Eastern Railroad. WYCO owns but does not operate the EB Line in Wyoming.3 SWRR operates in New Mexico; CVR operates in Kansas, Oklahoma, and Colorado; and CACR operates in Arizona. The Parties state that, because Durbano owns and controls all four rail carriers, Durbano has not entered into any agreements or written instruments to undertake the proposed transaction. The Parties state that the purpose of this transaction is to undertake a corporate reorganization for the eventual purpose of selling certain assets or stock of various Durbanocontrolled railroad companies, except for Saratoga.4 Saratoga certifies that its annual revenues as a result of this transaction will not exceed those that would qualify it as a Class III rail carrier and will not exceed $5 million. Unless stayed, the exemption will be effective on February 16, 2017 (30 days after the verified notice was filed). This is a transaction within a corporate family of the type specifically exempted from prior review and approval under 49 CFR 1180.2(d)(3). The Parties state that the transaction will not result in adverse changes in service levels, significant operational changes, or a change in the competitive balance with carriers outside the corporate family. 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, 2 Mr. Durbano also owns, and Western Group manages, Verde Canyon Railroad, LLC, an intrastate passenger excursion railroad not subject to the Board’s jurisdiction. 3 The EB Line was authorized for abandonment in 2006 and the Parties state that the tracks, ties, and other track materials were salvaged. See Wyo. & Colo. R.R.—Aban. Exemption—in Carbon Cty., Wyo., AB 307 (Sub-No. 6X) (STB served May 31, 2006). The Parties state that, for a number of reasons, WYCO never consummated the abandonment of the EB Line and never filed a notice of consummation. As a result, WYCO’s abandonment authority expired and the corridor remains a line of railroad subject to the Board’s jurisdiction. 4 See W. Branch & Cont’l Rail—Acquis. of Control Exemption—Cimarron Valley R.R., Docket No. FD 36084; N.M. Cent. R.R.—Acquis. & Operation Exemption—Sw. R.R., Whitewater Div., Docket No. FD 36085; and W. Branch Intermediate Holdings & Cont’l Rail—Continuance in Control Exemption— N.M. Cent. R.R., Docket No. FD 36087. VerDate Sep<11>2014 16:31 Feb 01, 2017 Jkt 241001 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 rail 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. Petitions for stay must be filed no later than February 9, 2017 (at least seven days before the exemption becomes effective). An original and 10 copies of all pleadings, referring to Docket No. FD 36091, 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 William A. Mullins, Baker & Miller PLLC, 2401 Pennsylvania Ave. NW., Suite 300, Washington, DC 20037. According to the Parties, this action is categorically excluded from environmental review under 49 CFR 1105.6(c). Board decisions and notices are available on our Web site at ‘‘WWW.STB.GOV.’’ Decided: January 30, 2017. By the Board, Rachel D. Campbell, Director, Office of Proceedings. Raina S. Contee, Clearance Clerk. [FR Doc. 2017–02220 Filed 2–1–17; 8:45 am] BILLING CODE 4915–01–P SURFACE TRANSPORTATION BOARD [Docket No. FD 36085] New Mexico Central Railroad, LLC— Acquisition and Operation Exemption—Southwestern Railroad, Inc., Whitewater Division New Mexico Central Railroad, LLC (NMCR),1 a noncarrier, has filed a verified notice of exemption under 49 CFR 1150.31 to acquire and operate certain lines of railroad in New Mexico (the Lines) collectively referred to as the Whitewater Division, currently operated and owned or leased by Southwestern Railroad, Inc. (Southwestern). In particular, NMRC will acquire 1 NMCR is a newly established entity owned by West Branch Intermediate Holdings, LLC (West Branch), and managed by Continental Rail LLC (Continental). West Branch currently controls an existing Class III carrier, Delta Southern Railroad, Inc. (Delta). PO 00000 Frm 00054 Fmt 4703 Sfmt 4703 Southwestern’s leasehold interest in a line between Deming (MP 1134) and Rincon (MP 1080) and ownership interest in lines: Between Deming (MP 0.0) and Peruhill (MP 5+3,763 feet); between Peruhill (MP 5+3,763 feet) and Whitewater (MP 30+2,972 feet); between Whitewater (near MP 30+2,972 feet) and the Tyrone Industrial Spur at Burro Mountain Jct. (near MP 33+5,256 feet); between Whitewater (MP 0+0750 feet) and Santa Rita (MP 16+1,500 feet); and between Hannover, Jct. (MP 14+1,345.4 feet) and the connection line at the Fierro Industrial Spur at the Sharon Steel Plant (near MP 6+1,804 feet). The total Southwestern mileage NMCR will acquire (by purchase or lease) and operate is approximately 116 miles.2 On the same day NMCR filed its verified notice of exemption, West Branch and Continental also filed a verified notice of exemption in West Branch Intermediate Holdings & Continental Rail—Continuance in Control Exemption—New Mexico Central Railroad, Docket No. FD 36087, for West Branch to acquire and for Continental to manage NMCR upon NMCR’s becoming a Class III carrier.3 NMCR has executed a letter of intent for it to purchase the Lines. NMCR and Southwestern are currently negotiating a purchase and sale agreement governing the purchase of the Lines as well as certain other assets. The parties expect to reach an agreement shortly, which NMCR states will not contain an interchange agreement. NMCR certifies that its projected annual revenues resulting from the transaction will not result in its becoming a Class I or Class II rail carrier. NMCR notes, however, that its annual operating revenues will exceed $5 million. Accordingly, in compliance with 49 CFR 1150.32(e), NMCR submitted a letter on December 16, 2016, certifying that it posted the required 60-day labor notice of this transaction at the Southwestern employees’ workplace at Deming. NMCR states that the notice was not served on the national offices of labor unions with employees who work on 2 Southwestern also leases and operates a BNSF Railway Company (BNSF) line known as the Carlsbad Division, which consists of approximately 227.6 miles of railroad linking Clovis, Carlsbad, and Loving, N.M. Southwestern recently petitioned for an exemption to discontinue service over the Carlsbad Division. See Sw. R.R.—Discontinuance of Serv. Exemption—in Curry, Roosevelt, Chaves & Eddy Ctys., N.M., AB 1251X (filed Jan. 17, 2017). 3 In Docket No. FD 36084, West Branch and Continental have invoked the class exemption at 49 CFR 1180.2(d)(2) for West Branch to acquire control and for Continental to manage the following Class III rail carriers: Cimarron Valley Railroad, L.C., Clarksdale Arizona Central Railroad, L.C., and Wyoming and Colorado Railroad Company, Inc. E:\FR\FM\02FEN1.SGM 02FEN1 Federal Register / Vol. 82, No. 21 / Thursday, February 2, 2017 / Notices the affected lines because there are no unionized employees employed by Southwestern. The earliest the transaction could be consummated is February 16, 2017, and the parties expect to consummate the transaction at that time. 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 to stay must be filed by February 9, 2017 (at least seven days before the exemption becomes effective). An original and ten copies of all pleadings, referring to Docket No. FD 36084, 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: John D. Heffner, Strasburger & Price, LLP, 1025 Connecticut Ave. NW., Suite 717, Washington, DC 20036. According to NMCR, this action is categorically excluded from environmental review under 49 CFR 1105.6(c). Board decisions and notices are available on our Web site at WWW.STB.GOV. Decided: January 30, 2017. By the Board, Rachel D. Campbell, Director, Office of Proceedings. Kenyatta Clay, Clearance Clerk. [FR Doc. 2017–02284 Filed 2–1–17; 8:45 am] BILLING CODE 4915–01–P (WYCO).1 David L. Durbano (Durbano) commonly controls these railroads now as well as a fourth Class III carrier, Southwestern Railroad, Inc. (Southwestern).2 The applicants have submitted to the Board a letter of intent concerning the transaction in this docket and will submit a final Purchase and Sale Agreement once negotiations are complete and the agreement is executed.3 The applicants certify that: (1) The carriers that are the subject of this notice do not connect with each other, Delta, or NMCR; (2) this transaction is not part of a series of anticipated transactions that would connect these rail carriers with each other; and (3) the transaction does not involve a Class I carrier. The proposed transaction is therefore exempt from the prior approval requirements of 49 U.S.C. 11323 pursuant to 49 CFR 1180.2(d)(2). The earliest the transaction could be consummated is February 16, 2017, the effective date of the exemption (30 days after the verified notice was filed). The parties expect to consummate the transaction on or about February 17, 2017. 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 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) SURFACE TRANSPORTATION BOARD [Docket No. FD 36084] mstockstill on DSK3G9T082PROD with NOTICES West Branch Intermediate Holdings, LLC and Continental Rail LLC— Acquisition of Control Exemption— Cimarron Valley Railroad, L.C., Clarkdale Arizona Central Railroad, L.C., Wyoming and Colorado Railroad Company, Inc. West Branch Intermediate Holdings, LLC (West Branch) and Continental Rail LLC (Continental) have filed a verified notice of exemption pursuant to 49 CFR 1180.2(d)(2), for West Branch to acquire control of, and for Continental to manage, the following Class III rail carriers: Cimarron Valley Railroad, L.C. (Cimarron), Clarkdale Arizona Central Railroad, L.C. (Clarkdale), and Wyoming and Colorado Railroad Company, Inc. VerDate Sep<11>2014 16:31 Feb 01, 2017 Jkt 241001 1 West Branch currently controls another Class III carrier, Delta Southern Railroad, Inc. (Delta), and it will continue to do so after it consummates its acquisition of Cimarron, Clarkdale, and WYCO. 2 The applicants do not intend to acquire control of Southwestern. Instead, West Branch will acquire certain assets of Southwestern through a newly formed subsidiary, New Mexico Central Railroad, LLC (NMCR). On the same day the applicants filed their verified notice in this docket, NMCR filed a verified notice of exemption under 49 CFR 1150.31 to acquire and operate those Southwestern assets. See N.M. Cent. R.R.—Acquis. & Operation Exemption—Sw. R.R., Whitewater Division, Docket No. FD 36085. Concurrently, West Branch and Continental filed a verified notice of exemption under 49 CFR 1180.2(d)(2) for West Branch to acquire and for Continental to manage NMCR upon NMCR’s becoming a Class III carrier. See W. Branch Intermediate Holdings & Cont’l Rail—Continuance in Control Exemption—N. M. Cent. R.R., Docket No. FD 36087. 3 The applicants filed their letter of intent under seal and have moved that the Board issue a protective order governing access to the confidential materials. That motion is being addressed separately. PO 00000 Frm 00055 Fmt 4703 Sfmt 4703 9109 may be filed at any time. The filing of a petition to revoke will not automatically stay the effectiveness of the exemption. Petitions to stay must be filed by February 9, 2017 (at least seven days before the exemption becomes effective). An original and ten copies of all pleadings, referring to Docket No. FD 36084, 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: John D. Heffner, Strasburger & Price, LLP, 1025 Connecticut Ave. NW., Suite 717, Washington, DC 20036. Board decisions and notices are available on our Web site at ‘‘WWW.STB.GOV.’’ Decided: January 30, 2017. By the Board, Rachel D. Campbell, Director, Office of Proceedings. Kenyatta Clay, Clearance Clerk. [FR Doc. 2017–02285 Filed 2–1–17; 8:45 am] BILLING CODE 4915–01–P DEPARTMENT OF THE TREASURY Financial Crimes Enforcement Network Proposed Collection; Comment Request; Update and Revision of the FinCEN Suspicious Activity Reports Electronic Data Fields Financial Crimes Enforcement Network (‘‘FinCEN’’), U.S. Department of the Treasury. ACTION: Notice and request for comments. AGENCY: FinCEN, a bureau of the U.S. Department of the Treasury (‘‘Treasury’’), invites all interested parties to comment on its proposed update and revisions to the collection of information filings by financial institutions required to file such reports under the Bank Secrecy Act (‘‘BSA’’). This notice does not propose any new regulatory requirements or changes to the requirements related to suspicious activity reporting. The data fields reflect the filing requirement for all filers of SARs under the BSA. This request for comments is being made pursuant to the Paperwork Reduction Act (PRA) of 1995, Public Law 104–13, 44 U.S.C. 3506(c)(2)(A). SUMMARY: Written comments are welcome and must be received on or before April 3, 2017. ADDRESSES: Written comments should be submitted to: Policy Division, Financial Crimes Enforcement Network, DATES: E:\FR\FM\02FEN1.SGM 02FEN1

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[Federal Register Volume 82, Number 21 (Thursday, February 2, 2017)]
[Notices]
[Pages 9108-9109]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-02284]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36085]


New Mexico Central Railroad, LLC--Acquisition and Operation 
Exemption--Southwestern Railroad, Inc., Whitewater Division

    New Mexico Central Railroad, LLC (NMCR),\1\ a noncarrier, has filed 
a verified notice of exemption under 49 CFR 1150.31 to acquire and 
operate certain lines of railroad in New Mexico (the Lines) 
collectively referred to as the Whitewater Division, currently operated 
and owned or leased by Southwestern Railroad, Inc. (Southwestern). In 
particular, NMRC will acquire Southwestern's leasehold interest in a 
line between Deming (MP 1134) and Rincon (MP 1080) and ownership 
interest in lines: Between Deming (MP 0.0) and Peruhill (MP 5+3,763 
feet); between Peruhill (MP 5+3,763 feet) and Whitewater (MP 30+2,972 
feet); between Whitewater (near MP 30+2,972 feet) and the Tyrone 
Industrial Spur at Burro Mountain Jct. (near MP 33+5,256 feet); between 
Whitewater (MP 0+0750 feet) and Santa Rita (MP 16+1,500 feet); and 
between Hannover, Jct. (MP 14+1,345.4 feet) and the connection line at 
the Fierro Industrial Spur at the Sharon Steel Plant (near MP 6+1,804 
feet). The total Southwestern mileage NMCR will acquire (by purchase or 
lease) and operate is approximately 116 miles.\2\
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    \1\ NMCR is a newly established entity owned by West Branch 
Intermediate Holdings, LLC (West Branch), and managed by Continental 
Rail LLC (Continental). West Branch currently controls an existing 
Class III carrier, Delta Southern Railroad, Inc. (Delta).
    \2\ Southwestern also leases and operates a BNSF Railway Company 
(BNSF) line known as the Carlsbad Division, which consists of 
approximately 227.6 miles of railroad linking Clovis, Carlsbad, and 
Loving, N.M. Southwestern recently petitioned for an exemption to 
discontinue service over the Carlsbad Division. See Sw. R.R.--
Discontinuance of Serv. Exemption--in Curry, Roosevelt, Chaves & 
Eddy Ctys., N.M., AB 1251X (filed Jan. 17, 2017).
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    On the same day NMCR filed its verified notice of exemption, West 
Branch and Continental also filed a verified notice of exemption in 
West Branch Intermediate Holdings & Continental Rail--Continuance in 
Control Exemption--New Mexico Central Railroad, Docket No. FD 36087, 
for West Branch to acquire and for Continental to manage NMCR upon 
NMCR's becoming a Class III carrier.\3\
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    \3\ In Docket No. FD 36084, West Branch and Continental have 
invoked the class exemption at 49 CFR 1180.2(d)(2) for West Branch 
to acquire control and for Continental to manage the following Class 
III rail carriers: Cimarron Valley Railroad, L.C., Clarksdale 
Arizona Central Railroad, L.C., and Wyoming and Colorado Railroad 
Company, Inc.
---------------------------------------------------------------------------

    NMCR has executed a letter of intent for it to purchase the Lines. 
NMCR and Southwestern are currently negotiating a purchase and sale 
agreement governing the purchase of the Lines as well as certain other 
assets. The parties expect to reach an agreement shortly, which NMCR 
states will not contain an interchange agreement.
    NMCR certifies that its projected annual revenues resulting from 
the transaction will not result in its becoming a Class I or Class II 
rail carrier. NMCR notes, however, that its annual operating revenues 
will exceed $5 million. Accordingly, in compliance with 49 CFR 
1150.32(e), NMCR submitted a letter on December 16, 2016, certifying 
that it posted the required 60-day labor notice of this transaction at 
the Southwestern employees' workplace at Deming. NMCR states that the 
notice was not served on the national offices of labor unions with 
employees who work on

[[Page 9109]]

the affected lines because there are no unionized employees employed by 
Southwestern.
    The earliest the transaction could be consummated is February 16, 
2017, and the parties expect to consummate the transaction at that 
time.
    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 to stay must be filed by February 9, 2017 (at 
least seven days before the exemption becomes effective).
    An original and ten copies of all pleadings, referring to Docket 
No. FD 36084, 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: John D. Heffner, Strasburger & Price, LLP, 
1025 Connecticut Ave. NW., Suite 717, Washington, DC 20036.
    According to NMCR, this action is categorically excluded from 
environmental review under 49 CFR 1105.6(c).
    Board decisions and notices are available on our Web site at 
WWW.STB.GOV.

    Decided: January 30, 2017.

    By the Board, Rachel D. Campbell, Director, Office of 
Proceedings.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2017-02284 Filed 2-1-17; 8:45 am]
 BILLING CODE 4915-01-P