Tarantula Corporation-Acquisition of Control Exemption-Texas Central Railroad Company, 48208-48209 [2024-12259]

Download as PDF 48208 Federal Register / Vol. 89, No. 109 / Wednesday, June 5, 2024 / Notices SW, Suite 6050, Washington, DC 20416, (202) 205–6734. Notice is hereby given that as a result of the President’s major disaster declaration on 05/30/2024, applications for disaster loans may be submitted online using the MySBA Loan Portal https://lending. sba.gov or other locally announced locations. Please contact the SBA disaster assistance customer service center by email at disastercustomerservice@sba.gov or by phone at 1–800–659–2955 for further assistance. The following areas have been determined to be adversely affected by the disaster: Corporation (Birdsong).1 As discussed below, the Board will grant the exemption. DEPARTMENT OF STATE [Public Notice: 12421] SUPPLEMENTARY INFORMATION: International Security Advisory Board (ISAB) Meeting Notice; Closed Meeting In accordance with section 10(a)(2) of the Federal Advisory Committee Act, 5 U.S.C. 1009(a)(2), the Department of State announces a meeting of the International Security Advisory Board (ISAB) to take place on June 25, 2024, at the Department of State, Washington, DC. Pursuant to section 10(d) of the Federal Advisory Committee Act, 5 U.S.C. 1009(d), and 5 U.S.C. 552b(c)(1), it has been determined that this Board meeting will be closed to the public because the Board will be reviewing and discussing matters properly classified in Primary Counties (Physical Damage and accordance with Executive Order 13526. Economic Injury Loans): Benton, The purpose of the ISAB is to provide Boone, Marion. the Department with a continuing source of independent advice on all Contiguous Counties (Economic Injury aspects of arms control, disarmament, Loans Only): nonproliferation, outer space, critical Arkansas: Baxter, Carroll, Madison, infrastructure, cybersecurity, the Newton, Searcy, Washington national security aspects of associated Missouri: McDonald, Barry, Ozark, technologies, international security, and related aspects of public diplomacy. The Taney agenda for this meeting will include Oklahoma: Adair, Delaware classified discussions related to the The Interest Rates are: Board’s ongoing studies on current U.S. policy and issues regarding Percent biotechnology and military-civil fusion strategy, multilateral disarmament For Physical Damage: structures, and security cooperation and Homeowners with Credit Availarms transfers. able Elsewhere ...................... 5.375 For more information, contact Homeowners without Credit Michelle Dover, Executive Director of Available Elsewhere .............. 2.688 the International Security Advisory Businesses with Credit Available Elsewhere ...................... 8.000 Board, Department of State, Washington, DC 20520, telephone: (202) Businesses without Credit Available Elsewhere .............. 4.000 736–7524. Non-Profit Organizations with Credit Available Elsewhere ... Non-Profit Organizations without Credit Available Elsewhere ..................................... For Economic Injury: Business and Small Agricultural Cooperatives without Credit Available Elsewhere .............. Non-Profit Organizations without Credit Available Elsewhere ..................................... 3.250 3.250 4.000 khammond on DSKJM1Z7X2PROD with NOTICES SURFACE TRANSPORTATION BOARD [Docket No. FD 36759] 3.250 (Catalog of Federal Domestic Assistance Number 59008) Francisco Sánchez, Jr., Associate Administrator, Office of Disaster Recovery & Resilience. [FR Doc. 2024–12335 Filed 6–4–24; 8:45 am] BILLING CODE 8026–09–P 16:50 Jun 04, 2024 [FR Doc. 2024–12261 Filed 6–4–24; 8:45 am] BILLING CODE 4710–27–P The number assigned to this disaster for physical damage is 20362C and for economic injury is 203630. VerDate Sep<11>2014 Michelle E. Dover, Executive Director, International Security Advisory Board Department of State. Jkt 262001 Tarantula Corporation—Acquisition of Control Exemption—Texas Central Railroad Company By petition filed on March 22, 2024, Tarantula Corporation (Tarantula), seeks an exemption under 49 U.S.C. 10502 from the prior approval requirements of 49 U.S.C. 11323 to acquire control of Texas Central Railroad Company (Texas Central), a Class III carrier, through the purchase of all outstanding Texas Central capital stock from Birdsong PO 00000 Frm 00067 Fmt 4703 Sfmt 4703 Background Tarantula is a noncarrier holding company that controls Fort Worth & Western Railroad Company (FWWR), Fort Worth & Dallas Railroad Company, and Fort Worth & Dallas Belt Railroad Company, all of which are Class III rail carriers. (Pet. 1 & n.1); see also Tarantula Corp.—Continuance in Control Exemption—Fort Worth & Dall. Belt R.R., FD 32515 (ICC served July 25, 1994). Pursuant to a stock purchase agreement dated March 21, 2024, Tarantula has reached an agreement to acquire from Birdsong all of the outstanding capital stock of Texas Central. (See Pet., Ex. B at 1.) Upon consummation of this transaction, Tarantula would indirectly control Texas Central. (Id.) According to the petition, Texas Central owns—but does not operate—24.9 miles of rail line running from Dublin, Tex., to Gorman, Tex. (the Line). (Pet. 2.) FWWR, a Tarantula subsidiary, has leased and operated the Line since 1998. (Id.); see also Fort Worth & W. R.R.—Acquis. Exemption—S. Orient R.R., FD 33681 (STB served Nov. 30, 1998).2 In support of the petition, Tarantula asserts that the transaction will allow it to make capital improvements to infrastructure on the Line. (Pet. 3, 7.) Tarantula states that, as FWWR already operates over the Line, the transaction will not affect the level of operations or maintenance of the Line or any of the other lines operated by the other railroads in the Tarantula corporate family. (Id. at 6–7.) Tarantula has attached to the petition letters supporting the transaction from both shippers located on the Line, Birdsong and Gorman Milling Company, Inc. (See Pet., Ex. C.) Tarantula has also asked the Board for expedited consideration of its petition and a decision issued and effective by June 15, 2024. (Pet. 7.) Tarantula states that it would like an earlier effective date to commence infrastructure improvements on a faster schedule in support of increased safety, improved reliability, enhanced efficiency, and improved connectivity which can lead to greater marketability 1 Texas Central Railroad Company is a separate and distinct entity from Texas Central Partners, LLC, which is proposing to construct high-speed passenger rail between Dallas-Fort Worth and Houston, Tex. 2 Texas Central’s Line connects with FWWR’s rail line at Dublin. Tarantula explains that, for that reason, the transaction does not qualify for the class exemption under 49 CFR 1180.2(d)(2). (Pet. 1.) E:\FR\FM\05JNN1.SGM 05JNN1 Federal Register / Vol. 89, No. 109 / Wednesday, June 5, 2024 / Notices khammond on DSKJM1Z7X2PROD with NOTICES and competitiveness for communities and businesses in the rural area served by FWWR. (Id.) Tarantula further states that an earlier effective date would support an expansion project and make a stronger application for a CRISI grant. (Id.) Discussion and Conclusions The acquisition of control of a rail carrier by a person that is not a rail carrier but that controls any number of rail carriers requires prior approval from the Board under 49 U.S.C. 11323(a)(5). Under 49 U.S.C. 10502(a), however, the Board shall, to the maximum extent consistent with title 49, subtitle IV, part A, exempt a transaction or service from regulation upon finding that (1) the regulation is not necessary to carry out the rail transportation policy (RTP) under 49 U.S.C. 10101 and (2) either the transaction or service is of limited scope, or regulation is not needed to protect shippers from the abuse of market power. Here, an exemption from the prior approval requirements of 49 U.S.C. 11323–25 is consistent with the standards of 49 U.S.C. 10502. Detailed scrutiny of the proposed transaction through an application for review and approval under sections 11323–25 is not necessary to carry out the RTP. An exemption would promote the RTP by minimizing the need for federal regulatory control over the transaction, 49 U.S.C. 10101(2), reducing regulatory barriers to entry, 49 U.S.C. 10101(7), encouraging efficient management of railroads, 49 U.S.C. 10101(9), and providing for the expeditious resolution of this proceeding, 49 U.S.C. 10101(15). Further, Tarantula asserts that the acquisition will allow it to make capital improvements to infrastructure on the Line. (Pet. 3, 7.) Therefore, an exemption would promote the RTP by ensuring the development and continuation of a sound rail transportation system that would continue to meet the needs of the public, 49 U.S.C. 10101(4), and fostering sound economic conditions in transportation, 49 U.S.C. 10101(5). Other aspects of the RTP would not be adversely affected. Regulation of the transaction is not needed to protect shippers from abuse of market power.3 The record indicates that Texas Central does not conduct freight rail operations over the Line; rather, FWWR has leased and operated the Line since 1998. (Pet. 2.) Tarantula states that the transaction will have no 3 Given this finding, the Board need not determine whether the transaction is limited in scope. See 49 U.S.C. 10502(a). VerDate Sep<11>2014 16:50 Jun 04, 2024 Jkt 262001 adverse effect on rail operations over the Line because FWWR will continue operations over it. (Id. at 1, 5.) Thus, the proposed transaction will not result in any material changes to the services available to shippers along the Line. Moreover, there have been no objections to the proposed transaction, and the shippers along the Line have filed letters supporting the transaction. (Pet., Ex. C.) 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 carriers. Therefore, because all carriers involved in the transaction are Class III carriers, the Board may not impose labor protective conditions. The acquisition of control is exempt from environmental reporting requirements under 49 CFR 1105.6(c)(1) because it will not result in significant changes in carrier operations. Similarly, under 49 CFR 1105.8(b)(3), no historic report is required because the proposed transaction will not substantially change the level of operations or maintenance of railroad properties. As noted, Tarantula has requested expedited consideration of its petition for exemption. The Board finds that Tarantula’s request is reasonable under the circumstances. Accordingly, the effective date of the exemption will be June 15, 2024. See 49 CFR 1121.4(e) (‘‘Unless otherwise specified in the decision, an exemption generally will be effective 30 days from the service date of the decision.’’). Petitions for stay must be filed by June 7, 2024. Petitions to reopen will be due by June 20, 2024. It is ordered: 1. Under 49 U.S.C. 10502, the Board exempts the above transaction from the prior approval requirements of 49 U.S.C. 11323–25. 2. Notice of this exemption will be published in the Federal Register. 3. This decision will be effective on June 15, 2024. Petitions for stay must be filed by June 7, 2024. Petitions to reopen must be filed by June 20, 2024. Decided: May 30, 2024. By the Board, Board Members Fuchs, Hedlund, Primus, and Schultz. Kenyatta Clay, Clearance Clerk. [FR Doc. 2024–12259 Filed 6–4–24; 8:45 am] BILLING CODE 4915–01–P PO 00000 Frm 00068 Fmt 4703 Sfmt 4703 48209 DEPARTMENT OF TRANSPORTATION Federal Aviation Administration [Docket No.: FAA–2024–1363; Summary Notice No. 2024–21] Petition for Exemption; Summary of Petition Received; Basler Turbo Conversions LLC Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Notice. AGENCY: This notice contains a summary of a petition seeking relief from specified requirements of Federal Aviation Regulations. The purpose of this notice is to improve the public’s awareness of, and participation in, the FAA’s exemption process. Neither publication of this notice nor the inclusion nor omission of information in the summary is intended to affect the legal status of the petition or its final disposition. SUMMARY: Comments on this petition must identify the petition docket number and must be received on or before June 25, 2024. ADDRESSES: Send comments identified by docket number FAA–2024–1363 using any of the following methods: • Federal eRulemaking Portal: Go to https://www.regulations.gov and follow the online instructions for sending your comments electronically. • Mail: Send comments to Docket Operations, M–30; U.S. Department of Transportation, 1200 New Jersey Avenue SE, Room W12–140, West Building Ground Floor, Washington, DC 20590–0001. • Hand Delivery or Courier: Take comments to Docket Operations in Room W12–140 of the West Building Ground Floor at 1200 New Jersey Avenue SE, Washington, DC 20590– 0001, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. • Fax: Fax comments to Docket Operations at (202) 493–2251. Privacy: In accordance with 5 U.S.C. 553(c), DOT solicits comments from the public to better inform its rulemaking process. DOT posts these comments, without edit, including any personal information the commenter provides, to https://www.regulations.gov, as described in the system of records notice (DOT/ALL–14 FDMS), which can be reviewed at https://www.dot.gov/ privacy. Docket: Background documents or comments received may be read at https://www.regulations.gov at any time. DATES: E:\FR\FM\05JNN1.SGM 05JNN1

Agencies

[Federal Register Volume 89, Number 109 (Wednesday, June 5, 2024)]
[Notices]
[Pages 48208-48209]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-12259]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36759]


Tarantula Corporation--Acquisition of Control Exemption--Texas 
Central Railroad Company

    By petition filed on March 22, 2024, Tarantula Corporation 
(Tarantula), seeks an exemption under 49 U.S.C. 10502 from the prior 
approval requirements of 49 U.S.C. 11323 to acquire control of Texas 
Central Railroad Company (Texas Central), a Class III carrier, through 
the purchase of all outstanding Texas Central capital stock from 
Birdsong Corporation (Birdsong).\1\ As discussed below, the Board will 
grant the exemption.
---------------------------------------------------------------------------

    \1\ Texas Central Railroad Company is a separate and distinct 
entity from Texas Central Partners, LLC, which is proposing to 
construct high-speed passenger rail between Dallas-Fort Worth and 
Houston, Tex.
---------------------------------------------------------------------------

Background

    Tarantula is a noncarrier holding company that controls Fort Worth 
& Western Railroad Company (FWWR), Fort Worth & Dallas Railroad 
Company, and Fort Worth & Dallas Belt Railroad Company, all of which 
are Class III rail carriers. (Pet. 1 & n.1); see also Tarantula Corp.--
Continuance in Control Exemption--Fort Worth & Dall. Belt R.R., FD 
32515 (ICC served July 25, 1994).
    Pursuant to a stock purchase agreement dated March 21, 2024, 
Tarantula has reached an agreement to acquire from Birdsong all of the 
outstanding capital stock of Texas Central. (See Pet., Ex. B at 1.) 
Upon consummation of this transaction, Tarantula would indirectly 
control Texas Central. (Id.) According to the petition, Texas Central 
owns--but does not operate--24.9 miles of rail line running from 
Dublin, Tex., to Gorman, Tex. (the Line). (Pet. 2.) FWWR, a Tarantula 
subsidiary, has leased and operated the Line since 1998. (Id.); see 
also Fort Worth & W. R.R.--Acquis. Exemption--S. Orient R.R., FD 33681 
(STB served Nov. 30, 1998).\2\
---------------------------------------------------------------------------

    \2\ Texas Central's Line connects with FWWR's rail line at 
Dublin. Tarantula explains that, for that reason, the transaction 
does not qualify for the class exemption under 49 CFR 1180.2(d)(2). 
(Pet. 1.)
---------------------------------------------------------------------------

    In support of the petition, Tarantula asserts that the transaction 
will allow it to make capital improvements to infrastructure on the 
Line. (Pet. 3, 7.) Tarantula states that, as FWWR already operates over 
the Line, the transaction will not affect the level of operations or 
maintenance of the Line or any of the other lines operated by the other 
railroads in the Tarantula corporate family. (Id. at 6-7.) Tarantula 
has attached to the petition letters supporting the transaction from 
both shippers located on the Line, Birdsong and Gorman Milling Company, 
Inc. (See Pet., Ex. C.) Tarantula has also asked the Board for 
expedited consideration of its petition and a decision issued and 
effective by June 15, 2024. (Pet. 7.) Tarantula states that it would 
like an earlier effective date to commence infrastructure improvements 
on a faster schedule in support of increased safety, improved 
reliability, enhanced efficiency, and improved connectivity which can 
lead to greater marketability

[[Page 48209]]

and competitiveness for communities and businesses in the rural area 
served by FWWR. (Id.) Tarantula further states that an earlier 
effective date would support an expansion project and make a stronger 
application for a CRISI grant. (Id.)

Discussion and Conclusions

    The acquisition of control of a rail carrier by a person that is 
not a rail carrier but that controls any number of rail carriers 
requires prior approval from the Board under 49 U.S.C. 11323(a)(5). 
Under 49 U.S.C. 10502(a), however, the Board shall, to the maximum 
extent consistent with title 49, subtitle IV, part A, exempt a 
transaction or service from regulation upon finding that (1) the 
regulation is not necessary to carry out the rail transportation policy 
(RTP) under 49 U.S.C. 10101 and (2) either the transaction or service 
is of limited scope, or regulation is not needed to protect shippers 
from the abuse of market power.
    Here, an exemption from the prior approval requirements of 49 
U.S.C. 11323-25 is consistent with the standards of 49 U.S.C. 10502. 
Detailed scrutiny of the proposed transaction through an application 
for review and approval under sections 11323-25 is not necessary to 
carry out the RTP. An exemption would promote the RTP by minimizing the 
need for federal regulatory control over the transaction, 49 U.S.C. 
10101(2), reducing regulatory barriers to entry, 49 U.S.C. 10101(7), 
encouraging efficient management of railroads, 49 U.S.C. 10101(9), and 
providing for the expeditious resolution of this proceeding, 49 U.S.C. 
10101(15). Further, Tarantula asserts that the acquisition will allow 
it to make capital improvements to infrastructure on the Line. (Pet. 3, 
7.) Therefore, an exemption would promote the RTP by ensuring the 
development and continuation of a sound rail transportation system that 
would continue to meet the needs of the public, 49 U.S.C. 10101(4), and 
fostering sound economic conditions in transportation, 49 U.S.C. 
10101(5). Other aspects of the RTP would not be adversely affected.
    Regulation of the transaction is not needed to protect shippers 
from abuse of market power.\3\ The record indicates that Texas Central 
does not conduct freight rail operations over the Line; rather, FWWR 
has leased and operated the Line since 1998. (Pet. 2.) Tarantula states 
that the transaction will have no adverse effect on rail operations 
over the Line because FWWR will continue operations over it. (Id. at 1, 
5.) Thus, the proposed transaction will not result in any material 
changes to the services available to shippers along the Line. Moreover, 
there have been no objections to the proposed transaction, and the 
shippers along the Line have filed letters supporting the transaction. 
(Pet., Ex. C.)
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    \3\ Given this finding, the Board need not determine whether the 
transaction is limited in scope. See 49 U.S.C. 10502(a).
---------------------------------------------------------------------------

    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 carriers. Therefore, because all 
carriers involved in the transaction are Class III carriers, the Board 
may not impose labor protective conditions.
    The acquisition of control is exempt from environmental reporting 
requirements under 49 CFR 1105.6(c)(1) because it will not result in 
significant changes in carrier operations. Similarly, under 49 CFR 
1105.8(b)(3), no historic report is required because the proposed 
transaction will not substantially change the level of operations or 
maintenance of railroad properties.
    As noted, Tarantula has requested expedited consideration of its 
petition for exemption. The Board finds that Tarantula's request is 
reasonable under the circumstances. Accordingly, the effective date of 
the exemption will be June 15, 2024. See 49 CFR 1121.4(e) (``Unless 
otherwise specified in the decision, an exemption generally will be 
effective 30 days from the service date of the decision.''). Petitions 
for stay must be filed by June 7, 2024. Petitions to reopen will be due 
by June 20, 2024.
    It is ordered:
    1. Under 49 U.S.C. 10502, the Board exempts the above transaction 
from the prior approval requirements of 49 U.S.C. 11323-25.
    2. Notice of this exemption will be published in the Federal 
Register.
    3. This decision will be effective on June 15, 2024. Petitions for 
stay must be filed by June 7, 2024. Petitions to reopen must be filed 
by June 20, 2024.

    Decided: May 30, 2024.

    By the Board, Board Members Fuchs, Hedlund, Primus, and Schultz.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2024-12259 Filed 6-4-24; 8:45 am]
BILLING CODE 4915-01-P
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