[Federal Register Volume 85, Number 127 (Wednesday, July 1, 2020)]
[Notices]
[Page 39659]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-14168]
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SURFACE TRANSPORTATION BOARD
[Docket No. FD 36413]
MB Rail IB, LLC--Acquisition and Continuance in Control
Exemption--Chesapeake & Indiana Railroad, Vermilion Valley Railroad,
Camp Chase Rail, LLC, and Youngstown & Southeastern Railroad, LLC
MB Rail IB, LLC (MB Rail), a noncarrier holding company, has filed
a verified notice of exemption under 49 1180.2(d)(2) to control four
Class III railroads: Chesapeake & Indiana Railroad (CIR), Vermilion
Valley Railroad (VVR), Camp Chase Rail, LLC (Camp Chase Rail), and
Youngstown & Southeastern Railroad, LLC (YSR) (collectively, the
Controlled Railroads).\1\
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\1\ On June 15, 2020, MB Rail also filed a motion for a
protective order under 49 CFR 1104.14(b), which was granted on June
16, 2020.
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The verified notice states that MB Rail has established Camp Chase
Rail and YSR as new noncarriers for the purpose of acquiring and
operating the railroad assets currently owned by Camp Chase Railway
Company, LLC (CCRY), and Youngstown & Southeastern Railroad Company
(Y&S), respectively. The verified notice further states that Indiana
Boxcar Corporation (IBC) currently owns and controls CIR, VVR, CCRY,
and Y&S. According to MB Rail, it has entered into an agreement with
IBC under which MB Rail will acquire from IBC all of the equity in CIR
and VVR, and MB Rail's two newly formed non-carrier subsidiaries, Camp
Chase Rail and YSR, will purchase and operate the rail lines and other
assets of CCRY and Y&S, respectively.\2\ Thus, MB Rail seeks to acquire
control of CIR and VVR, and to continue in control of Camp Chase Rail
and YSR when they become rail carriers upon acquiring the rail lines of
CCRY and Y&S. MB Rail states that the proposed transaction will not
impose any new interchange commitments.
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\2\ According to the verified notice, CIR's line is located in
Indiana; VVR's line is located in Illinois and Indiana; Camp Chase
Rail will operate over a line located in Ohio; and YSR will operate
over a line located in Ohio and Pennsylvania.
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This notice of exemption is related to two concurrently filed
verified notices of exemption under which MB Rail's new subsidiaries,
Camp Chase Rail and YSR, seek authority to purchase and operate the
rail lines owned and operated by CCRY and Y&S, respectively. See Camp
Chase Rail--Acquis. & Operation Exemption--Camp Chase Ry., Docket No.
FD 36414, and Youngstown & Se. R.R., LLC--Acquis. & Operation
Exemption--Youngstown & Se. R.R. Co., Docket No. FD 36415.
The verified notice states that: (1) The lines of the Controlled
Railroads do not connect with each other; (2) the proposed transaction
is not part of a series of anticipated transactions that would connect
the Controlled Railroads; and (3) the proposed transaction does not
involve a Class I rail carrier. The proposed transaction is therefore
exempt from the prior approval requirements of 49 U.S.C. 11323. See 49
CFR 1180.2(d)(2).
The earliest this transaction may be consummated is July 15, 2020,
the effective date of the exemption (30 days after the verified notice
was filed).
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. However, 49 U.S.C. 11326(c)
does not provide for labor protection for transactions under 49 U.S.C.
11324 and 11325 that involve only Class III rail carriers. Because this
transaction involves Class III rail carriers only, the Board, under the
statute, may not impose labor protective conditions for this
transaction.
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 no later than July 8, 2020
(at least seven days before the exemption becomes effective).
All pleadings, referring to Docket No. FD 36413, must be filed with
the Surface Transportation Board either via e-filing or in writing
addressed to 395 E Street SW, Washington, DC 20423-0001. In addition, a
copy of each pleading must be served on MB Rail's representative,
Charles H. Montange, Law Offices of Charles H. Montange, 426 NW 162nd
Street, Seattle, WA 98177.
According to the verified notice, this action is categorically
excluded from environmental review under 49 CFR 1105.6(c) and from
historic preservation reporting requirements under 49 CFR 1105.8(b).
Board decisions and notices are available at www.stb.gov.
Decided: June 25, 2020.
By the Board, Allison C. Davis, Director, Office of Proceedings.
Regena Smith-Bernard,
Clearance Clerk.
[FR Doc. 2020-14168 Filed 6-30-20; 8:45 am]
BILLING CODE 4915-01-P