[Federal Register Volume 65, Number 89 (Monday, May 8, 2000)]
[Notices]
[Page 26658]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-11183]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 33868]


OmniTRAX, Inc., Central Kansas Railway, L.L.C., and Kansas 
Southwestern Railway, L.L.C.--Corporate Family Transaction Exemption

    OmniTRAX, Inc. (OmniTRAX),\1\ Central Kansas Railway L.L.C. (CKR), 
and Kansas Southwestern Railway, L.L.C. (KSW), have jointly filed a 
verified notice of exemption. CKR operates over approximately 900 miles 
of rail line in the States of Kansas and Colorado. KSW operates over 
approximately 106 miles of rail line in the State of Kansas and 
connects at several locations with CKR. KSW will be merged into CKR, 
with CKR as the surviving corporation. After the transaction is 
consummated, OmniTRAX will control 9 Class III railroads in the United 
States.
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    \1\ OmniTRAX is a noncarrier holding company, which at the time 
of filing, directly controlled 10 Class III railroads, including CKR 
and KSW, operating in 7 states. See OmniTRAX, Inc.--Control 
Exemption--Northern Ohio & Western Railway, LLC, STB Finance Docket 
No. 33598 (STB served June 5, 1998). OmniTRAX also states that it 
controls 3 rail carriers that operate in Canada.
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    The transaction was scheduled to be consummated on or shortly after 
April 26, 2000.
    The purpose of the transaction is to simplify OmniTRAX's corporate 
structure and eliminate costs associated with separate accounting, tax, 
bookkeeping and reporting functions. The proposed transaction will also 
enhance the operating economies of, and improve service on, the 
surviving corporation.
    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, does 
not provide for labor protection for transactions under sections 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 notice contains false or misleading information, the 
exemption is void ab initio. Petitions to reopen the proceeding 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 
transaction.
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 33868, must be filed with the Surface Transportation 
Board, Office of the Secretary, Case Control Unit, 1925 K Street, NW, 
Washington, DC 20423-0001. In addition, a copy of each pleading must be 
served on Karl Morell, P.C., Ball Janik LLP, Suite 225, 1455 F Street, 
NW, Washington, DC 20005.
    Board decisions and notices are available on our website at 
``WWW.STB.DOT.GOV.''

    Decided: April 28, 2000.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 00-11183 Filed 5-5-00; 8:45 am]
BILLING CODE 4915-00-P