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[Federal Register Volume 62, Number 157 (Thursday, August 14, 1997)]
[Notices]
[Pages 43577-43578]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-21550]

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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Finance Docket No. 33439]

Kauri, Inc. and StatesRail LLC--Continuance in Control--Alabama & 
Gulf Coast Railway LLC

    Kauri, Inc. (Kauri) and StatesRail LLC (StatesRail) filed a notice 
of exemption under 49 CFR 1180.2(d)(2) and 1180.4(g) to continue in 
control of Alabama & Gulf Coast Railway LLC (ALA) upon ALA's becoming a 
Class III rail carrier. The transaction is expected to be consummated 
on or after September 1, 1997.
    ALA, a noncarrier, has concurrently filed a notice of exemption in 
Alabama & Gulf Coast Railway LLC--Acquisition and Operation Exemption--
The Burlington Northern and Santa Fe Railway Company, STB Finance 
Docket No. 33438, to acquire from The Burlington Northern and Santa Fe 
Railway Company (BNSF) and operate a 140.58-mile rail line between 
milepost 776.10 near Kimbrough, AL, and milepost 916.68 in Pensacola, 
FL. ALA will also acquire incidental trackage rights over 13.6 miles of 
BNSF's line between milepost 776.10 near Kimbrough, AL, and milepost 
762.5 near Magnolia, AL. ALA will also be temporarily assigned trackage 
rights over a 43.1-mile line of CSX Transportation, Inc., between 
milepost L621.7 near Atmore, AL, and milepost L635.4 near Catonment, 
FL, pending completion of repairs to the line to be acquired from BNSF.
    Kauri, a noncarrier, through its noncarrier subsidiary, StatesRail, 
controls: (1) Kiamichi Railroad Company, L.L.C. (Kiamichi), which 
operates lines in Arkansas, Oklahoma, and Texas; and (2) through its 
noncarrier subsidiary StatesRail, Inc., and its noncarrier subsidiary, 
Kyle Railways, Inc., controls: (a) Arizona Eastern Railway Company, 
which

[[Page 43578]]

operates lines in Arizona; (b) Eastern Alabama Railway Company, which 
operates lines in Alabama; (c) Kyle Railroad Company, which operates 
lines in Colorado, Kansas, and Nebraska; (d) San Joaquin Valley 
Railroad Company, which operates lines in California; and (e) SWKR 
Operating Co., which operates lines in Arizona. 1
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    \1\ See StatesRail, Inc.--Acquisition of Control Exemption--Kyle 
Railways, Inc., STB Finance Docket No. 33340 (STB served Apr. 17. 
1997).
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    As noted, StatesRail controls Kiamichi and would be in control of 
ALA upon its becoming a carrier.
    Kauri states that: (1) The rail lines to be acquired by ALA will 
not connect with other rail lines under Kauri's or StatesRail's control 
or with any railroads within their corporate family; (2) the 
continuance in control is not part of a series of anticipated 
transactions that would connect the railroads with each other or any 
railroad in the corporate family; and (3) the transaction does not 
involve a Class I railroad. The transaction therefore 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 sections 11324 
and 11325 that involve only Class III railroad 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 transaction.
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 33439, must be filed with the Surface Transportation 
Board, Office of the Secretary, Case Control Unit, 1925 K Street, N.W., 
Washington, DC 20423. In addition, a copy of each pleading must be 
served on Fritz Kahn, Suite 750 West, 1100 New York Avenue, N.W., 
Washington, DC 20005-3934.

    Decided: August 5, 1997.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 97-21550 Filed 8-13-97; 8:45 am]
BILLING CODE 4915-00-P
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