[Federal Register Volume 62, Number 225 (Friday, November 21, 1997)]
[Notices]
[Page 62400]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-30668]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Finance Docket No. 33493]


RailAmerica, Inc.--Acquisition of Control Exemption--Cape Fear 
Railways, Inc.

    RailAmerica, Inc. (RailAmerica), a noncarrier, has filed a notice 
of exemption to acquire, through stock purchase, the Cape Fear 
Railways, Inc. (CF), a Class III railroad, operating in the State of 
North Carolina.<SUP>1</SUP>
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    \1\ RailAmerica will purchase the stock of CF from Seaboard 
Corporation.
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    The transaction was expected to be consummated on or after October 
17, 1997.
    RailAmerica directly controls 11 common carrier Class III railroads 
operating in 7 states: the Cascade and Columbia River Railroad Company; 
the Delaware Valley Railway Company, Inc.; the St. Croix Valley 
Railroad Company; the Gettysburg Railway; the Huron & Eastern Railway 
Company, Inc.; the Minnesota Northern Railroad, Inc.; the Otter Tail 
Valley Railroad Company; the Saginaw Valley Railway Company, Inc; the 
West Texas & Lubbock Railroad Company, Inc.; the Dakota Rail, Inc.; and 
the South Central Tennessee Railroad Company.
    RailAmerica states that: (i) The rail lines to be operated by CF do 
not connect with any railroad in the corporate family; (ii) the 
transaction is not part of a series of anticipated transactions that 
would connect CF with any railroad in the corporate family; and (iii) 
the transaction does not involve a Class I carrier. Therefore, the 
transaction 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 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 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. 33493, must be filed with the Surface Transportation 
Board, Office of the Secretary, Case Control Unit, 1925 K Street, N.W., 
Washington, DC 20423-0001. In addition, a copy of each pleading must be 
served on Gary Laakso, Esq., RailAmerica, Inc., 301 Yamato Road, Suite 
1190, Boca Raton, FL 33431.

    Decided: November 17, 1997.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 97-30668 Filed 11-20-97; 8:45 am]
BILLING CODE 4915-00-P