[Federal Register Volume 83, Number 165 (Friday, August 24, 2018)]
[Notices]
[Page 42966]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-18119]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36206]


Decatur & Eastern Illinois Railroad, L.L.C.--Acquisition 
Exemption Containing Interchange Commitment--CSX Transportation, Inc.

    Decatur & Eastern Illinois Railroad, L.L.C. (DEIR), a noncarrier, 
has filed a verified notice of exemption under 49 CFR 1150.31 to 
acquire and operate approximately 126.7 miles of track (the Line) owned 
by CSX Transportation, Inc., (CSXT), consisting of: (1) CSXT's Decatur 
Subdivision starting near Montezuma, Ind., at milepost BD 192.4 and 
ending in Decatur, Ill., at milepost BD 277.2; (2) CSXT's Danville 
Secondary Subdivision from near Terre Haute, Ind., at milepost QSD 72.2 
to near Olivet, Ill., at milepost QSD 113.6; and (3) CSXT's Paris 
Industrial Track located in Paris, Ill. As part of the transaction, 
CSXT will also assign its trackage rights over Illinois Central 
Railroad Company (IC) between the Decatur Street road crossing at or 
near milepost 77.7 and milepost 76.7 on IC's Peoria Subdivision, 
including IC's connection with CSXT between milepost 30.5 and milepost 
28.6 on IC's Peoria Subdivision, and between IC's lead track from its 
connection to the Green Switch Spur to IC's connection with the ADM 
Run-Around-Yard at Decatur, Ill., on IC's Peoria Subdivision, a total 
distance of approximately 3.6 miles.
    This transaction is related to a concurrently filed verified notice 
of exemption in Watco Holdings, Inc.--Continuance in Control 
Exemption--Decatur & Eastern Illinois Railroad, Docket No. FD 36209, in 
which Watco Holdings, Inc., seeks Board approval to continue in control 
of DEIR upon DEIR's becoming a Class III rail carrier.
    The verified notice states that DEIR and CSXT will enter into a 
Purchase and Sale Agreement and a Freight Operating Agreement prior to 
closing, and that DEIR will be the operator of the acquired rail lines. 
As required by 49 CFR 1150.33(h), DEIR has disclosed in its verified 
notice that the Freight Operating Agreement contains an interchange 
commitment that would require DEIR to pay additional compensation to 
CSXT if DEIR interchanges traffic with a third-party rail carrier and 
that the affected interchange points are Decatur, Metcalf, and Tuscola, 
Ill. DEIR has provided additional information pertaining to the 
interchange commitment as required by Sec.  1150.33(h).\1\
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    \1\ DEIR lists ``Canadian National Railway'' (CNR) as one of the 
third-party railroads that could physically interchange with the 
line sought to be acquired. The Board notes that the correct 
reference should be to Illinois Central Railroad Company (IC)--the 
CNR subsidiary over which DEIR will be assigned 3.6 miles of 
trackage rights (as described above) and the only CNR affiliate 
operating in the affected region.
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    DEIR certifies that its projected annual revenues resulting from 
the transaction will not exceed those that would qualify it as a Class 
III rail carrier. However, DEIR states that its projected annual 
revenues will exceed $5 million. Accordingly, in compliance with 49 CFR 
1150.32(e), on July 6, 2018, DEIR posted the required 60-day labor 
notice of this transaction at the workplaces of CSXT employees on the 
affected Line, served notice on the national offices of the labor 
unions for those employees, and filed a letter with the Board 
certifying its compliance with the advance notice requirements.
    The transaction may be consummated on or after September 8, 2018, 
the effective date of the exemption (30 days after the verified notice 
was filed).\2\
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    \2\ The verified notice states that the transaction is expected 
to be consummated on or about September 6, 2018, however, 
consummation of the transaction must await the effective date of the 
exemption.
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    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 August 31, 
2018 (at least seven days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 36206, must be filed with the Surface Transportation Board, 395 E 
Street SW, Washington, DC 20423-0001. In addition, a copy must be 
served on Karl Morell, Karl Morell & Associates, Suite 440, 440 1st 
Street NW, Washington, DC 20001.
    According to DEIR, this action is categorically excluded from 
environmental review under 49 CFR 1105.6(c).
    Board decisions and notices are available on our website at 
www.stb.gov.

    Decided: August 17, 2018.

    By the Board.
Scott M. Zimmerman,
Acting Director, Office of Proceedings.
Aretha Laws-Byrum,
Clearance Clerk.
[FR Doc. 2018-18119 Filed 8-23-18; 8:45 am]
 BILLING CODE 4915-01-P