[Federal Register Volume 83, Number 165 (Friday, August 24, 2018)]
[Notices]
[Pages 42965-42966]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-18125]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36209]


Watco Holdings, Inc.--Continuance in Control Exemption--Decatur & 
Eastern Illinois Railroad, L.L.C.

    Watco Holdings, Inc. (Watco), a noncarrier, has filed a verified 
notice of exemption pursuant to 49 CFR 1180.2(d)(2) to continue in 
control of Decatur & Eastern Illinois Railroad, L.L.C. (DEIR), upon 
DEIR's becoming a Class III rail carrier. Watco owns, indirectly, 100% 
of the issued and outstanding stock of DEIR, a limited liability 
company.
    This transaction is related to a concurrently filed verified notice 
of exemption in Decatur & Eastern Illinois Railroad--Acquisition 
Exemption Containing Interchange Commitment--CSX Transportation, Inc., 
Docket No. FD 36206, by which DEIR seeks Board approval to acquire and 
operate approximately 126.7 miles of track 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.\1\
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    \1\ The proposed transaction also includes an ancillary 
assignment of CSXT's 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.
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    The transaction may be consummated on or after September 8, 2018, 
the effective date of the exemption (30 days after the verified notice 
of exemption was filed).
    According to the verified notice of exemption, Watco currently 
controls, indirectly, 37 Class III rail carriers and one Class II rail 
carrier, collectively operating in 27 states. For a complete list of 
these rail carriers and the states in which they operate, see the 
August 9, 2018 verified notice of exemption at pages 5-9 for a list of 
carriers and pages 9-11 for a list of states.\2\ The verified notice is 
available on the Board's website at www.stb.gov.
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    \2\ The sentence on page 3 of the notice stating that Watco 
controls 38 Class III railroads and operates in 26 states is 
inconsistent with the list of carriers and states listed on pages 5-
11.
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    Watco represents that: (1) The rail line to be operated by DEIR 
does not connect with any of the rail lines operated by railroads in 
the Watco corporate family; (2) the transaction is not part of a series 
of anticipated transactions that would result in such a connection; and 
(3) the 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 pursuant to 49 CFR 1180.2(d)(2).
    Watco states that the purpose of the transaction is to reduce 
overhead expenses and coordinate billing, maintenance, mechanical and 
personnel policies and procedures of its rail carrier subsidiaries, and 
thereby improve the overall efficiency of rail service provided by the 
railroads in the Watco 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. Because the transaction 
involves the control of one Class II and one or more Class III rail 
carriers, the transaction is subject to the labor protection 
requirements of 49 U.S.C. 11326(b) and Wisconsin Central Ltd.--
Acquisition Exemption--Lines of Union Pacific Railroad, 2 S.T.B. 218 
(1997).

[[Page 42966]]

    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 by 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 36209, must be filed with the Surface Transportation Board, 395 E 
Street SW, Washington, DC 20423-0001. In addition, one copy of each 
pleading must be served on Karl Morell, Karl Morell & Associates, Suite 
440, 440 1st Street NW, Washington, DC 20001.
    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. 2018-18125 Filed 8-23-18; 8:45 am]
 BILLING CODE 4915-01-P