[Federal Register Volume 77, Number 46 (Thursday, March 8, 2012)]
[Notices]
[Pages 14057-14058]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-5662]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[Docket No. FD 35600]


Gregory B. Cundiff, Connie Cundiff, CGX, Inc. and Ironhorse 
Resources, Inc.; Continuance in Control Exemption; Santa Teresa 
Southern Railroad, LLC

    Gregory B. Cundiff, Connie Cundiff, CGX, Inc. (CGX) and Ironhorse 
Resources, Inc. (Ironhorse) (collectively, parties) have filed a 
verified notice of exemption under 49 CFR 1180.2(d)(2) to continue in 
control of Santa Teresa Southern Railroad, LLC (STSR), upon STSR's 
becoming a Class III rail carrier.
    This transaction is related to a concurrently filed verified notice 
of exemption in Santa Teresa Southern Railroad, LLC--Operation 
Exemption--Rail Line of Verde Logistics Railroad, LLC at Santa Teresa, 
Dona Ana County, N.M., Docket No. FD 35599, wherein STSR seeks Board 
approval to operate over approximately 12,000 feet of rail line owned 
by Verde Logistics Railroad, LLC in Santa Teresa, N.M.
    The parties intend to consummate the transaction no sooner than 30 
days after filing their notice with the Board (March 22, 2012).
    CGX, a noncarrier holding company, is owned by Gregory B. Cundiff 
and Connie Cundiff. CGX owns Ironhorse, also a noncarrier holding 
company. CGX owns the following Class III rail carriers: Crystal City 
Railroad, Inc.; Lone Star Railroad, Inc.; Rio Valley Railroad, Inc.; 
and Mississippi Tennessee Holdings, LLC. Ironhorse owns the following 
Class III rail carriers: Rio Valley Switching Company; Southern 
Switching Company; Mississippi Tennessee Railroad, LLC; Gardendale 
Railroad, Inc.; and STSR.
    The parties represent that: (1) The rail line to be operated by 
STSR will not

[[Page 14058]]

connect with any of the railroads owned by CGX or Ironhorse; (2) the 
continuance in control is not part of a series of anticipated 
transactions that would connect the rail lines with any other railroads 
in their corporate family; and (3) the transaction does not involve a 
Class I rail carrier. Therefore, the transaction is exempt from the 
prior approval requirements of 49 U.S.C. 11323. See 49 CFR 
1180.2(d)(2).
    The parties state that the purpose of the proposed transaction is 
the achievement of operating efficiency and economy.
    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. Accordingly, the 
Board may not impose labor protective conditions here, because all of 
the carriers involved are Class III carriers.
    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 March 15, 2012 
(at least 7 days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 35600, must be filed with the Surface Transportation Board, 395 E 
Street SW., Washington, DC 20423-0001. In addition, a copy of each 
pleading must be served on Thomas F. McFarland, 208 South LaSalle 
Street Suite 1890, Chicago, IL 60604-1112.
    Board decisions and notices are available on our Web site at 
www.stb.dot.gov.

    Decided: March 5, 2012.

    By the Board, Rachel D. Campbell, Director, Office of 
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2012-5662 Filed 3-7-12; 8:45 am]
BILLING CODE 4915-01-P