[Federal Register Volume 87, Number 28 (Thursday, February 10, 2022)]
[Notices]
[Page 7894]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-02871]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36577]


Knoxville and Cumberland Gap Railroad, LLC--Acquisition and 
Operation Exemption With Interchange Commitment--Rail Lines of Norfolk 
Southern Railway Company in Anderson, Campbell, Claiborne, Grainger, 
Knox, and Union Counties, Tenn., Bell and Whitley Counties, Ky., and 
Lee County, Va.

    Knoxville and Cumberland Gap Railroad, LLC (KXCG), a noncarrier, 
has filed a verified notice of exemption to permit KXCG to acquire 
approximately 112.0 miles of rail lines from Norfolk Southern Railway 
Company (NSR), assume NSR's lease of approximately 13.0 miles of CSX 
Transportation, Inc. (CSXT) rail line, assume NSR's trackage rights 
over approximately 6.3 miles of a CSXT line, and acquire trackage 
rights over approximately 22.7 miles of an NSR line, for a total of 
approximately 154.0 miles (collectively, the Lines), and to operate the 
Lines.
    The portion of the Lines KXCG will acquire from NSR consists of: 
(1) The Jellico Line, running from the insulated joint in Clinton, 
Tenn. (at or around milepost 20.9C<plus-minus>) to Lot, Ky. (at or 
around milepost 67.7<plus-minus>), and from Hyde, Tenn. (at or around 
milepost 74C<plus-minus>) to Clairfield, Tenn. (at or around milepost 
80C<plus-minus>); and (2) the Middlesboro Line, running from the 
insulated joints of the wye track, north of the derails located in 
Beverly, Tenn. (at or near milepost 5.8CG<plus-minus>) to Cumberland 
Gap, Tenn. (at or around milepost 65CG<plus-minus>).
    The transaction also provides for assignment to KXCG, with 
permission of CSXT, of:
    (1) NSR's lease of the following CSXT lines: (a) On the Harbell 
Branch between a point 125.3 feet south of the point of switch of the 
connecting track to NSR at Cumberland Gap just south of the end of the 
Cumberland Gap Tunnel, which point of connection is at milepost CV 
219.5, and a point where the Harbell Branch connects near milepost CV 
216 in Middlesboro, Ky., with the north leg of the wye track of 
Bennett's Fork Branch; (b) on Bennett's Fork Branch from and including 
the north and south legs of the aforesaid wye, to Stony Fork Junction 
and end of track near milepost MR 221 north of Motch, Tenn.; and (c) on 
Stony Fork Branch between Stony Fork Junction and end of track near 
milepost MS 221.8 near Pioneer, Tenn., including approximately one mile 
of track leased to Bell County Coal Corporation; and (d) on the Harbell 
Branch main track from the aforesaid north leg wye connection near 
milepost CV 216 to milepost CV 215.0 north thereof, including CSXT's 
Middlesboro Yard and related trackage; and
    (2) NSR's trackage rights over CSXT's line between Lot at 
approximately milepost 67.7C and Hyde at approximately milepost 74C.
    Finally, as part of the transaction, KXCG will acquire trackage 
rights over NSR's line from the NSR switch at the connection with the 
Jellico Line at Clinton at approximately milepost 20.9C, continuing to 
the NSR switch at Coster, Tenn., connecting to the NSR Coster Line 
(milepost 2.3C/7.9CO), and then to the NSR switch connecting to the 
Middlesboro Line at or near Beverly (milepost 5.8CG<plus-
minus>(3.8CO)).
    This transaction is related to a verified notice of exemption filed 
concurrently in R.J. Corman Railroad--Continuance in Control 
Exemption--Knoxville & Cumberland Gap Railroad, Docket No. FD 36578, in 
which R.J. Corman Railroad Company, LLC, and R.J. Corman Railroad 
Group, LLC, seek to continue in control of KXCG upon KXCG's becoming a 
Class III rail carrier.
    KXCG certifies that its projected annual revenues from this 
transaction will not exceed those that would qualify it as a Class III 
rail carrier and will not exceed $5 million. KXCG further states that 
the Transaction Agreement between KXCG and NSR contains an interchange 
commitment. The affected interchanges are with CSXT at Lot, Ky., and 
Hyde and Cumberland Gap, Tenn. KXCG has provided additional information 
regarding the interchange commitment as required by 49 CFR 
1150.33(h).\1\
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    \1\ A copy of the Transaction Agreement containing the 
interchange commitment was filed under seal with the verified 
notice. See 49 CFR 1150.33(h)(1).
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    The earliest this transaction may be consummated is February 24, 
2022, the effective date of the exemption (30 days after the verified 
notice was filed).
    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 for stay must be filed no later than February 17, 
2022 (at least seven days before the exemption becomes effective).
    All pleadings, referring to Docket No. FD 36577, should be filed 
with the Surface Transportation Board via e-filing on the Board's 
website. In addition, a copy of each pleading must be served on KXCG's 
representative, David A. Hirsh, Dentons US LLP, 1900 K Street NW, 
Washington, DC 20006.
    According to KXCG, this action is categorically excluded from 
environmental review under 49 CFR 1105.6(c) and from historic 
preservation reporting requirements under 49 CFR 1105.8(b).
    Board decisions and notices are available at www.stb.gov.

    Decided: February 7, 2022.

    By the Board, Scott M. Zimmerman, Acting Director, Office of 
Proceedings.
Stefan Rice,
Clearance Clerk.
[FR Doc. 2022-02871 Filed 2-9-22; 8:45 am]
BILLING CODE 4915-01-P