[Federal Register Volume 62, Number 60 (Friday, March 28, 1997)]
[Notices]
[Page 14967]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7932]


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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Finance Docket No. 33372]


Lake State Railway Company--Acquisition and Operation Exemption--
Detroit & Mackinac Railway Company

    Lake State Railway Company (LSR), a Class III railroad, has filed a 
notice of exemption to acquire and operate 275 miles of rail line 
between Kawkawlin and Gaylord, MI, and between Pinconning and Rogers 
City, MI, from the Detroit & Mackinac Railway Company (D&M), as 
follows: (1) The Pinconning Subdivision, from approximately milepost 
5.0 to milepost 11; (2) the Mackinac Subdivision, from approximately 
milepost 116 to the end of the line at milepost 122; (3) the Huron 
Subdivision, from approximately milepost 16 to milepost 151.25, 
including the Pinconning crossover; (4) the Rogers City Branch from 
milepost 0.0 to milepost 11.0; and (5) the Hillman Branch and the 
Alabaster Branch.\1\
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    \1\ LSR currently leases and operates the rail lines that are 
the subject of this notice from D&M. See Lake State Railway 
Company--Lease and Operation Exemption--Detroit and Mackinac Railway 
Company, Finance Docket No. 32012 (ICC served Feb. 27, 1997).
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    The transaction was to be consummated on or after the effective 
date of the exemption (7 days after the notice of exemption was filed), 
but no later than April 16, 1997.
    LSR states that: (i) The acquisition will not place LSR in control 
of any connecting railroads; (ii) the acquisition is not part of a 
series of anticipated transactions that would place LSR in control of 
any connecting railroad; 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. 33372, must be filed with the Surface Transportation 
Board, Office of the Secretary, Case Control Unit, 1925 K Street NW., 
Washington, DC 20423-0001. In addition, a copy of each pleading must be 
served on Kelvin J. Dowd, Esq., Slover & Loftus, 1224 Seventeenth 
Street NW., Washington, DC 20036.

    Decided: March 24, 1997.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 97-7932 Filed 3-27-97; 8:45 am]
BILLING CODE 4915-00-P-M