[Federal Register Volume 62, Number 7 (Friday, January 10, 1997)]
[Notices]
[Pages 1487-1488]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-626]


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DEPARTMENT OF TRANSPORTATION
[STB Finance Docket No. 33301]


Peter A. Gilbertson, H. Terry Hearst, Bruce A. Lieberman, R. 
Lawrence McCaffrey, Jr., and Harold F. Parmly--Continuance in Control 
Exemption--New York & Atlantic Railway Company

    Peter A. Gilbertson, H. Terry Hearst, Bruce A. Lieberman, R. 
Lawrence McCaffrey, Jr., and Harold F. Parmly (Applicants), noncarrier 
individuals, have filed a verified notice of exemption to continue in 
control of New York & Atlantic Railway Company (NYAR), upon NYAR's 
becoming a Class III rail carrier.
    The exemption was to become effective on December 12, 1996, and the 
transaction is expected to be consummated in the first quarter of 1997.
    This transaction is related to STB Finance Docket No. 33300, New 
York & Atlantic Railway Company--Operation Exemption--The Long Island 
Rail Road Company, wherein NYAR seeks to acquire the freight operations 
of The Long Island Rail Road Company, including the right to operate 
the freight business on an exclusive basis.\1\
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    \1\ On December 31, 1996, International Brotherhood of 
Locomotive Engineers (IBLE) filed a petition to reject the notices 
of exemption filed in STB Finance Docket Nos. 33300 and 33301 or to 
revoke the exemptions. The petition also supports a statement by 
Claire Shulman, President of the Borough of Queens (Shulman), filed 
December 11, 1996, which IBLE characterizes as a petition for 
rejection or revocation. By decision served on December 20, 1996, 
NYAR was granted an extension until January 10, 1997, for its reply 
to Shulman. The Shulman and IBLE filings, as well as any replies, 
will be considered by the entire Board in a separate decision.
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    In addition to the filings mentioned in footnote 1, the Board 
received a number of letters from local governments, officials, and 
community leaders concerned with the movement of municipal solid waste 
(MSW) through their communities. LIRR submitted to the Board's Section 
of Environmental Analysis (SEA) an Environmental Assessment (EA), which 
was prepared under the New York State Environmental Quality Review Act 
by ICF Kaiser Consulting Group, and summary information drawn from its 
EA. The information provided by LIRR states that MSW carloads are 
projected to increase regardless of whether LIRR continues to conduct 
freight operations or the operations are transferred to NYAR.
    SEA has carefully reviewed the EA and summary information submitted 
by LIRR. SEA has determined that the information satisfies the Board's 
obligations under the National Environmental Policy Act and provides 
the sufficient analysis which would normally be prepared by SEA in 
railroad operations that exceed the Board's thresholds at 49 CFR 
1105.7(e)(4)(5). Therefore, the EA and summary information will be 
adopted as the Board's own with a finding that there will be no 
significant environmental impacts associated with the proposed 
transaction.
    Applicants own and control two existing Class III common carriers 
by

[[Page 1488]]

rail operating in three states: Chicago SouthShore & South Bend 
Railroad Co., operating in Northern Illinois and Northern Indiana; and 
Louisville & Indiana Railroad Company, operating in Southern Indiana 
and Northern Kentucky.
    Applicants state that: (i) the railroads will not connect with each 
other or any railroad in their corporate family; (ii) the continuance 
in control is not part of a series of anticipated transactions that 
would connect the railroads with each other or any railroad in their 
corporate family; 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. 33301, must be filed with the Surface Transportation 
Board, Office of the Secretary, Case Control Branch, 1201 Constitution 
Avenue, N.W., Washington, DC 20423. In addition, a copy of each 
pleading must be served on Paul C. Oakley, Esq., Weiner, Brodsky, 
Sidman & Kider, P.C., Suite 800, 1350 New York Avenue, N.W., 
Washington, DC 20005-4797.

    Decided: January 7, 1997.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 97-626 Filed 1-9-97; 8:45 am]
BILLING CODE 4915-00-P