[Federal Register Volume 74, Number 67 (Thursday, April 9, 2009)]
[Notices]
[Pages 16257-16258]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-8060]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 35235]


Gabriel D. Hall--Corporate Family Transaction Exemption--U S Rail 
Holdings, LLC and U S Rail Corporation

    Gabriel D. Hall (Hall), an individual, has filed a verified notice 
of exemption under 49 CFR 1180.2(d)(3) to exempt from the provisions of 
49 U.S.C. 11323 a transaction within the family of business entities in 
which he owns controlling interests. Hall owns a majority of the issued 
and outstanding shares of stock of U S Rail Corporation (U S Rail), a 
Class III carrier with operating authority in Ohio and Indiana. To 
facilitate financing, Hall has formed a new limited liability company, 
U S Rail Holdings, LLC (Holdings), in which he owns a majority of the 
issued and outstanding equity interests, to hold the Indiana leasehold 
interests. Holdings has entered into a new ten year lease with the 
owners of the Indiana rail lines. Once the new lease becomes effective, 
the existing lease between the owners and U S Rail will be terminated, 
and Holdings will immediately designate U S Rail as the operator of the 
rail lines, effectively transferring the operating authority back to U 
S Rail. Holdings will be the non-operating lessee (with residual common 
carrier obligations) and U S Rail will continue to be the operator of 
the rail lines. Hall will remain in control of both entities.
    This transaction is related to the concurrently filed notice of 
exemption in STB Finance Docket No. 35234, U S Rail Holdings, LLC--
Lease and Operation Exemption--Winamac Southern Railway Company and 
Kokomo Grain Co., Inc. In that proceeding, Holdings seeks an exemption 
under 49 CFR 1150.31 to lease from Winamac Southern Railway Company and 
Kokomo Grain Co., Inc. and to operate approximately 58.89 miles of rail 
lines in Indiana.
    The purpose of the transaction is to establish a structure 
conducive for future financing, while keeping all interests within the 
corporate family of entities controlled by Hall.
    This is a transaction within a corporate family of the type 
specifically exempted from prior review and approval under 49 CFR 
1180.2(d)(3). Hall states that the transaction will not result in 
adverse changes in service levels, significant operational changes, or 
any change in the competitive balance with carriers outside the 
corporate family.
    The transaction is scheduled to be consummated on or after April 
23, 2009, the effective date of the exemption (30 days after the 
exemption was filed).
    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

[[Page 16258]]

impose labor protective conditions here, because all of the carriers 
involved are Class III rail carriers.
    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. Petitions for stay 
must be filed no later than April 16, 2009 (at least 7 days before the 
exemption becomes effective).
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 35235, must be filed with the Surface Transportation 
Board, 395 E Street, NW., Washington, DC 20423-0001. In addition, one 
copy of each pleading must be served on Eric M. Hocky, One Commerce 
Square, 2005 Market Street, Suite 1910, Philadelphia, PA 19103.
    Board decisions and notices are available on our Web site at http://www.stb.dot.gov.

    Decided: April 3, 2009.

    By the Board, Joseph H. Dettmar, Acting Director, Office of 
Proceedings.
Kulunie L. Cannon,
Clearance Clerk.
 [FR Doc. E9-8060 Filed 4-8-09; 8:45 am]
BILLING CODE 4915-01-P