[Federal Register Volume 86, Number 173 (Friday, September 10, 2021)]
[Notices]
[Pages 50752-50753]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-19574]


-----------------------------------------------------------------------

SURFACE TRANSPORTATION BOARD

[Docket No. FD 36413 (Sub-No. 1)]


Midwest & Bluegrass Rail, LLC--Control Exemption--Vermilion 
Valley Railway Company, Inc., Camp Chase Rail, LLC, Youngstown & 
Southeastern Rail, LLC, Chesapeake & Indiana Railroad Company

    Midwest & Bluegrass Rail, LLC (MB Rail), a noncarrier, has filed a 
verified

[[Page 50753]]

notice of exemption pursuant to 49 CFR 1180.2(d)(2) to control 
Vermilion Valley Railway Company, Inc., Camp Chase Rail, LLC, 
Youngstown & Southeastern Rail, LLC, and Chesapeake & Indiana Railroad 
Company (collectively, the IB Carriers).
    MB Rail states that it controls the IB Carriers through a 
management agreement, under which it provides day-to-day management 
services and oversight. (See Verified Notice 1-3; see also id., Ex. A 
at 1, 5 (management agreement became effective on January 1, 2021).) A 
related entity (MB Rail IB, LLC) sought and obtained Board 
authorization for its control of the IB Carriers in 2020, but MB Rail 
did not. See MB Rail IB, LLC--Acquis. & Continuance in Control 
Exemption--Chesapeake & Ind. R.R., FD 36413 (STB served July 1, 2020). 
MB Rail now seeks after-the-fact authorization for its earlier 
acquisition of control.
    The exemption will become effective on September 25, 2021 (30 days 
after the verified notice was filed).
    According to the verified notice of exemption, MB Rail currently 
controls only the four IB Carriers. However, in a notice that is being 
served concurrently in Midwest & Bluegrass Rail--Control Exemption--
TransKentucky Transportation Railroad, Docket No. FD 36530, MB Rail is 
also being authorized to control TransKentucky Transportation Railroad, 
Inc. (TransKentucky).\1\
---------------------------------------------------------------------------

    \1\ In that docket, MB Rail states that the rail line owned and 
operated by TransKentucky does not connect to any of the IB 
Carriers. MB Rail Verified Notice 1, Aug. 27, 2021, Midwest & 
Bluegrass Rail--Control Exemption--TransKentucky Transp. R.R., FD 
36530.
---------------------------------------------------------------------------

    MB Rail represents that: (1) The IB Carriers do not connect to one 
another; (2) the transaction is not part of a series of anticipated 
transactions that would connect the IB Carriers with the rail lines of 
any carriers in MB Rail's corporate family; and (3) the transaction 
does not involve a Class I rail carrier. The proposed transaction is 
therefore exempt from the prior approval requirements of 49 U.S.C. 
11323 pursuant to 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. However, 49 U.S.C. 11326(c) 
does not provide for labor protection for transactions under 49 U.S.C. 
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 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 September 17, 
2021 (at least seven days before the exemption becomes effective).
    All pleadings, referring to Docket No. FD 36413 (Sub-No. 1), should 
be filed with the Surface Transportation Board via e-filing on the 
Board's website. In addition, one copy of each pleading must be served 
on MB Rail's representative, Bradon J. Smith, Fletcher & Sippel LLC, 29 
North Wacker Drive, Suite 800, Chicago, IL 60606.
    According to MB Rail, this action is categorically excluded from 
environmental review under 49 CFR 1105.6(c) and from historic reporting 
requirements under 49 CFR 1105.8(b).
    Board decisions and notices are available at www.stb.gov.

    Decided: September 7, 2021.

    By the Board, Scott M. Zimmerman, Acting Director, Office of 
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2021-19574 Filed 9-9-21; 8:45 am]
BILLING CODE 4915-01-P