[Federal Register Volume 66, Number 113 (Tuesday, June 12, 2001)]
[Notices]
[Page 31751]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-14636]



[[Page 31751]]

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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34042]


Watco Companies, Inc.--Continuance in Control Exemption--Kansas & 
Oklahoma Railroad, Inc.

    Watco Companies, Inc. (Watco), a noncarrier, has filed a verified 
notice of exemption to continue in control of Kansas & Oklahoma 
Railroad, Inc. (K&O), upon K&O's becoming a carrier.
    This transaction is related to two concurrently filed verified 
notices of exemption: STB Finance Docket No. 34030, Kansas & Oklahoma 
Railroad, Inc.--Acquisition Exemption--Central Kansas Railway, L.L.C., 
wherein K&O seeks to acquire most of the rail lines owned or leased and 
operated by the Central Kansas Railway, L.LC. (CKR) in the States of 
Kansas and Colorado; and STB Finance Docket No. 34047, Kansas & 
Oklahoma Railroad, Inc.--Trackage Rights Exemption--Central Kansas 
Railway, L.L.C., wherein K&O seeks to acquire temporary overhead 
trackage rights over a 16-mile rail line, which is to be retained by 
CKR, in the State of Kansas.
    The transaction was expected to be consummated on or shortly after 
June 1, 2001.
    Watco owns and controls five existing Class III rail carriers: 
South Kansas and Oklahoma Railroad Company (SKO), which operates in the 
States of Missouri, Kansas, and Oklahoma; Palouse River & Coulee City 
Railroad, Inc., which operates in the States of Washington, Oregon, and 
Idaho; Timber Rock Railroad, Inc., which operates in the States of 
Texas and Louisiana; Stillwater Central Railroad, which operates in the 
State of Oklahoma; and Eastern Idaho Railroad, Inc. (EIRR), which 
operates in the State of Idaho.\1\
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    \1\ Watco's control of EIRR is the subject of a verified notice 
of exemption in Watco Companies, Inc.--Control Exemption--Eastern 
Idaho Railroad, Inc., STB Finance Docket No. 34045.
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    Watco states that: (i) K&O will not connect with the rail lines of 
any existing carrier in the Watco corporate family; \2\ (ii) the 
continuance in control is not part of a series of anticipated 
transactions that would connect the rail lines being acquired by K&O 
with any of the carriers controlled by Watco; 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).
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    \2\ According to the verified notice, SKO operates as a non-
exclusive agent for the Southern Pacific Transportation Company (SP) 
(now merged into Union Pacific Railroad Company) over SP's trackage 
rights on a rail line owned and operated by The Burlington Northern 
and Santa Fe Railway Company (BNSF) between Hutchinson and Winfield, 
KS. SKO neither performs any operations on the BNSF line in its own 
account nor holds itself out to be an operator over the BNSF line.
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    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. 34042, must be filed with the Surface Transportation 
Board, Office of the Secretary, Case Control Unit, 1925 K Street, N.W., 
Washington, DC 20423-0001. In addition, a copy of each pleading must be 
served on Karl Morell, Esq., Ball Janik LLP, 1455 F Street, NW., Suite 
225, Washington, DC 20005.
    Board decisions and notices are available on our website at 
www.stb.dot.gov.

    Decided: June 5, 2001.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 01-14636 Filed 6-11-01; 8:45 am]
BILLING CODE 4915-00-P