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[Federal Register Volume 70, Number 184 (Friday, September 23, 2005)]
[Notices]
[Page 55955]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-19026]

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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34749]

Gulf & Ohio Railways Holding Co., Inc., H. Peter Claussen and 
Linda C. Claussen--Continuance in Control Exemption--Morehead & South 
Fork Railroad Co., Inc.

    Gulf & Ohio Railways Holding Co., Inc. (G&O), and H. Peter Claussen 
and Linda C. Claussen (the Claussens) (collectively applicants), have 
filed a verified notice of exemption to continue in control of Morehead 
& South Fork Railroad Co., Inc. (MHSF), upon MHSF's becoming a Class 
III rail carrier.
    The transaction was scheduled to be consummated on or after 
September 1, 2005.
    This transaction is related to the concurrently filed verified 
notice of exemption in STB Finance Docket No. 34748, Morehead & South 
Fork Railroad Co., Inc.--Acquisition and Operation Exemption--Carolina 
Rail Service, LLC. In that proceeding, MHSF seeks to acquire from 
Carolina Rail Service, LLC (CRS), and operate CRS's exclusive freight 
easement over all railroad tracks at the Port of Morehead City, NC.\1\ 
The tracks are owned by North Carolina State Ports Authority (SPA).\2\ 
MHSF will operate over the rail property pursuant to an operating 
agreement with SPA.
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    \1\ The transaction includes approximately 0.87 miles of rail 
line in Carteret County, NC, from approximately milepost 0.0 (in or 
near Morehead City) to approximately milepost 0.87 at Gallants 
Channel (in or near Morehead City), serving the intermediate 
stations of Marsh Island and Radio Island, as well as all spur 
tracks, yard tracks, side tracks, interchange tracks and industrial 
tracks located on the Port. The transaction also includes 
approximately 4 miles of intra-terminal track.
    \2\ The Board previously determined that SPA's acquisition of 
the subject line did not require Board action and it declined to 
exercise jurisdiction over the transaction. See North Carolina State 
Ports Authority--Acquisition Exemption--North Carolina Ports Railway 
Commission, STB Finance Docket No. 34258 (STB served Oct. 31, 2002).
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    G&O is a noncarrier that currently controls eight Class III rail 
carriers: Chattahoochee & Gulf Railroad Co., Inc. (CGR); Conecuh Valley 
Railroad Co., Inc. (CVR); Knoxville & Holston River Railroad Co., Inc. 
(KHR); Laurinburg & Southern Railroad Co., Inc. (LSR); Piedmont & 
Atlantic Railroad, Inc. (PAR); which operates under the trade name of 
Yadkin Valley Railroad, Rocky Mount & Western Railroad Co., Inc. (RMW); 
Three Notch Railroad Co., Inc. (TNR); and Wiregrass Central Railroad 
Company, Inc. (WCR). The Claussens, also noncarriers, control G&O and 
one Class III rail carrier, H&S Railroad, Inc. (H&S).
    Applicants state that: (1) The rail lines operated by CGR, CVR KHR, 
LSR, PAR, RMW, TNR, WCR, and H&S do not connect with the rail line 
being acquired by MHSF; (2) the continuance in control is not part of a 
series of anticipated transactions that would connect the rail line 
being acquired by MHSF with applicants' rail lines; and (3) the 
transaction does not involve a Class I rail carrier. Therefore, the 
transaction is exempt from the prior approval requirements of 49 U.S.C. 
11323. See 49 CFR 1180.2(d)(2). The purpose of establishing MHSF and 
acquiring the line in STB Finance Docket No. 34748 is to insulate the 
other affiliated railroads from the financial, legal, and operational 
risks associated with the transactions contemplated in that proceeding.
    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 section 11324 
and 11325 that involve only Class III rail carriers. Accordingly, the 
Board may not impose labor protective conditions here, because all of 
the carriers involved are Class III carriers.
    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 transaction.
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 34749, must be filed with the Surface Transportation 
Board, 1925 K Street, NW., Washington, DC 20423-0001. In addition, one 
copy of each pleading must be served on Rose-Michele Nardi, Weiner 
Brodsky Sidman Kider PC, 1300 19th St., NW., Fifth Floor, Washington, 
DC 20036-1609.
    Board decisions and notices are available on our Web site at http://www.stb.dot.gov.

    Decided: September 16, 2005.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 05-19026 Filed 9-22-05; 8:45 am]
BILLING CODE 4915-01-P
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