[Federal Register Volume 61, Number 91 (Thursday, May 9, 1996)]
[Notices]
[Pages 21223-21224]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11622]



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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board \1\
[STB Finance Docket No. 32906]

San Joaquin Valley Railroad Co.--Corporate Family Transaction 
Exemption--Port Railroads, Inc.
    San Joaquin Valley Railroad Co. (SJVR) and Port Railroads, Inc. 
(PRI), common carriers by railroad,<SUP>2 have jointly filed a verified 
notice of exemption whereby SJVR will acquire by assignment of lease 
<SUP>3 all of the railroad properties which PRI acquired by lease from 
Southern Pacific.<SUP>4

    \1\ The ICC Termination Act of 1995, Pub. L. No. 104-88, 109 
Stat. 803, which was enacted on December 29, 1995, and took effect 
on January 1, 1996, abolished the Interstate Commerce Commission 
(ICC) and transferred certain functions to the Surface 
Transportation Board (Board). This notice relates to functions that 
are subject to Board jurisdiction pursuant to 49 U.S.C. 11323-24.
    \2\ SJVR and PRI are Class III railroads which are wholly owned 
subsidiary corporations of Kyle Railways, Inc.
    \3\ Notice of PRI's lease and operation exemption of these lines 
was given in Port Railroads, Inc.--Lease and Operation Exemption--
Southern Pacific Transportation Company, Finance Docket No. 32457, 
(ICC served Mar. 14, 1994).
    \4\ SJVR and PRI state at p. 1 of their Assignment of Lease 
Agreement that ``such assignment requires the consent of Southern 
Pacific.''
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    The transaction was expected to be consummated on April 24, 1996.
    The unification of SJVR and PRI's railroad operations will permit 
the consolidation of their separately maintained books and records, the 
elimination of duplicating administrative costs and the achievement 
otherwise of greater efficiencies and economies in the rendition of the 
railroads' transportation services.
    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). The parties state that the transaction will not result in 
significant changes in railroad operations. In addition, while the 
parties do not specifically say it, the transaction would apparently 
not result in a change in the competitive balance with carriers outside 
the corporate family.
    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 verified notice contains false or misleading information, 
the exemption is void ab initio. Petitions to reopen the proceeding to 
revoke the exemption under 49 U.S.C. 10502(d) may be filed at any time. 
The filing of a petition to reopen will not automatically stay the 
transaction.
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 32906, 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 Fritz R. Kahn, Esq., Suite 750 West, 1100 
New York Avenue, N.W., Washington, DC 20005-3934.


[[Page 21224]]


    Decided: May 3, 1996.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 96-11622 Filed 5-8-96; 8:45 am]
BILLING CODE 4915-00-P