[Federal Register Volume 61, Number 122 (Monday, June 24, 1996)]
[Rules and Regulations]
[Pages 32355-32356]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15895]



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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board

49 CFR Parts 1002 and 1150

[STB Ex Parte No. 529]


Class Exemption for Acquisition Or Operation Of Rail Lines By 
Class III Rail Carriers Under 49 U.S.C. 10902

AGENCY: Surface Transportation Board.

ACTION: Final rule.

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SUMMARY: Pursuant to the request by the Regional Railroads of America 
and The American Short Line Railroad Association, the Surface 
Transportation Board (Board) grants final approval for a class 
exemption for the acquisition or operation of additional rail lines by 
Class III rail carriers. Final regulations establishing the exemption 
for the acquisitions are set forth below.

EFFECTIVE DATE: July 24, 1996.

FOR FURTHER INFORMATION CONTACT: Joseph Dettmar, (202) 927-5660. [TDD 
for the hearing impaired: (202) 927-5721.]

SUPPLEMENTARY INFORMATION: Pursuant to the request by the Regional 
Railroads of America and The American Short Line Railroad Association, 
the Board proposed a new class exemption to apply to transactions in 
which Class III rail carriers acquire or operate additional rail 
properties under 49 U.S.C. 10902. By notice of proposed rulemaking 
served and published in the Federal Register on March 22, 1996 (61 FR 
11802-11804), the Board requested comments on the proposed exemption. 
Upon reviewing the comments, the Board is adopting the proposed class 
exemption, with minor editorial changes, because it meets the exemption 
criteria of 49 U.S.C. 10502. The class exemption will be similar to the 
Board's existing rules for noncarrier transactions under 49 U.S.C. 
10901. Because section 10902 precludes the Board from imposing labor 
protection on Class III carriers receiving a certificate under the 
statute, the class exemption will not provide labor protection for 
affected rail employees. Additional information is contained in the 
Board's decision served on June 21, 1996. To purchase a copy of the 
decision, write to, call, or pick up in person from: DC News & Data, 
Inc., 1201 Constitution Avenue, N.W., Room 2229, Washington, D.C. 
20423. [Assistance for the hearing impaired is available through TDD 
service (202) 927-5721.]

List of Subjects

49 CFR Part 1002

    Administrative practice and procedure, Freedom of information, User 
fees.

49 CFR Part 1150

    Administrative practice and procedure, Railroads.

    By the Board, Chairman Morgan, Vice Chairman Simmons, and 
Commissioner Owen. Chairman Morgan commented with a separate 
expression. Commissioner Owen concurred in part and dissented in 
part with a separate expression.
    Decided: June 14, 1996.
Vernon A. Williams,
Secretary.
    For the reasons set forth in the preamble, the Board amends title 
49, chapter X, parts 1002 and 1150 of the Code of Federal Regulations, 
as follows:

PART 1002--FEES

    1. The authority citation for part 1002 is revised to read as 
follows:

    Authority: 5 U.S.C. 552(a)(4)(A) and 553; 31 U.S.C. 9701; and 49 
U.S.C. 721(a).

    2. Section 1002.2 is amended by adding a new paragraph (f) (36) to 
read as follows:


Sec. 1002.2  Filing fees.

* * * * *
    (f) * * *

------------------------------------------------------------------------
                       Type of proceeding                          Fee  
------------------------------------------------------------------------
                                                                        
                  *        *        *        *        *                 
(36) Notice of exemption under 49 CFR 1150.41-1150.45..........     $950
                                                                        
                  *        *        *        *        *                 
------------------------------------------------------------------------

* * * * *

PART 1150--CERTIFICATE TO CONSTRUCT, ACQUIRE, OR OPERATE RAILROAD 
LINES

    3. The authority citation for part 1150 is revised to read as 
follows:

    Authority: 5 U.S.C. 553 and 559; 49 U.S.C. 721(a), 10502, 10901, 
and 10902.

    4. The heading for Subpart D is revised to read as follows:

Subpart D--Exempt Transactions Under 49 U.S.C. 10901

    5. A new Subpart E, consisting of Secs. 1150.41-1150.45, is added 
to read as follows:

Subpart E--Exempt Transactions Under 49 U.S.C. 10902 for Class III 
Rail Carriers

Sec.
1150.41  Scope of exemption.
1150.42  Procedures and relevant dates for small line acquisitions.
1150.43  Information to be contained in notice for small line 
acquisitions.
1150.44  Caption summary.
1150.45  Procedures and relevant dates--transactions under section 
10902 that involve creation of Class I or Class II rail carriers.

Subpart E--Exempt Transactions Under 49 U.S.C. 10902 for Class III 
Rail Carriers


Sec. 1150.41  Scope of exemption.

    Except as indicated in paragraphs (a) through (d) of this section, 
this exemption applies to acquisitions or operations by Class III rail 
carriers under section 10902. This exemption also includes:
    (a) Acquisition by a Class III rail carrier of rail property that 
would be operated by a third party;
    (b) Operation by a Class III carrier of rail property acquired by a 
third party;
    (c) A change in operators on such a line; and
    (d) Acquisition of incidental trackage rights. Incidental trackage 
rights include the grant of trackage rights by the seller, or the 
acquisition of trackage rights to operate over the line of a third 
party, that occurs at the time of the purchase.


Sec. 1150.42  Procedures and relevant dates for small line 
acquisitions.

    (a) This exemption applies to the acquisition of rail lines with 
projected annual revenues which, together with the acquiring carrier's 
projected annual revenue, do not exceed the annual revenue of a Class 
III railroad. To qualify for this exemption, the Class III rail carrier 
applicant must file a verified notice providing details about the 
transaction, and a brief caption summary, conforming to the format in 
Sec. 1150.44, for publication in the Federal Register. In addition to 
the written submission, the notice and summary must be submitted on a 
3.5-inch diskette formatted for WordPerfect 5.1.
    (b) The exemption will be effective 7 days after the notice is 
filed. The Board, through the Director of the Office of Proceedings, 
will publish a notice in the Federal Register within 30 days of the 
filing. A change in operators must follow the provisions at 
Sec. 1150.44, and notice must be given to shippers.
    (c) If the notice contains false or misleading information, the 
exemption is void ab initio. A petition to revoke

[[Page 32356]]

under 49 U.S.C. 10502(d) does not automatically stay the exemption.
    (d) Applicant must preserve intact all sites and structures more 
than 50 years old until compliance with the requirements of section 106 
of the National Historic Preservation Act, 16 U.S.C. 470f, is achieved.


Sec. 1150.43  Information to be contained in notice for small line 
acquisitions.

    (a) The full name and address of the Class III rail carrier 
applicant;
    (b) The name, address, and telephone number of the representative 
of the applicant who should receive correspondence;
    (c) A statement that an agreement has been reached or details about 
when an agreement will be reached;
    (d) The operator of the property;
    (e) A brief summary of the proposed transaction, including:
    (1) The name and address of the railroad transferring the subject 
property to the Class III rail carrier applicant;
    (2) The proposed time schedule for consummation of the transaction;
    (3) The mileposts of the subject property, including any branch 
lines; and
    (4) The total route miles being acquired;
    (f) A map that clearly indicates the area to be served, including 
origins, termini, stations, cities, counties, and states; and
    (g) A certificate that applicant's projected revenues as a result 
of the transaction will not result in the creation of a Class II or 
Class I rail carrier so as to require processing under Sec. 1150.45.


Sec. 1150.44  Caption summary.

    The caption summary must be in the following form. The information 
symbolized by numbers is identified in the key as follows:

Surface Transportation Board; Notice of Exemption; STB Finance Docket 
No. (1)--Exemption (2)-(3)

    (1) Has filed a notice of exemption to (2) (3)'s line between 
(4). Comments must be filed with the Board and served on (5). (6). 
Key to symbols:
    (1) Name of carrier acquiring or operating the line.
    (2) The type of transaction, e.g., to acquire or operate.
    (3) The transferor.
    (4) Describe the line.
    (5) Petitioner's representative, address, and telephone number.
    (6) Cross reference to other class exemptions being used.
    The notice is filed under 49 CFR 1150.41. If the notice contains 
false or misleading information, the exemption is void ab initio. 
The filing of a petition to revoke will not automatically stay the 
transaction.


Sec. 1150.45   Procedures and relevant dates--transactions under 
section 10902 that involve creation of Class I or Class II rail 
carriers.

    (a) To qualify for this exemption, applicant must serve a notice of 
intent to file a notice of exemption no later than 14 days before the 
notice of exemption is filed with the Board.
    (b) The notice of intent must contain all the information required 
in Sec. 1150.43 plus:
    (1) A general statement of service intentions; and
    (2) A general statement of labor impacts.
    (c) The notice of intent must be served on:
    (1) The Governor of each state in which track is to be sold;
    (2) The state(s) Department of Transportation or equivalent agency;
    (3) The national offices of the labor unions with employees on the 
affected line(s); and
    (4) Shippers representing at least 50 percent of the volume of 
local traffic and traffic originating or terminating on the line(s) in 
the most recent 12 months for which data are available (beginning with 
the largest shipper and working down).
    (d) Applicant must also file a verified notice of exemption 
conforming to the requirements of paragraph (b) of this section and of 
Sec. 1150.44, and certify compliance with paragraphs (a), (b), and (c) 
of this section, attaching a copy of the notice of intent. In addition 
to the written submission, the notice must be submitted on a 3.5-inch 
diskette formatted for WordPerfect 5.1.
    (e) The exemption will be effective 21 days after the notice is 
filed. The Board, through the Director of the Office of Proceedings, 
will publish a notice in the Federal Register within 30 days of the 
filing.
    (f) If the notice contains false or misleading information, the 
exemption is void ab initio. A petition to revoke under 49 U.S.C. 
10502(d) does not automatically stay the transaction. Stay petitions 
must be filed within 7 days of the filing of the notice of exemption. 
Replies will be due 7 days thereafter. To be considered, stay petitions 
must be timely served on the applicant.
    (g) Applicant must preserve intact all sites and structures more 
than 50 years old until compliance with the requirements of section 106 
of the National Historic Preservation Act, 16 U.S.C. 470f, is achieved.

[FR Doc. 96-15895 Filed 6-21-96; 8:45 am]
BILLING CODE 4915-00-P