[Federal Register Volume 61, Number 125 (Thursday, June 27, 1996)]
[Notices]
[Pages 33579-33580]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16409]


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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board \1\
[STB Finance Docket No. 32947 (Sub-No. 1)]


The A&G Railroad, L.L.C.--Merger--The Bay Line Railroad, L.L.C.--
Corporate Family Transaction Exemption

    The A&G Railroad, L.L.C. (A&G) and The Bay Line Railroad, L.L.C. 
(Bay Line) (applicants), both of which are controlled by K. Earl Durden 
and Green Bay Packaging, Inc., filed a notice of exemption to undertake 
a transaction within their corporate family that would merge A&G into 
Bay Line. The transaction is expected to be consummated on or after the 
June 24, 1996 effective date of the exemption.
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    \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 and 
transferred certain functions to the Surface Transportation Board 
(Board). This decision relates to functions that are subject to 
Board jurisdiction pursuant to 49 U.S.C. 11323-25.
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    A&G owns and operates approximately 27 miles of rail line between 
Abbeville and Grimes, AL, and operates over 7 miles of CSX 
Transportation, Inc.'s (CSXT) rail line between Grimes and the Bay 
Line's rail yard in Dothan, AL, pursuant to incidental trackage rights.
    Bay Line owns and operates approximately 79 miles of rail line 
between Dothan, AL, and Panama City, FL. It interchanges with CSXT at 
Cottondale, FL, and with CSXT, Norfolk Southern Railway Company, the 
Hartford & Slocomb Railroad Company, and the A&G at Dothan.
    This transaction is related to a notice of exemption concurrently 
filed in STB Finance Docket No. 32947 (Sub-No. 2), K. Earl Durden--
Acquisition of Control Exemption--Rail Partners, L.P., et al., in which 
K. Earl Durden will acquire 100% control of Rail Partners, L.P., Rail 
Management and Consulting Corporation, and other shortline railroads.
    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 
adverse changes in service levels, significant operational changes, or 
a change in the competitive balance with carriers outside applicants' 
corporate family. The stated purposes of the transaction are to 
streamline management of the two rail carriers and to facilitate 
consummation of the transaction in STB Finance Docket No. 32947 (Sub-
No. 2).

[[Page 33580]]

    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-
25 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. 32947 (Sub-No. 2), must be filed with the Office 
of the Secretary, Case Control Branch, Surface Transportation Board, 
1201 Constitution Avenue, NW, Washington, DC 20423. In addition, a copy 
of each pleading must be served on Edward J. McAndrew, Slover & Loftus, 
1224 Seventeenth Street, N.W., Washington, D.C. 20036.

    Decided: June 21, 1996.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 96-16409 Filed 6-26-96; 8:45 am]
BILLING CODE 4915-00-P