68020 Federal Register / Vol. 75, No. 213 / Thursday, November 4, 2010 / Notices 

1The parties state that BRSR will continue to be 

controlled by separate, wholly owned subsidiaries 

of Watco. 

to the record of decision on whether a 

CCF vessel has been reconstructed or a 

cargo preference vessel has been rebuilt. 

In response to question one as to which 

substantive standards MARAD should 

apply to determine whether a CCF 

vessel has been reconstructed or a cargo 

preference vessel has been rebuilt, the 

majority of commenters responded that 

there were already established 

precedents in the Aquarius Marine Co. 

case and MARAD’s determinations in 

Golden Monarch and Barge Connor; two 

others suggested that MARAD adopt the 

Coast Guard’s standard for rebuild/ 

reconstruction determinations. MARAD 

will maintain the status quo by adhering 

to the established precedents. As to 

question number two regarding what 

procedures MARAD should adopt to 

inquire into whether a CCF vessel has 

been reconstructed or a cargo preference 

vessel has been rebuilt, a majority of the 

commenters felt participants in the CCF 

and cargo preference programs should 

seek advisory opinions from MARAD 

prior to having work performed outside 

the United States. One commenter 

suggested that MARAD enter into a 

Memorandum of Understanding with 

the Coast Guard to be notified of all 

applications for rebuild determinations 

and then make an independent 

determination based upon the 

application submitted to the Coast 

Guard. MARAD noted in its decision in 

Barge Connor that it would have 

provided an advisory decision to Moby 

Marine Corporation if asked prior to 

work having been performed in 

Colombia. MARAD is willing to provide 

advisory opinions and will do so when 

asked. Such advisory opinions will be 

published in the Federal Register. 

As to the third question posed in the 

notice regarding what role, if any, that 

unrelated third parties should play in 

developing a record of decision on 

whether a CCF vessel has been 

reconstructed or a cargo preference 

vessel has been rebuilt, all commenters 

felt third parties should play a 

substantial role in developing the 

record. 

A variety of comments were received 

in response to question four regarding 

public disclosure of records of decision. 

There was general consensus that 

MARAD should publish its final rulings 

in the Federal Register. MARAD 

currently does not publish its rulings in 

the Federal Register. Instead, previous 

final opinions and orders may be found 

on MARAD’s Web site at http:// 

www.marad.dot.gov in its Electronic 

Reading Room. However, MARAD will 

publish final decisions and orders 

relating to the rebuilding of vessels, as 

it pertains to programs administered by 

MARAD, in the future. 

IV. Reason for Withdrawal 

MARAD’s procedures on foreign 

rebuilding for cargo preference purposes 

were affirmed in Aquarius Marine Co. in 

1995 and reaffirmed in the Barge 

Connor (2005) and Matson (2008) 

decisions. This is a settled area of law. 

Also, MARAD received no objections to 

its practice that CCF reconstruction 

follow Coast Guard guidance. MARAD 

and the Coast Guard have different 

standards for rebuilding as discussed 

herein, but those standards have a very 

slight chance of overlapping or 

producing conflicting results. This is so 

because the differing standards address 

diverse segments of the vessel market. 

Thus, there is no need for a new rule or 

to amend the cargo preference 

regulations or the CCF regulations with 

respect to rebuild or reconstruction 

determination standards. 

By Order of the Maritime Administrator. 

Dated: October 25, 2010. 

Christine Gurland, 

Secretary, Maritime Administration. 

[FR Doc. 2010–27812 Filed 11–3–10; 8:45 am] 

BILLING CODE 4910–81–P 

DEPARTMENT OF TRANSPORTATION 

Surface Transportation Board 

[Docket No. FD 35439] 

Watco Holdings, Inc., Watco 

Companies, Inc., and Watco 

Transportation Services, Inc.— 

Corporate Family Transaction 

Exemption 

Watco Holdings, Inc. (Holdings), 

Watco Companies, Inc. (Watco), Watco 

Transportation Services, Inc. 

(Transportation Services), and the rail 

carrier subsidiaries have jointly filed a 

verified notice of exemption under 49 

CFR 1180.2(d)(3) for a corporate family 

transaction. Watco, a noncarrier, is a 

Kansas corporation that controls 

Transportation Services, also a 

noncarrier and a Kansas corporation. 

Watco indirectly controls 22 Class III 

railroads (the Watco Railroads): South 

Kansas and Oklahoma Railroad 

Company (SKO); Palouse River & Coulee 

City Railroad, Inc.; Timber Rock 

Railroad, Inc.; Stillwater Central 

Railroad, Inc.; Eastern Idaho Railroad, 

Inc; Kansas & Oklahoma Railroad, Inc.; 

Pennsylvania Southwestern Railroad, 

Inc.; Great Northwest Railroad, Inc.; 

Kaw River Railroad, Inc.; Mission 

Mountain Railroad, Inc; Mississippi 

Southern Railroad, Inc.; Yellowstone 

Valley Railroad, Inc.; Louisiana 

Southern Railroad, Inc.; Arkansas 

Southern Railroad, Inc.; Alabama 

Southern Railroad, Inc.; Vicksburg 

Southern Railroad, Inc.; Austin Western 

Railroad, Inc.; Baton Rouge Southern 

Railroad, LLC (BRSR); Pacific Sun 

Railroad, LLC (PSRR); Grand Elk 

Railroad; Alabama Warrior Railway, 

LLC (AWR); and Boise Valley Railroad, 

Inc. 

Under the proposed transaction, all 

but 4 of the Watco Railroads, SKO, 

PSRR, AWR, and BRSR, will reorganize. 

Holdings, which is a new Kansas 

noncarrier holding company, will 

indirectly control all of the Watco 

Railroads. There are several steps to the 

proposed transaction. The existing 

stockholders of Watco will form 

Holdings, and Holdings will become the 

parent to Watco and thus will indirectly 

control the 22 Watco Railroads. In 

addition, Watco will convert from a 

Kansas corporation to a Delaware 

limited liability company and will 

continue to control Transportation 

Services. In turn, Transportation 

Services will convert from a Kansas 

corporation to a Kansas limited liability 

company and will continue to directly 

control 21 of the Watco Railroads: all 

but BRSR.1 Further, each of the Watco 

Railroads except SKO, PSRR, AWR, and 

BRSR will be converted to either a 

limited liability company or a C 

corporation, depending on applicable 

State law. Each of the Watco Railroads 

will remain incorporated in the same 

state of its incorporation today. 

The transaction is scheduled to be 

consummated on or after November 18, 

2010, the effective date of the exemption 

(30 days after the notice was filed). The 

purpose of this transaction is to 

facilitate Watco’s ability to obtain 

financing. 

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 any change in the 

competitive balance with carriers 

outside the Watco 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 49 U.S.C. 11324 and 

11325 that involve only Class III rail 


jlentini on DSKJ8SOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 213 / Thursday, November 4, 2010 / Notices 68021 

carriers. Accordingly the Board may not 

impose labor protective conditions here 

because all of the carriers involved are 

Class III rail carriers. 

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. 

Petitions for stay must be filed no later 

than November 10, 2010 (at least 7 days 

before the exemption becomes 

effective). 

An original and 10 copies of all 

pleadings, referring to Docket No. FD 

35439, must be filed with the Surface 

Transportation Board, 395 E Street, SW., 

Washington, DC 20423–0001. In 

addition, one copy of each pleading 

must be served on Karl Morell, Ball 

Janik LLP, 1455 F Street, NW., Suite 

225, Washington, DC 20005. 

Board decisions and notices are 

available on our Web site at http:// 

www.stb.dot.gov. 

Decided: November 1, 2010. 

By the Board. 

Rachel D. Campbell, 

Director, Office of Proceedings. 

Andrea Pope-Matheson, 

Clearance Clerk. 

[FR Doc. 2010–27938 Filed 11–3–10; 8:45 am] 

BILLING CODE 4915–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Railroad Administration 

Draft Finding of No Significant Impact 

on the Tier 1 Ohio 3C Quick Start 

Passenger Rail Tier-1 Environmental 

Assessment 

AGENCY: Federal Railroad 

Administration (FRA), United States 

Department of Transportation (DOT). 

ACTION: Notice of availability; request 

for comments on draft Finding of No 

Significant Impact. 

SUMMARY: In accordance with the 

National Environmental Policy Act of 

1969 (NEPA) and the FRA’s Procedures 

for Considering Environmental Impacts 

(FRA Environmental Procedures) (64 FR 

28545, May 26, 1999), the FRA and the 

Ohio Department of Transportation 

(ODOT) and the Ohio Rail Development 

Commission (ORDC) prepared a Tier-1 

Environmental Assessment (Tier-1 EA) 

that evaluates the impacts of the 3C 

Quick Start Passenger Rail Project. 

Based on the Tier-1 EA, the FRA has 

prepared a draft finding of no significant 

impact (draft FONSI) and is inviting the 

public to comment on the draft. 

DATES: Written comments will be 

accepted on or before December 6, 2010. 

Copies of both the Tier-1 EA and draft 

FONSI are available on FRA’s Web site 

at: http://www.fra.dot.gov/Pages/ 

249.shtml and ODOT’s Web site at 

http://www.3CisMe.Ohio.gov. 

ADDRESSES: Please submit written 

comments on the draft FONSI to Ms. 

Judi Craig Parsons Brinckerhoff, 312 

Elm Street, Suite 2500, Cincinnati, Ohio 

45202. 

FOR FURTHER INFORMATION CONTACT: For 

further information regarding the draft 

FONSI please contact Wendy 

Messenger, Environmental Protection 

Specialist, Federal Railroad 

Administration, 1200 New Jersey Ave., 

SE., Stop 20, Washington DC 20590, 

Wendy.Messenger@dot.gov. 

SUPPLEMENTARY INFORMATION: The 

purpose of the 3C ‘‘Quick Start’’ 

Passenger Rail Project is to reestablish 

intercity conventional speed passenger 

rail service (up to 79 miles per hour) in 

the 3C Corridor and provide a reliable 

train system that links Ohio’s three 

largest cities (Cleveland, Columbus and 

Cincinnati.) The service will deliver 

predictable and consistent travel times. 

It is intended to provide travel options 

and develop the passenger rail market 

for possible further development. To 

achieve these goals ORDC applied for 

Federal funding through the High Speed 

Intercity Passenger Rail Program (HSIPR 

Program) administered by the FRA and 

funded by the American Recovery and 

Reinvestment Act (Recovery Act). 

ORDC’s application under the Recovery 

Act identified the transportation 

benefits of the project as providing 

citizens with additional mobility 

options and a new transportation choice 

for travelers with associated benefits. 

The FRA intends to provide funding 

under the HSIPR Program for this 

project. 

In June 2009, the FRA released the 

HSIPR Program Guidance (Interim 

Guidance) that described the eligibility 

requirements and procedures for 

obtaining funding under the HSIPR 

Program. (74 FR 29900 (June 23, 2009)). 

The Interim Guidance split the funding 

opportunities into four separate tracks. 

The 3C Quick Start Project was 

submitted by ODOT for consideration 

for Track 2 funding. The Interim 

Guidance required Track 2 applicants to 

submit, with their application, a 

‘‘corridor-wide ‘service’ NEPA study, 

such as a programmatic or Tier I EIS.’’ 

(Interim Guidance Section 1.6.2). The 

Interim Guidance went on to explain 

that Tier 1 Environmental Impact 

Statements and some Environmental 

Assessments are programmatic and 

‘‘[a]ddress[ ] actions at a broad level, 

such as a program concept for an entire 

corridor.’’ (Interim Guidance Section 

2.2). 

In order to comply with the 

requirements of the Interim Guidance, 

ODOT and ORDC prepared a Tier-1 or 

‘‘service’’ NEPA document that included 

the analysis of four route alternatives 

including the ‘‘No Build’’ and twelve 

communities with 32 possible station 

sites. The No Build Alternative analyzes 

what would happen if there are no 

improvements on the OH 3C Corridor. 

The alternatives analyses analyze the 

effect on the human and natural 

environments of the improvements that 

involve the four route alternatives, 

twelve communities and 32 possible 

station sites that meet the goals of the 

OH 3C Quick Start Project. The Tier-1 

EA was completed in September, 2009 

and was made available for comment 

between September 25, 2009 and 

October 6, 2009 at http:// 

www.3CisMe.Ohio.gov. Approximately 

7,500 comments were received. 

At the Tier-1 level of review, the FRA 

finds that the 3C Quick Start Passenger 

Rail Project as presented and evaluated 

in the July 2010 Tier-1 EA, satisfies the 

requirements of FRA’s ‘‘Procedures for 

Considering Environmental Impacts’’ 

and will not have a significant impact 

on the quality of the human or natural 

environment, following the 

implementation of the mitigation 

measures detailed in the FONSI and 

those which will be developed during 

the site-specific environmental 

documentation process for specific 

improvements. 

Therefore, FRA has drafted a FONSI 

for the proposed improvements. This 

FONSI based on the Tier-1 EA has been 

prepared to comply with NEPA and the 

FRA’s Environmental Procedures. FRA 

has concluded that the award of Federal 

funds to reestablish the intercity 

passenger rail service on the 3C corridor 

as described in the EA, constitutes a 

major Federal action within the 

meaning of Section 102(c) of NEPA (42 

U.S.C. 4332). Prior to release of 

construction funding for this project, 

ODOT and ORDC will successfully 

complete applicable mitigation 

measures detailed in the draft FONSI 

and complete appropriate project-level 

NEPA evaluations, documentation and 

decision documents and the mitigation 

measures developed thereunder. 

FRA Environmental Procedures 

require that a FONSI be made available 

to the public for not less than 30 days 

when the ‘‘nature of the proposed action 

is one without precedent.’’ Because the 

nature of this project is unprecedented 

and this Tier-1 Level FONSI is 


jlentini on DSKJ8SOYB1PROD with NOTICES