[Federal Register Volume 66, Number 249 (Friday, December 28, 2001)]
[Notices]
[Pages 67362-67363]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-32008]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34129]


RailAmerica, Inc.--Control Exemption--StatesRail Acquisition 
Corp. and StatesRail, Inc.

    RailAmerica, Inc. (RailAmerica), a noncarrier, has filed a verified 
notice of exemption to continue in control of StatesRail Acquisition 
Corp. (Acquisition), and to obtain control of StatesRail, Inc. 
(StatesRail), a holding company that controls Arizona Eastern Railway 
Company, Eastern Alabama Railway, Kyle Railroad Company, San Joaquin 
Valley Railroad Company, and SWKR Operating Co., all Class III 
railroads, upon the acquisition of all of the stock of StatesRail by 
Acquisition.
    The transaction is scheduled to be consummated on or after January 
1, 2002.
    On November 15, 2001, RailAmerica also filed a motion for 
protective order under CFR 1104.14, and the motion was granted.\1\
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    \1\ See RailAmerica, Inc.--Control Exemption--StatesRail 
Acquisition Corp. and StatesRail, Inc., STB Finance Docket No. 34129 
(STB served Dec. 5, 2001).
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    RailAmerica states that, as of its filing of the notice of 
exemption, it controls one Class II and 23 Class III rail common 
carriers operating in 23 states.\2\ However, in ParkSierra, infra, 
RailAmerica is acquiring control of a second Class II carrier.
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    \2\ On December 7, 2001, RailAmerica also filed: (1) A notice of 
exemption in STB Finance Docket No. 34128, RailAmerica, Inc.--
Control Exemption--New StatesRail Holdings, Inc. and Alabama & Gulf 
Coast Railway L.L.C., to acquire from StatesRail, L.L.C., all of the 
outstanding stock of New StatesRail Holdings, Inc. (New StatesRail), 
and through New StatesRail to acquire control of its wholly owned 
subsidiary, the Alabama & Gulf Coast Railway, L.L.C.; and (2) a 
petition for exemption in STB Finance Docket No. 34130, RailAmerica, 
Inc.--Control Exemption--Kiamichi Holdings, Inc. and Kiamichi 
Railroad L.L.C., to acquire control of Kiamichi Holdings, Inc., and 
its subsidiary Kiamichi Railroad L.L.C.
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    RailAmerica also states that: (i) These railroads do not connect 
with each other; (ii) the acquisition of control is not part of a 
series of anticipated transactions that would connect the railroads 
with each other or any railroad in their corporate family; and (iii) 
the transaction does not involve a Class I carrier.\3\ Therefore, the 
transaction is exempt from the prior approval requirements of 49 U.S.C. 
11323. See 49 CFR 1180.2(d)(2).
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    \3\ RailAmerica has invoked the Board's class exemption 
procedures to acquire control of Class II rail carrier ParkSierra 
Corp. (ParkSierra) in RailAmerica, Inc.--Control Exemption--
ParkSierra Acquisition Corp. and ParkSierra Corp., STB Finance 
Docket No. 34100 (STB served Dec. 20, 2001) (ParkSierra). 
RailAmerica indicates that ParkSierra's rail properties do not 
connect with those of Alabama & Gulf Coast or those of RailAmerica's 
other rail subsidiaries.
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    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. Because RailAmerica will 
control more than one Class II rail carrier, the transaction will be 
made subject to the labor protection conditions described in New York 
Dock Ry.--Control--Brooklyn Eastern Dist., 360 I.C.C. 60 (1979).
    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)

[[Page 67363]]

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. 34129, must be filed with the Surface Transportation 
Board, Office of the Secretary, Case Control Unit, 1925 K Street, NW., 
Washington, DC 20423-0001. In addition, one copy of each pleading must 
be served on (1) Gary A. Laakso, Esq., 5300 Broken Sound Blvd., NW., 
Second Floor, Boca Raton, FL 33487, and (2) Louis E. Gitomer, Esq., 
Ball Janik LLP, 1455 F Street, NW., Suite 225, Washington, DC 20005.
    Board decisions and notices are available on our website at 
www.stb.dot.gov.

    Decided: December 20, 2001.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 01-32008 Filed 12-27-01; 8:45 am]
BILLING CODE 4915-00-P