[Federal Register Volume 61, Number 208 (Friday, October 25, 1996)]
[Notices]
[Page 55357]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-27422]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Finance Docket No. 33133]
Dakota Rail, Inc.--Acquisition of Control Exemption--Otter Tail
Valley Railroad Company, Inc.
Dakota Rail, Inc. (Dakota), has filed a notice of exemption to
acquire control, through stock purchase, of Otter Tail Valley Railroad
Company, Inc. (OTVR).1 OTVR, a Class III rail carrier, operates
solely in Minnesota.2
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\1\ On October 4, 1996, Dakota filed a request to amend its
verified notice of exemption filed on September 25, 1996, in this
proceeding to properly characterize the transaction as ``acquisition
of control'' rather than ``acquisition of control and merger.''
Dakota states that, while it intends to merge OTVR into Dakota,
there will be a period where OTVR will exist as a separate entity,
with Dakota owning 100% of OTVR's outstanding stock and thus
controlling OTVR. It indicates that it will seek separate approval
of the merger of OTVR into Dakota.
\2\ OTVR's main line runs from milepost 185.1, near Fergus
Falls, MN, northwest to Barnesville Junction, MN (milepost 218.6 =
0). From Barnesville Junction, milepost 0, the main line runs
northwest to Moorehead, MN, at milepost 21.25. In addition, a branch
line runs from milepost 49.0, at Fergus Falls, west to milepost
61.5, at Foxhome, MN.
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Dakota, a Class III rail carrier, is a wholly owned subsidiary of
RailAmerica, Inc. It operates a noncontiguous rail line from
Hutchinson, MN, to Wayzata, MN. Under the terms of an agreement with
OTVR, Dakota will acquire 100% of the outstanding stock of OTVR.3
The effective date of the exemption was October 11, 1996.
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\3\ By decision served October 9, 1996, the Board's Secretary
granted a motion for a protective order permitting the stock
purchase agreement to be filed under seal.
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This transaction is related to a notice of exemption filed in STB
Finance Docket No. 33138, RailAmerica, Inc.--Acquisition of Control
Exemption--Otter Tail Valley Railroad Company, Inc., wherein
RailAmerica seeks to acquire control, through Dakota, of OTVR.
Dakota indicates that: (1) OTVR does not connect with any other
railroads in Dakota's corporate family; (2) the involved transaction is
not part of a series of anticipated transactions that would connect
Dakota with any other railroad in its corporate family; and (3) the
transaction does not involve a Class I carrier. Therefore, the
transaction is exempt from the prior approval requirements of 49 U.S.C.
11323. See 49 CFR 1180.2(d)(2). The purpose of the transaction is to
achieve operating economies and to improve service over the lines.
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 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.
An original and 10 copies of all pleadings, referring to STB
Finance Docket No. 33133, 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, one copy of all
pleadings must be served on: Edward D. Greenberg, Canal Square, 1054
Thirty-First Street, N.W., Washington, DC 20007.
Decided: October 17, 1996.
By the Board, Joseph H. Dettmar, Acting Director, Office of
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 96-27422 Filed 10-24-96; 8:45 am]
BILLING CODE 4915-00-P
