[Federal Register Volume 64, Number 206 (Tuesday, October 26, 1999)]
[Notices]
[Pages 57695-57696]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-27776]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Finance Docket No. 33803]
Utah Railway Company--Acquisition of Control Exemption--Salt Lake
City Southern Railroad Company, Inc.
Utah Railway Company (UTAH), a Class III rail carrier, has filed a
verified notice of exemption to acquire the capital stock of Salt Lake
City Southern Railroad Company, Inc. (SLCS).1 UTAH operates
275 miles of trackage and trackage rights in Utah and Colorado and also
operates trackage between Provo and Ogden, UT, as agent of The
Burlington Northern and Santa Fe Railway Company (BNSF). SLCS operates
24.95 miles of rail line from milepost 798.74 at Ninth South Street in
Salt Lake City to milepost 775.19 at the Salt Lake County/Utah County
boundary line near Mount (including the 1.4-mile Lovendahl Spur
connecting with the main line at milepost 790.52), in Salt Lake County,
UT.2
---------------------------------------------------------------------------
\1\ UTAH had filed a notice of exemption to acquire and operate
SLCS's line in Utah Railway Company--Acquisition and Operation
Exemption--Lines of Utah Transit Authority in Salt Lake City, UT,
STB Finance Docket No. 33785 (STB served Aug. 30, 1999) (64 FR
47229). UTAH states that it does not intend to exercise authority
under the notice of exemption in STB Finance Docket No. 33785.
\2\ SLCS operates the line under a permanent easement granted by
the Utah Transit Authority. See Salt Lake City Southern Railroad
Company, Inc--Acquisition and Operation Exemption--Line Between
Mount and Salt Lake City, UT, Finance Docket No. 32276 (ICC served
Apr. 23, 1993).
---------------------------------------------------------------------------
Under the terms of an agreement with SLCS's corporate parent,
RailTex, Inc., UTAH was to purchase all of the issued and outstanding
capital stock of SLCS on September 30, 1999 and place the shares into a
voting trust. The transaction was scheduled to be consummated on
October 13, 1999 (7 days after the exemption was filed), when UTAH was
to acquire the stock held in the voting trust.
UTAH indicates that SLCS's trackage runs parallel to some of the
trackage operated by UTAH, as BNSF's agent. UTAH maintains, however,
that, as BNSF's agent, it does not have common carrier rights or
obligations on BNSF trackage.
UTAH indicates that: (i) the railroads do not connect with each
other; (ii) the transaction is not part of a series of anticipated
transactions that would connect the railroads with each other; and
(iii) 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).
[[Page 57696]]
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. 33803, must be filed with the Surface Transportation
Board, Office of the Secretary, Case Control Unit, 1925 K Street, N.W.,
Washington, DC 20423-0001. In addition, a copy of all pleadings must be
served on Theodore A. McConnell, Kirkpatrick & Lockhart LLP, 1500
Oliver Building, Pittsburgh, PA 15222.
Board decisions and notices are available on our website at
``WWW.STB.DOT.GOV.''
Decided: October 18, 1999.
By the Board, David M. Konschnik, Director, Office of
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 99-27776 Filed 10-25-99; 8:45 am]
BILLING CODE 4915-00-P
