[Federal Register Volume 61, Number 91 (Thursday, May 9, 1996)]
[Notices]
[Pages 21223-21224]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11622]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board \1\
[STB Finance Docket No. 32906]
San Joaquin Valley Railroad Co.--Corporate Family Transaction
Exemption--Port Railroads, Inc.
San Joaquin Valley Railroad Co. (SJVR) and Port Railroads, Inc.
(PRI), common carriers by railroad,2 have jointly filed a verified
notice of exemption whereby SJVR will acquire by assignment of lease
3 all of the railroad properties which PRI acquired by lease from
Southern Pacific.4
\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
(ICC) and transferred certain functions to the Surface
Transportation Board (Board). This notice relates to functions that
are subject to Board jurisdiction pursuant to 49 U.S.C. 11323-24.
\2\ SJVR and PRI are Class III railroads which are wholly owned
subsidiary corporations of Kyle Railways, Inc.
\3\ Notice of PRI's lease and operation exemption of these lines
was given in Port Railroads, Inc.--Lease and Operation Exemption--
Southern Pacific Transportation Company, Finance Docket No. 32457,
(ICC served Mar. 14, 1994).
\4\ SJVR and PRI state at p. 1 of their Assignment of Lease
Agreement that ``such assignment requires the consent of Southern
Pacific.''
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The transaction was expected to be consummated on April 24, 1996.
The unification of SJVR and PRI's railroad operations will permit
the consolidation of their separately maintained books and records, the
elimination of duplicating administrative costs and the achievement
otherwise of greater efficiencies and economies in the rendition of the
railroads' transportation services.
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
significant changes in railroad operations. In addition, while the
parties do not specifically say it, the transaction would apparently
not result in a change in the competitive balance with carriers outside
the 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 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 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. 32906, 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, a copy of each
pleading must be served on Fritz R. Kahn, Esq., Suite 750 West, 1100
New York Avenue, N.W., Washington, DC 20005-3934.
[[Page 21224]]
Decided: May 3, 1996.
By the Board, David M. Konschnik, Director, Office of
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 96-11622 Filed 5-8-96; 8:45 am]
BILLING CODE 4915-00-P
