80_FR_22690 80 FR 22613 - Ace Express Coaches, LLC, et al.; Acquisition and Control; Certain Properties of Evergreen Trails, Inc. d/b/a Horizon Coach Lines

80 FR 22613 - Ace Express Coaches, LLC, et al.; Acquisition and Control; Certain Properties of Evergreen Trails, Inc. d/b/a Horizon Coach Lines

DEPARTMENT OF TRANSPORTATION
Surface Transportation Board

Federal Register Volume 80, Issue 77 (April 22, 2015)

Page Range22613-22615
FR Document2015-09360

Ace Express Coaches, LLC (Buyer), and its affiliated parties (All Aboard America! Holdings, Inc. (AHI), Celerity AHI Holdings SPV, LLC (Celerity Holdings), Celerity Partners IV, LLC (Celerity Partners), and Industrial Bus Lines, Inc. (IBL)) (collectively, Applicants) have filed an application under 49 U.S.C. 14303 for the Buyer to acquire certain assets of Evergreen Trails, Inc. d/b/a Horizon Coach Lines (Seller), and for the continuance in control of the Buyer by AHI, Celerity Holdings, and Celerity Partners once the Buyer becomes a federally regulated motor carrier of passengers. The Board is tentatively approving and authorizing the transaction, and, if no opposing comments are timely filed, this notice will be the final Board action. Persons wishing to oppose the application must follow the rules at 49 CFR 1182.5 and 1182.8.

Federal Register, Volume 80 Issue 77 (Wednesday, April 22, 2015)
[Federal Register Volume 80, Number 77 (Wednesday, April 22, 2015)]
[Notices]
[Pages 22613-22615]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-09360]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[Docket No. MCF 21062]


Ace Express Coaches, LLC, et al.; Acquisition and Control; 
Certain Properties of Evergreen Trails, Inc. d/b/a Horizon Coach Lines

AGENCY: Surface Transportation Board, DOT.

ACTION: Notice tentatively approving and authorizing finance 
transaction.

-----------------------------------------------------------------------

SUMMARY: Ace Express Coaches, LLC (Buyer), and its affiliated parties 
(All Aboard America! Holdings, Inc. (AHI), Celerity AHI Holdings SPV, 
LLC (Celerity Holdings), Celerity Partners IV, LLC (Celerity Partners), 
and Industrial Bus Lines, Inc. (IBL)) (collectively, Applicants) have 
filed an application under 49 U.S.C. 14303 for the Buyer to acquire 
certain assets of Evergreen Trails, Inc. d/b/a Horizon Coach Lines 
(Seller), and for the continuance in control of the Buyer by AHI, 
Celerity Holdings, and Celerity Partners once the Buyer becomes a 
federally regulated motor carrier of passengers. The Board is 
tentatively approving and authorizing the transaction, and, if no 
opposing comments are timely filed, this notice will be the final Board 
action. Persons wishing to oppose the application must follow the rules 
at 49 CFR 1182.5 and 1182.8.

DATES: Comments must be filed by June 8, 2015. Applicants may file a 
reply by June 22, 2015. If no comments are filed by June 8, 2015, this 
notice shall be effective on June 9, 2015.

ADDRESSES: Send an original and 10 copies of any comments referring to 
Docket No. MCF 21062 to: Surface Transportation Board, 395 E Street 
SW., Washington, DC 20423-0001. In addition, send one copy of comments 
to Applicants' representative: Mark J. Andrews, Strasburger & Price, 
LLP, Suite 717, 1025 Connecticut Avenue NW., Washington, DC 20036.

FOR FURTHER INFORMATION CONTACT: Matthew Bornstein: (202) 245-0385. 
Federal Information Relay Service (FIRS) for the hearing impaired: 1-
800-877-8339.

SUPPLEMENTARY INFORMATION: The Buyer is a newly established limited 
liability company under the laws of Delaware.\1\

[[Page 22614]]

Applicants state that the Buyer applied to the Federal Motor Carrier 
Safety Administration (FMCSA) for nationwide charter and special 
operations authority, as a motor passenger carrier operating over 
irregular routes, in Docket No. MC-908184. IBL, a motor carrier of 
passengers (MC-133171), is a corporation established under the laws of 
New Mexico. IBL provides charter and contract services in Arizona, New 
Mexico, and Texas utilizing 101 motor coaches and minibuses. The Buyer 
and IBL are under the control of AHI, Celerity Holdings, and Celerity 
Partners, each a noncarrier organized under the laws of Delaware. AHI 
also owns 100 percent of the stock of two other federally regulated 
motor carriers of passengers: Hotard Coaches, Inc. (Hotard) (MC-148331) 
and Sureride Charter Inc. d/b/a Sundiego Charter Co. (Sundiego) (MC-
324772).\2\ Hotard operates local and regional charter and contract 
services within Louisiana and southern Mississippi. Sundiego conducts 
charter, sightseeing, and various shuttle operations to, from, and 
within California and adjoining states.
---------------------------------------------------------------------------

    \1\ Concurrently with their application, the parties also filed 
a request for interim approval under 49 U.S.C. 14303(i). In a 
decision served on April 8, 2015, in related Docket No. MCF 21062 
TA, interim approval was granted, effective on the service date of 
that decision.
    \2\ The Board authorized control of Hotard and IBL by AHI and 
the Celerity entities in Celerity Partners IV--Control--Calco 
Travel, MCF 21044 (STB served May 11, 2012). The Board also 
authorized control of Sundiego by AHI and the Celerity entities in 
Celerity Partners IV--Control-- Sureride Charter, MCF 21055 (STB 
served Oct. 29, 2013).
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    The Seller, a motor carrier of passengers (MC-107638), is a 
corporation established under the laws of the State of Washington. The 
Seller is under the control of Francis W. Sherman, a noncarrier 
individual. Mr. Sherman exercises control of the Seller through 
intermediate holding companies FSCS Corporation and TMS West Coast, 
Inc. Applicants state that the Seller currently provides both 
government and corporate shuttle services, scheduled shuttle services 
between Denver and two mountain resort towns in Colorado (carrying both 
patrons and employees of the casinos located there), and leisure travel 
services to, from, and within Colorado. The government shuttle services 
include services provided under a contract between the Seller and the 
U.S. Department of Defense (DOD). Applicants state that the Seller 
utilized approximately eight vans and minibuses for the corporate 
shuttles, 11 motor coaches for the casino operations, and 33 coaches 
plus two minibuses for all other work. Applicants indicate that the 
revenue mix generated by these assets in 2014 for the government/
corporate shuttles, casino operations, and charters was approximately 
9, 48, and 43 percent, respectively. In addition, the Applicants state 
that the Seller has been awarded an intercity passenger service 
contract with the Colorado Department of Transportation (CDOT) under 
which 13 additional CDOT-owned coaches will commence operations within 
the next few months.
    Applicants explain that the proposed transaction would close in 
three phases. The first phase, as discussed in MCF 21062 TA, 
contemplates that the Buyer and IBL would acquire control of the assets 
currently operated by the Seller in Colorado.\3\ All of the non-DOD 
assets, including vehicles, would be operated by IBL (under its 
existing FMCSA authority) pursuant to an interim management agreement 
between IBL and the Buyer. Vehicles owned by the Seller would be leased 
to the Buyer, and vehicle leases to the Seller by third parties would 
be assigned to the Buyer. The DOD contract would be assigned to and 
performed by IBL under a management agreement with the Buyer, as 
required by DOD regulations, which preclude contracts with passenger 
carriers in existence less than a year.
---------------------------------------------------------------------------

    \3\ These assets include: (i) The Seller's operations center in 
Golden, Colorado, plus six other leased terminals and parking 
facilities; (ii) approximately 44 motor coaches and 23 other 
vehicles; (iii) all maintenance facilities and supplies for these 
vehicles; (iv) certain licenses and permits necessary to operate the 
assets; (v) furniture, fixtures, office equipment, software, and 
intellectual property in use for such operations; and (vi) existing 
and prospective charter and shuttle contracts based in Colorado.
---------------------------------------------------------------------------

    The second phase of the proposed transaction would entail the Buyer 
becoming permanent owner and operator of all the non-DOD assets, 
including vehicles, upon the effective date of the Board's approval of 
the transaction and once the Buyer has obtained FMCSA operating 
authority. Any interim role of IBL managing such assets would therefore 
end. Lastly, the third phase of the proposed transaction would occur as 
soon as practicable after the first anniversary of the phase two 
closing. The Buyer would replace IBL as the direct operator of the DOD 
contract and the proposed acquisition would then be complete.
    Under 49 U.S.C. 14303(b), the Board must approve and authorize a 
transaction that it finds consistent with the public interest, taking 
into consideration at least: (1) The effect of the proposed transaction 
on the adequacy of transportation to the public; (2) the total fixed 
charges that result; and (3) the interest of affected carrier 
employees. Applicants have submitted information, as required by 49 CFR 
1182.2, including the information to demonstrate that the proposed 
transaction is consistent with the public interest under 49 U.S.C. 
14303(b), and a statement that Applicants' aggregate gross operating 
revenues of the Buyer, IBL, Hotard, Sundiego, and the Colorado assets 
of the Seller exceeded $2 million for the preceding 12-month period, 
see 49 U.S.C. 14303(g).
    Applicants submit that the proposed transaction would have a 
positive net impact on the adequacy of transportation to the public 
because Applicants do not intend to change the operations of Seller's 
assets, but intend to modernize the bus fleet used in those operations. 
They anticipate that the proposed transaction would enhance services to 
the public by implementing vehicle sharing arrangements, coordinated 
driver training and safety management services, and by centralizing 
certain management support functions. With respect to fixed charges, 
Applicants state that the combined scale of operations of the Buyer, 
IBL, Hotard, and Sundiego would allow the Buyer to enhance its volume 
purchasing power, thereby reducing insurance premiums and achieving 
deeper volume discounts for tires, equipment, and fuel. Applicants 
claim that the proposed transaction also would have a positive impact 
on employees. The Buyer intends to retain Seller's existing management 
and hourly employees who are involved in the operation of the assets 
being acquired. Applicants assert that this would result in continued 
job security and opportunities for growth in the combined business of 
the Buyer and its affiliated carriers.
    Applicants further claim that the acquisition would not likely 
affect competition because the markets in which the Seller's Colorado 
assets and the previously approved combination of Sundiego, IBL, and 
Hotard operate are adjacent, but do not significantly overlap. 
Applicants note that numerous carriers compete with the Seller's 
operations in Colorado and that the Seller operates fewer than 50 
percent of all coaches in the Denver and Colorado Springs markets. 
These local and regional carriers include Seller's largest competitor, 
Busco, Inc. d/b/a Arrow Stage Lines (Busco), which operates 33 motor 
coaches from its Denver facility and has 216 coaches in its total 
fleet. Ramblin Express, Inc. (Ramblin) also operates 45 units and has 
facilities in Denver and Colorado Springs, and Colorado Tour Line LLC, 
which operates under the GrayLine brand, operates motor coaches in both 
markets. In addition, Applicants state that Colorado Charter Line, Inc. 
(CCL) and Premier Charter (Premier) are two

[[Page 22615]]

smaller charter companies that operate in the Denver area.
    According to Applicants, in the casino shuttle market, the Seller 
and Ramblin are the current operators (regulated by the Colorado Public 
Utility Commission), and the Buyer merely would replace the Seller in 
this market. Applicants argue that services provided under contract 
involve a competitive bidding process where the competing local and 
regional carriers mentioned above could bid for shuttle services, along 
with any interested nationwide operators and that thus, the market 
would remain competitive if the proposed transaction were approved. 
Applicants state that services provided on a ``spot basis'' are the 
norm for much of Seller's charter business involving leisure travel and 
that these charter operations face competition from nationwide 
operators in addition to the local and regional carriers mentioned 
above (Busco, Ramblin, CCL, and Premier). They also note that motor 
passenger carriers face intense market competition from other 
transportation modes, such as private automobiles, airlines, and 
trains.
    On the basis of the application, the Board finds that the proposed 
acquisition is consistent with the public interest and should be 
tentatively approved and authorized. If any opposing comments are 
timely filed, these findings will be deemed vacated, and, unless a 
final decision can be made on the record as developed, a procedural 
schedule will be adopted to reconsider the application. See 49 CFR 
1182.6(c). If no opposing comments are filed by the expiration of the 
comment period, this notice will take effect automatically and will be 
the final Board action.
    Board decisions and notices are available on our Web site at 
``WWW.STB.DOT.GOV''.
    This decision will not significantly affect either the quality of 
the human environment or the conservation of energy resources.
    It is ordered:
    1. The proposed transaction is approved and authorized, subject to 
the filing of opposing comments.
    2. If opposing comments are timely filed, the findings made in this 
notice will be deemed vacated.
    3. This notice will be effective June 9, 2015, unless opposing 
comments are filed by June 8, 2015.
    4. A copy of this decision will be served on: (1) U.S. Department 
of Transportation, Federal Motor Carrier Safety Administration, 1200 
New Jersey Avenue SE., Washington, DC 20590; (2) the U.S. Department of 
Justice, Antitrust Division, 10th Street & Pennsylvania Avenue NW., 
Washington, DC 20530; and (3) the U.S. Department of Transportation, 
Office of the General Counsel, 1200 New Jersey Avenue SE., Washington, 
DC 20590.

    Decided: April 16, 2015.

    By the Board, Acting Chairman Miller and Vice Chairman Begeman.
Brendetta S. Jones,
Clearance Clerk.
[FR Doc. 2015-09360 Filed 4-21-15; 8:45 am]
 BILLING CODE 4915-01-P



                                                                                 Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Notices                                                    22613

                                                    Rather it will be a cost associated with                need occur under any Title XI                         DEPARTMENT OF TRANSPORTATION
                                                    pursuing a Title XI loan guarantee.                     application, letter commitment or
                                                                                                            guarantee.                                            Surface Transportation Board
                                                    Section 4: What if an available U.S.-flag
                                                    vessel cannot be found or the total                     Section 6: What is the purpose of Cargo
                                                                                                                                                                  [Docket No. MCF 21062]
                                                    ocean freight rate appears too                          Preference?
                                                    expensive?                                                                                                    Ace Express Coaches, LLC, et al.;
                                                                                                               The CPA 1954 provides a revenue
                                                       Only MARAD can issue a                               base that helps to retain and encourages              Acquisition and Control; Certain
                                                    determination that no qualified U.S.-flag               a privately owned and operated U.S.-                  Properties of Evergreen Trails, Inc.
                                                    vessels are available at fair and                       flag merchant fleet. The U.S.-flag fleet is           d/b/a Horizon Coach Lines
                                                    reasonable rates. If a Title XI applicant,              a vital resource, providing essential
                                                    through diligent efforts, is unable to find                                                                   AGENCY:    Surface Transportation Board,
                                                                                                            sealift capability to globally project and            DOT.
                                                    a U.S.-flag carrier, without prior                      sustain the U.S. Armed Forces or
                                                    consultation with MARAD and a                                                                                 ACTION:Notice tentatively approving
                                                                                                            support other national emergencies,
                                                    determination of non-availability of                                                                          and authorizing finance transaction.
                                                                                                            maintaining a cadre of skilled seafarers
                                                    qualified U.S.-flag carriage, the                       available in time of national
                                                    applicant’s due diligence alone will not                                                                      SUMMARY:    Ace Express Coaches, LLC
                                                                                                            emergencies, and helping to protect U.S.              (Buyer), and its affiliated parties (All
                                                    excuse that applicant from cargo                        economic interests. The U.S. maritime
                                                    preference requirements. Title XI                                                                             Aboard America! Holdings, Inc. (AHI),
                                                                                                            industry also supports thousands of sea-              Celerity AHI Holdings SPV, LLC
                                                    applicants and prospective applicants                   going, shore-based, and secondary,
                                                    are encouraged to communicate with                                                                            (Celerity Holdings), Celerity Partners IV,
                                                                                                            associated jobs, supporting the Nation’s              LLC (Celerity Partners), and Industrial
                                                    U.S.-flag carriers at the earliest possible             economic growth. It is imperative that
                                                    time to ensure the greatest degree of                                                                         Bus Lines, Inc. (IBL)) (collectively,
                                                                                                            Federal programs, such as Title XI, and               Applicants) have filed an application
                                                    coordination and to obtain the best                     Title XI applicants and beneficiary
                                                    rates. In the event that a Title XI                                                                           under 49 U.S.C. 14303 for the Buyer to
                                                                                                            shipyards, as members of the U.S.                     acquire certain assets of Evergreen
                                                    applicant or prospective applicant
                                                                                                            maritime industry, support this national              Trails, Inc. d/b/a Horizon Coach Lines
                                                    experiences difficulty obtaining U.S.-
                                                                                                            priority through proper adherence to                  (Seller), and for the continuance in
                                                    flag service, or if it can only find partial
                                                                                                            cargo preference requirements.                        control of the Buyer by AHI, Celerity
                                                    U.S.-flag service, the applicant is
                                                                                                            Therefore, while the use of U.S.-flag                 Holdings, and Celerity Partners once the
                                                    encouraged to contact MARAD as soon
                                                                                                            vessels to carry 50 percent of the gross              Buyer becomes a federally regulated
                                                    as possible at cargo.marad@dot.gov or
                                                                                                            tons of ocean borne cargoes is the                    motor carrier of passengers. The Board
                                                    (202) 366–4610. With proper planning,
                                                                                                            statutory minimum, MARAD, as the                      is tentatively approving and authorizing
                                                    U.S.-flag service can generally be
                                                                                                            agency charged with administering both                the transaction, and, if no opposing
                                                    obtained at fair and reasonable rates.
                                                                                                            Title XI and the CPA 1954, encourages                 comments are timely filed, this notice
                                                    Early planning and coordination are the
                                                    keys to meeting cargo preference                        the use of U.S.-flag vessels more than                will be the final Board action. Persons
                                                    requirements in Title XI as in all other                the minimum whenever possible.                        wishing to oppose the application must
                                                    Federal programs.                                       Privacy Act                                           follow the rules at 49 CFR 1182.5 and
                                                                                                                                                                  1182.8.
                                                    Section 5: What if non-compliance with                     In accordance with 5 U.S.C. 553(c),                DATES: Comments must be filed by June
                                                    Cargo Preference requirements occurs?                   DOT solicits comments from the public                 8, 2015. Applicants may file a reply by
                                                       At MARAD’s option, as the                            to better inform its rulemaking process.              June 22, 2015. If no comments are filed
                                                    administrator of the Title XI program,                  DOT posts these comments, without                     by June 8, 2015, this notice shall be
                                                    non-compliant parties may be denied a                   edit, to www.regulations.gov, as                      effective on June 9, 2015.
                                                    letter commitment or, consistent with                   described in the system of records
                                                                                                            notice, DOT/ALL–14 FDMS, accessible                   ADDRESSES: Send an original and 10
                                                    46 U.S.C. 55305(d)(2)(B), may required
                                                                                                            through www.dot.gov/privacy. In order                 copies of any comments referring to
                                                    to provide make-up cargoes for carriage
                                                                                                            to facilitate comment tracking and                    Docket No. MCF 21062 to: Surface
                                                    aboard U.S.-flag vessels to offset the lost
                                                                                                            response, we encourage commenters to                  Transportation Board, 395 E Street SW.,
                                                    cargo carriage supporting work under
                                                                                                            provide their name, or the name of their              Washington, DC 20423–0001. In
                                                    the Title XI financing application. In
                                                                                                            organization; however, submission of                  addition, send one copy of comments to
                                                    extreme cases where knowing and
                                                                                                            names is completely optional. Whether                 Applicants’ representative: Mark J.
                                                    willful violations occur, consistent with
                                                                                                            or not commenters identify themselves,                Andrews, Strasburger & Price, LLP,
                                                    46 U.S.C. 55305(d)(2)(C), MARAD can
                                                                                                            all timely comments will be fully                     Suite 717, 1025 Connecticut Avenue
                                                    issue a civil penalty of not more than
                                                                                                            considered. If you wish to provide                    NW., Washington, DC 20036.
                                                    $25,000 for each violation, with each
                                                    day of a continuing violation following                 comments containing proprietary or                    FOR FURTHER INFORMATION CONTACT:
                                                    the date of shipment counting as a                      confidential information, please contact              Matthew Bornstein: (202) 245–0385.
                                                    separate violation. Additionally, cargo                 the agency for alternate submission                   Federal Information Relay Service
                                                    preference requirements are                             instructions.                                         (FIRS) for the hearing impaired: 1–800–
                                                    incorporated into Title XI letter                          (Authority: 46 U.S.C. 55305; 46 U.S.C.             877–8339.
                                                    commitments; therefore, failure to                      Ch. 537)                                              SUPPLEMENTARY INFORMATION: The Buyer
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                    properly adhere to cargo preference                     *      *     *    *     *                             is a newly established limited liability
                                                    requirements could impact MARAD’s                                                                             company under the laws of Delaware.1
                                                                                                              By Order of the Maritime Administrator.
                                                    ability to close on a Title XI guarantee
                                                    because the recipient has not met its                     Dated: April 17, 2015.                                1 Concurrently with their application, the parties

                                                    obligations under the letter                            Thomas M. Hudson, Jr.,                                also filed a request for interim approval under 49
                                                                                                            Acting Secretary, Maritime Administration.            U.S.C. 14303(i). In a decision served on April 8,
                                                    commitment. However, with early                                                                               2015, in related Docket No. MCF 21062 TA, interim
                                                    planning and coordination with                          [FR Doc. 2015–09371 Filed 4–21–15; 8:45 am]           approval was granted, effective on the service date
                                                    MARAD, no cargo preference violations                   BILLING CODE 4910–81–P                                of that decision.



                                               VerDate Sep<11>2014   18:00 Apr 21, 2015   Jkt 235001   PO 00000   Frm 00141   Fmt 4703   Sfmt 4703   E:\FR\FM\22APN1.SGM   22APN1


                                                    22614                        Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Notices

                                                    Applicants state that the Buyer applied                 Applicants state that the Seller has been                interest under 49 U.S.C. 14303(b), and a
                                                    to the Federal Motor Carrier Safety                     awarded an intercity passenger service                   statement that Applicants’ aggregate
                                                    Administration (FMCSA) for nationwide                   contract with the Colorado Department                    gross operating revenues of the Buyer,
                                                    charter and special operations authority,               of Transportation (CDOT) under which                     IBL, Hotard, Sundiego, and the Colorado
                                                    as a motor passenger carrier operating                  13 additional CDOT-owned coaches will                    assets of the Seller exceeded $2 million
                                                    over irregular routes, in Docket No. MC–                commence operations within the next                      for the preceding 12-month period, see
                                                    908184. IBL, a motor carrier of                         few months.                                              49 U.S.C. 14303(g).
                                                    passengers (MC–133171), is a                               Applicants explain that the proposed                     Applicants submit that the proposed
                                                    corporation established under the laws                  transaction would close in three phases.                 transaction would have a positive net
                                                    of New Mexico. IBL provides charter                     The first phase, as discussed in MCF                     impact on the adequacy of
                                                    and contract services in Arizona, New                   21062 TA, contemplates that the Buyer                    transportation to the public because
                                                    Mexico, and Texas utilizing 101 motor                   and IBL would acquire control of the                     Applicants do not intend to change the
                                                    coaches and minibuses. The Buyer and                    assets currently operated by the Seller                  operations of Seller’s assets, but intend
                                                    IBL are under the control of AHI,                       in Colorado.3 All of the non-DOD assets,                 to modernize the bus fleet used in those
                                                    Celerity Holdings, and Celerity Partners,               including vehicles, would be operated                    operations. They anticipate that the
                                                    each a noncarrier organized under the                   by IBL (under its existing FMCSA                         proposed transaction would enhance
                                                    laws of Delaware. AHI also owns 100                     authority) pursuant to an interim                        services to the public by implementing
                                                    percent of the stock of two other                       management agreement between IBL                         vehicle sharing arrangements,
                                                    federally regulated motor carriers of                   and the Buyer. Vehicles owned by the                     coordinated driver training and safety
                                                    passengers: Hotard Coaches, Inc.                        Seller would be leased to the Buyer, and                 management services, and by
                                                    (Hotard) (MC–148331) and Sureride                       vehicle leases to the Seller by third                    centralizing certain management
                                                    Charter Inc. d/b/a Sundiego Charter Co.                 parties would be assigned to the Buyer.                  support functions. With respect to fixed
                                                    (Sundiego) (MC–324772).2 Hotard                         The DOD contract would be assigned to                    charges, Applicants state that the
                                                    operates local and regional charter and                 and performed by IBL under a                             combined scale of operations of the
                                                    contract services within Louisiana and                  management agreement with the Buyer,                     Buyer, IBL, Hotard, and Sundiego
                                                    southern Mississippi. Sundiego                          as required by DOD regulations, which                    would allow the Buyer to enhance its
                                                    conducts charter, sightseeing, and                      preclude contracts with passenger                        volume purchasing power, thereby
                                                    various shuttle operations to, from, and                carriers in existence less than a year.                  reducing insurance premiums and
                                                    within California and adjoining states.                    The second phase of the proposed
                                                                                                                                                                     achieving deeper volume discounts for
                                                       The Seller, a motor carrier of                       transaction would entail the Buyer
                                                                                                                                                                     tires, equipment, and fuel. Applicants
                                                    passengers (MC–107638), is a                            becoming permanent owner and
                                                                                                                                                                     claim that the proposed transaction also
                                                    corporation established under the laws                  operator of all the non-DOD assets,
                                                                                                            including vehicles, upon the effective                   would have a positive impact on
                                                    of the State of Washington. The Seller
                                                                                                            date of the Board’s approval of the                      employees. The Buyer intends to retain
                                                    is under the control of Francis W.
                                                                                                            transaction and once the Buyer has                       Seller’s existing management and
                                                    Sherman, a noncarrier individual. Mr.
                                                                                                            obtained FMCSA operating authority.                      hourly employees who are involved in
                                                    Sherman exercises control of the Seller
                                                                                                            Any interim role of IBL managing such                    the operation of the assets being
                                                    through intermediate holding
                                                                                                            assets would therefore end. Lastly, the                  acquired. Applicants assert that this
                                                    companies FSCS Corporation and TMS
                                                                                                            third phase of the proposed transaction                  would result in continued job security
                                                    West Coast, Inc. Applicants state that
                                                    the Seller currently provides both                      would occur as soon as practicable after                 and opportunities for growth in the
                                                    government and corporate shuttle                        the first anniversary of the phase two                   combined business of the Buyer and its
                                                    services, scheduled shuttle services                    closing. The Buyer would replace IBL as                  affiliated carriers.
                                                    between Denver and two mountain                         the direct operator of the DOD contract                     Applicants further claim that the
                                                    resort towns in Colorado (carrying both                 and the proposed acquisition would                       acquisition would not likely affect
                                                    patrons and employees of the casinos                    then be complete.                                        competition because the markets in
                                                    located there), and leisure travel                         Under 49 U.S.C. 14303(b), the Board                   which the Seller’s Colorado assets and
                                                    services to, from, and within Colorado.                 must approve and authorize a                             the previously approved combination of
                                                    The government shuttle services include                 transaction that it finds consistent with                Sundiego, IBL, and Hotard operate are
                                                    services provided under a contract                      the public interest, taking into                         adjacent, but do not significantly
                                                    between the Seller and the U.S.                         consideration at least: (1) The effect of                overlap. Applicants note that numerous
                                                    Department of Defense (DOD).                            the proposed transaction on the                          carriers compete with the Seller’s
                                                    Applicants state that the Seller utilized               adequacy of transportation to the public;                operations in Colorado and that the
                                                    approximately eight vans and minibuses                  (2) the total fixed charges that result;                 Seller operates fewer than 50 percent of
                                                    for the corporate shuttles, 11 motor                    and (3) the interest of affected carrier                 all coaches in the Denver and Colorado
                                                    coaches for the casino operations, and                  employees. Applicants have submitted                     Springs markets. These local and
                                                    33 coaches plus two minibuses for all                   information, as required by 49 CFR                       regional carriers include Seller’s largest
                                                    other work. Applicants indicate that the                1182.2, including the information to                     competitor, Busco, Inc. d/b/a Arrow
                                                    revenue mix generated by these assets in                demonstrate that the proposed                            Stage Lines (Busco), which operates 33
                                                    2014 for the government/corporate                       transaction is consistent with the public                motor coaches from its Denver facility
                                                    shuttles, casino operations, and charters                                                                        and has 216 coaches in its total fleet.
                                                                                                                                                                     Ramblin Express, Inc. (Ramblin) also
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                                                                              3 These assets include: (i) The Seller’s operations
                                                    was approximately 9, 48, and 43
                                                                                                            center in Golden, Colorado, plus six other leased        operates 45 units and has facilities in
                                                    percent, respectively. In addition, the                 terminals and parking facilities; (ii) approximately
                                                                                                            44 motor coaches and 23 other vehicles; (iii) all
                                                                                                                                                                     Denver and Colorado Springs, and
                                                      2 The Board authorized control of Hotard and IBL      maintenance facilities and supplies for these            Colorado Tour Line LLC, which
                                                    by AHI and the Celerity entities in Celerity Partners   vehicles; (iv) certain licenses and permits necessary    operates under the GrayLine brand,
                                                    IV—Control—Calco Travel, MCF 21044 (STB served          to operate the assets; (v) furniture, fixtures, office   operates motor coaches in both markets.
                                                    May 11, 2012). The Board also authorized control        equipment, software, and intellectual property in
                                                    of Sundiego by AHI and the Celerity entities in         use for such operations; and (vi) existing and
                                                                                                                                                                     In addition, Applicants state that
                                                    Celerity Partners IV—Control— Sureride Charter,         prospective charter and shuttle contracts based in       Colorado Charter Line, Inc. (CCL) and
                                                    MCF 21055 (STB served Oct. 29, 2013).                   Colorado.                                                Premier Charter (Premier) are two


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                                                                                 Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Notices                                           22615

                                                    smaller charter companies that operate                  Division, 10th Street & Pennsylvania                  of the Treasury at (202) 622–8177, or
                                                    in the Denver area.                                     Avenue NW., Washington, DC 20530;                     marcia.wilson@treasury.gov.
                                                       According to Applicants, in the                      and (3) the U.S. Department of                        FOR FURTHER INFORMATION CONTACT:
                                                    casino shuttle market, the Seller and                   Transportation, Office of the General                 Brett D. Hewitt, Policy Advisor, FIO,
                                                    Ramblin are the current operators                       Counsel, 1200 New Jersey Avenue SE.,                  Room 1410, Department of the Treasury,
                                                    (regulated by the Colorado Public Utility               Washington, DC 20590.                                 1500 Pennsylvania Avenue NW,
                                                    Commission), and the Buyer merely                         Decided: April 16, 2015.                            Washington, DC 20220, at (202) 622–
                                                    would replace the Seller in this market.                                                                      5892 (this is not a toll-free number).
                                                                                                              By the Board, Acting Chairman Miller and
                                                    Applicants argue that services provided                                                                       Persons who have difficulty hearing or
                                                                                                            Vice Chairman Begeman.
                                                    under contract involve a competitive                                                                          speaking may access this number via
                                                                                                            Brendetta S. Jones,
                                                    bidding process where the competing                                                                           TTY by calling the toll-free Federal
                                                    local and regional carriers mentioned                   Clearance Clerk.
                                                                                                            [FR Doc. 2015–09360 Filed 4–21–15; 8:45 am]
                                                                                                                                                                  Relay Service at (800) 877–8339.
                                                    above could bid for shuttle services,
                                                                                                                                                                  SUPPLEMENTARY INFORMATION: Notice of
                                                    along with any interested nationwide                    BILLING CODE 4915–01–P
                                                    operators and that thus, the market                                                                           this meeting is provided in accordance
                                                    would remain competitive if the                                                                               with the Federal Advisory Committee
                                                    proposed transaction were approved.                     DEPARTMENT OF THE TREASURY                            Act, 5 U.S.C. App. II, 10(a)(2), through
                                                    Applicants state that services provided                                                                       implementing regulations at 41 CFR
                                                    on a ‘‘spot basis’’ are the norm for much               Open Meeting of the Federal Advisory                  102–3.150.
                                                    of Seller’s charter business involving                  Committee on Insurance                                  Public Comment: Members of the
                                                    leisure travel and that these charter                                                                         public wishing to comment on the
                                                                                                            AGENCY: Departmental Offices, U.S.                    business of the Federal Advisory
                                                    operations face competition from                        Department of the Treasury.
                                                    nationwide operators in addition to the                                                                       Committee on Insurance are invited to
                                                                                                            ACTION: Notice of open meeting.                       submit written statements by any of the
                                                    local and regional carriers mentioned
                                                    above (Busco, Ramblin, CCL, and                                                                               following methods:
                                                                                                            SUMMARY:    This notice announces that
                                                    Premier). They also note that motor                     the Department of the Treasury’s                      Electronic Statements
                                                    passenger carriers face intense market                  Federal Advisory Committee on                            • Send electronic comments to faci@
                                                    competition from other transportation                   Insurance (‘‘Committee’’) will convene a              treasury.gov.
                                                    modes, such as private automobiles,                     meeting on Thursday, May 7, 2015, in
                                                    airlines, and trains.                                   the Cash Room, 1500 Pennsylvania                      Paper Statements
                                                       On the basis of the application, the                 Avenue NW., Washington, DC 20220,                        • Send paper statements in triplicate
                                                    Board finds that the proposed                           from 1:00–5:00 p.m. Eastern Time. The                 to the Federal Advisory Committee on
                                                    acquisition is consistent with the public               meeting is open to the public, and the                Insurance, Room 1410, Department of
                                                    interest and should be tentatively                      site is accessible to individuals with                the Treasury, 1500 Pennsylvania
                                                    approved and authorized. If any                         disabilities.                                         Avenue NW., Washington, DC 20220.
                                                    opposing comments are timely filed,                                                                              In general, the Department of the
                                                                                                            DATES: The meeting will be held on
                                                    these findings will be deemed vacated,                                                                        Treasury will post all statements on its
                                                                                                            Thursday, May 7, 2015, from 1:00–5:00
                                                    and, unless a final decision can be made                                                                      Web site http://www.treasury.gov/
                                                                                                            p.m. Eastern Time.
                                                    on the record as developed, a                                                                                 about/organizational-structure/offices/
                                                                                                            ADDRESSES: The Federal Advisory
                                                    procedural schedule will be adopted to                                                                        Pages/Federal-Insurance.aspx without
                                                    reconsider the application. See 49 CFR                  Committee on Insurance meeting will be
                                                                                                            held in the Cash Room, Department of                  change, including any business or
                                                    1182.6(c). If no opposing comments are                                                                        personal information provided such as
                                                    filed by the expiration of the comment                  the Treasury, 1500 Pennsylvania
                                                                                                            Avenue NW., Washington, DC 20220.                     names, addresses, email addresses, or
                                                    period, this notice will take effect                                                                          telephone numbers. The Department of
                                                    automatically and will be the final                     The meeting will be open to the public.
                                                                                                            Because the meeting will be held in a                 the Treasury will also make such
                                                    Board action.                                                                                                 statements available for public
                                                       Board decisions and notices are                      secured facility, members of the public
                                                                                                            who plan to attend the meeting must                   inspection and copying in the
                                                    available on our Web site at
                                                                                                            either:                                               Department of the Treasury’s Library,
                                                    ‘‘WWW.STB.DOT.GOV’’.
                                                       This decision will not significantly                    1. Register online. Attendees may visit            1500 Pennsylvania Avenue NW.,
                                                    affect either the quality of the human                  http://www.cvent.com/d/                               Washington, DC 20220, on official
                                                    environment or the conservation of                      frqz2l?ct=6128d144-9ad5-45f5-910c-                    business days between the hours of
                                                    energy resources.                                       c7b44560aae0&RefID=FACI+General                       10:00 a.m. and 5:00 p.m. Eastern Time.
                                                       It is ordered:                                       +Registration and fill out a secure                   You can make an appointment to
                                                       1. The proposed transaction is                       online registration form. A valid email               inspect statements by telephoning (202)
                                                    approved and authorized, subject to the                 address will be required to complete                  622–0990. All statements, including
                                                    filing of opposing comments.                            online registration. (Note: Online                    attachments and other supporting
                                                       2. If opposing comments are timely                   registration will close at 5:00 p.m.                  materials, received are part of the public
                                                    filed, the findings made in this notice                 Eastern Time on Friday, May 1, 2015.)                 record and subject to public disclosure.
                                                    will be deemed vacated.                                    2. Contact the Federal Insurance                   You should submit only information
                                                       3. This notice will be effective June 9,             Office (FIO), at (202) 622–5892, by 5:00              that you wish to make available
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                    2015, unless opposing comments are                      p.m. Eastern Time on Friday, May 1,                   publicly.
                                                    filed by June 8, 2015.                                  2015, and provide registration                           Tentative Agenda/Topics for
                                                       4. A copy of this decision will be                   information.                                          Discussion: This is a periodic meeting of
                                                    served on: (1) U.S. Department of                          Requests for reasonable                            the Federal Advisory Committee on
                                                    Transportation, Federal Motor Carrier                   accommodations under Section 504 of                   Insurance. In this meeting, the
                                                    Safety Administration, 1200 New Jersey                  the Rehabilitation Act should be                      Committee will discuss a number of
                                                    Avenue SE., Washington, DC 20590; (2)                   directed to Marcia Wilson, Office of                  issues, including cybersecurity related
                                                    the U.S. Department of Justice, Antitrust               Civil Rights and Diversity, Department                to the insurance industry, including


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Document Created: 2015-12-16 08:28:13
Document Modified: 2015-12-16 08:28:13
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice tentatively approving and authorizing finance transaction.
DatesComments must be filed by June 8, 2015. Applicants may file a reply by June 22, 2015. If no comments are filed by June 8, 2015, this notice shall be effective on June 9, 2015.
ContactMatthew Bornstein: (202) 245-0385. Federal Information Relay Service (FIRS) for the hearing impaired: 1- 800-877-8339.
FR Citation80 FR 22613 

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