80 FR 42605 - Piedmont Railway LLC-Lease and Operation Exemption-North Carolina Department of Transportation

DEPARTMENT OF TRANSPORTATION
Surface Transportation Board

Federal Register Volume 80, Issue 137 (July 17, 2015)

Page Range		42605-42606
FR Document		2015-17573

Federal Register, Volume 80 Issue 137 (Friday, July 17, 2015)

[Federal Register Volume 80, Number 137 (Friday, July 17, 2015)]
[Notices]
[Pages 42605-42606]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-17573]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[Docket No. FD 35936]


Piedmont Railway LLC--Lease and Operation Exemption--North 
Carolina Department of Transportation

    Piedmont Railway LLC (Piedmont),\1\ a noncarrier, has filed a 
verified notice of

[[Page 42606]]

exemption under 49 CFR 1150.31(a)(3) to lease from the North Carolina 
Department of Transportation (NCDOT), and to operate, approximately 13 
miles of rail line in Gaston County, N.C., consisting of the following 
two segments: (1) Between milepost SFC 11.39 at Mt. Holly, N.C., and 
milepost SFC 23.0 at Gastonia, N.C.; and (2) the Belmont Branch, 
between milepost SFC 13.6/SFF 0.13 and milepost SFF 1.56, including all 
sidings, industrial tracks, yard, and storage tracks, pursuant to a 
lease and operating agreement dated May 13, 2015.
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    \1\ Piedmont is a new, limited liability company and an indirect 
corporate subsidiary of Iowa Pacific Holdings, LLC, which owns 100% 
of Permian Basin Railways, Inc., which in turn will own 100% of 
Piedmont.
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    This transaction is related to a concurrently filed verified notice 
of exemption in Iowa Pacific Holdings, LLC and Permian Basin Railways--
Continuance in Control Exemption--Piedmont Railway LLC, Docket No. FD 
35937, in which Iowa Pacific Holdings, LLC and Permian Basin Railways 
seek Board approval to continue in control of Piedmont under 49 CFR 
1180.2(d)(2), upon Piedmont's becoming a Class III rail carrier.
    According to Piedmont, it will replace the existing rail carrier, 
Piedmont and Northern Railway, LLC, a subsidiary of Patriot Rail 
Company LLC., and will be the sole provider of common carrier rail 
service on the 13-mile line pursuant to the ``change in operators'' 
provision of section 1150.31(a)(3).
    Piedmont certifies that the projected annual revenues as a result 
of this transaction will not result in Piedmont becoming a Class I or 
Class II rail carrier and will not exceed $5 million. Piedmont states 
that there are no agreements applicable to the line imposing any 
interchange commitments.
    Piedmont intends to consummate this transaction on or about August 
1, 2015. 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) may be filed at any time. The filing 
of a petition to revoke will not automatically stay the effectiveness 
of the exemption. Petitions to stay must be filed by July 24, 2015 (at 
least seven days prior to the date the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 35936, must be filed with the Surface Transportation Board 395 E 
Street SW., Washington, DC 20423-0001. In addition, a copy of each 
pleading must be served on applicant's representative, John D. Heffner, 
Strasburger & Price, LLP, 1025 Connecticut Ave. NW., Suite 717, 
Washington, DC 20036.
    Board decisions and notices are available on our Web site at 
WWW.STB.DOT.GOV.

    Decided: July 13, 2015.

    By the Board, Joseph H. Dettmar, Acting Director, Office of 
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2015-17573 Filed 7-16-15; 8:45 am]
 BILLING CODE 4915-01-P

Federal Register / Vol. 80, No. 137 / Friday, July 17, 2015 / Notices 42605

designed to automatically switch from engine is running under both stationary ignore this message, the vehicle is
Factory Mode to Transport Mode after and moving conditions. designed to be self-remedying after 60
60 key cycles (beginning with assembly With regards to the FMVSS No. 114 ignition key cycles. Considering the
line initialization). Once in Transport noncompliance Ford stated that while unique conditions involved with these
Mode the vehicles are fully compliant in Factory Mode the mechanical key noncompliances, and Ford’s statement
with FMVSS requirements. may be removed from the ignition lock about the lack of associated complaints,
2. While in Factory Mode, affected cylinder when the transmission shift accidents or injuries related to the
vehicles clearly display the message lever is in a position other than ‘‘park’’ affected vehicles, Ford’s noncompliance
‘‘Factory Mode Contact Dealer’’ in either if the engine is not running and the is considered inconsequential.
the message center or instrument CAN network has entered a hibernation NHTSA’s Decision: In consideration
cluster. Additionally, the ‘‘Factory mode after approximately 15 seconds of of the foregoing, NHTSA has decided
Mode Contact Dealer’’ message does not total vehicle electrical inactivity. When that Ford has met its burden of
obscure any regulatory malfunction a consumer turns their vehicle off they persuasion that the noncompliance
indicator lamps, or (non-mandated) are likely to remove the mechanical key described is inconsequential to motor
cautionary warnings. from the cylinder prior to the vehicle vehicle safety. Accordingly, Ford’s
3. The dealership’s Pre-Delivery reaching 15 seconds of total electrical petition is hereby granted and Ford is
Inspection instructions require inactivity. Removing the key prior to exempted from the obligation of
dealerships to change the vehicle into these 15 seconds would prevent the providing notification of, and remedy
Customer Mode, prior to delivery, vehicle from experiencing a condition for the subject noncompliances.
which ensures the condition will be noncompliant to FMVSS No. 114 as it NHTSA notes that the statutory
remedied before delivery to the would require the transmission control provisions (49 U.S.C. 30118(d) and
customer. Ford is not aware of any of to be shifted to ‘‘park’’ before key 30120(h)) that permit manufacturers to
the subject vehicles being delivered to removal. file petitions for a determination of
Ford stated that dealerships have Pre- inconsequentiality allow NHTSA to
customers in Factory Mode.
Delivery Inspection instructions which exempt manufacturers only from the
4. All other requirements of FMVSS
require them to change vehicles from duties found in sections 30118 and
No. 102 and FMVSS No. 114 are fully
Transport Mode to Customer Mode.1 30120, respectively, to notify owners,
satisfied.
During this inspection, if the dealership purchasers, and dealers of a defect or
5. Ford is not aware of any owner finds any of the subject vehicles in the
complaints, accidents, or injuries noncompliance and to remedy the
Factory Mode the mode will be changed defect or noncompliance. Therefore, this
attributed to this condition. directly to the Customer Mode. Actions
Ford has additionally informed decision only applies to the 4,727
taken by the dealership during the pre- vehicles that Ford no longer controlled
NHTSA that it has corrected the delivery inspection will ensure
noncompliance so that all future at the time it determined that the
noncompliant vehicles are remedied noncompliance existed. However, the
vehicles will comply with FMVSS Nos. prior to delivery to the customer. These
102 and 114. granting of this petition does not relieve
instructions from the manufacturer to vehicle distributors and dealers of the
In summation, Ford believes that the their dealerships will help to prevent
described noncompliance of the subject prohibitions on the sale, offer for sale,
consumers from receiving vehicles not or introduction for delivery or
vehicles is inconsequential to motor in Customer Mode.
vehicle safety, and that its petition, to introduction into interstate commerce of
Lastly, Ford states that the vehicle is
exempt from providing recall the noncompliant vehicles under their
designed to be self-remedying and will
notification of noncompliance as control after Ford notified them that the
automatically switch from Factory Mode
required by 49 U.S.C. 30118 and subject noncompliance existed.
to the fully compliant Transport Mode
remedying the recall noncompliance as after 60 key cycles. If a consumer were Authority: 49 U.S.C. 30118, 30120:
required by 49 U.S.C. 30120 should be to receive a vehicle in Factory Mode and delegations of authority at 49 CFR 1.95 and
granted. 501.8.
decided to ignore the warning message,
VI. NHTSA Decision their vehicle would automatically Jeffrey Giuseppe,
switch to a fully compliant mode after Director, Office of Vehicle Safety Compliance.
NHTSA’s Analysis of Ford’s the required number of key cycles. [FR Doc. 2015–17506 Filed 7–16–15; 8:45 am]
Arguments: Ford stated that while in We believe that drivers of the affected
Factory Mode, affected vehicles clearly BILLING CODE 4910–59–P
vehicles will be sufficiently alerted by
display the message ‘‘Factory Mode— the message on the instrument cluster
Contact Dealer’’ in a manner that does which reads ‘‘Factory Mode—Contact DEPARTMENT OF TRANSPORTATION
not obscure any regulatory malfunction Dealer’’. Furthermore, if they choose to
indicator lamps. If a consumer were to Surface Transportation Board
receive a vehicle in Factory Mode the 1 Accordingto Ford, both Transport and
aforementioned warning message will Customer Modes are fully compliant with all [Docket No. FD 35936]
alert the driver in a clear manner. The FMVSS No. 102 and FMVSS No. 114 requirements.
The only difference between the two modes is the
consumer would then most likely automatic timing set for placing the vehicle into its Piedmont Railway LLC—Lease and
contact the dealer, as instructed, who ‘‘Battery Saver’’ condition. In the Transport Mode Operation Exemption—North Carolina
would provide remedy for the the battery saver condition occurs after 1 minute of Department of Transportation
condition. If the consumer chose not to inactivity to minimize battery drain during
srobinson on DSK5SPTVN1PROD with NOTICES

contact the dealer, the FMVSS No. 102 transport from the OEM factory to the vehicle Piedmont Railway LLC (Piedmont),1 a
dealership, whereas, in the Customer Mode the noncarrier, has filed a verified notice of
noncompliance of not displaying shift battery saver condition occurs after ten minutes of
positions would only occur when the inactivity, the timing is extended for customer
conveniences while parked. Ford also explained 1 Piedmont is a new, limited liability company
engine is not running and the battery
that if the vehicle were to be inadvertently left in and an indirect corporate subsidiary of Iowa Pacific
voltage falls below 12.3 volts. The the Transport Mode upon delivery to the customer, Holdings, LLC, which owns 100% of Permian Basin
PRNDL shift level positions will be the vehicle would automatically shift to the Railways, Inc., which in turn will own 100% of
properly illuminated whenever the Customer Mode after 50–62 miles. Piedmont.

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42606 Federal Register / Vol. 80, No. 137 / Friday, July 17, 2015 / Notices

exemption under 49 CFR 1150.31(a)(3) Board decisions and notices are applicants’ corporate family; (2) the
to lease from the North Carolina available on our Web site at continuance in control is not part of a
Department of Transportation (NCDOT), WWW.STB.DOT.GOV. series of anticipated transactions that
and to operate, approximately 13 miles Decided: July 13, 2015. would connect the rail lines to be
of rail line in Gaston County, N.C., By the Board, Joseph H. Dettmar, Acting
operated by Piedmont with any other
consisting of the following two Director, Office of Proceedings. railroad in applicants’ corporate family;
segments: (1) Between milepost SFC Jeffrey Herzig,
and (3) the transaction does not involve
11.39 at Mt. Holly, N.C., and milepost a Class I rail carrier. Therefore, the
Clearance Clerk.
SFC 23.0 at Gastonia, N.C.; and (2) the transaction is exempt from the prior
[FR Doc. 2015–17573 Filed 7–16–15; 8:45 am]
Belmont Branch, between milepost SFC approval requirements of 49 U.S.C.
13.6/SFF 0.13 and milepost SFF 1.56, BILLING CODE 4915–01–P 11323. See 49 CFR 1180.2(d)(2).
including all sidings, industrial tracks, Under 49 U.S.C. 10502(g), the Board
yard, and storage tracks, pursuant to a may not use its exemption authority to
DEPARTMENT OF TRANSPORTATION
lease and operating agreement dated relieve a rail carrier of its statutory
May 13, 2015. Surface Transportation Board obligation to protect the interests of its
This transaction is related to a employees. Section 11326(c), however,
[Docket No. FD 35937] does not provide for labor protection for
concurrently filed verified notice of
exemption in Iowa Pacific Holdings, transactions under §§ 11324 and 11325
Iowa Pacific Holdings, LLC and that involve only Class III rail carriers.
LLC and Permian Basin Railways— Permian Basin Railways—Continuance
Continuance in Control Exemption— Accordingly, the Board may not impose
in Control Exemption—Piedmont labor protective conditions here,
Piedmont Railway LLC, Docket No. FD Railway LLC
35937, in which Iowa Pacific Holdings, because all of the carriers involved are
LLC and Permian Basin Railways seek Iowa Pacific Holdings, LLC (IPH), and Class III carriers.
Board approval to continue in control of its wholly owned subsidiary, Permian If the notice contains false or
Piedmont under 49 CFR 1180.2(d)(2), Basin Railways (PBR) (collectively, misleading information, the exemption
upon Piedmont’s becoming a Class III applicants) have jointly filed a verified is void ab initio. Petitions to revoke the
rail carrier. notice of exemption pursuant to 49 CFR exemption under 49 U.S.C. 10502(d)
1180.2(d)(2) to continue in control of may be filed at any time. The filing of
According to Piedmont, it will replace
Piedmont Railway LLC (Piedmont), a petition to revoke will not
the existing rail carrier, Piedmont and
upon Piedmont’s becoming a Class III automatically stay the effectiveness of
Northern Railway, LLC, a subsidiary of
rail carrier.1 the exemption. Stay petitions must be
Patriot Rail Company LLC., and will be
This transaction is related to a filed no later than July 24, 2015 (at least
the sole provider of common carrier rail
concurrently filed verified notice of seven days before the exemption
service on the 13-mile line pursuant to
exemption in Piedmont Railway LLC— becomes effective).
the ‘‘change in operators’’ provision of
Lease & Operation Exemption—North An original and 10 copies of all
section 1150.31(a)(3).
Carolina Department of Transportation, pleadings, referring to Docket No. FD
Piedmont certifies that the projected Docket No. FD 35936, wherein 35937, must be filed with the Surface
annual revenues as a result of this Piedmont seeks Board approval to lease Transportation Board, 395 E Street SW.,
transaction will not result in Piedmont and operate approximately 13 miles of Washington, DC 20423–0001. In
becoming a Class I or Class II rail carrier rail line owned by the North Carolina addition, one copy of each pleading
and will not exceed $5 million. Department of Transportation (NCDOT) must be served on John D. Heffner,
Piedmont states that there are no in Gaston County, N.C. The line consists Strasburger & Price, LLP, 1025
agreements applicable to the line of two segments: (1) between milepost Connecticut Ave. NW., Suite 717,
imposing any interchange SFC 11.39 at Mt. Holly, N.C., and Washington, DC 20036.
commitments. milepost SFC 23.0 at Gastonia, N.C.; and Board decisions and notices are
Piedmont intends to consummate this (2) the Belmont Branch, between available on our Web site at
transaction on or about August 1, 2015. milepost SFC 13.6/SFF 0.13 and ‘‘WWW.STB.DOT.GOV.’’
If the verified notice contains false or milepost SFF 1.56, including all sidings, Decided: July 13, 2015.
misleading information, the exemption industrial tracks, yard, and storage By the Board, Joseph H. Dettmar, Acting
is void ab initio. Petitions to revoke the tracks. Director, Office of Proceedings.
exemption under 49 U.S.C. 10502(d) The parties intend to consummate the Jeffrey Herzig,
may be filed at any time. The filing of proposed transaction on August 1, 2015.
Clearance Clerk.
a petition to revoke will not Applicants currently control 13 Class
III rail carriers, operating in 10 states. [FR Doc. 2015–17574 Filed 7–16–15; 8:45 am]
automatically stay the effectiveness of
the exemption. Petitions to stay must be For a complete list of these rail carriers, BILLING CODE 4915–01–P

filed by July 24, 2015 (at least seven and the states in which they operate, see
days prior to the date the exemption applicants’ notice of exemption filed on
becomes effective). July 1, 2015. The notice is available on DEPARTMENT OF THE TREASURY
An original and 10 copies of all the Board’s Web site at
‘‘WWW.STB.DOT.GOV.’’ Notice of Geographic Targeting Order
pleadings, referring to Docket No. FD
35936, must be filed with the Surface Applicants certify that: (1) The rail Financial Crimes Enforcement
srobinson on DSK5SPTVN1PROD with NOTICES

AGENCY:
Transportation Board 395 E Street SW., lines to be operated by Piedmont do not Network, Treasury.
Washington, DC 20423–0001. In connect with any other railroads
ACTION: Notice.
addition, a copy of each pleading must operated by the carriers in the
be served on applicant’s representative, 1 Piedmont is a new, limited liability company
SUMMARY: This document provides
John D. Heffner, Strasburger & Price, and an indirect corporate subsidiary of IPH, which
notice that, pursuant to 31 U.S.C.
LLP, 1025 Connecticut Ave. NW., Suite owns 100% of PBR, which in turn, will own 100% 5326(a), the Director of the Financial
717, Washington, DC 20036. of Piedmont. Crimes Enforcement Network

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Document Created: 2018-02-23 09:21:16
Document Modified: 2018-02-23 09:21:16

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 42605

80 FR 42605 - Piedmont Railway LLC-Lease and Operation Exemption-North Carolina Department of Transportation

DEPARTMENT OF TRANSPORTATIONSurface Transportation Board

Federal Register Volume 80, Issue 137 (July 17, 2015)

DEPARTMENT OF TRANSPORTATION
Surface Transportation Board