81 FR 31292 - South Carolina Division of Public Railways d/b/a Palmetto Railways-Acquisition Exemption-Hampton & Branchville Railroad Company

SURFACE TRANSPORTATION BOARD

Federal Register Volume 81, Issue 96 (May 18, 2016)

[Federal Register Volume 81, Number 96 (Wednesday, May 18, 2016)]
[Notices]
[Page 31292]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-11721]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 35995]


South Carolina Division of Public Railways d/b/a Palmetto 
Railways--Acquisition Exemption--Hampton & Branchville Railroad Company

    South Carolina Division of Public Railways d/b/a Palmetto Railways 
(Palmetto), a Class III rail carrier, has filed a verified notice of 
exemption under 49 CFR 1150.41 to acquire three connecting line 
segments that constitute the entire rail line of Hampton & Branchville 
Railroad Company (H&B), a total distance of approximately 45.77 miles 
in Colleton and Hampton Counties, S.C. (H&B Line): (1) From a 
connection with CSX Transportation, Inc., at milepost 0.0 in Hampton to 
milepost 16.8 at H&B Junction, a distance of 16.8 miles; (2) from the 
end of track at milepost 462.37 in Lodge through H&B Junction and 
Stokes to the end of track at milepost 443.18 in Walterboro, a distance 
of 19.19 miles; and (3) from approximately milepost 447 at Stokes to 
the end of track at milepost 456.78 in Canadys, a distance of 9.78 
miles.\1\
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    \1\ Palmetto states that no rail service has been provided on 
the H&B Line since H&B's final customer ceased rail shipments in 
December 2012. Palmetto also states that the stub track between H&B 
Junction and Lodge has not been in service since 1986, and the stub 
track between Stokes and Walterboro has not been in service since 
1989. According to Palmetto, certain trackage on both stubs has been 
removed, but neither segment has been abandoned.
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    Palmetto has certified that the transaction does not involve any 
provision or agreement that would limit future interchange with a 
third-party connecting carrier.
    Palmetto states that its projected annual revenues as a result of 
this transaction will not result in Palmetto's becoming a Class II or 
Class I rail carrier, but that its projected annual revenues will 
exceed $5 million. Accordingly, Palmetto is required, at least 60 days 
before this exemption is to become effective, to send notice of the 
transaction to the national offices of the labor unions with employees 
on the affected line, post a copy of the notice at the workplace of the 
employees on the affected line, and certify to the Board that it has 
done so. 49 CFR 1150.42(e). Palmetto's verified notice, however, 
includes a request to waive that requirement. Palmetto states that H&B 
has not conducted any rail operations in more than three years and does 
not have any employees, other than its president. Palmetto asserts that 
providing the 60-day notice would serve no useful purpose because it is 
merely acquiring the Line to prevent abandonment. Palmetto's waiver 
request will be addressed in a separate decision.
    Palmetto states that it expects to consummate the transaction on or 
after August 5, 2016.\2\ The Board will establish in the decision on 
the waiver request the earliest date this transaction may be 
consummated.
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    \2\ Palmetto states that H&B and Palmetto have agreed upon the 
terms of an Asset Purchase and Sale Agreement providing for 
Palmetto's acquisition of all of H&B's right, title, and interest in 
the H&B Line. According to Palmetto, the Agreement will be fully 
executed after Palmetto receives the necessary state agency 
approvals. Palmetto states that it will concurrently execute a Loan 
and Security Agreement with Colleton County Intermodal Corporation 
(CCIC) and Colleton County providing for CCIC's financing of the 
acquisition transaction through the issuance of economic development 
revenue bonds.
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    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 no later than May 25, 2016.
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 35995, 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 Thomas J. Litwiler, Fletcher & Sippel LLC, 
29 North Wacker Drive, Suite 920, Chicago, IL 60606.
    Board decisions and notices are available on our Web site at 
``WWW.STB.DOT.GOV''.

    Decided: May 13, 2016.

    By the Board, Rachel D. Campbell, Director, Office of 
Proceedings.
Tammy Lowery,
Clearance Clerk.
[FR Doc. 2016-11721 Filed 5-17-16; 8:45 am]
 BILLING CODE 4915-01-P