82 FR 26831 - Lone Star Coaches, Inc.-Control-Tri-City Charter of Bossier, Inc.
SURFACE TRANSPORTATION BOARD Federal Register Volume 82, Issue 110 (June 9, 2017)
Federal Register Volume 82, Issue 110 (June 9, 2017)
| Page Range | 26831-26832 | |
| FR Document | 2017-12011 |
[Federal Register Volume 82, Number 110 (Friday, June 9, 2017)] [Notices] [Pages 26831-26832] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-12011] ======================================================================= ----------------------------------------------------------------------- SURFACE TRANSPORTATION BOARD [Docket No. MCF 21076 \1\] Lone Star Coaches, Inc.--Control--Tri-City Charter of Bossier, Inc. AGENCY: Surface Transportation Board. ACTION: Notice Tentatively Approving and Authorizing Finance Transaction. ----------------------------------------------------------------------- SUMMARY: On May 12, 2017, Lone Star Coaches, Inc. (Lone Star) filed an application to acquire Tri-City Charter of Bossier, Inc. (Tri-City Charter).\2\ Lone Star and Tri-City Charter are each federally registered, passenger motor carriers that are in the process of consolidating parts of their operations while maintaining their distinct USDOT operating authorities. 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. --------------------------------------------------------------------------- \1\ Concurrent with its application, Lone Star also filed, in Docket No. MCF 21076 TA, a request under 49 U.S.C. 14303(i) to operate the assets to be acquired on an interim basis pending approval of the acquisition. The Board will address that request in a separate decision. \2\ Lone Star made a supplemental filing on May 31, 2017. DATES: Comments must be filed by July 24, 2017. Lone Star may file a reply by August 8, 2017. If no comments are filed by July 24, 2017, --------------------------------------------------------------------------- this notice shall be effective on July 25, 2017. ADDRESSES: Send an original and 10 copies of any comments referring to Docket No. MCF 21076 to: Surface Transportation Board, 395 E Street SW., Washington, DC 20423-0001. In addition, send one copy of comments to: Mark Steelman, President, Lone Star Coaches, Inc., P.O. Box 531668, Grand Prairie, TX 75053. FOR FURTHER INFORMATION CONTACT: Sarah Fancher (202) 245-0355. Federal Information Relay Service (FIRS) for the hearing impaired: 1-800-877- 8339. SUPPLEMENTARY INFORMATION: Lone Star asserts the following facts. Lone Star (MC-153014) is a corporation under Texas law that is not affiliated with any other motor carriers. The company provides charter, tour, and local intercity and intracity transportation in the Dallas, Fort Worth, Abilene, Tyler, Grand Prairie, Waco, and Austin markets. It currently operates 26 commercial motor vehicles, specifically over-the- road motorcoaches. Tri-City Charter (MC-370884) is a corporation under Louisiana law that is not affiliated with any other motor carriers. Tri-City Charter provides charter service in Louisiana, Texas, and other parts of the southeast United States with 17 motorcoaches. Lone Star states that, under the proposed transaction, it will acquire 100 percent control of Tri-City Charter. Tri-City Charter will continue to operate as a sub-division of Lone Star and maintain its interstate and intrastate operating authorities. The parties do not contemplate any significant change in Tri-City Charter's operations as a result of the transaction. 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 from the proposed transaction; and (3) the interest of carrier employees affected by the proposed transaction. Lone Star submitted information, as required by 49 CFR 1182.2, including information to demonstrate that the proposed transaction is consistent with the public interest under 49 U.S.C. 14303(b), and a statement that the aggregate gross operating revenues of Lone Star and Tri-City Charter exceeded $2 million for the preceding 12-month period as required under 49 U.S.C. 14303(g).\3\ --------------------------------------------------------------------------- \3\ Applicants with gross operating revenues exceeding $2 million are also required to meet the requirements of 49 CFR 1182.2(a)(5). --------------------------------------------------------------------------- Lone Star submits that the proposed transaction will not have an adverse impact on the adequacy of transportation services available to the [[Page 26832]] public. The transaction will enable the carriers to engage in vehicle sharing arrangements, to better utilize sales and field operations personnel, and to bring certain management functions together for more efficient management of the overall enterprise. According to Lone Star, the transaction will allow the companies to take advantage of better financial terms, which will allow them to replace aging vehicles and to purchase newer, more energy efficient vehicles on more favorable terms. The transaction will allow the carriers to maximize the use of personnel and equipment and to use debt restructuring to increase investment into their companies. Lone Star states that the carriers will be able to serve their existing geographic areas and customer bases more efficiently and effectively and that they do not anticipate any reduction in current service levels. According to Lone Star, the transaction will enable the carriers to leverage the combination of companies to grow the businesses of each individual carrier, resulting in the same or greater level of transportation to the public. Lone Star also submits that the transaction will not have a material adverse effect on competition. According to Lone Star, the companies do not plan to significantly alter their current operations but merely wish to take advantage of efficiencies gained through working under one corporate structure. Lone Star argues that the areas served by the carriers are subject to robust competition, with over 15 interstate transportation providers offering charter and tour service in the Dallas/Fort Worth area alone. Lone Star estimates that interstate and intrastate carriers in the Dallas/Fort Worth market generate over $150 million in annual revenues and operate approximately 670 vehicles (including sedans, mini buses, and motor coaches). Lone Star estimates that the combined revenues of Lone Star Coaches and Tri- City Charter will be less than 5% of the Dallas/Fort Worth market and will account for about thirty vehicles in the local market. Lone Star also notes that the areas served by the carriers are largely separate and distinct with a small amount of overlap in larger markets. Lone Star argues that the transaction will not result in any consolidation of market power in any relevant market, because the companies will maintain their separate identities and be responsible for their own operations within the larger corporate family. Lone Star submits that the efficiencies associated with merging two companies under one corporate structure will enable the carriers to continue to compete with other carriers. Lone Star asserts that the lack of barriers to entry in the charter and tour business makes the business contestable on a trip-by-trip basis and reduces the risk of a carrier abusing its market power. Regarding fixed charges, Lone Star states that the restructuring of day-to-day operations will allow Lone Star to lower operational costs and continue to provide affordable passenger-carrier transportation services. According to Lone Star, the transaction will not have an overall negative impact on employees. The transaction will enable the parties to consolidate some headquarters and administrative personnel. Lone Star states that labor force additions in higher paying sales and field operations personnel in multiple cities will offset any personnel contraction across Texas and Louisiana. Over time, the companies will be able to grow by taking advantage of economies of scale, better financial terms, and increased buying power, resulting in additions to driver and non-driver personnel. 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, if a final decision cannot 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. This action is categorically excluded from environmental review under 49 CFR 1105.6(c). Board decisions and notices are available on our Web site at WWW.STB.GOV. 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 as having been vacated. 3. Notice of this decision will be published in the Federal Register. 4. This notice will be effective July 25, 2017, unless opposing comments are filed by July 24, 2017. 5. A copy of this notice will be served on: (1) The 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: June 6, 2017. By the Board, Board Members Begeman, Elliott, and Miller. Jeffrey Herzig, Clearance Clerk. [FR Doc. 2017-12011 Filed 6-8-17; 8:45 am] BILLING CODE 4915-01-P
![Federal Register / Vol. 82, No. 110 / Friday, June 9, 2017 / Notices 26831
Percent Primary Counties: Belknap, Carroll. Docket No. MCF 21076 to: Surface
The Interest Rates are: Transportation Board, 395 E Street SW.,
For Economic Injury: Washington, DC 20423–0001. In
Businesses & Small Agricultural Percent addition, send one copy of comments to:
Cooperatives without Credit Mark Steelman, President, Lone Star
Available Elsewhere .............. 3.215 For Physical Damage: Coaches, Inc., P.O. Box 531668, Grand
Non-Profit Organizations with- Non-Profit Organizations with
out Credit Available Else-
Prairie, TX 75053.
Credit Available Elsewhere ... 2.500
where ..................................... 2.500 FOR FURTHER INFORMATION CONTACT:
Non-Profit Organizations with-
out Credit Available Else- Sarah Fancher (202) 245–0355. Federal
The number assigned to this disaster where ..................................... 2.500 Information Relay Service (FIRS) for the
for physical damage is 151516 and for For Economic Injury: hearing impaired: 1–800–877–8339.
economic injury is 151520. Non-Profit Organizations with- SUPPLEMENTARY INFORMATION: Lone Star
out Credit Available Else- asserts the following facts. Lone Star
(Catalog of Federal Domestic Assistance
where ..................................... 2.500 (MC–153014) is a corporation under
Number 59008)
Texas law that is not affiliated with any
James E. Rivera, The number assigned to this disaster other motor carriers. The company
Associate Administrator for Disaster for physical damage is 15149B and for provides charter, tour, and local
Assistance. economic injury is 15150B intercity and intracity transportation in
[FR Doc. 2017–11973 Filed 6–8–17; 8:45 am] (Catalog of Federal Domestic Assistance the Dallas, Fort Worth, Abilene, Tyler,
BILLING CODE 8025–01–P Number 59008) Grand Prairie, Waco, and Austin
James E. Rivera, markets. It currently operates 26
Associate Administrator for Disaster commercial motor vehicles, specifically
SMALL BUSINESS ADMINISTRATION over-the-road motorcoaches. Tri-City
Assistance.
[Disaster Declaration #15149 and #15150; [FR Doc. 2017–11972 Filed 6–8–17; 8:45 am]
Charter (MC–370884) is a corporation
New Hampshire Disaster #NH–00037] under Louisiana law that is not
BILLING CODE 8025–01–P
affiliated with any other motor carriers.
Presidential Declaration of a Major Tri-City Charter provides charter service
Disaster for Public Assistance Only for in Louisiana, Texas, and other parts of
the State of New Hampshire SURFACE TRANSPORTATION BOARD the southeast United States with 17
AGENCY: U.S. Small Business [Docket No. MCF 21076 1] motorcoaches.
Administration. Lone Star states that, under the
Lone Star Coaches, Inc.—Control—Tri- proposed transaction, it will acquire 100
ACTION: Notice City Charter of Bossier, Inc. percent control of Tri-City Charter. Tri-
SUMMARY: This is a Notice of the City Charter will continue to operate as
AGENCY: Surface Transportation Board.
Presidential declaration of a major a sub-division of Lone Star and
ACTION: Notice Tentatively Approving maintain its interstate and intrastate
disaster for Public Assistance Only for and Authorizing Finance Transaction.
the State of New Hampshire (FEMA– operating authorities. The parties do not
4316–DR), dated 06/01/2017. SUMMARY: On May 12, 2017, Lone Star contemplate any significant change in
Incident: Severe Winter Storm. Coaches, Inc. (Lone Star) filed an Tri-City Charter’s operations as a result
Incident Period: 03/14/2017 through application to acquire Tri-City Charter of the transaction.
03/15/2017. Under 49 U.S.C. 14303(b), the Board
of Bossier, Inc. (Tri-City Charter). Lone 2
DATES: Effective 06/01/2017. must approve and authorize a
Star and Tri-City Charter are each
Physical Loan Application Deadline transaction that it finds consistent with
federally registered, passenger motor
Date: 07/31/2017. the public interest, taking into
carriers that are in the process of
Economic Injury (EIDL) Loan consideration at least: (1) The effect of
consolidating parts of their operations
Application Deadline Date: 03/01/2018. while maintaining their distinct USDOT the proposed transaction on the
ADDRESS: Submit completed loan adequacy of transportation to the public;
operating authorities. The Board is
applications to: U.S. Small Business (2) the total fixed charges that result
tentatively approving and authorizing
Administration, Processing and from the proposed transaction; and (3)
the transaction, and, if no opposing
Disbursement Center, 14925 Kingsport the interest of carrier employees affected
comments are timely filed, this notice
Road, Fort Worth, TX 76155. by the proposed transaction. Lone Star
will be the final Board action. Persons
FOR FURTHER INFORMATION CONTACT: A.
submitted information, as required by
wishing to oppose the application must
Escobar, Office of Disaster Assistance, 49 CFR 1182.2, including information to
follow the rules.
U.S. Small Business Administration, demonstrate that the proposed
DATES: Comments must be filed by July
409 3rd Street SW., Suite 6050, transaction is consistent with the public
24, 2017. Lone Star may file a reply by
Washington, DC 20416, (202) 205–6734. August 8, 2017. If no comments are filed interest under 49 U.S.C. 14303(b), and a
statement that the aggregate gross
SUPPLEMENTARY INFORMATION: Notice is by July 24, 2017, this notice shall be operating revenues of Lone Star and Tri-
hereby given that as a result of the effective on July 25, 2017. City Charter exceeded $2 million for the
President’s major disaster declaration on ADDRESSES: Send an original and 10
preceding 12-month period as required
06/01/2017, Private Non-Profit copies of any comments referring to under 49 U.S.C. 14303(g).3
organizations that provide essential
mstockstill on DSK30JT082PROD with NOTICES
Lone Star submits that the proposed
services of governmental nature may file 1 Concurrent with its application, Lone Star also
transaction will not have an adverse
disaster loan applications at the address filed, in Docket No. MCF 21076 TA, a request under impact on the adequacy of
listed above or other locally announced 49 U.S.C. 14303(i) to operate the assets to be
transportation services available to the
locations. acquired on an interim basis pending approval of
the acquisition. The Board will address that request
The following areas have been in a separate decision. 3 Applicants with gross operating revenues
determined to be adversely affected by 2 Lone Star made a supplemental filing on May exceeding $2 million are also required to meet the
the disaster: 31, 2017. requirements of 49 CFR 1182.2(a)(5).
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![26832 Federal Register / Vol. 82, No. 110 / Friday, June 9, 2017 / Notices
public. The transaction will enable the continue to compete with other carriers. Avenue NW., Washington, DC 20530;
carriers to engage in vehicle sharing Lone Star asserts that the lack of barriers and (3) the U.S. Department of
arrangements, to better utilize sales and to entry in the charter and tour business Transportation, Office of the General
field operations personnel, and to bring makes the business contestable on a Counsel, 1200 New Jersey Avenue SE.,
certain management functions together trip-by-trip basis and reduces the risk of Washington, DC 20590.
for more efficient management of the a carrier abusing its market power. Decided: June 6, 2017.
overall enterprise. According to Lone Regarding fixed charges, Lone Star By the Board, Board Members Begeman,
Star, the transaction will allow the states that the restructuring of day-to- Elliott, and Miller.
companies to take advantage of better day operations will allow Lone Star to Jeffrey Herzig,
financial terms, which will allow them lower operational costs and continue to Clearance Clerk.
to replace aging vehicles and to provide affordable passenger-carrier
[FR Doc. 2017–12011 Filed 6–8–17; 8:45 am]
purchase newer, more energy efficient transportation services.
According to Lone Star, the BILLING CODE 4915–01–P
vehicles on more favorable terms. The
transaction will allow the carriers to transaction will not have an overall
maximize the use of personnel and negative impact on employees. The
equipment and to use debt restructuring transaction will enable the parties to DEPARTMENT OF TRANSPORTATION
to increase investment into their consolidate some headquarters and
administrative personnel. Lone Star Federal Motor Carrier Safety
companies. Lone Star states that the Administration
carriers will be able to serve their states that labor force additions in
existing geographic areas and customer higher paying sales and field operations [Docket No. FMCSA–2017–0054]
bases more efficiently and effectively personnel in multiple cities will offset
and that they do not anticipate any any personnel contraction across Texas Parts and Accessories Necessary for
reduction in current service levels. and Louisiana. Over time, the Safe Operation; Application for an
According to Lone Star, the transaction companies will be able to grow by Exemption From United Parcel Service
will enable the carriers to leverage the taking advantage of economies of scale, Inc.
combination of companies to grow the better financial terms, and increased AGENCY: Federal Motor Carrier Safety
businesses of each individual carrier, buying power, resulting in additions to Administration (FMCSA), DOT.
resulting in the same or greater level of driver and non-driver personnel. ACTION: Notice of application for
transportation to the public. On the basis of the application, the
exemption; request for comments.
Lone Star also submits that the Board finds that the proposed
transaction will not have a material acquisition is consistent with the public SUMMARY: The Federal Motor Carrier
adverse effect on competition. interest and should be tentatively Safety Administration (FMCSA)
According to Lone Star, the companies approved and authorized. If any requests public comment on an
do not plan to significantly alter their opposing comments are timely filed, application from United Parcel Service,
current operations but merely wish to these findings will be deemed vacated, Inc. (UPS) for exemption from various
take advantage of efficiencies gained and, if a final decision cannot be made provisions of the mandate to use
through working under one corporate on the record as developed, a electronic logging devices (ELDs).
structure. Lone Star argues that the areas procedural schedule will be adopted to Specifically, UPS is requesting an
served by the carriers are subject to reconsider the application. See 49 CFR exemption (1) to allow an alternative
robust competition, with over 15 1182.6(c). If no opposing comments are ELD phase-in method for fleets using
interstate transportation providers filed by the expiration of the comment compliant automatic on-board recording
offering charter and tour service in the period, this notice will take effect devices (AOBRDs); (2) from the
Dallas/Fort Worth area alone. Lone Star automatically and will be the final requirement that an ELD automatically
estimates that interstate and intrastate Board action. record certain data elements upon a
This action is categorically excluded duty status change when a driver is not
carriers in the Dallas/Fort Worth market
from environmental review under 49 in the vehicle; (3) to allow ELDs to be
generate over $150 million in annual
CFR 1105.6(c). configured with a special driving mode
revenues and operate approximately 670 Board decisions and notices are
vehicles (including sedans, mini buses, for yard moves that does not require the
available on our Web site at driver to re-input yard move status
and motor coaches). Lone Star estimates WWW.STB.GOV.
that the combined revenues of Lone Star every time the tractor is powered off;
It is ordered: and (4) to allow vehicle movements of
Coaches and Tri-City Charter will be 1. The proposed transaction is
less than 5% of the Dallas/Fort Worth less than one mile on UPS property by
approved and authorized, subject to the non-CDL UPS drivers to be annotated as
market and will account for about thirty filing of opposing comments.
vehicles in the local market. Lone Star ‘‘on property—other.’’ UPS believes that
2. If opposing comments are timely the requested temporary exemptions
also notes that the areas served by the filed, the findings made in this notice
carriers are largely separate and distinct will maintain a level of safety that is
will be deemed as having been vacated. equivalent to, or greater than, the level
with a small amount of overlap in larger 3. Notice of this decision will be
markets. Lone Star argues that the of safety achieved without the
published in the Federal Register.
transaction will not result in any 4. This notice will be effective July 25, exemption.
consolidation of market power in any 2017, unless opposing comments are DATES: Comments must be received on
relevant market, because the companies filed by July 24, 2017. or before July 10, 2017.
mstockstill on DSK30JT082PROD with NOTICES
will maintain their separate identities 5. A copy of this notice will be served ADDRESSES: You may submit comments
and be responsible for their own on: (1) The U.S. Department of bearing the Federal Docket Management
operations within the larger corporate Transportation, Federal Motor Carrier System (FDMS) Docket ID FMCSA–
family. Lone Star submits that the Safety Administration, 1200 New Jersey 2017–0054 using any of the following
efficiencies associated with merging two Avenue SE., Washington, DC 20590; (2) methods:
companies under one corporate the U.S. Department of Justice, Antitrust • Web site: http://
structure will enable the carriers to Division, 10th Street & Pennsylvania www.regulations.gov. Follow the
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Document Created: 2017-06-09 01:11:55
Document Modified: 2017-06-09 01:11:55
| 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 | |
| Action | Notice Tentatively Approving and Authorizing Finance Transaction. | |
| Dates | Comments must be filed by July 24, 2017. Lone Star may file a reply by August 8, 2017. If no comments are filed by July 24, 2017, | |
| Contact | Sarah Fancher (202) 245-0355. Federal Information Relay Service (FIRS) for the hearing impaired: 1-800-877- 8339. | |
| FR Citation | 82 FR 26831 |
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