82 FR 9107 - David L. Durbano, Wyoming and Colorado Railroad Company, Inc., and Saratoga Railroad, LLC-Corporate Family Transaction

SURFACE TRANSPORTATION BOARD

Federal Register Volume 82, Issue 21 (February 2, 2017)

Page Range		9107-9108
FR Document		2017-02220
Federal Register, Volume 82 Issue 21 (Thursday, February 2, 2017)
[Federal Register Volume 82, Number 21 (Thursday, February 2, 2017)]
[Notices]
[Pages 9107-9108]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-02220]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36091]


David L. Durbano, Wyoming and Colorado Railroad Company, Inc., 
and Saratoga Railroad, LLC--Corporate Family Transaction

    David L. Durbano (Durbano), an individual, Saratoga Railroad, LLC 
(Saratoga), a noncarrier corporation wholly owned by Durbano, and 
Wyoming and Colorado Railroad Company, Inc. (WYCO), a Class III rail 
carrier controlled by Durbano,\1\ (collectively, the Parties) have 
filed a verified notice of exemption under 49 CFR 1180.2(d)(3) for a 
corporate family transaction in which: (1) Saratoga will acquire from 
WYCO and operate an approximately 23.71-mile rail line between milepost 
0.57 at Walcott and milepost 24.28 at Saratoga in Carbon County, Wyo. 
(the EB Line); and (2) Durbano will continue in control of Saratoga 
when it becomes a Class III rail carrier, upon Saratoga's acquisition 
of the EB line, while remaining in control of WYCO and Durbano's three 
other Class III rail carriers: Southwestern Railroad, Inc. (SWRR), 
Cimarron Valley

[[Page 9108]]

Railroad, L.C. (CVR), and Clarkdale Arizona Central Railroad, L.C. 
(CACR).
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    \1\ Durbano has controlled WYCO since WYCO acquired a 131.52-
mile line from Union Pacific Railroad Company (UP) in 1987. See Wyo. 
& Colo. R.R.--Acquis. & Operation Exemption--Certain Lines of Union 
Pac. R.R., FD 31140 (ICC served Nov. 30, 1987) (1987 Acquisition). 
The line being acquired by Saratoga was part of the l987 Acquisition 
and is known as Encampment Branch or the EB Line. The remainder of 
the former UP line acquired in the 1987 Acquisition has either been 
abandoned or sold through a series of proceedings. See Wyo. & Colo. 
R.R.--Aban. Exemption--in Jackson Cty., Colo., AB 307 (Sub-No. 1X) 
(ICC served June 25, 1990); Wyo. & Colo. R.R.--Aban. Exemption--in 
Jackson Cty., Colo., AB 307 (Sub-No. 2X) (ICC served May 19, 1995 
and Sept. 15, 1995); Wyo. & Colo. R.R.--Aban. Exemption--in Albany 
Cty., Wyo., AB 307 (Sub-No. 3X) (STB served Sept. 16, 1996, as 
modified by subsequent decisions served on May 16, 2003, and 
December 31, 2003;) Wyo. & Colo. R.R.--Aban. Exemption--in Albany 
Cty., Wyo., AB 307 (Sub-No. 4X) (STB served Oct. 10, 2003, as 
modified by subsequent decisions served on Nov. 10, 2003, and Feb. 
27, 2009).
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    According to the Parties, Durbano, individually and through his 
control and ownership of Western Group and Snowy Range Cattle Company, 
both noncarrier holding companies, currently owns and controls WYCO, 
SWRR, CVR and CACR.\2\ WYCO operates in Oregon doing business as the 
Oregon Eastern Railroad. WYCO owns but does not operate the EB Line in 
Wyoming.\3\ SWRR operates in New Mexico; CVR operates in Kansas, 
Oklahoma, and Colorado; and CACR operates in Arizona. The Parties state 
that, because Durbano owns and controls all four rail carriers, Durbano 
has not entered into any agreements or written instruments to undertake 
the proposed transaction.
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    \2\ Mr. Durbano also owns, and Western Group manages, Verde 
Canyon Railroad, LLC, an intrastate passenger excursion railroad not 
subject to the Board's jurisdiction.
    \3\ The EB Line was authorized for abandonment in 2006 and the 
Parties state that the tracks, ties, and other track materials were 
salvaged. See Wyo. & Colo. R.R.--Aban. Exemption--in Carbon Cty., 
Wyo., AB 307 (Sub-No. 6X) (STB served May 31, 2006). The Parties 
state that, for a number of reasons, WYCO never consummated the 
abandonment of the EB Line and never filed a notice of consummation. 
As a result, WYCO's abandonment authority expired and the corridor 
remains a line of railroad subject to the Board's jurisdiction.
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    The Parties state that the purpose of this transaction is to 
undertake a corporate reorganization for the eventual purpose of 
selling certain assets or stock of various Durbano-controlled railroad 
companies, except for Saratoga.\4\ Saratoga certifies that its annual 
revenues as a result of this transaction will not exceed those that 
would qualify it as a Class III rail carrier and will not exceed $5 
million.
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    \4\ See W. Branch & Cont'l Rail--Acquis. of Control Exemption--
Cimarron Valley R.R., Docket No. FD 36084; N.M. Cent. R.R.--Acquis. 
& Operation Exemption--Sw. R.R., Whitewater Div., Docket No. FD 
36085; and W. Branch Intermediate Holdings & Cont'l Rail--
Continuance in Control Exemption--N.M. Cent. R.R., Docket No. FD 
36087.
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    Unless stayed, the exemption will be effective on February 16, 2017 
(30 days after the verified notice was filed).
    This is a transaction within a corporate family of the type 
specifically exempted from prior review and approval under 49 CFR 
1180.2(d)(3). The Parties state that the transaction will not result in 
adverse changes in service levels, significant operational changes, or 
a change in the competitive balance with carriers outside the corporate 
family.
    Under 49 U.S.C. 10502(g), the Board may not use its exemption 
authority to relieve a rail carrier of its statutory obligation to 
protect the interests of its employees. Section 11326(c), however, does 
not provide for labor protection for transactions under 11324 and 11325 
that involve only Class III rail carriers. Accordingly, the Board may 
not impose labor protective conditions here, because all of the 
carriers involved are Class III rail carriers.
    If the 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 for stay must be filed no later than February 9, 2017 (at 
least seven days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 36091, must be filed with the Surface Transportation Board, 395 E 
Street SW., Washington, DC 20423-0001. In addition, one copy of each 
pleading must be served on William A. Mullins, Baker & Miller PLLC, 
2401 Pennsylvania Ave. NW., Suite 300, Washington, DC 20037.
    According to the Parties, 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.''

    Decided: January 30, 2017.

    By the Board, Rachel D. Campbell, Director, Office of 
Proceedings.
Raina S. Contee,
Clearance Clerk.
[FR Doc. 2017-02220 Filed 2-1-17; 8:45 am]
 BILLING CODE 4915-01-P
Federal Register / Vol. 82, No. 21 / Thursday, February 2, 2017 / Notices 9107

The applicants certify that: (1) The SURFACE TRANSPORTATION BOARD January 31, 2018. The employee
carriers that are the subject of this notice protective conditions imposed in the
[Docket No. FD 36067]
do not connect with each other; (2) that October 14, 2016 notice remain in effect.
this transaction is not part of a series of New Orleans Public Belt Railroad— Board decisions and notices are
anticipated transactions that would Temporary Trackage Rights available on our Web site at
connect these rail carriers with each Exemption—Illinois Central Railroad ‘‘WWW.STB.GOV.’’
other; and (3) the transaction does not Company Decided: January 27, 2017.
involve a Class I carrier. The proposed
transaction is therefore exempt from the On January 12, 2017, New Orleans By the Board, Rachel D. Campbell,
Public Belt Railroad (NOPB), a Class III Director, Office of Proceedings.
prior approval requirements of 49 U.S.C.
11323 pursuant to 49 CFR 1180.2(d)(2). rail carrier, filed a request under 49 CFR Marline Simeon,
1180.2(d)(8) for a one-year extension of Clearance Clerk.
The earliest the transaction could be
temporary overhead trackage rights over [FR Doc. 2017–02217 Filed 2–1–17; 8:45 am]
consummated is February 16, 2017, the a line of railroad of the Illinois Central BILLING CODE 4915–01–P
effective date of the exemption (30 days Railroad Company (IC), over two
after the verified notice of exemption segments of IC’s rail lines as follows: (1)
was filed). The parties expect to IC’s McComb Subdivision, between IC’s SURFACE TRANSPORTATION BOARD
consummate the transaction on or about connection with the Kansas City
February 17, 2017. Southern Railway Company (KCS) at or [Docket No. FD 36091]
Under 49 U.S.C. 10502(g), the Board near IC milepost 906.4 at East Bridge
may not use its exemption authority to Junction in Shrewsbury, La., and IC David L. Durbano, Wyoming and
relieve a rail carrier of its statutory milepost 900.8 at Orleans Junction in Colorado Railroad Company, Inc., and
obligation to protect the interests of its New Orleans, La. (approximately 5.6 Saratoga Railroad, LLC—Corporate
employees. Section 11326(c), however, miles); and (2) IC’s Baton Rough Family Transaction
does not provide for labor protection for Subdivision, between IC milepost 444.2
transactions under 11324 and 11325 at Orleans Junction and IC milepost David L. Durbano (Durbano), an
that involve only Class III rail carriers. 443.5 at Frellsen Junction in New individual, Saratoga Railroad, LLC
Accordingly, the Board may not impose Orleans, La. (approximately 0.7 miles), (Saratoga), a noncarrier corporation
labor protective conditions here, for a total distance of approximately 6.3 wholly owned by Durbano, and
because all of the carriers involved are miles (the Line). Wyoming and Colorado Railroad
Class III carriers. NOPB was authorized to acquire the Company, Inc. (WYCO), a Class III rail
If the verified notice contains false or temporary overhead trackage rights over carrier controlled by Durbano,1
the Line by notice of exemption served (collectively, the Parties) have filed a
misleading information, the exemption
and published in the Federal Register verified notice of exemption under 49
is void ab initio. Petitions to revoke the
on October 14, 2016 (81 FR 71,161). CFR 1180.2(d)(3) for a corporate family
exemption under 49 U.S.C. 10502(d)
According to NOPB, the temporary transaction in which: (1) Saratoga will
may be filed at any time. The filing of
trackage rights permit it to interchange acquire from WYCO and operate an
a petition to revoke will not
traffic with the Kansas City Southern approximately 23.71-mile rail line
automatically stay the effectiveness of
Railway Company (KCS) on KCS between milepost 0.57 at Walcott and
the exemption. Petitions to stay must be
trackage in New Orleans on a trial basis. milepost 24.28 at Saratoga in Carbon
filed by February 9, 2017 (at least seven Under 49 CFR 1180.2(d)(8), the
days before the exemption becomes County, Wyo. (the EB Line); and (2)
parties may, prior to the expiration of Durbano will continue in control of
effective). the temporary trackage rights, file a Saratoga when it becomes a Class III rail
An original and ten copies of all request for a renewal of the temporary carrier, upon Saratoga’s acquisition of
pleadings, referring to Docket No. FD rights for an additional period of up to the EB line, while remaining in control
36087, must be filed with the Surface one year, including the reasons for the of WYCO and Durbano’s three other
Transportation Board, 395 E Street SW., extension. NOPB states that the Class III rail carriers: Southwestern
Washington, DC 20423–0001. In temporary trackage rights are scheduled Railroad, Inc. (SWRR), Cimarron Valley
addition, a copy of each pleading must to expire on January 31, 2017. NOPB
be served on: John D. Heffner, further states that the initial operations 1 Durbano has controlled WYCO since WYCO
Strasburger & Price, LLP, 1025 have been successful, and NOPB and IC acquired a 131.52-mile line from Union Pacific
Connecticut Ave. NW., Suite 717, have agreed to extend the rights for an Railroad Company (UP) in 1987. See Wyo. & Colo.
Washington, DC 20036. additional year, to January 31, 2018, to R.R.—Acquis. & Operation Exemption—Certain
Lines of Union Pac. R.R., FD 31140 (ICC served
Board decisions and notices are confirm the longer-term feasibility of Nov. 30, 1987) (1987 Acquisition). The line being
available on our Web site at operations. acquired by Saratoga was part of the l987
WWW.STB.GOV. NOPB filed a copy of the amendment Acquisition and is known as Encampment Branch
to the temporary trackage rights or the EB Line. The remainder of the former UP line
Decided: January 30, 2017. agreement with its request for the one- acquired in the 1987 Acquisition has either been
By the Board, Rachel D. Campbell, abandoned or sold through a series of proceedings.
year extension. NOPB also See Wyo. & Colo. R.R.—Aban. Exemption—in
Director, Office of Proceedings. acknowledges that any further extension Jackson Cty., Colo., AB 307 (Sub-No. 1X) (ICC
Marline Simeon, of these rights, or a conversion of the served June 25, 1990); Wyo. & Colo. R.R.—Aban.
rights from temporary to permanent, Exemption—in Jackson Cty., Colo., AB 307 (Sub-No.
mstockstill on DSK3G9T082PROD with NOTICES

Clearance Clerk. 2X) (ICC served May 19, 1995 and Sept. 15, 1995);
[FR Doc. 2017–02227 Filed 2–1–17; 8:45 am] would require a separate notice of Wyo. & Colo. R.R.—Aban. Exemption—in Albany
BILLING CODE 4915–01–P
exemption filing pursuant to 49 CFR Cty., Wyo., AB 307 (Sub-No. 3X) (STB served Sept.
1180.4(g). 16, 1996, as modified by subsequent decisions
In accordance with 49 CFR served on May 16, 2003, and December 31, 2003;)
of, and for Continental to manage, the following Wyo. & Colo. R.R.—Aban. Exemption—in Albany
Class III rail carriers: Cimarron Valley Railroad,
1180.2(d)(8), NOPB’s temporary Cty., Wyo., AB 307 (Sub-No. 4X) (STB served Oct.
L.C., Clarksdale Arizona Central Railroad, L.C., and trackage rights over the Line will be 10, 2003, as modified by subsequent decisions
Wyoming and Colorado Railroad Company, Inc. extended for one year and will expire on served on Nov. 10, 2003, and Feb. 27, 2009).

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9108 Federal Register / Vol. 82, No. 21 / Thursday, February 2, 2017 / Notices

Railroad, L.C. (CVR), and Clarkdale does not provide for labor protection for Southwestern’s leasehold interest in a
Arizona Central Railroad, L.C. (CACR). transactions under 11324 and 11325 line between Deming (MP 1134) and
According to the Parties, Durbano, that involve only Class III rail carriers. Rincon (MP 1080) and ownership
individually and through his control Accordingly, the Board may not impose interest in lines: Between Deming (MP
and ownership of Western Group and labor protective conditions here, 0.0) and Peruhill (MP 5+3,763 feet);
Snowy Range Cattle Company, both because all of the carriers involved are between Peruhill (MP 5+3,763 feet) and
noncarrier holding companies, currently Class III rail carriers. Whitewater (MP 30+2,972 feet); between
owns and controls WYCO, SWRR, CVR If the notice contains false or Whitewater (near MP 30+2,972 feet) and
and CACR.2 WYCO operates in Oregon misleading information, the exemption the Tyrone Industrial Spur at Burro
doing business as the Oregon Eastern is void ab initio. Petitions to revoke the Mountain Jct. (near MP 33+5,256 feet);
Railroad. WYCO owns but does not exemption under 49 U.S.C. 10502(d) between Whitewater (MP 0+0750 feet)
operate the EB Line in Wyoming.3 may be filed at any time. The filing of and Santa Rita (MP 16+1,500 feet); and
SWRR operates in New Mexico; CVR a petition to revoke will not between Hannover, Jct. (MP 14+1,345.4
operates in Kansas, Oklahoma, and automatically stay the effectiveness of feet) and the connection line at the
Colorado; and CACR operates in the exemption. Petitions for stay must Fierro Industrial Spur at the Sharon
Arizona. The Parties state that, because be filed no later than February 9, 2017 Steel Plant (near MP 6+1,804 feet). The
Durbano owns and controls all four rail (at least seven days before the total Southwestern mileage NMCR will
carriers, Durbano has not entered into exemption becomes effective). acquire (by purchase or lease) and
any agreements or written instruments An original and 10 copies of all operate is approximately 116 miles.2
to undertake the proposed transaction. pleadings, referring to Docket No. FD On the same day NMCR filed its
The Parties state that the purpose of 36091, must be filed with the Surface verified notice of exemption, West
this transaction is to undertake a Transportation Board, 395 E Street SW., Branch and Continental also filed a
corporate reorganization for the Washington, DC 20423–0001. In verified notice of exemption in West
eventual purpose of selling certain addition, one copy of each pleading Branch Intermediate Holdings &
assets or stock of various Durbano- must be served on William A. Mullins, Continental Rail—Continuance in
controlled railroad companies, except Baker & Miller PLLC, 2401 Pennsylvania Control Exemption—New Mexico
for Saratoga.4 Saratoga certifies that its Ave. NW., Suite 300, Washington, DC Central Railroad, Docket No. FD 36087,
annual revenues as a result of this 20037. for West Branch to acquire and for
transaction will not exceed those that According to the Parties, this action is Continental to manage NMCR upon
would qualify it as a Class III rail carrier categorically excluded from NMCR’s becoming a Class III carrier.3
and will not exceed $5 million. environmental review under 49 CFR NMCR has executed a letter of intent
Unless stayed, the exemption will be 1105.6(c). for it to purchase the Lines. NMCR and
effective on February 16, 2017 (30 days Board decisions and notices are Southwestern are currently negotiating a
after the verified notice was filed). available on our Web site at purchase and sale agreement governing
This is a transaction within a ‘‘WWW.STB.GOV.’’ the purchase of the Lines as well as
corporate family of the type specifically certain other assets. The parties expect
exempted from prior review and Decided: January 30, 2017. to reach an agreement shortly, which
approval under 49 CFR 1180.2(d)(3). By the Board, Rachel D. Campbell, NMCR states will not contain an
The Parties state that the transaction Director, Office of Proceedings. interchange agreement.
will not result in adverse changes in Raina S. Contee, NMCR certifies that its projected
service levels, significant operational Clearance Clerk. annual revenues resulting from the
changes, or a change in the competitive [FR Doc. 2017–02220 Filed 2–1–17; 8:45 am] transaction will not result in its
balance with carriers outside the BILLING CODE 4915–01–P becoming a Class I or Class II rail
corporate family. carrier. NMCR notes, however, that its
Under 49 U.S.C. 10502(g), the Board annual operating revenues will exceed
may not use its exemption authority to SURFACE TRANSPORTATION BOARD $5 million. Accordingly, in compliance
relieve a rail carrier of its statutory with 49 CFR 1150.32(e), NMCR
[Docket No. FD 36085]
obligation to protect the interests of its submitted a letter on December 16,
employees. Section 11326(c), however, New Mexico Central Railroad, LLC— 2016, certifying that it posted the
Acquisition and Operation required 60-day labor notice of this
2 Mr. Durbano also owns, and Western Group
Exemption—Southwestern Railroad, transaction at the Southwestern
manages, Verde Canyon Railroad, LLC, an intrastate
Inc., Whitewater Division employees’ workplace at Deming.
passenger excursion railroad not subject to the NMCR states that the notice was not
Board’s jurisdiction.
3 The EB Line was authorized for abandonment in
New Mexico Central Railroad, LLC served on the national offices of labor
2006 and the Parties state that the tracks, ties, and (NMCR),1 a noncarrier, has filed a unions with employees who work on
other track materials were salvaged. See Wyo. & verified notice of exemption under 49
Colo. R.R.—Aban. Exemption—in Carbon Cty., CFR 1150.31 to acquire and operate 2 Southwestern also leases and operates a BNSF
Wyo., AB 307 (Sub-No. 6X) (STB served May 31, Railway Company (BNSF) line known as the
2006). The Parties state that, for a number of
certain lines of railroad in New Mexico
Carlsbad Division, which consists of approximately
reasons, WYCO never consummated the (the Lines) collectively referred to as the 227.6 miles of railroad linking Clovis, Carlsbad, and
abandonment of the EB Line and never filed a Whitewater Division, currently operated Loving, N.M. Southwestern recently petitioned for
notice of consummation. As a result, WYCO’s and owned or leased by Southwestern an exemption to discontinue service over the
abandonment authority expired and the corridor Carlsbad Division. See Sw. R.R.—Discontinuance of
Railroad, Inc. (Southwestern). In
mstockstill on DSK3G9T082PROD with NOTICES

remains a line of railroad subject to the Board’s Serv. Exemption—in Curry, Roosevelt, Chaves &
jurisdiction. particular, NMRC will acquire Eddy Ctys., N.M., AB 1251X (filed Jan. 17, 2017).
4 See W. Branch & Cont’l Rail—Acquis. of Control 3 In Docket No. FD 36084, West Branch and

Exemption—Cimarron Valley R.R., Docket No. FD 1 NMCR is a newly established entity owned by Continental have invoked the class exemption at 49
36084; N.M. Cent. R.R.—Acquis. & Operation West Branch Intermediate Holdings, LLC (West CFR 1180.2(d)(2) for West Branch to acquire control
Exemption—Sw. R.R., Whitewater Div., Docket No. Branch), and managed by Continental Rail LLC and for Continental to manage the following Class
FD 36085; and W. Branch Intermediate Holdings & (Continental). West Branch currently controls an III rail carriers: Cimarron Valley Railroad, L.C.,
Cont’l Rail—Continuance in Control Exemption— existing Class III carrier, Delta Southern Railroad, Clarksdale Arizona Central Railroad, L.C., and
N.M. Cent. R.R., Docket No. FD 36087. Inc. (Delta). Wyoming and Colorado Railroad Company, Inc.

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Document Created: 2017-02-02 00:55:08
Document Modified: 2017-02-02 00:55:08
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		82 FR 9107