82 FR 9108 - New Mexico Central Railroad, LLC-Acquisition and Operation Exemption-Southwestern Railroad, Inc., Whitewater Division

SURFACE TRANSPORTATION BOARD

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

Page Range		9108-9109
FR Document		2017-02284
Federal Register, Volume 82 Issue 21 (Thursday, February 2, 2017)
[Federal Register Volume 82, Number 21 (Thursday, February 2, 2017)]
[Notices]
[Pages 9108-9109]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-02284]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36085]


New Mexico Central Railroad, LLC--Acquisition and Operation 
Exemption--Southwestern Railroad, Inc., Whitewater Division

    New Mexico Central Railroad, LLC (NMCR),\1\ a noncarrier, has filed 
a verified notice of exemption under 49 CFR 1150.31 to acquire and 
operate certain lines of railroad in New Mexico (the Lines) 
collectively referred to as the Whitewater Division, currently operated 
and owned or leased by Southwestern Railroad, Inc. (Southwestern). In 
particular, NMRC will acquire Southwestern's leasehold interest in a 
line between Deming (MP 1134) and Rincon (MP 1080) and ownership 
interest in lines: Between Deming (MP 0.0) and Peruhill (MP 5+3,763 
feet); between Peruhill (MP 5+3,763 feet) and Whitewater (MP 30+2,972 
feet); between Whitewater (near MP 30+2,972 feet) and the Tyrone 
Industrial Spur at Burro Mountain Jct. (near MP 33+5,256 feet); between 
Whitewater (MP 0+0750 feet) and Santa Rita (MP 16+1,500 feet); and 
between Hannover, Jct. (MP 14+1,345.4 feet) and the connection line at 
the Fierro Industrial Spur at the Sharon Steel Plant (near MP 6+1,804 
feet). The total Southwestern mileage NMCR will acquire (by purchase or 
lease) and operate is approximately 116 miles.\2\
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    \1\ NMCR is a newly established entity owned by West Branch 
Intermediate Holdings, LLC (West Branch), and managed by Continental 
Rail LLC (Continental). West Branch currently controls an existing 
Class III carrier, Delta Southern Railroad, Inc. (Delta).
    \2\ Southwestern also leases and operates a BNSF Railway Company 
(BNSF) line known as the Carlsbad Division, which consists of 
approximately 227.6 miles of railroad linking Clovis, Carlsbad, and 
Loving, N.M. Southwestern recently petitioned for an exemption to 
discontinue service over the Carlsbad Division. See Sw. R.R.--
Discontinuance of Serv. Exemption--in Curry, Roosevelt, Chaves & 
Eddy Ctys., N.M., AB 1251X (filed Jan. 17, 2017).
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    On the same day NMCR filed its verified notice of exemption, West 
Branch and Continental also filed a verified notice of exemption in 
West Branch Intermediate Holdings & Continental Rail--Continuance in 
Control Exemption--New Mexico Central Railroad, Docket No. FD 36087, 
for West Branch to acquire and for Continental to manage NMCR upon 
NMCR's becoming a Class III carrier.\3\
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    \3\ In Docket No. FD 36084, West Branch and Continental have 
invoked the class exemption at 49 CFR 1180.2(d)(2) for West Branch 
to acquire control and for Continental to manage the following Class 
III rail carriers: Cimarron Valley Railroad, L.C., Clarksdale 
Arizona Central Railroad, L.C., and Wyoming and Colorado Railroad 
Company, Inc.
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    NMCR has executed a letter of intent for it to purchase the Lines. 
NMCR and Southwestern are currently negotiating a purchase and sale 
agreement governing the purchase of the Lines as well as certain other 
assets. The parties expect to reach an agreement shortly, which NMCR 
states will not contain an interchange agreement.
    NMCR certifies that its projected annual revenues resulting from 
the transaction will not result in its becoming a Class I or Class II 
rail carrier. NMCR notes, however, that its annual operating revenues 
will exceed $5 million. Accordingly, in compliance with 49 CFR 
1150.32(e), NMCR submitted a letter on December 16, 2016, certifying 
that it posted the required 60-day labor notice of this transaction at 
the Southwestern employees' workplace at Deming. NMCR states that the 
notice was not served on the national offices of labor unions with 
employees who work on

[[Page 9109]]

the affected lines because there are no unionized employees employed by 
Southwestern.
    The earliest the transaction could be consummated is February 16, 
2017, and the parties expect to consummate the transaction at that 
time.
    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 February 9, 2017 (at 
least seven days before the exemption becomes effective).
    An original and ten copies of all pleadings, referring to Docket 
No. FD 36084, 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: John D. Heffner, Strasburger & Price, LLP, 
1025 Connecticut Ave. NW., Suite 717, Washington, DC 20036.
    According to NMCR, 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.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2017-02284 Filed 2-1-17; 8:45 am]
 BILLING CODE 4915-01-P
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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Federal Register / Vol. 82, No. 21 / Thursday, February 2, 2017 / Notices 9109

the affected lines because there are no (WYCO).1 David L. Durbano (Durbano) may be filed at any time. The filing of
unionized employees employed by commonly controls these railroads now a petition to revoke will not
Southwestern. as well as a fourth Class III carrier, automatically stay the effectiveness of
The earliest the transaction could be Southwestern Railroad, Inc. the exemption. Petitions to stay must be
consummated is February 16, 2017, and (Southwestern).2 The applicants have filed by February 9, 2017 (at least seven
the parties expect to consummate the submitted to the Board a letter of intent days before the exemption becomes
transaction at that time. concerning the transaction in this effective).
If the verified notice contains false or docket and will submit a final Purchase An original and ten copies of all
misleading information, the exemption and Sale Agreement once negotiations pleadings, referring to Docket No. FD
is void ab initio. Petitions to revoke the are complete and the agreement is 36084, must be filed with the Surface
exemption under 49 U.S.C. 10502(d) executed.3 Transportation Board, 395 E Street SW.,
The applicants certify that: (1) The Washington, DC 20423–0001. In
may be filed at any time. The filing of
carriers that are the subject of this notice addition, a copy of each pleading must
a petition to revoke will not
do not connect with each other, Delta, be served on: John D. Heffner,
automatically stay the effectiveness of
or NMCR; (2) this transaction is not part Strasburger & Price, LLP, 1025
the exemption. Petitions to stay must be
of a series of anticipated transactions Connecticut Ave. NW., Suite 717,
filed by February 9, 2017 (at least seven
that would connect these rail carriers Washington, DC 20036.
days before the exemption becomes
with each other; and (3) the transaction Board decisions and notices are
effective).
does not involve a Class I carrier. The available on our Web site at
An original and ten copies of all proposed transaction is therefore ‘‘WWW.STB.GOV.’’
pleadings, referring to Docket No. FD exempt from the prior approval
36084, must be filed with the Surface Decided: January 30, 2017.
requirements of 49 U.S.C. 11323
Transportation Board, 395 E Street SW., By the Board, Rachel D. Campbell,
pursuant to 49 CFR 1180.2(d)(2).
Washington, DC 20423–0001. In Director, Office of Proceedings.
The earliest the transaction could be
addition, a copy of each pleading must consummated is February 16, 2017, the Kenyatta Clay,
be served on: John D. Heffner, effective date of the exemption (30 days Clearance Clerk.
Strasburger & Price, LLP, 1025 after the verified notice was filed). The [FR Doc. 2017–02285 Filed 2–1–17; 8:45 am]
Connecticut Ave. NW., Suite 717, parties expect to consummate the BILLING CODE 4915–01–P
Washington, DC 20036. transaction on or about February 17,
According to NMCR, this action is 2017.
categorically excluded from Under 49 U.S.C. 10502(g), the Board DEPARTMENT OF THE TREASURY
environmental review under 49 CFR may not use its exemption authority to
1105.6(c). relieve a rail carrier of its statutory Financial Crimes Enforcement Network
Board decisions and notices are obligation to protect the interests of its
available on our Web site at employees. Section 11326(c), however, Proposed Collection; Comment
WWW.STB.GOV. does not provide for labor protection for Request; Update and Revision of the
transactions under §§ 11324 and 11325 FinCEN Suspicious Activity Reports
Decided: January 30, 2017. Electronic Data Fields
that involve only Class III rail carriers.
By the Board, Rachel D. Campbell, Accordingly, the Board may not impose
Director, Office of Proceedings. AGENCY: Financial Crimes Enforcement
labor protective conditions here, Network (‘‘FinCEN’’), U.S. Department
Kenyatta Clay, because all of the carriers involved are
Clearance Clerk. of the Treasury.
Class III carriers.
[FR Doc. 2017–02284 Filed 2–1–17; 8:45 am] If the verified notice contains false or ACTION: Notice and request for
BILLING CODE 4915–01–P misleading information, the exemption comments.
is void ab initio. Petitions to revoke the SUMMARY: FinCEN, a bureau of the U.S.
exemption under 49 U.S.C. 10502(d) Department of the Treasury
SURFACE TRANSPORTATION BOARD (‘‘Treasury’’), invites all interested
1 West Branch currently controls another Class III

carrier, Delta Southern Railroad, Inc. (Delta), and it parties to comment on its proposed
[Docket No. FD 36084] will continue to do so after it consummates its update and revisions to the collection of
acquisition of Cimarron, Clarkdale, and WYCO. information filings by financial
West Branch Intermediate Holdings, 2 The applicants do not intend to acquire control
institutions required to file such reports
LLC and Continental Rail LLC— of Southwestern. Instead, West Branch will acquire
under the Bank Secrecy Act (‘‘BSA’’).
Acquisition of Control Exemption— certain assets of Southwestern through a newly
formed subsidiary, New Mexico Central Railroad, This notice does not propose any new
Cimarron Valley Railroad, L.C., LLC (NMCR). On the same day the applicants filed regulatory requirements or changes to
Clarkdale Arizona Central Railroad, their verified notice in this docket, NMCR filed a the requirements related to suspicious
L.C., Wyoming and Colorado Railroad verified notice of exemption under 49 CFR 1150.31
activity reporting. The data fields reflect
Company, Inc. to acquire and operate those Southwestern assets.
See N.M. Cent. R.R.—Acquis. & Operation the filing requirement for all filers of
West Branch Intermediate Holdings, Exemption—Sw. R.R., Whitewater Division, Docket SARs under the BSA. This request for
No. FD 36085. Concurrently, West Branch and comments is being made pursuant to the
LLC (West Branch) and Continental Rail Continental filed a verified notice of exemption
LLC (Continental) have filed a verified under 49 CFR 1180.2(d)(2) for West Branch to
Paperwork Reduction Act (PRA) of
notice of exemption pursuant to 49 CFR acquire and for Continental to manage NMCR upon 1995, Public Law 104–13, 44 U.S.C.
mstockstill on DSK3G9T082PROD with NOTICES

1180.2(d)(2), for West Branch to acquire NMCR’s becoming a Class III carrier. See W. Branch 3506(c)(2)(A).
Intermediate Holdings & Cont’l Rail—Continuance
control of, and for Continental to in Control Exemption—N. M. Cent. R.R., Docket No. DATES: Written comments are welcome
manage, the following Class III rail FD 36087. and must be received on or before April
carriers: Cimarron Valley Railroad, L.C. 3 The applicants filed their letter of intent under
3, 2017.
(Cimarron), Clarkdale Arizona Central seal and have moved that the Board issue a
ADDRESSES: Written comments should
protective order governing access to the
Railroad, L.C. (Clarkdale), and Wyoming confidential materials. That motion is being be submitted to: Policy Division,
and Colorado Railroad Company, Inc. addressed separately. Financial Crimes Enforcement Network,

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Document Created: 2017-02-02 00:55:31
Document Modified: 2017-02-02 00:55:31
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 9108