83_FR_24089 83 FR 23989 - HGS-ATN, LLC-Acquisition Exemption-CSX Transportation, Inc.

83 FR 23989 - HGS-ATN, LLC-Acquisition Exemption-CSX Transportation, Inc.

SURFACE TRANSPORTATION BOARD

Federal Register Volume 83, Issue 100 (May 23, 2018)

Page Range23989-23990
FR Document2018-11052

Federal Register, Volume 83 Issue 100 (Wednesday, May 23, 2018)
[Federal Register Volume 83, Number 100 (Wednesday, May 23, 2018)]
[Notices]
[Pages 23989-23990]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-11052]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36175]


HGS-ATN, LLC--Acquisition Exemption--CSX Transportation, Inc.

    HGS-ATN, LLC (HGS-ATN), a noncarrier, has filed a verified notice 
of exemption under 49 CFR 1150.31 to acquire from CSX Transportation, 
Inc. (CSXT) approximately 121 miles of rail line in Alabama (the 
Lines). The Lines extend (1) from milepost SG 737.06, at or near 
Birmingham, to approximately milepost SG 673.43 at or near Wellington 
(Birmingham Subdivision); (2) from OAM 552.91 at or near Wellington to 
OAM 545.93 at or near Moragne (Gadsden Subdivision); (3) from milepost 
AG114.81 at or near Moragne to AG 85.0, at or near

[[Page 23990]]

Guntersville (Guntersville Subdivision); and (4) from milepost 0LE 
447.89 at or near Moragne, to milepost 0LE 442.60 at or near Ivalee 
(Ivalee Spur).\1\
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    \1\ By decision served April 13, 2018, the Board held this and 
four related exemption proceedings in abeyance pending the filing of 
supplemental information in HGS Railway Holdings, Inc.--Continuance 
in Control Exemption--HGS-FCR, LLC & HGS-ATN, LLC, Docket No. FD 
36180. On April 23, 2018, HGS Railway Holdings, Inc. filed a reply 
and revised notice of exemption in that docket. The Board is serving 
and publishing in the Federal Register today notices of the 
exemptions in all five dockets, thus removing them from abeyance.
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    According to HGS-ATN, it is acquiring the Lines from CSXT for 
continued rail operations. HGS-ATN states that it is in the process of 
entering into a Purchase and Sale Agreement with CSXT. HGS-ATN also 
states that it will lease the Lines to Alabama & Tennessee River 
Railway, which will be the operator of the property. See Ala. & Tenn. 
River Ry. Verified Notice of Exemption, Mar. 22, 2018, Ala. & Tenn. 
River Ry., LLC--Lease & Operation Exemption-- HGS-ATN, LLC, Docket No. 
FD 36173.
    HGS-ATN certifies that, as a result of the proposed transaction, 
its projected annual revenues will not result in its becoming a Class I 
or Class II rail carrier and will not exceed $5 million. HGS-ATN also 
certifies that the proposed transaction does not involve any 
interchange commitments.
    The proposed transaction may be consummated on or after June 6, 
2018, the effective date of this exemption. 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 May 30, 2018 (at least seven days before the 
exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 36175, 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, Karl Morell, 
Karl Morell & Associates, 440 1st Street NW, Suite 440, Washington, DC 
20001.
    According to HGS-ATN, this action is categorically excluded from 
environmental reporting under 49 CFR 1105.6(c).
    Board decisions and notices are available on our website at 
WWW.STB.GOV.

    Decided: May 18, 2018.

    By the Board, Scott M. Zimmerman, Acting Director, Office of 
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2018-11052 Filed 5-22-18; 8:45 am]
 BILLING CODE 4915-01-P



                                                                           Federal Register / Vol. 83, No. 100 / Wednesday, May 23, 2018 / Notices                                                       23989

                                               determination who might have a                          SURFACE TRANSPORTATION BOARD                              letter filed on March 28, 2018,
                                               constitutional presence in the United                                                                             supplementing its notice of exemption,
                                                                                                       [Docket No. FD 36173]
                                               States, because to do so would render                                                                             ATN certifies that its lease agreement
                                               ineffectual the measures authorized in                  Alabama & Tennessee River Railway,                        with HGS–ATN contains no provisions
                                               the Order.                                              LLC—Lease and Operation                                   that may limit future interchange with
                                                 This notice shall be published in the                 Exemption—HGS–ATN, LLC                                    a third-party connecting carrier.
                                               Federal Register.                                                                                                    ATN states that it expects to
                                                                                                          Alabama & Tennessee River Railway                      consummate this transaction on or
                                               John J. Sullivan,
                                                                                                       (ATN), a Class III rail carrier, filed a                  shortly after the effective date of the
                                               Deputy Secretary of State.                              verified notice of exemption under 49                     exemption. The earliest this transaction
                                               [FR Doc. 2018–11011 Filed 5–22–18; 8:45 am]             CFR 1150.41 to lease from HGS–ATN,                        may be consummated is June 6, 2018,
                                               BILLING CODE 4710–AD–P                                  LLC (HGS–ATN), and operate                                the effective date of the exemption.
                                                                                                       approximately 121 miles of rail lines                        If the verified notice contains false or
                                                                                                       located in Alabama (the Lines).1 The                      misleading information, the exemption
                                               DEPARTMENT OF STATE                                     Lines extend (1) from milepost SG                         is void ab initio. Petitions to revoke the
                                               [Public Notice: 10420]                                  737.06, at or near Birmingham, to                         exemption under 49 U.S.C. 10502(d)
                                                                                                       approximately milepost SG 673.43 at or                    may be filed at any time. The filing of
                                               Culturally Significant Objects Imported                 near Wellington (Birmingham                               a petition to revoke will not
                                               for Exhibition Determinations:                          Subdivision); (2) from OAM 522.91 at or                   automatically stay the effectiveness of
                                               ‘‘Fabergé Rediscovered’’ Exhibition;                   near Wellington to OAM 545.93 at or                       the exemption. Petitions for stay must
                                               Notice of Determinations                                near Moragne (Gadsden Subdivision);                       be filed no later than May 30, 2018 (at
                                                                                                       (3) from milepost 114.81 at or near                       least seven days before the exemption
                                               SUMMARY:    Notice is hereby given of the               Moragne to AG 85.0, at or near
                                               following determinations: I hereby                                                                                becomes effective).
                                                                                                       Guntersville (Guntersville Subdivision);                     An original and 10 copies of all
                                               determine that certain objects to be                    and (4) from milepost 0LE 447.89 at or
                                               included in the exhibition ‘‘Fabergé                                                                             pleadings, referring to Docket No. FD
                                                                                                       near Moragne, to milepost 0LE 442.60 at                   36173, must be filed with the Surface
                                               Rediscovered,’’ imported from abroad                    or near Ivalee (Ivalee Spur), in Jefferson,
                                               for temporary exhibition within the                                                                               Transportation Board, 395 E Street SW,
                                                                                                       St. Clair, Calhoun, Etowah, and                           Washington, DC 20423–0001. In
                                               United States, are of cultural                          Marshall Counties, Ala.
                                               significance. The objects are imported                                                                            addition, a copy of each pleading must
                                                                                                          ATN states that in 2004 it entered into                be served on Karl Morell, Karl Morell &
                                               pursuant to loan agreements with the                    an agreement to lease the Lines from
                                               foreign owners or custodians. I also                                                                              Associates, 440 1st Street NW, Suite
                                                                                                       CSX Transportation, Inc. (CSXT). See                      440, Washington, DC 20001.
                                               determine that the exhibition or display                Ala. & Tenn. River Ry.—Lease &
                                               of the exhibit objects at the Hillwood                                                                               According to ATN, this action is
                                                                                                       Operation Exemption—CSX Transp.,                          excluded from environmental review
                                               Estate, Museum & Gardens, Washington,                   Inc., FD 34611 (STB served Dec. 17,
                                               District of Columbia, from on or about                                                                            under 49 CFR 1105.6(c).
                                                                                                       2004). ATN further states that HGS–                          Board decisions and notices are
                                               June 9, 2018, until on or about January                 ATN will shortly enter into an
                                               13, 2019, and at possible additional                                                                              available on our website at
                                                                                                       agreement to acquire the Lines from                       WWW.STB.GOV.
                                               exhibitions or venues yet to be                         CSXT.2 As part of that transaction,
                                               determined, is in the national interest.                CSXT will assign the ATN’s lease of the                     Decided: May 18, 2018.
                                               I have ordered that Public Notice of                    Lines to HGS–ATN.                                           By the Board, Scott M. Zimmerman, Acting
                                               these determinations be published in                       ATN certifies that its projected annual                Director, Office of Proceedings.
                                               the Federal Register.                                   revenues as a result of this transaction                  Jeffrey Herzig,
                                               FOR FURTHER INFORMATION CONTACT:                        will not result in the creation of a Class                Clearance Clerk.
                                               Elliot Chiu, Attorney-Adviser, Office of                I or Class II rail carrier. ATN further                   [FR Doc. 2018–11050 Filed 5–22–18; 8:45 am]
                                               the Legal Adviser, U.S. Department of                   certifies that the annual projected                       BILLING CODE 4915–01–P
                                               State (telephone: 202–632–6471; email:                  revenue will exceed $5 million.3 In a
                                               section2459@state.gov). The mailing
                                               address is U.S. Department of State,                       1 By decision served April 13, 2018, the Board
                                                                                                                                                                 SURFACE TRANSPORTATION BOARD
                                                                                                       held this and four related exemption proceedings in
                                               L/PD, SA–5, Suite 5H03, Washington,                     abeyance pending the filing of supplemental               [Docket No. FD 36175]
                                               DC 20522–0505.                                          information in HGS Railway Holdings, Inc.—
                                               SUPPLEMENTARY INFORMATION: The                          Continuance in Control Exemption—HGS–FCR, LLC             HGS–ATN, LLC—Acquisition
                                               foregoing determinations were made                      & HGS–ATN, LLC, Docket No. FD 36180. On April
                                                                                                       23, 2018, HGS Railway Holdings, Inc. filed a reply
                                                                                                                                                                 Exemption—CSX Transportation, Inc.
                                               pursuant to the authority vested in me                  and revised notice of exemption in that docket. The
                                               by the Act of October 19, 1965 (79 Stat.                Board is serving and publishing in the Federal
                                                                                                                                                                    HGS–ATN, LLC (HGS–ATN), a
                                               985; 22 U.S.C. 2459), E.O. 12047 of                     Register today notices of the exemptions in all five      noncarrier, has filed a verified notice of
                                               March 27, 1978, the Foreign Affairs                     dockets, thus removing them from abeyance.                exemption under 49 CFR 1150.31 to
                                                                                                          2 On March 29, 2018, HGS–ATN filed a verified
                                               Reform and Restructuring Act of 1998                                                                              acquire from CSX Transportation, Inc.
                                                                                                       notice of exemption to acquire the Lines from CSXT
                                               (112 Stat. 2681, et seq.; 22 U.S.C. 6501                in HGS–ATN, LLC—Acquisition Exemption—CSX
                                                                                                                                                                 (CSXT) approximately 121 miles of rail
                                               note, et seq.), Delegation of Authority                 Transportation, Inc., Docket No. FD 36175.                line in Alabama (the Lines). The Lines
                                               No. 234 of October 1, 1999, and                            3 On March 19, 2018, ATN certified to the Board        extend (1) from milepost SG 737.06, at
                                               Delegation of Authority No. 236–3 of                    that on, March 16, 2018, it posted notice of the          or near Birmingham, to approximately
daltland on DSKBBV9HB2PROD with NOTICES




                                                                                                       transaction at the workplace of the employees on          milepost SG 673.43 at or near
                                               August 28, 2000.                                        the Lines, and on March 19, 2018, it served a copy
                                                                                                       of the notice on the national office of the potentially   Wellington (Birmingham Subdivision);
                                               Marie Therese Porter Royce,                             affected employees’ labor union as required under         (2) from OAM 552.91 at or near
                                               Assistant Secretary for Educational and                 49 CFR 1150.42(e). However, on March 22, 2018,            Wellington to OAM 545.93 at or near
                                               Cultural Affairs, Department of State.                  ATN sought waiver of the 60-day notice
                                                                                                       requirements. Because the exemption will not
                                                                                                                                                                 Moragne (Gadsden Subdivision); (3)
                                               [FR Doc. 2018–11003 Filed 5–22–18; 8:45 am]             become effective until June 6, 2018, ATN’s request        from milepost AG114.81 at or near
                                               BILLING CODE 4710–05–P                                  for waiver will be dismissed as moot.                     Moragne to AG 85.0, at or near


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                                               23990                       Federal Register / Vol. 83, No. 100 / Wednesday, May 23, 2018 / Notices

                                               Guntersville (Guntersville Subdivision);                  By the Board, Scott M. Zimmerman, Acting             Holdings Combined, Inc. (OmniTRAX),
                                               and (4) from milepost 0LE 447.89 at or                  Director, Office of Proceedings.                       is a non-carrier that controls 18 Class III
                                               near Moragne, to milepost 0LE 442.60 at                 Jeffrey Herzig,                                        railroads.2 HGS Holdings and
                                               or near Ivalee (Ivalee Spur).1                          Clearance Clerk.                                       OmniTRAX share the same address,
                                                  According to HGS–ATN, it is                          [FR Doc. 2018–11052 Filed 5–22–18; 8:45 am]            chief executive officer, and additional
                                               acquiring the Lines from CSXT for                       BILLING CODE 4915–01–P                                 officials or officers. Together, the two
                                               continued rail operations. HGS–ATN                                                                             companies’ holdings appear to
                                               states that it is in the process of entering                                                                   encompass the entirety of the rail
                                               into a Purchase and Sale Agreement                      SURFACE TRANSPORTATION BOARD                           carriers in the corporate family.3
                                               with CSXT. HGS–ATN also states that it                                                                            HGS Holdings represents that: (1) The
                                                                                                       [Docket No. FD 36180]                                  rail lines to be owned by HGS–ATN are
                                               will lease the Lines to Alabama &
                                               Tennessee River Railway, which will be                                                                         located in Alabama and the rail lines to
                                                                                                       HGS Railway Holdings, Inc.—
                                               the operator of the property. See Ala. &                                                                       be owned by HGS–FCR are located in
                                                                                                       Continuance in Control Exemption—
                                               Tenn. River Ry. Verified Notice of                                                                             Atlanta, Ga.; (2) the continuance in
                                                                                                       HGS–FCR, LLC and HGS–ATN, LLC
                                               Exemption, Mar. 22, 2018, Ala. & Tenn.                                                                         control is not part of a series of
                                               River Ry., LLC—Lease & Operation                           HGS Railway Holdings, Inc. (HGS                     anticipated transactions that would
                                               Exemption— HGS–ATN, LLC, Docket                         Holdings), has filed a verified notice of              connect the rail lines to be operated by
                                               No. FD 36173.                                           exemption under 49 CFR 1180.2(d)(2) to                 HGS–ATN, HGS–FCR, and the 18
                                                  HGS–ATN certifies that, as a result of               continue in control of HGS–ATN, LLC                    railroads in the OmniTRAX family; and
                                               the proposed transaction, its projected                 (HGS–ATN), and HGS–FCR, LLC (HGS–                      (3) there are no Class I rail carriers in
                                               annual revenues will not result in its                  FCR) (collectively, the LLCs), upon                    the HGS Holdings/OmniTRAX
                                               becoming a Class I or Class II rail carrier             HGS–ATN’s and HGS–FCR’s becoming                       corporate family. Moreover, the verified
                                               and will not exceed $5 million. HGS–                    Class III rail carriers.                               notice shows that the rail lines to be
                                               ATN also certifies that the proposed                       This transaction is related to verified             acquired by HGS–ATN and HGS–FCR
                                               transaction does not involve any                        notices of exemption in HGS–ATN,                       do not connect with each other or with
                                               interchange commitments.                                LLC—Acquisition Exemption—CSX                          any railroads in the OmniTRAX family.
                                                  The proposed transaction may be                      Transportation, Inc., Docket No. FD                    Therefore, the proposed transaction is
                                               consummated on or after June 6, 2018,                   36175 and HGS–FCR, LLC—Acquisition                     exempt from the prior approval
                                               the effective date of this exemption. If                Exemption—CSX Transportation, Inc.,                    requirements of 49 U.S.C. 11323. See 49
                                               the verified notice contains false or                   Docket No. FD 36176. In those                          CFR 1180.2(d)(2).
                                               misleading information, the exemption                   proceedings, the LLCs individually seek                   Under 49 U.S.C. 10502(g), the Board
                                               is void ab initio. Petitions to revoke the              authority pursuant to 49 CFR 1150.31 to                may not use its exemption authority to
                                                                                                       acquire rail lines from CSX                            relieve a rail carrier of its statutory
                                               exemption under 49 U.S.C. 10502(d)
                                                                                                       Transportation, Inc. (CSXT): HGS–ATN                   obligation to protect the interests of its
                                               may be filed at any time. The filing of
                                                                                                       for approximately 121 miles of rail line               employees. Section 11326(c), however,
                                               a petition to revoke will not
                                                                                                       in Alabama, and HGS–FCR for                            does not provide for labor protection for
                                               automatically stay the effectiveness of
                                                                                                       approximately 55 miles of rail line in                 transactions under §§ 11324 and 11325
                                               the exemption. Petitions to stay must be
                                                                                                       Georgia. The transaction is also related               that involve only Class III rail carriers.
                                               filed by May 30, 2018 (at least seven
                                                                                                       to verified notices of exemption in                    Accordingly, the Board may not impose
                                               days before the exemption becomes
                                                                                                       Alabama & Tennessee River Railway—                     labor protective conditions here,
                                               effective).
                                                                                                       Lease & Operation Exemption—HGS–                       because all of the carriers involved are
                                                  An original and 10 copies of all
                                                                                                       ATN, LLC, Docket No. FD 36173, and                     Class III carriers.
                                               pleadings, referring to Docket No. FD
                                               36175, must be filed with the Surface                   Fulton County Railway—Lease &
                                                                                                                                                                2 OmniTRAX controls the following railroads
                                               Transportation Board, 395 E Street SW,                  Operation Exemption—HGS–FCR, LLC,                      operating in the identified states: ATN (Alabama);
                                               Washington, DC 20423–0001. In                           Docket No. FD 36174. In those                          FCR (Georgia); Brownsville & Rio Grande
                                               addition, a copy of each pleading must                  proceedings, Alabama & Tennessee                       International Railway, LLC (Texas); Chicago Rail
                                                                                                       River Railway (ATN), and Fulton                        Link, LLC (Illinois); Georgia & Florida Railway, LLC
                                               be served on applicant’s representative,                                                                       (Georgia, Florida); Georgia Woodlands Railroad,
                                               Karl Morell, Karl Morell & Associates,                  County Railway, LLC (FCR), seek                        LLC (Georgia); Great Western Railway of Colorado,
                                               440 1st Street NW, Suite 440,                           authority to lease and operate over the                LLC (Colorado); Illinois Railway, LLC (Illinois);
                                               Washington, DC 20001.                                   Alabama and Georgia lines,                             Kettle Falls International Railway, LLC
                                                                                                       respectively.1                                         (Washington); Manufacturers’ Junction Railway,
                                                  According to HGS–ATN, this action is                                                                        LLC (Illinois); Nebraska, Kansas & Colorado
                                               categorically excluded from                                The earliest this transaction may be                Railway, LLC (Nebraska, Kansas, Colorado);
                                               environmental reporting under 49 CFR                    consummated is June 6, 2018, the                       Newburgh & South Shore Railroad, LLC (Ohio);
                                               1105.6(c).                                              effective date of the exemption.                       Northern Ohio & Western Railway (Ohio);
                                                                                                          HGS Holdings is a non-carrier that                  Panhandle Northern Railway, LLC (Texas); Peru
                                                  Board decisions and notices are                                                                             Industrial Railroad, LLC (Illinois); Sand Springs
                                               available on our website at                             owns 100 percent of the issued and                     Railway Company (Oklahoma); Stockton Terminal
                                               WWW.STB.GOV.                                            outstanding stock of HGS–ATN and                       and Eastern Railroad (California); and Central Texas
                                                                                                       HGS–FCR, two limited liability                         & Colorado River Railway, LLC (Texas).
                                                  Decided: May 18, 2018.                               companies and non-carriers that were                     3 HGS Holdings concedes in its April 23, 2018

                                                                                                       formed for the purpose of acquiring                    supplemental filing that it and OmniTRAX are
                                                 1 By decision served April 13, 2018, the Board                                                               under joint managerial and operational control
                                               held this and four related exemption proceedings in     certain lines from CSXT. OmniTrax                      because individuals who are officers or officials at
daltland on DSKBBV9HB2PROD with NOTICES




                                               abeyance pending the filing of supplemental                                                                    both companies are able to direct the day-to-day
                                               information in HGS Railway Holdings, Inc.—                1 By decision served April 13, 2018, the Board       operations of the railroad subsidiaries. HGS
                                               Continuance in Control Exemption—HGS–FCR, LLC           held all five exemption proceedings in abeyance        Holdings is reminded that common control can be
                                               & HGS–ATN, LLC, Docket No. FD 36180. On April           pending HGS Holdings’ filing of supplemental           established due to other factors as well, e.g.,
                                               23, 2018, HGS Railway Holdings, Inc. filed a reply      information about its corporate family. On April 23,   common ownership. See 49 U.S.C. 11323(b), (c). To
                                               and revised notice of exemption in that docket. The     2018, HGS Holdings filed a reply and revised notice    the extent that any additional rail carriers come
                                               Board is serving and publishing in the Federal          of exemption. The information in that filing is        under the control of an entity with an ownership
                                               Register today notices of the exemptions in all five    sufficient for the Board to remove all five            interest in HGS Holdings or OmniTRAX, prior
                                               dockets, thus removing them from abeyance.              proceedings from abeyance and publish the notices.     authorization by the Board could be required. Id.



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Document Created: 2018-05-22 23:49:15
Document Modified: 2018-05-22 23:49:15
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation83 FR 23989 

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