83 FR 28064 - Oregon International Port of Coos Bay and Coos Bay Rail Line, Inc.-Intra-Corporate Family Transaction Exemption

SURFACE TRANSPORTATION BOARD

Federal Register Volume 83, Issue 116 (June 15, 2018)

[Federal Register Volume 83, Number 116 (Friday, June 15, 2018)]
[Notices]
[Pages 28064-28065]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-12914]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36199]


Oregon International Port of Coos Bay and Coos Bay Rail Line, 
Inc.--Intra-Corporate Family Transaction Exemption

    Oregon International Port of Coos Bay (the Port), and Coos Bay Rail 
Line, Inc. (Coos Rail) (collectively, the Applicants), have jointly 
filed a verified notice of exemption under 49 CFR 1180.2(d)(3) for an 
intra-corporate family transaction. According to the Applicants, the 
Port is a rail common carrier that owns certain interconnected railroad 
lines in Oregon extending from Eugene to Coquille via Coos Bay, a total 
of roughly 133 route miles.\1\ The

[[Page 28065]]

Applicants state that the lines in question extend from milepost 
652.114 at Danebo, Or., to milepost 763.13 at Cordes, Or., and from 
milepost 761.13 at Cordes to milepost 785.5 at Coquille (collectively, 
the Line).
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    \1\ See Or. Int'l Port of Coos Bay--Acquis. Exemption--Rail Line 
of Union Pac. R.R. in Coos Cty., Or., FD 35385 (STB served Jul. 9, 
2010); Or. Int'l Port of Coos Bay--Feeder Line Application--Coos Bay 
Line of Cent. Ore. & Pac. R.R., FD 35160 (STB served Oct. 31, 2008; 
modified Mar. 12, 2009.)
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    The Line is currently operated by Coos Bay Railroad Operating 
Company, LLC d/b/a Coos Bay Rail Link (CBRL) pursuant to a lease 
agreement with the Port.\2\ The Applicants state that CBRL's parent 
company has advised the Port that it no longer wishes to operate the 
Line, and that the Port has begun to contemplate assuming operations of 
the Line in place of CBRL.\3\ However, the Applicants assert the Port 
does not wish to become an operating common carrier itself, and 
therefore has created Coos Rail as a public benefit corporation under 
the control of the Port for purposes of assuming operations over the 
Line in place of the Port. According to the Applicants, the Port would 
retain ownership of the Line, but common carrier service would be 
provided by Coos Rail, either alone or jointly with CBRL. The 
Applicants state that the proposed transaction will be governed by a 
lease agreement that has yet to be executed, a copy of which was 
submitted with their verified notice of exemption.
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    \2\ See Coos Bay R.R. Operating Co., LLC--Operation Exemption--
Line of R.R. owned by the Or. Int'l Port of Coos Bay, FD 35551 (STB 
served Sep. 14, 2011.)
    \3\ On June 4, 2018, CBRL filed a notice of intent to 
participate, stating that it intends to submit a petition to reject 
the notice on or before June 20, 2018.
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    The Applicants state that the transaction and underlying lease 
agreement do not involve or contain any provision or agreement that may 
limit future interchange with a third-party connecting carrier.
    Unless stayed, the exemption will be effective on June 30, 2018 (30 
days after the verified notice was filed). The Applicants state that 
they intend to consummate the proposed transaction on or after June 30, 
2018, as circumstances warrant.
    This is a transaction within a corporate family of the type 
specially exempted from prior review and approval under 49 CFR 
1180.2(d)(3). The Applicants have not indicated that the transaction 
would result in adverse changes in service levels, significant 
operational changes, or any changes in the competitive balance with 
carriers outside the corporate family. According to the Applicants, the 
transaction will permit the Port to take common carrier operations in 
house quickly (if necessary) and to create a discrete corporate 
subdivision to handle the business of running the Line as ancillary to 
the Port's primary functions.
    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 sections 11324 
and 11325 that involve only Class III rail carriers. The Port is a 
Class III carrier and Coos Rail would become a Class III carrier. 
Accordingly, labor protective conditions will not be imposed.
    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 exemption. Petitions 
to stay must be filed no later than June 22, 2018 (at least seven days 
before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 36199, must be filed with the Surface Transportation Board, 395 E 
Street SW, Washington, DC 20423-0001. In addition, a copy must be 
served on Audrey L. Brodrick, Fletcher & Sippel LLC, 29 North Wacker 
Drive, Suite 920, Chicago, IL 60606-2832.
    According to the Applicants, this action is exempt from 
environmental review under 49 CFR 1105.6(c) and exempt from historic 
review under 49 CFR 1105.8(b).
    Board decisions and notices are available on our website at 
WWW.STB.GOV''.

    Decided: June 12, 2018.

    By the Board, Scott M. Zimmerman, Acting Director, Office of 
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2018-12914 Filed 6-14-18; 8:45 am]
BILLING CODE 4915-01-P