83 FR 37605 - Progressive Rail Incorporated-Continuance in Control Exemption-St. Paul & Pacific Railroad Company, LLC

SURFACE TRANSPORTATION BOARD

Federal Register Volume 83, Issue 148 (August 1, 2018)

[Federal Register Volume 83, Number 148 (Wednesday, August 1, 2018)]
[Notices]
[Pages 37605-37606]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-16477]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36208]


Progressive Rail Incorporated--Continuance in Control Exemption--
St. Paul & Pacific Railroad Company, LLC

    Progressive Rail Incorporated (PGR), a Class III rail carrier, has 
filed a verified notice of exemption under 49 CFR 1180.2(d)(2) to 
continue in control of St. Paul & Pacific Railroad Company, LLC (SPR), 
upon SPR's becoming a Class III rail carrier.
    This transaction is related to a concurrently filed verified notice 
of exemption in St. Paul & Pacific Railroad Company, LLC--Change in 
Operator Exemption--Santa Cruz and Monterey Bay Railway Company, Docket 
No. FD 36207. In that proceeding, SPR seeks an exemption under 49 CFR 
1150.31 to assume operations over approximately 31 miles of rail line 
(the Line) owned by the Santa Cruz County Regional Transportation 
Commission extending from milepost 0.433 at Watsonville Junction to 
milepost 31.39 at Davenport, Cal.
    The earliest this transaction may be consummated is August 15, 
2018, the effective date of the exemption (30 days after the verified 
notice was filed). PGR states that it intends to consummate the 
transaction on August 16, 2018.
    PGR will continue in control of SPR upon SPR's becoming a Class III 
rail carrier and remains in control of Class III carriers Airlake 
Terminal Railway Company, LLC, Central Midland Railway Company, Iowa 
Traction Railway Company, Iowa Southern Railway Company, Piedmont & 
Northern Railroad Company, and Chicago Junction Railway Company.
    PGR states that: (1) The rail line to be operated by SPR does not 
connect with any other railroads in the PGR corporate family; (2) the 
continuance in control is not part of a series of anticipated 
transactions that would connect this line with any other railroad in 
the PGR corporate family; and (3) the transaction does not involve a 
Class I rail carrier. Therefore, the transaction is exempt from the 
prior approval requirements of 49 U.S.C. 11323. See 49 CFR 
1180.2(d)(2).
    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 Sec. Sec.  
11324 and 11325 that involve only Class III rail carriers. Accordingly, 
the Board may not impose labor protective conditions here because

[[Page 37606]]

all of the carriers involved are Class III 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 August 8, 2018 (at least 
seven days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 36208, 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 Audrey L. Brodrick, Fletcher & Sippel LLC, 
29 North Wacker Drive, Suite 800, Chicago, IL 60606-2832.

    Board decisions and notices are available on our website at 
WWW.STB.GOV.

    Decided: July 27, 2018.

    By the Board, Amy C. Ziehm, Acting Director, Office of 
Proceedings.
Andrea Pope-Matheson,
Clearance Clerk.
[FR Doc. 2018-16477 Filed 7-31-18; 8:45 am]
 BILLING CODE 4915-01-P