83 FR 37606 - St. Paul & Pacific Railroad Company, LLC-Change in Operators Exemption-Santa Cruz and Monterey Bay Railway Company

SURFACE TRANSPORTATION BOARD

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

[Federal Register Volume 83, Number 148 (Wednesday, August 1, 2018)]
[Notices]
[Page 37606]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-16478]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36207]


St. Paul & Pacific Railroad Company, LLC--Change in Operators 
Exemption--Santa Cruz and Monterey Bay Railway Company

    St. Paul & Pacific Railroad Company (SPR), a noncarrier, has filed 
a verified notice of exemption under 49 CFR 1150.31 to assume 
operations over approximately 31 miles of track (the Line) owned by the 
Santa Cruz County Regional Transportation Commission (RTC) extending 
from milepost 0.433 at Watsonville Junction to milepost 31.39 at 
Davenport, Cal. The verified notice indicates that the Line was 
formerly operated by the Santa Cruz and Monterey Bay Railway Company 
(SCM) before SCM's cessation of operations in June 2018. Based on 
projected annual revenues, SPR expects to be a Class III carrier after 
consummation of the proposed transaction. SPR states that it will enter 
into an operating agreement with RTC governing SPR's operation of, and 
provision of rail common carrier service on, the Line. Pursuant to a 
separate agreement, SCM will transfer its permanent and exclusive 
freight operations to SPR.
    This transaction is related to a concurrently filed verified notice 
of exemption in Progressive Rail Inc.--Continuance in Control 
Exemption--St. Paul & Pacific Railroad Company, LLC, Docket No. FD 
36208, in which Progressive Rail Incorporated, SPR's parent company, 
seeks to continue in control of SPR upon SPR's becoming a Class III 
rail carrier.
    SPR states that the proposed operation of the Line does not involve 
any provision or agreement that would limit future interchange with a 
third-party connecting carrier. SPR certifies that its annual rail 
revenues as a result of this transaction are not expected to exceed $5 
million, and it will not result in SPR becoming a Class I or Class II 
rail carrier. Under 49 CFR 1150.32(b), a change in operator requires 
that notice be given to shippers. SPR states that it has provided 
notice of the proposed change in operators to the four shippers on the 
Line.
    The earliest this transaction may be consummated is August 15, 
2018, the effective date of the 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 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 36207, 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. 2018-16478 Filed 7-31-18; 8:45 am]
 BILLING CODE 4915-01-P