83 FR 42965 - Watco Holdings, Inc.-Continuance in Control Exemption-Decatur & Eastern Illinois Railroad, L.L.C.

SURFACE TRANSPORTATION BOARD

Federal Register Volume 83, Issue 165 (August 24, 2018)

Page Range		42965-42966
FR Document		2018-18125
Federal Register, Volume 83 Issue 165 (Friday, August 24, 2018)
[Federal Register Volume 83, Number 165 (Friday, August 24, 2018)]
[Notices]
[Pages 42965-42966]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-18125]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36209]


Watco Holdings, Inc.--Continuance in Control Exemption--Decatur & 
Eastern Illinois Railroad, L.L.C.

    Watco Holdings, Inc. (Watco), a noncarrier, has filed a verified 
notice of exemption pursuant to 49 CFR 1180.2(d)(2) to continue in 
control of Decatur & Eastern Illinois Railroad, L.L.C. (DEIR), upon 
DEIR's becoming a Class III rail carrier. Watco owns, indirectly, 100% 
of the issued and outstanding stock of DEIR, a limited liability 
company.
    This transaction is related to a concurrently filed verified notice 
of exemption in Decatur & Eastern Illinois Railroad--Acquisition 
Exemption Containing Interchange Commitment--CSX Transportation, Inc., 
Docket No. FD 36206, by which DEIR seeks Board approval to acquire and 
operate approximately 126.7 miles of track owned by CSX Transportation, 
Inc. (CSXT), consisting of: (1) CSXT's Decatur Subdivision starting 
near Montezuma, Ind., at milepost BD 192.4 and ending in Decatur, Ill., 
at milepost BD 277.2; (2) CSXT's Danville Secondary Subdivision from 
near Terre Haute, Ind., at milepost QSD 72.2 to near Olivet, Ill., at 
milepost QSD 113.6; and (3) CSXT's Paris Industrial Track located in 
Paris, Ill.\1\
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    \1\ The proposed transaction also includes an ancillary 
assignment of CSXT's trackage rights over Illinois Central Railroad 
Company (IC) between the Decatur Street road crossing at or near 
milepost 77.7 and milepost 76.7 on IC's Peoria Subdivision, 
including IC's connection with CSXT between milepost 30.5 and 
milepost 28.6 on IC's Peoria Subdivision, and between IC's lead 
track from its connection to the Green Switch Spur to IC's 
connection with the ADM Run-Around-Yard at Decatur, Ill., on IC's 
Peoria Subdivision, a total distance of approximately 3.6 miles.
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    The transaction may be consummated on or after September 8, 2018, 
the effective date of the exemption (30 days after the verified notice 
of exemption was filed).
    According to the verified notice of exemption, Watco currently 
controls, indirectly, 37 Class III rail carriers and one Class II rail 
carrier, collectively operating in 27 states. For a complete list of 
these rail carriers and the states in which they operate, see the 
August 9, 2018 verified notice of exemption at pages 5-9 for a list of 
carriers and pages 9-11 for a list of states.\2\ The verified notice is 
available on the Board's website at www.stb.gov.
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    \2\ The sentence on page 3 of the notice stating that Watco 
controls 38 Class III railroads and operates in 26 states is 
inconsistent with the list of carriers and states listed on pages 5-
11.
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    Watco represents that: (1) The rail line to be operated by DEIR 
does not connect with any of the rail lines operated by railroads in 
the Watco corporate family; (2) the transaction is not part of a series 
of anticipated transactions that would result in such a connection; and 
(3) the transaction does not involve a Class I rail carrier. The 
proposed transaction is therefore exempt from the prior approval 
requirements of 49 U.S.C. 11323 pursuant to 49 CFR 1180.2(d)(2).
    Watco states that the purpose of the transaction is to reduce 
overhead expenses and coordinate billing, maintenance, mechanical and 
personnel policies and procedures of its rail carrier subsidiaries, and 
thereby improve the overall efficiency of rail service provided by the 
railroads in the Watco corporate family.
    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. Because the transaction 
involves the control of one Class II and one or more Class III rail 
carriers, the transaction is subject to the labor protection 
requirements of 49 U.S.C. 11326(b) and Wisconsin Central Ltd.--
Acquisition Exemption--Lines of Union Pacific Railroad, 2 S.T.B. 218 
(1997).

[[Page 42966]]

    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 August 31, 2018 (at least 
seven days before the exemption becomes effective).
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 36209, 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 Karl Morell, Karl Morell & Associates, Suite 
440, 440 1st Street NW, Washington, DC 20001.
    Board decisions and notices are available on our website at 
www.stb.gov.

    Decided: August 17, 2018.

    By the Board.
Scott M. Zimmerman,
Acting Director, Office of Proceedings.
Aretha Laws-Byrum,
Clearance Clerk.
[FR Doc. 2018-18125 Filed 8-23-18; 8:45 am]
 BILLING CODE 4915-01-P
Federal Register / Vol. 83, No. 165 / Friday, August 24, 2018 / Notices 42965

SUPPLEMENTARY INFORMATION: The Council will receive input from the Secondary Subdivision from near Terre
United States and Chile negotiated the public on current environmental issues Haute, Ind., at milepost QSD 72.2 to
United States-Chile FTA and United and ideas for future cooperation. The near Olivet, Ill., at milepost QSD 113.6;
States-Chile ECA in concert, signing the Department of State and Office of the and (3) CSXT’s Paris Industrial Track
FTA on June 6, 2003, in Miami, USA United States Trade Representative located in Paris, Ill.1
and the ECA on June 17, 2003, in invite written comments or suggestions The transaction may be consummated
Santiago, Chile. Article 19.3 of the FTA regarding topics to be discussed at the on or after September 8, 2018, the
establishes an Environment Affairs meeting. In preparing comments, we effective date of the exemption (30 days
Council (Council). The Council encourage submitters to refer to Chapter after the verified notice of exemption
discusses implementation of Chapter 19 19 of the FTA and the ECA (available was filed).
of the FTA, and its meetings include a at http://www.state.gov/e/oes/eqt/trade/ According to the verified notice of
public session. The Joint Commission chile/index.htm). exemption, Watco currently controls,
on Environmental Cooperation If you would like to attend the public indirectly, 37 Class III rail carriers and
(Commission) was established in Article session, please notify Keri Holland and one Class II rail carrier, collectively
II of the ECA. The Commission Tia Potskhverashvili at the email operating in 27 states. For a complete
evaluates cooperative activities under addresses listed above under the list of these rail carriers and the states
the ECA, recommends options for heading ADDRESSES. Please include your in which they operate, see the August 9,
improving cooperation, and establishes full name and identify any organization 2018 verified notice of exemption at
work programs that reflect national or group you represent. In preparing pages 5–9 for a list of carriers and pages
priorities and that identify the scope comments, we encourage submitters to 9–11 for a list of states.2 The verified
and focus of environmental cooperation refer to: notice is available on the Board’s
activities. Commission meetings also • Chapter 19 of the FTA, and website at www.stb.gov.
include a public session. • The ECA. Watco represents that: (1) The rail line
The Council and Commission last met These documents are available at: to be operated by DEIR does not connect
in August 2015 in Washington, DC. The http://www.state.gov/e/oes/eqt/trade/ with any of the rail lines operated by
Council reviewed the implementation of chile/index.htm. Visit http:// railroads in the Watco corporate family;
the Environment Chapter of the FTA. www.state.gov and the USTR website at (2) the transaction is not part of a series
The Commission approved the 2015– www.ustr.gov for more information. of anticipated transactions that would
2017 Work Program, which built on result in such a connection; and (3) the
previous successes and identified Robert D. Wing, transaction does not involve a Class I
activities to achieve the long-term goals Acting Director, Office of Environmental rail carrier. The proposed transaction is
of: (1) Strengthening effective Quality and Transboundary Issues, therefore exempt from the prior
Department of State. approval requirements of 49 U.S.C.
implementation and enforcement of
environmental laws and regulations; (2) [FR Doc. 2018–18242 Filed 8–23–18; 8:45 am] 11323 pursuant to 49 CFR 1180.2(d)(2).
encouraging development and adoption BILLING CODE 4710–09–P Watco states that the purpose of the
of sound environmental practices and transaction is to reduce overhead
technologies, particularly in business expenses and coordinate billing,
enterprises; (3) promoting sustainable SURFACE TRANSPORTATION BOARD maintenance, mechanical and personnel
development and management of policies and procedures of its rail carrier
[Docket No. FD 36209]
environmental resources, including subsidiaries, and thereby improve the
wild fauna and flora, protected wild Watco Holdings, Inc.—Continuance in overall efficiency of rail service
areas, and other ecologically important Control Exemption—Decatur & Eastern provided by the railroads in the Watco
ecosystems; and (4) encouraging civil Illinois Railroad, L.L.C. corporate family.
society participation in the Under 49 U.S.C. 10502(g), the Board
environmental decision-making process Watco Holdings, Inc. (Watco), a may not use its exemption authority to
and environmental education. noncarrier, has filed a verified notice of relieve a rail carrier of its statutory
During the Council and Commission exemption pursuant to 49 CFR obligation to protect the interests of its
meetings, Members will discuss the 1180.2(d)(2) to continue in control of employees. Because the transaction
progress made in implementing Chapter Decatur & Eastern Illinois Railroad, involves the control of one Class II and
19 obligations and the impacts of L.L.C. (DEIR), upon DEIR’s becoming a one or more Class III rail carriers, the
environmental cooperation. The Class III rail carrier. Watco owns, transaction is subject to the labor
Commission will also finalize an indirectly, 100% of the issued and protection requirements of 49 U.S.C.
updated Environmental Cooperation outstanding stock of DEIR, a limited 11326(b) and Wisconsin Central Ltd.—
Work Program for 2018–2020. More liability company. Acquisition Exemption—Lines of Union
information on the Council and This transaction is related to a Pacific Railroad, 2 S.T.B. 218 (1997).
Commission is included below under concurrently filed verified notice of
Supplementary Information. exemption in Decatur & Eastern Illinois 1 The proposed transaction also includes an

All interested persons are invited to Railroad—Acquisition Exemption ancillary assignment of CSXT’s trackage rights over
Illinois Central Railroad Company (IC) between the
attend the Council and Commission Containing Interchange Commitment— Decatur Street road crossing at or near milepost 77.7
joint public session beginning at 10:00 CSX Transportation, Inc., Docket No. and milepost 76.7 on IC’s Peoria Subdivision,
a.m. on September 5, 2018, at the FD 36206, by which DEIR seeks Board including IC’s connection with CSXT between
Chilean Ministry of Foreign Affairs, 180 approval to acquire and operate milepost 30.5 and milepost 28.6 on IC’s Peoria
daltland on DSKBBV9HB2PROD with NOTICES

Subdivision, and between IC’s lead track from its
Teatinos St., Santiago, Chile. Attendees approximately 126.7 miles of track connection to the Green Switch Spur to IC’s
will have an opportunity to ask owned by CSX Transportation, Inc. connection with the ADM Run-Around-Yard at
questions and discuss implementation (CSXT), consisting of: (1) CSXT’s Decatur, Ill., on IC’s Peoria Subdivision, a total
of Chapter 19 and the ECA with Council Decatur Subdivision starting near distance of approximately 3.6 miles.
2 The sentence on page 3 of the notice stating that
and Commission Members and Montezuma, Ind., at milepost BD 192.4 Watco controls 38 Class III railroads and operates
environmental cooperation and ending in Decatur, Ill., at milepost in 26 states is inconsistent with the list of carriers
implementers. At the public session, the BD 277.2; (2) CSXT’s Danville and states listed on pages 5–11.

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42966 Federal Register / Vol. 83, No. 165 / Friday, August 24, 2018 / Notices

If the verified notice contains false or Decatur, Ill., on IC’s Peoria Subdivision, automatically stay the effectiveness of
misleading information, the exemption a total distance of approximately 3.6 the exemption. Petitions to stay must be
is void ab initio. Petitions to revoke the miles. filed no later than August 31, 2018 (at
exemption under 49 U.S.C. 10502(d) This transaction is related to a least seven days before the exemption
may be filed at any time. The filing of concurrently filed verified notice of becomes effective).
a petition to revoke will not exemption in Watco Holdings, Inc.— An original and 10 copies of all
automatically stay the effectiveness of Continuance in Control Exemption— pleadings, referring to Docket No. FD
the exemption. Petitions to stay must be Decatur & Eastern Illinois Railroad, 36206, must be filed with the Surface
filed by August 31, 2018 (at least seven Docket No. FD 36209, in which Watco Transportation Board, 395 E Street SW,
days before the exemption becomes Holdings, Inc., seeks Board approval to Washington, DC 20423–0001. In
effective). continue in control of DEIR upon DEIR’s addition, a copy must be served on Karl
An original and 10 copies of all becoming a Class III rail carrier. Morell, Karl Morell & Associates, Suite
pleadings, referring to Docket No. FD The verified notice states that DEIR 440, 440 1st Street NW, Washington, DC
36209, must be filed with the Surface and CSXT will enter into a Purchase 20001.
Transportation Board, 395 E Street SW, and Sale Agreement and a Freight According to DEIR, this action is
Washington, DC 20423–0001. In Operating Agreement prior to closing, categorically excluded from
addition, one copy of each pleading and that DEIR will be the operator of the environmental review under 49 CFR
must be served on Karl Morell, Karl acquired rail lines. As required by 49 1105.6(c).
Morell & Associates, Suite 440, 440 1st CFR 1150.33(h), DEIR has disclosed in Board decisions and notices are
Street NW, Washington, DC 20001. its verified notice that the Freight available on our website at www.stb.gov.
Board decisions and notices are Operating Agreement contains an Decided: August 17, 2018.
available on our website at www.stb.gov. interchange commitment that would By the Board.
Decided: August 17, 2018. require DEIR to pay additional Scott M. Zimmerman,
By the Board. compensation to CSXT if DEIR Acting Director, Office of Proceedings.
Scott M. Zimmerman,
interchanges traffic with a third-party Aretha Laws-Byrum,
rail carrier and that the affected
Acting Director, Office of Proceedings. Clearance Clerk.
interchange points are Decatur, Metcalf,
Aretha Laws-Byrum, and Tuscola, Ill. DEIR has provided [FR Doc. 2018–18119 Filed 8–23–18; 8:45 am]
Clearance Clerk. additional information pertaining to the BILLING CODE 4915–01–P
[FR Doc. 2018–18125 Filed 8–23–18; 8:45 am] interchange commitment as required by
BILLING CODE 4915–01–P § 1150.33(h).1
DEIR certifies that its projected OFFICE OF THE UNITED STATES
annual revenues resulting from the TRADE REPRESENTATIVE
SURFACE TRANSPORTATION BOARD transaction will not exceed those that [Docket Number USTR–2018–0029]
[Docket No. FD 36206] would qualify it as a Class III rail
carrier. However, DEIR states that its Request for Comments To Compile the
Decatur & Eastern Illinois Railroad, projected annual revenues will exceed National Trade Estimate Report on
L.L.C.—Acquisition Exemption $5 million. Accordingly, in compliance Foreign Trade Barriers
Containing Interchange Commitment— with 49 CFR 1150.32(e), on July 6, 2018,
CSX Transportation, Inc. AGENCY: Office of the United States
DEIR posted the required 60-day labor
Trade Representative.
notice of this transaction at the
Decatur & Eastern Illinois Railroad, ACTION: Notice.
workplaces of CSXT employees on the
L.L.C. (DEIR), a noncarrier, has filed a
affected Line, served notice on the SUMMARY: The Office of the United
verified notice of exemption under 49
national offices of the labor unions for States Trade Representative (USTR)
CFR 1150.31 to acquire and operate
those employees, and filed a letter with publishes the National Trade Estimate
approximately 126.7 miles of track (the
the Board certifying its compliance with Report on Foreign Trade Barriers (NTE
Line) owned by CSX Transportation,
the advance notice requirements. Report) each year. The Trade Policy
Inc., (CSXT), consisting of: (1) CSXT’s The transaction may be consummated
Decatur Subdivision starting near Staff Committee (TPSC) invites
on or after September 8, 2018, the interested persons to submit written
Montezuma, Ind., at milepost BD 192.4 effective date of the exemption (30 days
and ending in Decatur, Ill., at milepost comments to assist the TPSC in
after the verified notice was filed).2 identifying significant barriers to U.S.
BD 277.2; (2) CSXT’s Danville If the verified notice contains false or
Secondary Subdivision from near Terre exports of goods and services, U.S.
misleading information, the exemption foreign direct investment, and the
Haute, Ind., at milepost QSD 72.2 to is void ab initio. Petitions to revoke the
near Olivet, Ill., at milepost QSD 113.6; protection and enforcement of
exemption under 49 U.S.C. 10502(d) intellectual property rights for inclusion
and (3) CSXT’s Paris Industrial Track may be filed at any time. The filing of
located in Paris, Ill. As part of the in the NTE Report. USTR also will
a petition to revoke will not consider responses to this notice as part
transaction, CSXT will also assign its
trackage rights over Illinois Central 1 DEIR lists ‘‘Canadian National Railway’’ (CNR)
of the annual review of the operation
Railroad Company (IC) between the as one of the third-party railroads that could and effectiveness of all U.S. trade
Decatur Street road crossing at or near physically interchange with the line sought to be agreements regarding
milepost 77.7 and milepost 76.7 on IC’s acquired. The Board notes that the correct reference telecommunications products and
daltland on DSKBBV9HB2PROD with NOTICES

should be to Illinois Central Railroad Company services that are in force with respect to
Peoria Subdivision, including IC’s (IC)—the CNR subsidiary over which DEIR will be
connection with CSXT between assigned 3.6 miles of trackage rights (as described the United States.
milepost 30.5 and milepost 28.6 on IC’s above) and the only CNR affiliate operating in the DATES: We must receive all written
Peoria Subdivision, and between IC’s affected region. comments no later than 11:59 p.m. on
2 The verified notice states that the transaction is
lead track from its connection to the October 30, 2018.
expected to be consummated on or about September
Green Switch Spur to IC’s connection 6, 2018, however, consummation of the transaction ADDRESSES: USTR strongly prefers
with the ADM Run-Around-Yard at must await the effective date of the exemption. electronic submissions made through

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Document Created: 2018-08-24 04:13:26
Document Modified: 2018-08-24 04:13:26
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		83 FR 42965