83_FR_49340 83 FR 49151 - Gregory B. Cundiff, Connie Cundiff, CGX, Inc. and Ironhorse Resources, Inc.-Continuance in Control Exemption-San Pedro Valley Holdings, LLC in Cochise County, Ariz.; Gregory B. Cundiff, Connie Cundiff, CGX, Inc. and Ironhorse Resources, Inc.-Continuance in Control Exemption-San Pedro Valley Railroad, LLC in Cochise County, Ariz.

83 FR 49151 - Gregory B. Cundiff, Connie Cundiff, CGX, Inc. and Ironhorse Resources, Inc.-Continuance in Control Exemption-San Pedro Valley Holdings, LLC in Cochise County, Ariz.; Gregory B. Cundiff, Connie Cundiff, CGX, Inc. and Ironhorse Resources, Inc.-Continuance in Control Exemption-San Pedro Valley Railroad, LLC in Cochise County, Ariz.

SURFACE TRANSPORTATION BOARD

Federal Register Volume 83, Issue 189 (September 28, 2018)

Page Range49151-49151
FR Document2018-21184

Federal Register, Volume 83 Issue 189 (Friday, September 28, 2018)
[Federal Register Volume 83, Number 189 (Friday, September 28, 2018)]
[Notices]
[Page 49151]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-21184]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36218; Docket No. FD 36219]


Gregory B. Cundiff, Connie Cundiff, CGX, Inc. and Ironhorse 
Resources, Inc.--Continuance in Control Exemption--San Pedro Valley 
Holdings, LLC in Cochise County, Ariz.; Gregory B. Cundiff, Connie 
Cundiff, CGX, Inc. and Ironhorse Resources, Inc.--Continuance in 
Control Exemption--San Pedro Valley Railroad, LLC in Cochise County, 
Ariz.

    In Docket No. FD 36218, Gregory B. Cundiff, Connie Cundiff, CGX, 
Inc. (CGX), and Ironhorse Resources, Inc. (IHR),\1\ (collectively, 
applicants) filed a verified notice of exemption under 49 CFR 
1180.2(d)(2) for CGX to continue in control of San Pedro Valley 
Holdings, LLC (SPVH), upon SPVH's becoming a Class III rail carrier.
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    \1\ CGX, a noncarrier holding company, owns IHR--also a 
noncarrier holding company. CGX is owned in equal parts by the 
Gregory B. Cundiff Trust and the Connie Cundiff Trust, both of which 
are noncarrier individual trusts.
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    This transaction is related to a concurrently filed verified notice 
of exemption in San Pedro Valley Holdings, LLC--Acquisition Exemption--
San Pedro & Southwestern Railroad in Cochise County, Ariz., Docket No. 
FD 36216. In that proceeding, SPVH seeks an exemption under 49 CFR 
1150.31 to acquire two rail lines owned by the San Pedro and 
Southwestern Railroad Company: (1) From point of connection to Union 
Pacific Railroad (UP) at milepost 1033.25 at or near Benson, to 
milepost 1040.15 at or near St. David, a distance of 6.9 miles in 
Cochise County, Ariz.; and (2) from point of connection to UP at 
milepost 1074 at or near Wilcox, to all tracks at Wilcox Yard, a total 
of 8,281 feet or 1.57 miles, in Cochise County (collectively, the 
Lines). The Lines total approximately 8.47 miles.
    In Docket No. FD 36219, applicants filed a verified notice of 
exemption under 49 CFR 1180.2(d)(2) for IHR to continue in control of 
San Pedro Valley Railroad, LLC (SPVR), upon SPVR's becoming a Class III 
rail carrier. This transaction is related to a concurrently filed 
verified notice of exemption in San Pedro Valley Railroad--Operator 
Exemption--San Pedro Valley Holdings, LLC in Cochise County, Ariz., 
Docket No. FD 36217, in which SPVR seeks an exemption under 49 CFR 
1150.31 to assume operations over the Lines.
    According to applicants, CGX will continue in control of SPVH upon 
SPVH's becoming a Class III rail carrier and will remain in control of 
the following Class III carriers: Crystal City Railroad, Inc; Lone Star 
Railroad, Inc.; Rio Valley Railroad, Inc.; and Mississippi Tennessee 
Holdings, Inc. Applicants state that IHR will continue in control of 
SPVR upon SPVR's becoming a Class III rail carrier and will remain in 
control of the following Class III carriers: Texas Railroad Switching, 
Inc.; Rio Valley Switching Company; Mississippi Tennessee Railroad, 
LLC; Southern Switching Company; Gardendale Railroad, Inc.; Caney Fork 
& Western Railroad; and Santa Teresa Southern Railroad.
    The earliest these transactions may be consummated is October 17, 
2018, the effective date of the exemptions (30 days after the verified 
notices were filed).\2\ CGX and IHR state that they intend to 
consummate the transactions no sooner than 30 days after the filing of 
the notices of exemption.
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    \2\ The verified notices of exemption in Docket Nos. FD 36218 
and FD 36219 originally were filed on August 30, 2018, but were 
supplemented on September 17, 2018, to clarify the common control of 
the entities involved in the transactions. Therefore, September 17 
is deemed the verified notices' filing date.
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    Applicants state that: (1) The properties to be acquired by SPVH 
and operated by SPVR, and the properties of the rail carriers 
controlled by CGX and IHR do not connect with each other; (2) the 
proposed continuances in control are not part of a series of 
anticipated transactions that would connect the carriers with each 
other or any railroad in their corporate families; and (3) the 
transactions do not involve a Class l rail carrier. Therefore, the 
transactions are 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 Sections 11324 
and 11325 that involve only Class III rail carriers. Accordingly, the 
Board may not impose labor protective conditions here because all of 
the carriers involved are Class III carriers.
    If the notices contain false or misleading information, the 
exemptions are void ab initio. Petitions to revoke the exemptions 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 
exemptions. Petitions for stay must be filed no later than October 10, 
2018 (at least seven days before the exemptions become effective).
    An original and 10 copies of all pleadings, referring to Docket 
Nos. FD 36218 and FD 36219, 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 the applicants' 
counsel, Thomas F. McFarland, Thomas F. McFarland, P.C., 208 South 
LaSalle Street, Suite 1666, Chicago, IL 60604-1228.
    According to applicants, these actions are categorically excluded 
from environmental review under 49 CFR 1105.6(c) and from historic 
reporting under 49 CFR 1105.8(b).
    Board decisions and notices are available on our website at 
www.stb.gov.

    Decided: September 25, 2018.

    By the Board, Scott M. Zimmerman, Acting Director, Office of 
Proceedings.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2018-21184 Filed 9-27-18; 8:45 am]
 BILLING CODE 4915-01-P



                                                                          Federal Register / Vol. 83, No. 189 / Friday, September 28, 2018 / Notices                                                49151

                                                Dated: September 25, 2018.                            No. FD 36217, in which SPVR seeks an                  a petition to revoke will not
                                              Jeff Herzig,                                            exemption under 49 CFR 1150.31 to                     automatically stay the effectiveness of
                                              Clearance Clerk.                                        assume operations over the Lines.                     the exemptions. Petitions for stay must
                                              [FR Doc. 2018–21138 Filed 9–27–18; 8:45 am]                According to applicants, CGX will                  be filed no later than October 10, 2018
                                              BILLING CODE 4915–01–P
                                                                                                      continue in control of SPVH upon                      (at least seven days before the
                                                                                                      SPVH’s becoming a Class III rail carrier              exemptions become effective).
                                                                                                      and will remain in control of the                        An original and 10 copies of all
                                              SURFACE TRANSPORTATION BOARD                            following Class III carriers: Crystal City            pleadings, referring to Docket Nos. FD
                                                                                                      Railroad, Inc; Lone Star Railroad, Inc.;              36218 and FD 36219, must be filed with
                                              [Docket No. FD 36218; Docket No. FD                     Rio Valley Railroad, Inc.; and
                                              36219]
                                                                                                                                                            the Surface Transportation Board, 395 E
                                                                                                      Mississippi Tennessee Holdings, Inc.                  Street SW, Washington, DC 20423–0001.
                                              Gregory B. Cundiff, Connie Cundiff,                     Applicants state that IHR will continue               In addition, a copy of each pleading
                                              CGX, Inc. and Ironhorse Resources,                      in control of SPVR upon SPVR’s                        must be served on the applicants’
                                              Inc.—Continuance in Control                             becoming a Class III rail carrier and will            counsel, Thomas F. McFarland, Thomas
                                              Exemption—San Pedro Valley                              remain in control of the following Class              F. McFarland, P.C., 208 South LaSalle
                                              Holdings, LLC in Cochise County,                        III carriers: Texas Railroad Switching,               Street, Suite 1666, Chicago, IL 60604–
                                              Ariz.; Gregory B. Cundiff, Connie                       Inc.; Rio Valley Switching Company;                   1228.
                                              Cundiff, CGX, Inc. and Ironhorse                        Mississippi Tennessee Railroad, LLC;                     According to applicants, these actions
                                              Resources, Inc.—Continuance in                          Southern Switching Company;                           are categorically excluded from
                                              Control Exemption—San Pedro Valley                      Gardendale Railroad, Inc.; Caney Fork &               environmental review under 49 CFR
                                              Railroad, LLC in Cochise County, Ariz.                  Western Railroad; and Santa Teresa                    1105.6(c) and from historic reporting
                                                                                                      Southern Railroad.                                    under 49 CFR 1105.8(b).
                                                 In Docket No. FD 36218, Gregory B.                      The earliest these transactions may be                Board decisions and notices are
                                              Cundiff, Connie Cundiff, CGX, Inc.                      consummated is October 17, 2018, the                  available on our website at www.stb.gov.
                                              (CGX), and Ironhorse Resources, Inc.                    effective date of the exemptions (30
                                              (IHR),1 (collectively, applicants) filed a                                                                      Decided: September 25, 2018.
                                                                                                      days after the verified notices were
                                              verified notice of exemption under 49                   filed).2 CGX and IHR state that they                    By the Board, Scott M. Zimmerman, Acting
                                              CFR 1180.2(d)(2) for CGX to continue in                                                                       Director, Office of Proceedings.
                                                                                                      intend to consummate the transactions
                                              control of San Pedro Valley Holdings,                   no sooner than 30 days after the filing               Jeffrey Herzig,
                                              LLC (SPVH), upon SPVH’s becoming a                      of the notices of exemption.                          Clearance Clerk.
                                              Class III rail carrier.                                    Applicants state that: (1) The                     [FR Doc. 2018–21184 Filed 9–27–18; 8:45 am]
                                                 This transaction is related to a                     properties to be acquired by SPVH and                 BILLING CODE 4915–01–P
                                              concurrently filed verified notice of                   operated by SPVR, and the properties of
                                              exemption in San Pedro Valley                           the rail carriers controlled by CGX and
                                              Holdings, LLC—Acquisition                               IHR do not connect with each other; (2)               SURFACE TRANSPORTATION BOARD
                                              Exemption—San Pedro & Southwestern                      the proposed continuances in control                  [Docket No. AB 1261]
                                              Railroad in Cochise County, Ariz.,                      are not part of a series of anticipated
                                              Docket No. FD 36216. In that                            transactions that would connect the                   New York State Department of
                                              proceeding, SPVH seeks an exemption                     carriers with each other or any railroad              Environmental Conservation—Adverse
                                              under 49 CFR 1150.31 to acquire two                     in their corporate families; and (3) the              Abandonment—Saratoga and North
                                              rail lines owned by the San Pedro and                   transactions do not involve a Class l rail            Creek Railway in Town of Johnsburg,
                                              Southwestern Railroad Company: (1)                      carrier. Therefore, the transactions are              NY
                                              From point of connection to Union                       exempt from the prior approval
                                              Pacific Railroad (UP) at milepost                       requirements of 49 U.S.C. 11323. See 49                  On September 10, 2018, the New York
                                              1033.25 at or near Benson, to milepost                  CFR 1180.2(d)(2).                                     State Department of Environmental
                                              1040.15 at or near St. David, a distance                   Under 49 U.S.C. 10502(g), the Board                Conservation (the Department) filed an
                                              of 6.9 miles in Cochise County, Ariz.;                  may not use its exemption authority to                application under 49 U.S.C. 10903
                                              and (2) from point of connection to UP                  relieve a rail carrier of its statutory               requesting that the Surface
                                              at milepost 1074 at or near Wilcox, to                  obligation to protect the interests of its            Transportation Board (the Board)
                                              all tracks at Wilcox Yard, a total of 8,281             employees. Section 11326(c), however,                 authorize the third-party, or adverse,
                                              feet or 1.57 miles, in Cochise County                   does not provide for labor protection for             abandonment of Saratoga and North
                                              (collectively, the Lines). The Lines total              transactions under Sections 11324 and                 Creek Railway (SNCR) over
                                              approximately 8.47 miles.                               11325 that involve only Class III rail                approximately 29.71 miles of rail line
                                                 In Docket No. FD 36219, applicants                   carriers. Accordingly, the Board may not              extending between milepost NC 0.0 at
                                              filed a verified notice of exemption                    impose labor protective conditions here               North Creek, NY, and its terminus at
                                              under 49 CFR 1180.2(d)(2) for IHR to                    because all of the carriers involved are              milepost NC 29.71 near the former
                                              continue in control of San Pedro Valley                 Class III carriers.                                   Tahawus Mine (Tahawus Line or the
                                              Railroad, LLC (SPVR), upon SPVR’s                          If the notices contain false or                    Line). The Line traverses United States
                                              becoming a Class III rail carrier. This                 misleading information, the exemptions                Postal Service Zip Codes 12842, 12843,
                                              transaction is related to a concurrently                are void ab initio. Petitions to revoke the           12851, 12852, 12853, and 12857.
                                              filed verified notice of exemption in San               exemptions under 49 U.S.C. 10502(d)                      According to the Department, the Line
                                              Pedro Valley Railroad—Operator                          may be filed at any time. The filing of               was built by the United States during
amozie on DSK3GDR082PROD with NOTICES1




                                              Exemption—San Pedro Valley Holdings,                                                                          the Second World War to facilitate the
                                              LLC in Cochise County, Ariz., Docket                      2 The verified notices of exemption in Docket       transportation of strategic materials
                                                                                                      Nos. FD 36218 and FD 36219 originally were filed      from a former mine owned and operated
                                                1 CGX, a noncarrier holding company, owns             on August 30, 2018, but were supplemented on          by NL Industries. In 2012, SNCR
                                              IHR—also a noncarrier holding company. CGX is           September 17, 2018, to clarify the common control
                                              owned in equal parts by the Gregory B. Cundiff          of the entities involved in the transactions.
                                                                                                                                                            obtained Board authority to operate over
                                              Trust and the Connie Cundiff Trust, both of which       Therefore, September 17 is deemed the verified        the Tahawus Line, which it had
                                              are noncarrier individual trusts.                       notices’ filing date.                                 purchased from NL Industries the year


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Document Created: 2018-09-28 01:23:05
Document Modified: 2018-09-28 01:23:05
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 49151 

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