83 FR 54162 - Iowa & Middletown Railway LLC-Lease and Operation Exemption-American Ordnance LLC, Owner's Representative for U.S. Army Joint Munitions Command

SURFACE TRANSPORTATION BOARD

Federal Register Volume 83, Issue 208 (October 26, 2018)

[Federal Register Volume 83, Number 208 (Friday, October 26, 2018)]
[Notices]
[Page 54162]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-23472]



[[Page 54162]]

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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36231]


Iowa & Middletown Railway LLC--Lease and Operation Exemption--
American Ordnance LLC, Owner's Representative for U.S. Army Joint 
Munitions Command

    Iowa & Middletown Railway LLC (I&M), a noncarrier, has filed a 
verified notice of exemption under 49 CFR 1150.31 to lease from 
American Ordnance LLC (AO), as owner's representative for the U.S. Army 
Joint Munitions Command (JMC), and to operate, within the Iowa Army 
Ammunition Plant (Plant),\1\ approximately four miles of track 
(Line).\2\ According to I&M, there are no mileposts assigned to the 
Line. The Line is located in Des Moines County, Iowa, on a portion of 
the Plant that JMC no longer needs and will be repurposed as a business 
park.
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    \1\ The Plant is owned by JMC. According to I&M, AO and JMC are 
parties to an Operations and Maintenance Agreement that permits AO 
to grant rights to use certain property within the Plant, including 
the railroad tracks.
    \2\ I&M states that the lease also includes a number of other 
tracks that will be operated by I&M under as yard and industrial 
tracks for which no Board authority is required.
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    I&M states that upon consummation of the transaction and the 
commencement of operations, I&M will be a Class III carrier. I&M states 
that it is leasing the Line in order to provide common carrier rail 
service to transload customers and other rail customers that may locate 
in the planned business park. I&M states it will originate and 
terminate freight traffic and conduct loading and unloading operations 
and that it will also offer rail car storage and car repair services 
within the Plant. The Line connects with BNSF Railway Company (BNSF) at 
Middletown, Iowa, and I&M is working with BNSF to establish interchange 
there.
    According to I&M, it intends to commence common carrier operations 
on or about January 1, 2019. I&M states, however, that Eyal Shapira, 
President of I&M, would file a related notice of exemption for common 
control of I&M and other railroads under his control. Mr. Shapira filed 
that notice in Eyal Shapira--Continuance in Control Exemption--Iowa & 
Middletown Railway, Docket No. FD 36232, on October 23, 2018.\3\ 
Therefore, the effective date of this lease and operation exemption 
will be held in abeyance pending review of Mr. Shapira's notice of 
exemption.
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    \3\ The notice of exemption in Docket No. FD 36232 also relates 
to a concurrently filed notice of exemption in Wolf Creek Railroad 
LLC--Lease & Operation Exemption--American Ordnance LLC, Owner's 
Representative for U.S. Army Joint Munitions Command, Docket No. FD 
36236.
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    I&M certifies that its projected annual revenues as a result of 
this transaction will not exceed $5 million or result in the creation 
of a Class II or Class I rail carrier.
    I&M also certifies that the lease does not impose or include an 
interchange commitment.
    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 seven days 
before the exemption becomes effective; a deadline for filing petitions 
for stay will be established in a future decision that establishes an 
effective date for this exemption.
    An original and 10 copies of all pleadings, referring to Docket No. 
FD 36231, 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 Eric M. Hocky, Clark Hill PLC, One Commerce 
Square, 2005 Market Street, Suite 1000, Philadelphia, PA 19103.
    According to I&M, 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: October 23, 2018.

    By the Board, Scott M. Zimmerman, Acting Director, Office of 
Proceedings.

Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2018-23472 Filed 10-25-18; 8:45 am]
BILLING CODE 4915-01-P