83 FR 59442 - R.J. Corman Railroad Group, LLC and R.J. Corman Railroad Company, LLC-Acquisition of Control Exemption-Nashville and Western Railroad Corp. and Nashville & Eastern Railroad Corp.

SURFACE TRANSPORTATION BOARD

Federal Register Volume 83, Issue 226 (November 23, 2018)

Page Range		59442-59443
FR Document		2018-25574
Federal Register, Volume 83 Issue 226 (Friday, November 23, 2018)
[Federal Register Volume 83, Number 226 (Friday, November 23, 2018)]
[Notices]
[Pages 59442-59443]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-25574]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36250]


R.J. Corman Railroad Group, LLC and R.J. Corman Railroad Company, 
LLC--Acquisition of Control Exemption--Nashville and Western Railroad 
Corp. and Nashville & Eastern Railroad Corp.

    R.J. Corman Railroad Group, LLC (RJCG), a noncarrier holding 
company, and its wholly owned subsidiary, R.J. Corman Railroad Company, 
LLC (RJCR), have jointly filed a verified notice of exemption pursuant 
to 49 CFR 1180.2(d)(2) to acquire control of two Class III railroads, 
Nashville and Western Railroad Corp. (NWRR) and Nashville & Eastern 
Railroad Corp. (NERR). NWRR and NERR are currently controlled by 
William J. Drunsic.\1\
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    \1\ See William J. Drunsic--Continuance in Control Exemption--
Nashville & W. R.R., FD 33910 (STB served Aug. 4, 2000).
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    RJCG and RJCR currently control 12 Class III railroads.\2\ RJCG and 
RJCR state

[[Page 59443]]

that NWRR operates a 28-mile line owned by the Cheatham County Rail 
Authority extending between Tennessee Central milepost 205.76 at 
Nashville, Tenn., and Tennessee Central milepost 185 at Ashland City, 
Tenn. RJCG and RJCR state that NERR operates rail lines owned by the 
Nashville and Eastern Railroad Authority totaling approximately 130.2 
miles, extending between (1) milepost 0.35 at Nashville and milepost 
110.5 at Monterey, Tenn., (2) milepost 189.5 at Vine Hill, Tenn., and 
194.1 at Southern Junction, Tenn., (3) milepost NX 0.00 at Carthage 
Junction, Tenn., and milepost NX 7.56 at Carthage, Tenn., and (4) 
milepost 0.1 at Donelson, Tenn., and milepost 8.0 at Old Hickory, Tenn.
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    \2\ Two of the 12, R.J. Corman Railroad Property, LLC, and R.J. 
Corman Railroad Company/Ashland, LLC, are non-operating carriers. 
The other 10 operating railroads include R.J. Corman Railroad 
Company/Western Ohio Line, Inc., R.J. Corman Railroad Company/
Pennsylvania Lines, Inc., R.J. Corman Railroad Company/Allentown 
Lines, Inc., R.J. Corman Railroad Company/Bardstown Line, Inc., R.J. 
Corman Railroad Company/Cleveland Line, Inc., R.J. Corman Railroad 
Company/Carolina Lines, LLC, R.J. Corman Railroad Company/Central 
Kentucky Lines, LLC, R.J. Corman Railroad Company/Texas Lines, LLC, 
R.J. Corman Railroad Company/Tennessee Terminal, LLC, and R.J. 
Corman Railroad Company/Memphis Line, Inc., (collectively, RJC 
Railroads).
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    RJCG and RJCR have signed a Plan of Merger and Sale and Purchase of 
Equity Interests (Agreement) \3\ with NWRR and NERR by which RJCG and 
RJCR will acquire control of NWRR and NERR through the purchase of 100% 
of their issued and outstanding stock.\4\
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    \3\ An unredacted copy of the Agreement was filed concurrently 
under seal, along with a motion for protective order, which will be 
addressed in a separate decision.
    \4\ RJCG and RJCR indicate that they will purchase the stock of 
NERR through the creation of a holding company, RJCN, Inc., and its 
wholly owned entity, RJCMS, Inc., which will be merged into NERR 
simultaneously, with NERR as the surviving entity. RJCG and RJCR 
will purchase the stock of NWRR by merging NWRR with newly created 
entity RJCWMS, Inc., which will be the surviving entity with the 
name reverting to NWRR.
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    The earliest the transaction could be consummated is December 9, 
2018, the effective date of the exemption (30 days after the verified 
notice was filed). RJCG and RJCR state that the transaction is 
scheduled to be finalized during the first quarter of 2019.
    RJCG and RJCR certify that: (i) NWRR and NERR do not connect with 
each other or any of the RJC Railroads; (ii) the proposed transaction 
is not part of a series of anticipated transactions that would connect 
some or all of these railroads; and (iii) the transaction does not 
involve a Class I carrier. Therefore, the transaction is exempt from 
the 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 the labor protection for transactions under sections 
11324 and 11325 that involve only Class III rail carriers. Therefore, 
because this transaction involves only Class III rail carriers, the 
Board may not impose labor protective conditions for this transaction.
    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 transaction. 
Petitions to stay must be filed no later than November 30, 2018 (at 
least seven days before the exemption becomes effective).
    An original and ten copies of all pleadings, referring to Docket 
No. FD 36250, 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 David R. Irvin, Esq., Moynahan, Irvin & 
Mooney P.S.C., 110 N Main Street, Nicholasville, KY 40356.
    Board decisions and notices are available on our website at 
www.stb.gov.

    Decided: November 19, 2018.

    By the Board, Scott M. Zimmerman, Acting Director, Office of 
Proceedings.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2018-25574 Filed 11-21-18; 8:45 am]
BILLING CODE P
59442 Federal Register / Vol. 83, No. 226 / Friday, November 23, 2018 / Notices

Administration, 409 3rd Street SW, This certification shall be published transaction may be consummated is
Washington, DC 20416. in the Federal Register and, along with December 7, 2018 (30 days after the
FOR FURTHER INFORMATION CONTACT: the accompanying Memorandum of verified notice was filed).
Mary Frias, Loan Specialist, Office of Justification, shall be reported to If the verified notice contains false or
Financial Assistance, mary.frias@ Congress. misleading information, the exemption
sba.gov 202–401–8234, or Curtis B. Dated: September 20, 2018. is void ab initio. Petitions to revoke the
Rich, Management Analyst, 202–205– John J. Sullivan, exemption under 49 U.S.C. 10502(d)
7030, curtis.rich@sba.gov. may be filed at any time. The filing of
Deputy Secretary of State.
SUPPLEMENTARY INFORMATION: The a petition to revoke will not
[FR Doc. 2018–25563 Filed 11–21–18; 8:45 am]
servicing agent agreement is executed automatically stay the effectiveness of
BILLING CODE 4710–31–P
by the borrower, and the certified the exemption. Petitions to stay must be
development company as the loan filed no later than November 30, 2018
servicing agent. The agreement is (at least seven days before the
SURFACE TRANSPORTATION BOARD exemption becomes effective).
primarily used by the certified
development company as the loan [Docket No. FD 36237] An original and 10 copies of all
servicing agent and acknowledges the pleadings, referring to Docket No. FD
imposition of various fees allowed in Tulsa-Sapulpa Union Railway 36237, must be filed with the Surface
SBA’s 504 loan program. Company, L.L.C.—Lease Renewal Transportation Board, 395 E Street SW,
Exemption With Interchange Washington, DC 20423–0001. In
Solicitation of Public Comments Commitment—Union Pacific Railroad addition, a copy of each pleading must
SBA is requesting comments on (a) Company be served on TSU’s representative,
Whether the collection of information is Audrey L. Brodrick, Fletcher & Sippel
Tulsa-Sapulpa Union Railway
necessary for the agency to properly LLC, 29 North Wacker Drive, Suite 800,
Company, L.L.C. (TSU), a Class III rail
perform its functions; (b) whether the Chicago, IL 60606–3208.
carrier, has filed a verified notice of According to TSU, this action is
burden estimates are accurate; (c) exemption under 49 CFR 1150.41 to
whether there are ways to minimize the categorically excluded from
renew its lease of approximately 12.86 environmental review under 49 CFR
burden, including through the use of miles of railroad line owned by Union
automated techniques or other forms of 1105.6(c) and from historic reporting
Pacific Railroad Company (UP), located under 49 CFR 1105.8(b).
information technology; and (d) whether in Tulsa County, Okla. (the Line). The
there are ways to enhance the quality, Board decisions and notices are
Line, known as the Jenks Industrial available on our website at www.stb.gov.
utility, and clarity of the information. Lead, extends from milepost 136.40 near
the Kimberly Clark facility in Jenks, Decided: November 19, 2018.
Summary of Information Collection
Okla., to the end of UP’s ownership at By the Board, Scott M. Zimmerman, Acting
Title: Servicing Agent Agreement. Director, Office of Proceedings.
Description of Respondents: SBA milepost 149.26 and the connection
with UP’s trackage rights over BNSF Aretha Laws-Byrum,
Borrowers.
Railway Company in Tulsa, Okla. Clearance Clerk.
Form Number: SBA Form 1506.
Total Estimated Annual Responses: TSU states that it and UP previously [FR Doc. 2018–25529 Filed 11–21–18; 8:45 am]
6,151. executed a lease agreement regarding BILLING CODE 4915–01–P
Total Estimated Annual Hour Burden: the Line in 2001.1 TSU states that the
6,151. new lease agreement, dated as of
December 21, 2018, has an initial five- SURFACE TRANSPORTATION BOARD
Curtis Rich, year term that may be extended by TSU [Docket No. FD 36250]
Management Analyst. for an additional 15 years.
[FR Doc. 2018–25513 Filed 11–21–18; 8:45 am] TSU certifies that its projected annual R.J. Corman Railroad Group, LLC and
BILLING CODE 8025–01–P revenues from this transaction will not R.J. Corman Railroad Company, LLC—
result in its becoming a Class I or Class Acquisition of Control Exemption—
II rail carrier and will not exceed $5 Nashville and Western Railroad Corp.
DEPARTMENT OF STATE million. As required under 49 CFR and Nashville & Eastern Railroad Corp.
1150.43(h)(1), TSU has disclosed in its
[Public Notice 10616] verified notice that the lease renewal R.J. Corman Railroad Group, LLC
agreement contains an interchange (RJCG), a noncarrier holding company,
Certification Pursuant to Section 704 and its wholly owned subsidiary, R.J.
commitment that charges TSU an asset
I(F)(3) of the Department of State, Corman Railroad Company, LLC (RJCR),
use fee for carloads that originate or
Foreign Operations, and Related have jointly filed a verified notice of
terminate on the Line that are not
Programs Appropriations Act, 2018 exemption pursuant to 49 CFR
interchanged to UP.2 TSU has provided
By virtue of the authority vested in additional information regarding the 1180.2(d)(2) to acquire control of two
me under section 7041(f)(3) of the interchange commitment as required by Class III railroads, Nashville and
Department of State, Foreign 49 CFR 1150.43(h). Western Railroad Corp. (NWRR) and
Operations, and Related Programs TSU states in its verified notice that Nashville & Eastern Railroad Corp.
Appropriations Act, 2018 (Div. K, Pub. it intends to consummate the proposed (NERR). NWRR and NERR are currently
L. 115–141) (SFOAA) and Department lease renewal on or shortly after controlled by William J. Drunsic.1
amozie on DSK3GDR082PROD with NOTICES1

of State Delegation of Authority 245–2, December 21, 2018. The earliest this RJCG and RJCR currently control 12
I hereby certify that all practicable steps Class III railroads.2 RJCG and RJCR state
have been taken to ensure that 1 Tulsa-Sapulpa Union Ry.—Lease & Operation

mechanisms are in place for monitoring, Exemption—Union Pac. R.R., FD 33974 (STB served 1 See William J. Drunsic—Continuance in Control

Dec. 26, 2000, corrected Feb. 12, 2001). Exemption—Nashville & W. R.R., FD 33910 (STB
oversight, and control of funds made 2 TSU submitted under seal a copy of the lease served Aug. 4, 2000).
available by section 7041(f) of the renewal agreement with its verified notice of 2 Two of the 12, R.J. Corman Railroad Property,

SFOAA for assistance for Libya. exemption. LLC, and R.J. Corman Railroad Company/Ashland,

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Federal Register / Vol. 83, No. 226 / Friday, November 23, 2018 / Notices 59443

that NWRR operates a 28-mile line relieve a rail carrier of its statutory The transaction may be consummated
owned by the Cheatham County Rail obligation to protect the interests of its on or after December 8, 2018, the
Authority extending between Tennessee employees. Section 11326(c), however, effective date of the exemption (30 days
Central milepost 205.76 at Nashville, does not provide for the labor protection after the verified notice of exemption
Tenn., and Tennessee Central milepost for transactions under sections 11324 was filed).
185 at Ashland City, Tenn. RJCG and and 11325 that involve only Class III rail According to the verified notice of
RJCR state that NERR operates rail lines carriers. Therefore, because this exemption, Watco currently controls
owned by the Nashville and Eastern transaction involves only Class III rail indirectly 38 Class III railroads and one
Railroad Authority totaling carriers, the Board may not impose labor Class II railroad, collectively operating
approximately 130.2 miles, extending protective conditions for this in 25 states. For a complete list of these
between (1) milepost 0.35 at Nashville transaction. rail carriers and the states in which they
and milepost 110.5 at Monterey, Tenn., If the verified notice contains false or operate, see the November 8, 2018
(2) milepost 189.5 at Vine Hill, Tenn., misleading information, the exemption verified notice of exemption at pages 4–
and 194.1 at Southern Junction, Tenn., is void ab initio. Petitions to revoke the 11. The verified notice is available on
(3) milepost NX 0.00 at Carthage exemption under 49 U.S.C. 10502(d) the Board’s website at www.stb.gov.
Junction, Tenn., and milepost NX 7.56 may be filed at any time. The filing of Watco represents that: (1) The rail line
at Carthage, Tenn., and (4) milepost 0.1 a petition to revoke will not to be operated by ICR does not connect
at Donelson, Tenn., and milepost 8.0 at automatically stay the transaction. with any of the rail lines operated by
Old Hickory, Tenn. Petitions to stay must be filed no later railroads in the Watco corporate family;
RJCG and RJCR have signed a Plan of than November 30, 2018 (at least seven (2) this transaction is not part of a series
Merger and Sale and Purchase of Equity days before the exemption becomes of anticipated transactions that would
Interests (Agreement) 3 with NWRR and effective). connect ICR with any railroad in the
NERR by which RJCG and RJCR will An original and ten copies of all Watco corporate family; and (3) the
acquire control of NWRR and NERR pleadings, referring to Docket No. FD transaction does not involve a Class I
through the purchase of 100% of their 36250, must be filed with the Surface rail carrier. The proposed transaction is
issued and outstanding stock.4 Transportation Board, 395 E Street SW, therefore exempt from the prior
The earliest the transaction could be Washington, DC 20423–0001. In approval requirements of 49 U.S.C.
consummated is December 9, 2018, the addition, a copy of each pleading must 11323 pursuant to 49 CFR 1180.2(d)(2).
effective date of the exemption (30 days be served on David R. Irvin, Esq., Watco states that the purpose of the
after the verified notice was filed). RJCG Moynahan, Irvin & Mooney P.S.C., 110 transaction is to reduce overhead
and RJCR state that the transaction is N Main Street, Nicholasville, KY 40356. expenses and coordinate billing,
scheduled to be finalized during the Board decisions and notices are maintenance, mechanical and personnel
first quarter of 2019. available on our website at www.stb.gov. policies and procedures of its rail carrier
RJCG and RJCR certify that: (i) NWRR subsidiaries, and thereby improve the
and NERR do not connect with each Decided: November 19, 2018. overall efficiency of rail service
other or any of the RJC Railroads; (ii) the By the Board, Scott M. Zimmerman, Acting provided by the railroads in the Watco
proposed transaction is not part of a Director, Office of Proceedings. corporate family.
series of anticipated transactions that Kenyatta Clay, Under 49 U.S.C. 10502(g), the Board
would connect some or all of these Clearance Clerk. may not use its exemption authority to
railroads; and (iii) the transaction does [FR Doc. 2018–25574 Filed 11–21–18; 8:45 am] relieve a rail carrier of its statutory
not involve a Class I carrier. Therefore, BILLING CODE P obligation to protect the interests of its
the transaction is exempt from the employees. Because the transaction
requirements of 49 U.S.C. 11323. See 49 involves the control of one Class II and
CFR 1180.2(d)(2). SURFACE TRANSPORTATION BOARD one or more Class III rail carriers, the
Under 49 U.S.C. 10502(g), the Board transaction is subject to the labor
[Docket No. FD 36243]
may not use its exemption authority to protection requirements of 49 U.S.C.
Watco Holdings, Inc.—Continuance in 11326(b) and Wisconsin Central Ltd.—
LLC, are non-operating carriers. The other 10
Control Exemption—Ithaca Central Acquisition Exemption—Lines of Union
operating railroads include R.J. Corman Railroad
Company/Western Ohio Line, Inc., R.J. Corman Railroad, LLC Pacific Railroad, 2 S.T.B. 218 (1997).
Railroad Company/Pennsylvania Lines, Inc., R.J. If the verified notice contains false or
Corman Railroad Company/Allentown Lines, Inc., Watco Holdings Inc. (Watco), a misleading information, the exemption
R.J. Corman Railroad Company/Bardstown Line, noncarrier, has filed a verified notice of is void ab initio. Petitions to revoke the
Inc., R.J. Corman Railroad Company/Cleveland exemption under 49 CFR 1180.2(d)(2) to exemption under 49 U.S.C. 10502(d)
Line, Inc., R.J. Corman Railroad Company/Carolina
Lines, LLC, R.J. Corman Railroad Company/Central
continue in control of Ithaca Central may be filed at any time. The filing of
Kentucky Lines, LLC, R.J. Corman Railroad Railroad, LLC (ICR), upon ICR’s a petition to revoke will not
Company/Texas Lines, LLC, R.J. Corman Railroad becoming a Class III rail carrier. Watco automatically stay the effectiveness of
Company/Tennessee Terminal, LLC, and R.J. owns, indirectly, 100% of the issued the exemption. Petitions for stay must
Corman Railroad Company/Memphis Line, Inc.,
(collectively, RJC Railroads).
and outstanding stock of ICR. be filed no later than November 30,
3 An unredacted copy of the Agreement was filed This transaction is related to a 2018 (at least seven days before the
concurrently under seal, along with a motion for verified notice of exemption filed exemption becomes effective).
protective order, which will be addressed in a concurrently in Ithaca Central Railroad, An original and 10 copies of all
separate decision. LLC—Lease & Operation Exemption— pleadings, referring to Docket No. FD
amozie on DSK3GDR082PROD with NOTICES1

4 RJCG and RJCR indicate that they will purchase

the stock of NERR through the creation of a holding
Norfolk Southern Railway, Docket No. 36243, must be filed with the Surface
company, RJCN, Inc., and its wholly owned entity, FD 36238, by which ICR seeks Board Transportation Board, 395 E Street SW,
RJCMS, Inc., which will be merged into NERR approval to lease from Norfolk Southern Washington, DC 20423–0001. In
simultaneously, with NERR as the surviving entity. Railway Company (NSR) and operate addition, one copy of each pleading
RJCG and RJCR will purchase the stock of NWRR
by merging NWRR with newly created entity
approximately 48.8 miles of rail line must be served on Karl Morell &
RJCWMS, Inc., which will be the surviving entity between milepost 272.2 in Sayre, Pa. Associates, 440 1st Street NW, Suite
with the name reverting to NWRR. and milepost 321.0 in Lansing, N.Y. 440, Washington, DC 20001.

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Document Created: 2018-11-27 12:58:25
Document Modified: 2018-11-27 12:58:25
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 59442