L. Neill Cartage Co., Inc. (Cartage), a noncarrier, has filed a verified notice of exemption under 49 CFR 1180.2(d)(2) to continue in control of Proviso Railroad, Inc. (PRR), and Mason Railroad, Inc. (MRR), upon their becoming Class III rail carriers.

This transaction is related to notices of exemption in Proviso Railroad, Inc.—Acquisition Exemption—L. Neill Cartage Co., Inc., Docket No. FD 36874, and Mason Railroad, Inc.—Acquisition Exemption—L. Neill Cartage Co., Inc., Docket No. FD 36875, in which PRR and MRR seek Board approval to acquire from Cartage and to operate certain rail lines in Illinois.^[1]

Cartage represents that: (1) the lines that PRR and MRR seek to acquire are the only lines that Cartage will control and that they do not connect with each other; (2) the proposed transactions are 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 carrier. Therefore, the proposed transaction is exempt from the prior approval requirements of 49 U.S.C. 11323. See49 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. However, 49 U.S.C. 11326(c) does not provide for labor protection for transactions under 49 U.S.C. 11324 and 11325 that involve only Class III rail carriers. Accordingly, because the proposed transactions involve Class III rail carriers only, the Board may not impose labor protective conditions here.

The earliest this transaction may be consummated is May 9, 2026, the effective date of the exemption (30 days after the verified notice was filed).^[2] 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 by May 1, 2026.

All pleadings, referring to Docket No. FD 36912, must be filed with the Surface Transportation Board either via e-filing on the Board's website or in writing addressed to 395 E Street SW, Washington, DC 20423-0001. In addition, a copy of each pleading must be served on Cartage's representative, Max Callahan, Fulcrum Rail, 180 North Wacker Drive, Suite 400, Chicago, IL 60606.

According to Cartage, this action is categorically excluded from environmental review under 49 CFR 1105.6(c) and from historic preservation ( printed page 22214) reporting requirements under 49 CFR 1105.8(b).

Board decisions and notices are available at www.stb.gov.