Transportation Holdings, LLC-Control Exemption-Adrian & Blissfield Rail Road Company, Charlotte Southern Railroad Company, Detroit Connecting Railroad Company, Lapeer Industrial Railroad Company, and Jackson & Lansing Railroad Company

• Citation: 86 FR 32303
• Record Number: 2021-12834
• Published date: 17 June 2021
• Section: Notices
• Court: Surface Transportation Board

Federal Register, Volume 86 Issue 115 (Thursday, June 17, 2021)

[Federal Register Volume 86, Number 115 (Thursday, June 17, 2021)]
                [Notices]
                [Pages 32303-32304]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2021-12834]
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                SURFACE TRANSPORTATION BOARD
                [Docket No. FD 36465]
                Transportation Holdings, LLC--Control Exemption--Adrian &
                Blissfield Rail Road Company, Charlotte Southern Railroad Company,
                Detroit Connecting Railroad Company, Lapeer Industrial Railroad
                Company, and Jackson & Lansing Railroad Company
                 Transportation Holdings, LLC (Holdings), a noncarrier, filed a
                verified notice of exemption under 49 CFR 1180.2(d)(2) for
                authorization to obtain a controlling interest in Adrian & Blissfield
                Rail Road Company (A&B), a Class III railroad, and its four
                subsidiaries, also Class III railroads: Charlotte Southern Railroad
                Company (CSRC); Detroit Connecting Railroad Company (DCRC); Lapeer
                Industrial Railroad Company (LIRC); and Jackson & Lansing Railroad
                Company (JLRC).\1\
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                 \1\ A&B operates a 20-mile rail line between Adrian and Riga,
                Mich. CSRC operates a 3.5-mile rail line near Charlotte, Mich. DCRC
                operates a 2.5-mile rail line in Detroit, Mich. LIRC operates a 1.5-
                mile rail line in LaPeer, Mich. JLRC operates a 47-mile rail line
                between Jackson and Lansing, Mich. See Dobronski--Acquis. of
                Control--Adrian & Blissfield R.R., FD 35787, slip op. at 2 n.1 (STB
                served Dec. 12, 2013); (see also Verified Notice of Exemption at Ex.
                1).
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                 The verified notice states that Holdings and the shareholders of
                A&B will enter into an Equity Purchase Agreement by which Holdings will
                acquire a controlling interest in A&B and, as a result, indirect
                control of CSRC, DCRC, LIRC, and JLRC. These five rail carriers own and
                operate rail lines located entirely within the state of Michigan.
                Holdings does not control any other rail carriers.
                 Holdings states that: (1) The lines over which A&B, CSRC, DCRC,
                LIRC, and JLRC operate do not connect with one another, (2) the
                proposed transaction is not part of a series of anticipated
                transactions that would connect the lines with each other; and (3) the
                transaction does not involve a Class I rail carrier. Therefore, the
                proposed transaction is exempt from the prior approval requirements of
                49 U.S.C. 11323. See 49 CFR 1180.2(d)(2).
                 The earliest this transaction may be consummated is July 1, 2021,
                the
                [[Page 32304]]
                effective date of the exemption (30 days after the verified notice was
                filed).
                 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. Because this
                transaction involves Class III rail carriers only, the Board, under the
                statute, 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 effectiveness of the
                exemption. Petitions to stay must be filed no later than June 24, 2021
                (at least seven days before the exemption becomes effective).
                 All pleadings, referring to Docket No FD 36465, should be filed
                with the Surface Transportation Board via e-filing on the Board's
                website. In addition, a copy of each pleading must be served on
                Holdings' representative, Bradon J. Smith, Fletcher & Sippel LLC, 29
                North Wacker Drive, Suite 800, Chicago, IL 60606-3208.
                 According to Holdings, this action is categorically excluded from
                environmental review under 49 CFR 1105.6(c) and from historic
                preservation reporting requirements under 49 CFR 1105.8(b).
                 Board decisions and notices are available at www.stb.gov.
                 Decided: June 14, 2021.
                 By the Board, Scott M. Zimmerman, Acting Director, Office of
                Proceedings.
                Kenyatta Clay,
                Clearance Clerk.
                [FR Doc. 2021-12834 Filed 6-16-21; 8:45 am]
                BILLING CODE 4915-01-P