[Federal Register Volume 67, Number 116 (Monday, June 17, 2002)]
[Notices]
[Pages 41297-41298]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-15202]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Finance Docket No. 34177]
Iowa, Chicago & Eastern Railroad Corporation--Acquisition and
Operation Exemption--Lines of I&M Rail Link, LLC
Iowa, Chicago & Eastern Railroad Corporation (ICE)\1\ filed a
notice of exemption under 49 CFR 1150.31 on June 7, 2002, to acquire
and operate the following rail lines and assets owned by I&M Rail Link,
LLC (IMRL), a Class II carrier: (1) IMRL's existing rail lines, which
extend approximately 1,125 miles between Chicago, IL, Kansas City, MO,
and Minneapolis/St. Paul, MN, and across Northern Iowa and Southern
Minnesota; (2) approximately 275 miles of IMRL's incidental trackage
rights over lines of other carriers; (3) IMRL's ownership and
operational interests in The Kansas City Terminal Railway Company; (4)
IMRL's ownership and operational interests in the so-called ``Joint
Agency'' in Kansas City (jointly owned with The Kansas City Southern
Railway Company); and (5) IMRL's interests in jointly owned and/or
operated industry trackage in various locations, including South
Beloit, IL, Beloit and Janesville, WI, and Clinton, IA.
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\1\ ICE states that it is a noncarrier subsidiary of Cedar
American Rail Holdings, Inc. (Holdings), which is a wholly owned
subsidiary of Dakota, Minnesota & Eastern Railroad Corporation
(DME).
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ICE states that DME and Holdings expect to file an application in
STB Finance Docket No. 34178, Dakota, Minnesota & Eastern Railroad
Corporation and Cedar American Rail Holdings, Inc.-Control-Iowa,
Chicago & Eastern Railroad Corporation, pursuant to 49 U.S.C.
11323(a)(3) and 49 CFR 1180.2(c), to continue in control of ICE once
ICE acquires the IMRL lines and becomes a rail carrier.
Because the projected revenues of the rail lines to be operated
exceed $5 million, ICE certified to the Board, on February 26, 2002,
that the required notice of its rail line acquisition was posted at the
workplace of the employees of IMRL and was served on the national
offices of all labor unions with employees on the affected lines on
February 25, 2002. See 49 CFR 1150.35(a), referring to 49 CFR
1150.32(e).
ICE reported that it intends to consummate the transaction on or
after June 28, 2002.
Prior to ICE's filing of the notice of exemption, the Board
received a number of submissions from interested persons expressing
concern about the transaction.\2\ These persons identified a number of
potential issues, including financial, environmental, shipper, and
labor-related matters in connection with ICE's anticipated acquisition.
Given the passage of time since the Board received these submissions in
this relatively large transaction, the lack of any response on the
record from ICE to the submissions, and the uncertainty as to whether
ICE has even received all of the submissions, this notice is being
issued to advise interested parties of the process to be used for
handling this matter.
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\2\ The Board has received correspondence from the following
persons raising concerns about, or opposing, ICE's proposed
acquisition: Iowa Department of Transportation, municipality of
Dubuque, IA, and Sethness Products Company (financial viability,
environmental/community impacts, and shipper effects); East Central
Intergovernmental Association (community and shipper impacts); Tyson
Foods, Inc. (rail service); Iowa Traction Railroad Company
(financial viability, rail service, and downgrading of IMRL's grain
lines); municipalities of Marquette and Mason City, IA, and Winona,
MN (community concerns); Dubuque County Board of Supervisors (grain
and agricultural marketing); Brotherhood of Locomotive Engineers
(labor protection for IMRL employees and financial viability); and
Ronald D. Barczak and William G. Jungbauer (IMRL employee injury
claims).
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Under the Board's exemption rules, ICE's exemption to acquire and
operate IMRL's lines is due to become effective on June 28, 2002 (21
days after the notice was filed). See 49 CFR 1150.35(e). If the 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. A petition to revoke under 49 U.S.C. 10502(d)
does not automatically stay the transaction. Stay petitions must be
filed within 7 days of the filing of the notice of exemption (no later
than June 14, 2002). Any comments on the notice of exemption that
parties wish the Board to consider prior to the effective date of the
exemption must be filed by June 19, 2002. Replies to stay petitions and
other comments will be due by June 21, 2002. To be considered, stay
petitions and all comments, regardless of when submitted to the Board,
must be served on ICE's representative in a manner that ensures receipt
by June 14, 2002 (for stay petitions) and by June 19, 2002 (for all
other comments).
An original and 10 copies of all pleadings, referring to STB
Finance Docket No. 34177, must be filed with the Surface Transportation
Board, 1925 K Street, NW, Washington, DC 20423-0001. In addition, one
copy of each pleading must be served on William C. Sippel, Fletcher &
Sippel LLC, Two Prudential Plaza, Suite 3125, 180 North Stetson Avenue,
Chicago, IL 60601-6721.
[[Page 41298]]
Board decisions and notices are available on our Web site at
``WWW.STB.DOT.GOV.''
Decided: June 11, 2002.
By the Board, David M. Konschnik, Director, Office of
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 02-15202 Filed 6-14-02; 8:45 am]
BILLING CODE 4915-00-P