Notice2021-27907
Fox Valley & Lake Superior Rail System, L.L.C.-Acquisition and Operation Exemption-Lines of Wisconsin Central Ltd. in the State of Wisconsin
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 23, 2021
Issuing agencies
Surface Transportation Board
Full Text
<html>
<head>
<title>Federal Register, Volume 86 Issue 244 (Thursday, December 23, 2021)</title>
</head>
<body><pre>
[Federal Register Volume 86, Number 244 (Thursday, December 23, 2021)]
[Notices]
[Pages 73087-73088]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-27907]
-----------------------------------------------------------------------
SURFACE TRANSPORTATION BOARD
[Docket No. FD 36504]
Fox Valley & Lake Superior Rail System, L.L.C.--Acquisition and
Operation Exemption--Lines of Wisconsin Central Ltd. in the State of
Wisconsin
Fox Valley & Lake Superior Rail System, L.L.C. (Fox System),\1\ a
noncarrier, has filed a verified notice of exemption under 49 CFR
1150.31 to acquire and operate approximately 328.52 miles of active
rail lines and 180.75 miles of rail line over which discontinuance of
service previously had been authorized, totaling approximately 509.27
miles (the Lines) owned by Wisconsin Central Ltd. (WCL). The Lines
include the Southern Cluster (41.88 miles), the Green Bay Cluster
(32.33 miles), the Appleton Cluster (82.32 miles), and the Northern
Cluster (352.74 miles), all in the State of Wisconsin.
---------------------------------------------------------------------------
\1\ Fox System is an indirectly controlled subsidiary of Watco
Holdings, Inc. (Watco Holdings), a noncarrier Delaware limited
liability holding company.
---------------------------------------------------------------------------
The Southern Cluster consists of (1) the Eden Spur extending from
Eden, Wis., at milepost 138.7, to Fond du Lac, Wis., at milepost
146.04, a distance of approximately 7.34 miles; (2) the West Bend
Subdivision extending from Granville, Wis., at milepost 99.5, to West
Bend, Wis., at milepost 114.42, a distance of approximately 14.92
miles; and (3) the Saukville Subdivision extending from Mill (North
Milwaukee), Wis., at milepost 95.18, to Saukville, Wis., at milepost
114.8, a distance of approximately 19.62 miles.
The Green Bay Cluster consists of (1) the Denmark Spur extending
from Denmark, Wis., at milepost 97.75, to Green Bay, Wis., at milepost
113.28, a distance of approximately 15.53 miles; and (2) the Luxemburg
Spur extending from Green Bay at milepost 2.1, to Luxemburg, Wis., at
milepost 18.9, a distance of approximately 16.8 miles.
The Appleton Cluster consists of (1) the Shawano Subdivision
extending from Appleton, Wis., at milepost 358.18, to Shawano, Wis., at
milepost 314.08, a distance of approximately 44.1 miles; (2) the New
London Spur extending from Appleton at milepost 121.6, to New London,
Wis., at milepost 141.0 and from New London at milepost 38.98, to
Manawa, Wis., at milepost 50.3, a total distance of approximately 30.72
miles; \2\ (3) the Kimberly Spur extending from Appleton at milepost
121.5, to Kaukauna, Wis., at milepost 114.0, a distance of
approximately 7.5 miles.\3\
---------------------------------------------------------------------------
\2\ In 2017, WCL discontinued service over the line from New
London to Manawa. See Wis. Cent. Ltd.--Discontinuance of Serv.
Exemption--in Waupaca Cnty., Wis., AB 303 (Sub-No. 48X) (STB served
Aug. 31, 2017).
\3\ Fox System will also acquire 0.1 miles of incidental
trackage rights extending between milepost 212.9 and milepost 213.0
on WCL's Fox River Subdivision to access the Kimberly Spur.
---------------------------------------------------------------------------
The Northern Cluster consists of (1) a portion of the Valley
Subdivision extending from Rothschild, Wis., at milepost 85.0, to
Tomahawk, Wis., at milepost 133.09, and from Tomahawk at milepost
133.49, to Bradley, Wis., at milepost 138.42, a distance of
approximately 53.02 miles, as well as trackage rights by assignment
over Tomahawk Railway, Limited Partnership, between milepost 133.09 and
milepost 133.49 at Tomahawk; \4\ (2) the ``Wausau Pocket'' trackage at
Wausau, Wis., from Kelly, Wis., at milepost 17.4, to Wausau at milepost
27.4, and from Kelly at milepost 0.0, to Schofield, Wis., at milepost
1.9, a total distance of approximately 11.9 miles; \5\ (3) an undivided
one-half interest (with WCL) in the portion of the Valley Subdivision
extending from Mosinee, Wis., at milepost 77.0, to Rothschild at
milepost 85.0, a distance of approximately 8.0 miles; \6\ (4) a portion
of the Bradley and Pembine Subdivisions extending from Tony, Wis., at
milepost 138.0, to Goodman, Wis., at milepost 269.0, a distance of
approximately 131.0 miles; \7\ (5) the Ashland Subdivision extending
from Prentice, Wis., at milepost 343.3, to Ashland, Wis., at milepost
434.49, a distance of approximately 91.19 miles; \8\ (6) the White Pine
Subdivision extending from Marengo Jct., Wis., at milepost 332.39, to
the Michigan/Wisconsin border at milepost 302.36, a distance of
approximately 30.03 miles; \9\ and (7) the Medford Subdivision
extending from Spencer, Wis., at milepost 289.80, to Medford, Wis., at
milepost 317.4, a distance of approximately 27.6 miles.
---------------------------------------------------------------------------
\4\ See Wis. Cent. Ltd.--Trackage Rights Exemption--Tomahawk
Ry., FD 33359 (STB served Mar. 25, 1997).
\5\ See Wis. Cent. Ltd.--Acquis. Exemption--Union Pac. R.R., 2
S.T.B. 218 (1997), rev'd in part sub nom. Ass'n of Am. R.Rs. v. STB,
162 F.3d 101 (D.C. Cir. 1998).
\6\ According to the verified notice, Soo Line Railroad Company
(Soo Line) has trackage rights on this segment and will remain WCL's
tenant. See Wis. Cent. Ltd.--Exempt. Acquis. & Operation--Certain
Lines of Soo Line R.R., FD 31102, slip op. at 5 (ICC served July 28,
1988). As part of the current proposed transaction, WCL will retain
limited overhead trackage rights (with Soo Line as its tenant) over
Fox System from milepost 85.0 at Rothschild to milepost 89.5 at
Wausau Yard for the purpose of turning and servicing locomotives.
\7\ In 2017, WCL discontinued service over the line from
Rhinelander to Goodman. See Wis. Cent. Ltd.--Discontinuance of Serv.
Exemption--in Oneida & Marinette Cntys., Wis., AB 303 (Sub-No. 49X)
(STB served Nov. 15, 2017). In 2020, it discontinued service over
the line from Tony to Prentice. See Wis. Cent. Ltd.--Discontinuance
of Serv. Exemption--in Rusk & Price Cntys., Wis., AB 303 (Sub-No.
54X) (STB served Jan. 10, 2020).
\8\ In 2018, WCL discontinued service over the line from Ashland
to Park Falls, Wis. See Wis. Cent. Ltd.--Discontinuance of Serv.
Exemption--in Ashland & Price Cntys., Wis., AB 303 (Sub-No. 50X)
(STB served Oct. 18, 2018).
\9\ In 2015, WCL discontinued service over the White Pine
Subdivision, including the portion extending into Michigan. See Wis.
Cent. Ltd.-- Discontinuance of Serv. Exemption--in Ashland & Iron
Cntys., Wis., & Gogebic & Ontonagon Cntys., Mich., AB 303 (Sub-No.
45X) (STB served Dec. 3, 2014).
---------------------------------------------------------------------------
[[Page 73088]]
Fox System's acquisition is part of a larger transaction pursuant
to which, in addition to Fox System's acquisition, (1) Grand Elk
Railroad, Inc. (Grand Elk), a Class III carrier and Watco Holdings
subsidiary, would acquire 142.64 miles of rail lines in Michigan owned
by WCL,\10\ and (2) after Fox System acquires the Lines, Fox System
would transfer the Eden Spur, the West Bend Subdivision, and the
Saukville Subdivision to Wisconsin & Southern Railroad, L.L.C. (WSOR),
a Class II subsidiary of Watco Holdings, for WSOR to operate as part of
its system.\11\
---------------------------------------------------------------------------
\10\ See Grand Elk R.R.--Acquis. Exemption--Lines of Wis. Cent.
Ltd. in the State of Michigan, Docket No. FD 36503.
\11\ See Watco Holdings, Inc.--Exemption for Intra-Corp. Fam.
Transaction--Fox Valley & Lake Superior Rail Sys., L.L.C., Docket
No. FD 36505. Additionally, to continue in control of Fox System
once it becomes a carrier, Watco Holdings filed a petition for
exemption in Watco Holdings, Inc.--Continuance in Control
Exemption--Fox Valley & Lake Superior Rail Sys., L.L.C., Docket No.
FD 36506.
---------------------------------------------------------------------------
The effective date of the exemptions sought in Docket Nos. FD
36503, FD 36504, and FD 36505 was tolled to consider questions raised
and solicit additional information. See Grand Elk R.R.--Acquis.
Exemption--Lines of Wis. Cent. Ltd. in the State of Mich., FD 36503 et
al. (STB served Apr. 27, 2021). In a decision served on December 20,
2021, the Board held that the exemptions in Docket Nos. FD 36503, FD
36504, and FD 36505 could proceed and granted the petition for
exemption sought in Docket No. FD 36506. See Grand Elk R.R.--Acquis.
Exemption--Lines of Wis. Cent. Ltd. in the State of Mich., FD 36503 et
al. (STB served Dec. 20, 2021).
Fox System certifies that its projected annual revenues as a result
of this transaction will not exceed those that would qualify it as a
Class III rail carrier. Pursuant to 49 CFR 1150.32(e), which applies
``[i]f the projected annual revenue of the carrier to be created by a
transaction under this exemption exceeds $5 million,'' Fox System
certified on April 1, 2021, that notice of the transaction was posted
at the workplaces of current WCL employees on the Lines and was being
served on the national offices of the labor unions for those employees.
Fox System further certifies that the proposed transaction does not
involve, and the purchase agreement does not include, any provision or
agreement that would limit future interchange with a third-party
connecting carrier.
The transaction may be consummated on or after December 31, 2021,
the effective date of the exemption.
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 December 27,
2021.
All pleadings, referring to Docket No. FD 36504, 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 Fox
System's representative: David F. Rifkind, Stinson, LLP, 1775
Pennsylvania Avenue NW, Suite 800, Washington, DC 20006-4605.
According to Fox System, this action is categorically excluded from
environmental review under 49 CFR 1105.6(c) and historic preservation
reporting under 49 CFR 1105.8(b).
Board decisions and notices are available at <a href="http://www.stb.gov">www.stb.gov</a>.
Decided: December 20, 2021.
By the Board, Scott M. Zimmerman, Acting Director, Office of
Proceedings.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2021-27907 Filed 12-22-21; 8:45 am]
BILLING CODE 4915-01-P
</pre></body>
</html>Indexed from Federal Register on December 23, 2021.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.