Notice2022-28031
Patriot Rail Company LLC, SteelRiver Transport Ventures LLC, Global Diversified Infrastructure Fund (North America) LP, First State Infrastructure Managers (International) Limited, and Mitsubishi UFJ Financial Group, Inc.-Control Exemption-Delta Southern Railroad, Inc.
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, 2022
Issuing agencies
Surface Transportation Board
Full Text
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<title>Federal Register, Volume 87 Issue 246 (Friday, December 23, 2022)</title>
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[Federal Register Volume 87, Number 246 (Friday, December 23, 2022)]
[Notices]
[Page 79034]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-28031]
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SURFACE TRANSPORTATION BOARD
[Docket No. FD 36642]
Patriot Rail Company LLC, SteelRiver Transport Ventures LLC,
Global Diversified Infrastructure Fund (North America) LP, First State
Infrastructure Managers (International) Limited, and Mitsubishi UFJ
Financial Group, Inc.--Control Exemption--Delta Southern Railroad, Inc.
Patriot Rail Company LLC (Patriot), SteelRiver Transport Ventures
LLC; Global Diversified Infrastructure Fund (North America) LP; First
State Infrastructure Managers (International) Limited; and Mitsubishi
UFJ Financial Group, Inc. (MUFG) (collectively, Patriot Rail), have
filed a verified notice of exemption pursuant to 49 CFR 1180.2(d)(2) to
acquire control of Delta Southern Railroad, Inc. (DSRR), a Class III
rail carrier.\1\ Through this transaction, Patriot Rail would acquire
from West Branch Intermediate Holdings, LLC (West Branch), a
noncarrier, a controlling interest in DSRR. Patriot Rail currently
controls 31 Class III rail carriers (the Patriot Short Lines).\2\
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\1\ The verified notice states that DSRR owns and operates two
lines: the first rail line begins at Tallulah, La., and continues to
Lake Providence, La.; the second line extends from Monroe, La., to
Sterlington, La. Maps depicting the DSRR lines are contained in
Exhibit B of the verified notice.
\2\ Exhibit C of the verified notice of exemption lists the
short line carriers indirectly controlled by Patriot Rail. Maps
depicting the Patriot Short Lines are contained in Exhibit D of the
verified notice.
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The transaction may be consummated on or after January 6, 2023, the
effective date of the exemption.\3\
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\3\ On September 28, 2022, Lake Providence Port Commission
(LPPC) replied in opposition to the verified notice, requesting that
the Board postpone the effective date and ``ultimately reject
Patriot Rail's petition insofar as it would permit [West Branch and
DSRR] to disrupt'' the feeder line application proceeding in Docket
No. FD 36447, in which LPPC is attempting to acquire one of DSRR's
lines. (LPPC Reply 1-2.) By decision served October 14, 2022, this
proceeding was placed in abeyance until further order of the Board,
and Patriot Rail, DSRR, and LPPC were directed to meet and confer on
the issues raised in Docket No. FD 36647. Patriot Rail Co. LLC,--
Control Exemption--Delta S. R.R., FD 36447 et al., slip op. at 2
(STB served October 14, 2022). By decision served December 20, 2022,
the Board denied LPPC's request to reject the notice of exemption
and lifted the abeyance in this proceeding.
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According to the verified notice, through a Stock Purchase
Agreement, Patriot would acquire a controlling interest in DSRR through
Patriot's purchase of all DSRR's issued and outstanding stock. Patriot
states that the proposed transaction involves a stock acquisition and
would have no effect on DSRR's corporate entity status.
The verified notice indicates that: (1) none of the Patriot Short
Lines connect with DSSR; (2) the transaction is not part of a series of
anticipated transactions that would connect any of the Patriot Short
Lines or DSRR; and (3) the transaction does not involve a Class I rail
carrier. The proposed transaction is therefore exempt from the prior
approval requirements of 49 U.S.C. 11323 pursuant to 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. 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 for stay must be filed no later than December 30,
2022 (at least seven days before the exemption becomes effective).
All pleadings, referring to Docket No. FD 36642, 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, one copy of each pleading must be served on
Patriot Rail's representative, John M. Scheib, Gentry Locke, 919 E Main
Street, Suite 1130, Richmond, VA 23219.
According to Patriot Rail, this action is categorically excluded
from environmental review under 49 CFR 1105.6(c) and from historic
reporting requirements 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, 2022.
By the Board, Cynthia T. Brown, Acting Director, Office of
Proceedings.
Kenyatta Clay,
Clearance Clerk.
[FR Doc. 2022-28031 Filed 12-22-22; 8:45 am]
BILLING CODE 4915-01-P
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