Notice2023-06727
Fortress Investment Group LLC et al.-Continuance in Control Exemption-East Ohio Valley Railway LLC
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
March 31, 2023
Issuing agencies
Surface Transportation Board
Full Text
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<title>Federal Register, Volume 88 Issue 62 (Friday, March 31, 2023)</title>
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[Federal Register Volume 88, Number 62 (Friday, March 31, 2023)]
[Notices]
[Pages 19348-19349]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-06727]
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SURFACE TRANSPORTATION BOARD
[Docket No. FD 36683]
Fortress Investment Group LLC et al.--Continuance in Control
Exemption--East Ohio Valley Railway LLC
Fortress Investment Group LLC (Fortress), a non-carrier, has filed
a verified notice of exemption under 49 CFR 1180.2(d)(2) on behalf of
FTAI Infrastructure, Inc. (FTAI Infrastructure), Percy Acquisition LLC
(PALLC), and Transtar, LLC (Transtar), to continue in control of East
Ohio Valley Railway LLC (EOVR) upon EOVR becoming a rail common
carrier.
This transaction is related to a concurrently filed verified notice
of exemption in East Ohio Valley Railway LLC-Acquisition & Operation
Exemption-Ohio River Partners Shareholder LLC, Docket No. FD 36682. In
that proceeding, EOVR has filed a verified notice of exemption pursuant
to 49 CFR 1150.31 to acquire from Ohio River Partners Shareholder LLC
(ORPS), and operate, a 12.2-mile rail line between milepost 60.5 near
Powhatan Point, Ohio, and milepost 72.7 near Hannibal, Ohio (the
Line).\1\
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\1\ FTAI Infrastructure has a 50.1% equity interest in ORPS.
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According to the verified notice, Fortress will indirectly control
EOVR
[[Page 19349]]
upon its acquiring the Line and becoming a rail carrier subsidiary of
Transtar. FTAI Infrastructure is managed by an affiliate of Fortress
and indirectly controls PALLC and Transtar, which currently owns and
directly controls five non-connecting railroad subsidiaries: Union
Railroad Company, LLC; Gary Railway Company; Delray Connecting Railroad
Company; Texas & Northern Railway Company; and The Lake Terminal
Railroad Company. Another Fortress affiliate, Brightline Holding LLC,
owns DesertXpress Enterprises, LLC (DXE), a common carrier railroad
authorized to construct a high-speed passenger rail line in California
and Nevada. See DesertXpress Enters., LLC--Constr. & Operation
Exemption--in Victorville, Cal. & Las Vegas, Nev., FD 35544 (STB served
Oct. 25, 2011).
Fortress states that: (1) the Line does not connect with the lines
of any of the rail common carriers currently owned by Transtar, nor
would it connect with the proposed DXE passenger rail line; (2) this
control transaction is not part of a series of anticipated transactions
that would connect any of those rail common carriers; 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).
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.
The earliest this transaction may be consummated is April 16, 2023,
the effective date of the exemption (30 days after the verified notice
was filed). 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 April
7, 2023 (at least seven days before the exemption becomes effective).
All pleadings, referring to Docket No. FD 36683, should be filed
with the Surface Transportation Board 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
Fortress's representative, Terence M. Hynes, Sidley Austin LLP, 1501 K
Street NW, Washington, DC 20005.
According to Fortress, this action is 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 <a href="http://www.stb.gov">www.stb.gov</a>.
Decided: March 28, 2023.
By the Board, Mai T. Dinh, Office of Proceedings.
Stefan Rice,
Clearance Clerk.
[FR Doc. 2023-06727 Filed 3-30-23; 8:45 am]
BILLING CODE 4915-01-P
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</html>Indexed from Federal Register on March 31, 2023.
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