Notice2026-09453
OmniTRAX Holdings Combined, Inc., and HGS Railway Holdings, Inc.-Control Exemption-Arkansas Short Line Railroads, Inc. (d/b/a Dardanelle and Russellville Railroad), Camden & Southern Railroad, Inc., and Ouachita 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
May 13, 2026
Issuing agencies
Surface Transportation Board
Full Text
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<title>Federal Register, Volume 91 Issue 92 (Wednesday, May 13, 2026)</title>
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[Federal Register Volume 91, Number 92 (Wednesday, May 13, 2026)]
[Notices]
[Page 27121]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-09453]
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SURFACE TRANSPORTATION BOARD
[Docket No. FD 36922]
OmniTRAX Holdings Combined, Inc., and HGS Railway Holdings,
Inc.--Control Exemption--Arkansas Short Line Railroads, Inc. (d/b/a
Dardanelle and Russellville Railroad), Camden & Southern Railroad,
Inc., and Ouachita Railroad, Inc.
OmniTRAX Holdings Combined, Inc. (OmniTRAX) and HGS Railway
Holdings, Inc. (HGS) (together, Omni-HGS),\1\ both noncarriers, have
filed a verified notice of exemption under 49 CFR 1180.2(d)(2) to
acquire control of three Class III railroads: Arkansas Short Line
Railroads, Inc. (d/b/a Dardanelle and Russellville Railroad (DR)), and
DR's two Class III rail carrier subsidiaries, Camden & Southern
Railroad, Inc. (CSR), and Ouachita Railroad, Inc. (OUCH) (collectively,
Target Carriers).
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\1\ According to the verified notice, OmniTRAX and HGS are under
joint managerial and operational control, and together they exercise
control over numerous Class III rail carriers through affiliated
holding company entities.
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According to the verified notice, the proposed transaction will
occur through OmniTRAX's wholly owned noncarrier subsidiary, ASL
Acquisition, LLC, which will acquire 100% of the issued and outstanding
shares of DR pursuant to a Stock Purchase Agreement dated February 19,
2026, as amended on April 2, 2026.\2\ Upon consummation, Omni-HGS will
obtain indirect control of CSR and OUCH.
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\2\ Public and confidential versions of the Stock Purchase
Agreement dated February 19, 2026, and the First Amendment dated
April 2, 2026, were filed with the verified notice. The confidential
version was submitted under seal concurrently with a motion for
protective order, which is addressed in a separate decision.
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The verified notice states that none of the existing Omni-HGS-
controlled railroads connect to any of the Target Carriers. Further,
according to the verified notice, the transaction: (1) would not
connect any of the Omni-HGS carriers with each other, connect any of
the Target Carriers with each other, or connect any Omni-HGS carrier to
any of the Target Carriers; (2) is not part of a series of anticipated
transactions that would connect these carriers with each other; and (3)
no Class I carrier is involved in the transaction. 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 the transaction may be consummated is May 27, 2026,
the 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 May 20, 2026
(at least seven days before the exemption becomes effective).
All pleadings, referring to Docket No. FD 36922, 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 Omni-
HGS' representative, Robert A. Wimbish, Fletcher & Sippel LLC, 29 North
Wacker Drive, Suite 800, Chicago, IL 60606-3208.
According to Omni-HGS, 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 <a href="http://www.stb.gov">www.stb.gov</a>.
Decided: May 7, 2026.
By the Board, Anika S. Cooper, Chief Counsel, Office of Chief
Counsel.
Aretha Laws-Byrum,
Clearance Clerk.
[FR Doc. 2026-09453 Filed 5-12-26; 8:45 am]
BILLING CODE 4915-01-P
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</html>Indexed from Federal Register on May 13, 2026.
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