[Federal Register: October 20, 1999 (Volume 64, Number 202)]
[Notices]               
[Page 56572-56573]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20oc99-116]                         

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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Finance Docket No. 33802]

 
Delta Southern Railroad, Inc.--Acquisition and Operation 
Exemption--Delta Southern Railroad Company

    Delta Southern Railroad, Inc. (Delta), a noncarrier, newly created 
to become a Class III railroad, has filed a verified notice of 
exemption under 49 CFR 1150.31 to acquire (by purchase or lease) and 
operate approximately 132.78 miles of rail line from Delta Southern 
Railroad Company (DSRR). The lines or rights intended to be acquired 
are as follows: (1) From milepost 408.9 in or near McGehee, AR, to 
milepost 489.44 in or near Tallulah, LA; (2) a rail spur from milepost 
445.53 (where it connects with the Warren Line described in (3)(a)) for 
3 miles; <SUP>1</SUP> and (3) DSRR's leasehold interest in a rail line 
owned by Union Pacific Railroad Company (UP) and currently operated by 
DSRR (a) from milepost 422.32 at Dermott, AR, to milepost 461.74 at 
Warren, AR (The Warren Line), and (b) from milepost 566 at Monroe, LA, 
to milepost 556.18 at Sterlington, LA (The Sterlington Line). In 
addition, Delta will acquire approximately 11.76 miles of operating 
rights over other rail lines: (1) DSRR's operating rights over certain 
other rail assets located at milepost 491 in Tallulah, LA, and owned by 
the Madison Parish Port Commission (The Madison Line); (2) certain 
overhead trackage rights over UP's line (a) between milepost 415.26 at 
Dermott, AR, and milepost 409.7 at McGehee, AR, and (b) and yard 
facilities from milepost 566 and milepost 500.3 to milepost 504 at 
Monroe, LA; and (3) certain operating rights at milepost 472.8 at Lake 
Providence, LA, owned by the Lake Providence Port 
Commission.<SUP>2</SUP>
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    \1\ Delta indicated in its notice that it takes no position on 
whether this line is a spur for the purpose of the spur exemption 
under 49 U.S.C. 10906.
    \2\ Delta states that its projected revenues will not exceed 
those that would qualify it as a Class III rail carrier and that its 
revenues are not projected to exceed $5 million.
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    On August 4, 1999, William and Linda Wainwright, sole owners of 
Delta signed a letter of intent with Lawrence Beal for the parties to 
negotiate and execute a purchase and sale agreement for the acquisition 
and operation of DSRR.<SUP>3</SUP> The verified notice states that 
William Wainwright has managed DSRR for the past 10 years since DSRR 
was established as a short line railroad in 1989. The parties had not 
yet signed an agreement as of the October 1, 1999 filing of the 
verified notice of exemption.
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    \3\ Lawrence Beal owns 100% of DSRR.
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    The transaction is scheduled to be consummated on or shortly after 
October 18, 1999.
    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. The filing of a petition to 
revoke will not automatically stay the transaction.
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 33802, must be filed with the Surface Transportation 
Board, Office of the Secretary, Case Control Unit, 1925 K Street, NW, 
Washington, DC 20423-0001. In addition, a copy of each pleading must be 
served on John D. Heffner, Esq., Rea, Cross, & Auchincloss, 1707 L 
Street, NW, Suite 570, Washington, DC 20036.
    Board decisions and notices are available on our website at 
``WWW.STB.DOT.GOV.''

    Decided: October 12, 1999.


[[Page 56573]]


    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 99-27131 Filed 10-19-99; 8:45 am]
BILLING CODE 4915-00-P