Changeflow GovPing Transportation Railroad Control Exemption, L. Neill Cartage Co.
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Railroad Control Exemption, L. Neill Cartage Co.

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Summary

L. Neill Cartage Co., Inc. (Cartage) has been granted a verified notice of exemption under 49 CFR 1180.2(d)(2) to continue in control of Proviso Railroad, Inc. (PRR) and Mason Railroad, Inc. (MRR) upon their becoming Class III rail carriers. The transaction involves rail lines in Illinois: PRR seeks to acquire approximately 712.5 feet of track in Berkeley, and MRR seeks to acquire approximately 665 feet of track in Bedford Park. The earliest this transaction may be consummated is May 9, 2026. Because only Class III carriers are involved, no labor protective conditions may be imposed.

“The earliest this transaction may be consummated is May 9, 2026, the effective date of the exemption (30 days after the verified notice was filed).”

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GovPing monitors Regs.gov: Surface Transportation Board for new transportation regulatory changes. Every update since tracking began is archived, classified, and available as free RSS or email alerts — 29 changes logged to date.

What changed

The Surface Transportation Board granted L. Neill Cartage Co., Inc. an exemption under 49 CFR 1180.2(d)(2) to continue in control of Proviso Railroad, Inc. and Mason Railroad, Inc. upon their becoming Class III rail carriers. The exemption was deemed effective 30 days after the corrected filing date of April 9, 2026, making May 9, 2026 the earliest consummation date. Because the transaction involves only Class III rail carriers and the lines do not connect, it is exempt from the prior approval requirements of 49 U.S.C. 11323, and the Board may not impose labor protective conditions under 49 U.S.C. 11326(c).

Parties involved in related rail line acquisitions in Illinois should note that stay petitions are due by May 1, 2026, while revocation petitions may be filed at any time. The verified notice was initially deficient under 49 CFR 1180.6(a)(1)(iii), requiring correction before the exemption could take effect.

What to do next

  1. Petitions for stay must be filed by May 1, 2026.
  2. Petitions to revoke the exemption under 49 U.S.C. 10502(d) may be filed at any time.

Archived snapshot

Apr 25, 2026

GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.

Content

L. Neill Cartage Co., Inc. (Cartage), a noncarrier, has filed a verified notice of exemption under 49 CFR 1180.2(d)(2) to
continue in control of Proviso Railroad, Inc. (PRR), and Mason Railroad, Inc. (MRR), upon their becoming Class III rail carriers.

This transaction is related to notices of exemption in Proviso Railroad, Inc.—Acquisition Exemption—L. Neill Cartage Co., Inc., Docket No. FD 36874, and Mason Railroad, Inc.—Acquisition Exemption—L. Neill Cartage Co., Inc., Docket No. FD 36875, in which PRR and MRR seek Board approval to acquire from Cartage and to operate certain rail lines in
Illinois. (1)

Cartage represents that: (1) the lines that PRR and MRR seek to acquire are the only lines that Cartage will control and that
they do not connect with each other; (2) the proposed transactions are not part of a series of anticipated transactions that
would result in such a connection; and (3) the transaction does not involve a Class I 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. Accordingly, because the proposed transactions
involve Class III rail carriers only, the Board may not impose labor protective conditions here.

The earliest this transaction may be consummated is May 9, 2026, the effective date of the exemption (30 days after the verified
notice was filed). (2) 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 by May 1, 2026.

All pleadings, referring to Docket No. FD 36912, 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, a copy of each pleading
must be served on Cartage's representative, Max Callahan, Fulcrum Rail, 180 North Wacker Drive, Suite 400, Chicago, IL 60606.

According to Cartage, 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 www.stb.gov.

By the Board, Anika S. Cooper, Chief Counsel, Office of Chief Counsel.

Decided: April 21, 2026. Aretha Laws-Byrum, Clearance Clerk. [FR Doc. 2026-07982 Filed 4-23-26; 8:45 am] BILLING CODE 4915-01-P

Footnotes

(1) In Docket No. 36874, PRR filed a notice of exemption under 49 CFR 1150.31 to acquire and operate approximately 712.5 feet
of track owned by Cartage in Berkeley, Ill. In Docket No. 36875, MRR filed a notice of exemption under 49 CFR 1150.31 to acquire
and operate approximately 665 feet of track owned by Cartage in Bedford Park, Ill.

(2) Cartage filed its verified notice February 27, 2026. However, that verified notice failed to provide information required
by 49 CFR 1180.6(a)(1)(iii). In a decision served on March 30, 2026, the Board postponed the effective date of Cartage's exemption
and directed Cartage to file the required information. Cartage filed that information on April 9, 2026. Accordingly, the filing
date of Cartage's verified notice is deemed April 9, 2026.

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CFR references

49 CFR 1180.2(d)(2) 49 CFR 1180.6(a)(1)(iii) 49 CFR 1150.31 49 CFR 1105.6(c) 49 CFR 1105.8(b)

Citations

49 U.S.C. 10502(g) Board may not use exemption authority to relieve rail carrier of employee-protection obligation
49 U.S.C. 11326(c) no labor protection for Class III carrier transactions under 11324 and 11325
49 U.S.C. 11323 prior approval requirements from which exemption is sought

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Last updated

Classification

Agency
STB
Published
April 21st, 2026
Compliance deadline
May 1st, 2026 (6 days)
Instrument
Rule
Branch
Independent
Legal weight
Binding
Stage
Final
Change scope
Minor
Document ID
FD Docket No. FD 36912
Docket
FD 36912 FD 36874 FD 36875

Who this affects

Applies to
Transportation companies
Industry sector
4831 Maritime & Shipping
Activity scope
Rail carrier control Rail line acquisition Class III carrier exemption
Threshold
Class III rail carriers only; lines do not connect with each other
Geographic scope
United States US

Taxonomy

Primary area
Transportation
Operational domain
Regulatory Affairs
Topics
Corporate Governance

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