Exemption: Acquisition of a Line of Railroad Owned by Northeast Texas Rural Rail Transportation District and Change of Operators; Northeast Texas Railway Co., Northeast Texas[...]

Northeast Texas Railway Company-Acquisition of a Line of Railroad Owned by Northeast Texas Rural Rail Transportation District and Change of Operators Exemption-Northeast Texas Connector, LLC

Northeast Texas Railway Company (NETX), a noncarrier, has filed a verified notice of exemption under 49 CFR 1150.31 to acquire and operate approximately 65.59 miles of rail line owned by the Northeast Texas Rural Rail Transportation District between milepost 555.0 in Greenville, Tex., and milepost 489.41 in Winfield, Tex. (the Line). The verified notice states that the current operator of the Line is Northeast Texas Connector, LLC (NETC).

This transaction is related to a concurrently filed verified notice of exemption in TNW Corp.-Continuance in Control Exemption-Northeast Texas Railway, Docket No. FD 36934, in which TNW Corporation seeks to continue in control of NETX upon NETX's becoming a Class III rail carrier.

According to the verified notice, NETX and the Northeast Texas Rural Rail Transportation District are in the process of finalizing an agreement pursuant to which NETX will lease the underlying right-of-way, acquire the track and track material, and operate the Line as a common carrier, replacing Northeast Texas Connector, LLC (NETC), as the common carrier service provider on the Line. The verified notice indicates that NETC does not object to the proposed transaction by which it would be replaced by NETX as operator on the Line. NETX certifies that the agreement governing the proposed transaction does not impose or include an interchange commitment. NETX further certifies that its projected annual revenues will not exceed $5 million and will not result in NETX's becoming a Class I or Class II rail carrier. Under 49 CFR 1150.32(b), a change in operator requires that notice be given to shippers. NETX provides a list of all known shippers that use or could potentially use the Line and certifies that they have been served.

The earliest this transaction may be consummated is June 18, 2026. NETX states that it expects to consummate its acquisition of, and commence common carrier operations over, the Line after that date.

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 June 11, 2026 (at least seven days before the exemption becomes effective).

All pleadings, referring to Docket No. FD 36933, 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 NETX's representative, Justin J. Marks, Clark Hill PLC, 1001 Pennsylvania Ave. NW, Suite 1300 South, Washington, DC 20004.

According to NETX, 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.