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Kansas & Oklahoma Railroad Inc. (K&O) recently filed an exemption notice with the Surface Transportation Board to acquire a 27-mile Kansas line from Union Pacific Railroad.

Since leasing the line between Newton and McPherson from the Class I in September 2002, the 840-mile short line has operated the segment. K&O officials want to acquire the line to continue operating the segment, according to the filing.

Owned by The Watco Cos. Inc. and launched in 2001, K&O operates three lines between Wichita, Kan., and the Colorado border. The railroad moves more than 55,000 annual carloads of grain and grain-related products, and industrial products, such as chemicals and paper.