EMPLOYER STATUS DETERMINATION

Tazewell & Peoria Railroad, Inc.

DEC 0 3 2004

This is the determination of the Railroad Retirement Board

concerning the status of Tazewell & Peoria Railroad, Inc. (TPR) as an

employer under the Railroad Retirement Act (45 U.S.C. § 231 et seq.)

(RRA) and the Railroad Unemployment Insurance Act (45 U.S.C. §

351 et seg.) (RUIA).

In Surface Transportation Board (STB) Finance Docket No. 345441

decided September 21,2004, TPR filed a notice of exemption to

lease and operate approximately 19.9 miles of rail line owned by

Peoria & Pekin Union Railway Company (B.A. No. 4723) (PPU), a

covered employer under the Acts. The rail line extends from: (1)

approximately milepost 0.0(at or near Peoria, Illinois, Union Station) to

approximately milepost 9.2 (at or near Pekin, Illinois, 1C Junction); (2)

approximately milepost 0.0 (at or near Peoria, Illinois, Union Station)

to approximately milepost 3.87N (at or near Iowa Interstate Junction,

Illinois); (3) approximately milepost 0.0 (at or near Peoria, Illinois,

Peoria Wye) to approximately milepost 5.1 W (at or near P&PU

Junction, Illinois); and (4) approximately Wesley Junction, Illinois, to

approximately East Peoria, Illinois (approximately 1.7 miles of track;

milepost designations are not available), in Tazewell and Peoria

Counties, Illinois. In addition, TPR will acquire from PPU incidential

trackage rights over approximately 1.7 miles of main-line track

owned by Union Pacific Railroad Company from approximately

milepost 4.0 (at or near P&PU Junction) to approximately milepost 5.7

(at or near Sommer, Illinois), in Peoria County, Illinois.

'This proceeding is related to STB Finance Docket No. 34545, Genesee & Wyoming,

Inc.-Continuance in Control Exemption-Tazewell & Peoria Railroad. Inc, wherein Genesee &

Wyoming, Inc. a noncarrier, has concurrently filed a petition for exemption to continue in

control ofTPR upon TPR’s becoming a carrier.

BA#2398
Information concerning TPR was provided by Bridget Shepard,

Human Resource Manager for Genesee & Wyoming. According to

Ms. Shepard, TPR began rail operations on November 1,2004.2 She

stated that TPR anticipated hiring approximately 30 employees who

were scheduled to begin November 1,2004. Ms. Shepard stated

that Genesee & Wyoming, Inc. is the parent company of TPR. She

stated that TPR has a leasing agreement with Peoria & Pekin Union

Railway (PPU) to operate the rail line. She further stated that TPR will

also lease PPU’s assets, which include all railroad equipment

(locomotives and rail cars) as well as all maintenance of way and

track inventory and equipment. Ms. Shepard stated that TPR will

interchange with Union Pacific Railroad (B.A. No. 9235), Norfolk

Southern (B.A. No. 9408), Illinois Central Railroad (B.A. No. 1516),

Burlington Northern Santa Fe (B.A. No. 1621), Iowa Interstate (B.A. No.

3760), Toledo, Peoria & Western (B.A. No.2346), Illinois & Midland (B.A.

2366), and Pioneer Industrial Railway (B.A. No. 2383), all covered

employers under both Acts.

Section 1 (a)(1) of the Railroad Retirement Act (45 U.S.C. § 231 (a)(1)),

insofar as relevant here, defines a covered employer as:

(i) any carrier by railroad subject to the jurisdiction of the

Surface Transportation Board under Part A of subtitle IV of title

49, United States Code;

Section 1 of the RUIA contains essentially the same definition, as does

section 3231 of the Railroad Retirement Tax Act.

The evidence of record establishes that TPR is a rail carrier operating

in interstate commerce. Accordingly, it is determined that Tazewell

& Peoria Railroad, Inc. became an employer within the meaning of

20n November 9, 2004, Ms. Shepard, via voicemail, confirmed with the Board’s Office

of General Counsel that TPR did begin rail operations on November 1, 2004.
-3-

section 1 (a)(1)(i) of the Railroad Retirement Act and the

corresponding provision of the Railroad Unemployment Insurance

Act effective November 1,2004, the date it began rail operations.

Michael S. Schwartz

V. M. Speakman, Jr. 0

ferome F. Kever