B.C.D. 16-03 

EMPLOYER STATUS DETERMINATION 

Bogalusa Bayou Railroad, LLC (BBRR) 

February 10, 2016 

This is a determination of the Railroad Retirement Board concerning the status of 

Bogalusa Bayou Railroad, LLC (BBRR) 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 seq.)(RUIA). The status of BBRR under the 

Acts has not previously been considered. 

BBRR is a wholly owned subsidiary of Watco Transportation Services, LLC. 

(BA# 9848). Richard Webb is the Chief Executive Officer ofBBRR. Information 

on BBRR's operations and corporate structure was provided to the Board by Mr. 

Craig Richey (Executive Vice President and General Counsel for Watco) on 

December 18, 2014 in response to an Audit and Compliance questionnaire. Mr. 

Richey also provided as an enclosure a copy of the Surface Transportation Board 

(STB) decision regarding BBRR's operations. Mr. Richey represented that BBRR 

commenced operations on December 1, 2014. BBRR's corporate office and 

address is in Pittsburg, Kansas. Mr. Richey advised that BBRR will provide 

common carrier operations over leased track as detailed below. 

The Surface Transportation Board (STB) in Finance Docket #35880 decided 

December 12, 2014 in favor of BBRR' s verified notice of exemption to acquire 

overhead trackage rights over a one mile line of track owned by Illinois Central 

Railroad Company extending between milepost 68.85 at Leescreek, Louisiana and 

milepost 69.85 at Bogalusa, Louisiana. Also, filed concurrently with the decision 

just addressed, Watco Holdings, Inc., a non-carrier, filed with the STB in Finance 

Docket #35882 decided December 12, 2014, a verified notice of exemption to 

continue in control of BBRR upon BBRR becoming a Class III rail carrier. The 

projected revenues of BBRR will not exceed those that would qualify it as a Class 

III rail carrier. BBRR has 11 employees all of whom began to be compensated 

December 1, 2014. 

During a review ofBBRR's documentation, the Board also learned that the STB in 

Finance Docket #35904 decided February 9, 2015 in favor of BBRR's verified 

notice of exemption to operate two rail lines of approximately 21.95 combined 

miles of track owned by Geaux Geaux Railroad, LLC. The lines of track are 

located (1) between milepost 0.00 at or near Slaughter and milepost 9.69 at or near 

Zee, and (2) between milepost 345.84 at or near Slaughter and milepost 358.10 at 

or near Maryland, all in East Baton Rouge Parish, Louisiana. Information in the 

BA # 2899
2 

STB decision indicates that carrier volume and projected annual revenues 

will not exceed those that would qualify BBRR as a Class III rail carrier. The 

information also reflects that for operations on these lines of track, BBRR will 

operate as d/b/a Geaux Geaux Railroad. 

Section l(a)(l)(i) of the Railroad Retirement Act (45 U.S.C. § 23 l(a)(l)(i)), 

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 (45 U.S.C. § 351) contains essentially the same definition, 

as does section 3231 of the Railroad Retirement Tax Act (26 U.S.C.§ 3231). 

The evidence of record establishes that BBRR is a rail carrier operating in 

interstate commerce. Accordingly, it is determined that Bogalusa Bayou Railroad, 

LLC became an employer within the meaning of Section l(a)(l)(i) of the Railroad 

Retirement Act (45 U.S.C. § 231(a)(l)(i)) and the corresponding provision of the 

Railroad Unemployment Insurance Act effective December 1, 2014, the date 

BBRR first began operations and first compensated employees. 

FOR THE BOARD 

MarthaP. Rico 

Secretary to the Board