B.C.D. 03-64

EMPLOYER STATUS DETERMINATION

Lehigh Valley Rail Management, LLC

Keystone Railroad LLC

Conemaugh & Black Lick Railroad Company

AUG 0 5 2003

This is the decision ofthe Railroad Retirement Board regarding the status of

Lehigh Valley Rail Management, LLC, as an employer under the Railroad

Retirement and Railroad Unemployment Insurance Acts, and the continued

status of Keystone Railroad, LLC, and Conemaugh & Black Lick Railroad

Company as employers under the Railroad Retirement and Railroad

Unemployment Insurance Acts. Information regarding these companies was

provided by August N. Fix, Jr., one ofthe owners and co-manager of Lehigh

Valley.

Keystone Railroad, LLC, and Conemaugh & Black Lick Railroad Company are

covered employers under the Acts (B.A. Nos. 4343 and 4320, respectively). On

May 7, 2003, these rail lines were acquired by ISG Railways, Inc.1 Although Mr.

Fix refers to the acquisition as a merger ofthese and other railroads into ISG

Railways, the Surface Transportation Board, in Finance Docket No. 34344, states

that ISG Railways filed a notice of exemption to acquire, through an asset

purchase agreement, the rail lines and substantially all other assets of

Conemaugh & Black Lick and Keystone, and a number of other railroads. Lehigh

Valley operates these rail lines for ISG Railways2. Lehigh Valley began operations

May 1, 2003. All ofthe employees hired by Lehigh Valley were former employees 

ofthe two covered railroads (Keystone and Conemaugh & Black Lick). It has

three employees operating the former Conemaugh & Black Lick, which

interchanges with Norfolk Southern and CSXT, and seventeen operating the

former Keystone, which interchanges with Norfolk Southern and Canadian

Pacific.

Section 1(a)(1) ofthe 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 ofthe

Surface Transportation Board under Part A ofsubtitle IV oftitle 49,

United States Code;

Sections i(a) and i(b) ofthe Railroad Unemployment Insurance Act (45 U.S.C.

§§ 351(a) and (b)) contain substantially the same definition, as does section 3231

ofthe Railroad Retirement Tax Act (26 U.S.C. § 3231).

1 The coverage status ofISG Railways, Inc., is currently being reviewed by the Board’s Audit and

Compliance Section.

= Lehigh Valley advises that it is attempting to acquire ownership of the lines from ISG Railways.

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BA#4343
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Lehigh Valley Rail Management, LLC

Keystone Railroad LLC

Conemaugh & Black Lick Railroad Company

The evidence ofrecord establishes that Lehigh Valley is a carrier operating in

interstate commerce. Accordingly, it is determined that Lehigh Valley is an

employer within the meaning ofsection i(a)(i)(i) ofthe Railroad Retirement Act

(45 U.S.C. § 23i(a)(i)(i)) and the corresponding provision ofthe Railroad 

Unemployment Insurance Act as of May 1, 2003, the date as ofwhich it

commenced operations.

Section 202.11 ofthe Board’s regulations provides that:

The employerstatus of any company or person shall terminate

whenever such company or person loses any ofthe characteristics

essential to the existence of an employer status.

The Board holds that Conemaugh & Black Lick and Keystone ceased to be

employers under the Railroad Retirement and Railroad Unemployment

Insurance Acts effective with the close ofbusiness on May 7, 2003.

V. M. Speakman, Jr.