B.C.D. 10-12

EMPLOYER STATUS DETERMINATION MAR 0 2 2010

Lake Railway, LLC

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

Lake Railway, LLC (LRY) as an employer under the Railroad Retirement Act (45

U.S.C. § 231, et sea.(RRA) and the Railroad Unemployment Insurance Act (45

U.S.C. § 351, et sea.(RUIA). LRY has not heretofore been ruled to be an

employer under the RRA and RUIA.

Lake Railway, LLC, is operating as an agent for Lake County, Oregon and

conducts shortline freight haulage on 54.41 miles of rail line between Lakeview,

Oregon and Alturas, California, connecting with the Union Pacific. Operations

began on May 14, 2009, when Lake County terminated its lease to the operator

of the rail line, Modoc Railway and Land Company, LLC, (MR&L) (B.A. 9020) and

Modoc Northern Railroad Company (MNRR) (B.A. 4788), and resumed operation

of the line pursuant to its residual authority as a common carrier through its Lake

County Railroad (B.A. 2785) division, with LRY providing the rail service. See

Surface Transportation Board (STB) Docket No. AB-1035, decided August 13,

2009. LRY and Lake County contemplate an eventual lease to LRY to operate

the rail line owned by Lake County.

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,

[45 U.S.C. § 231 (a)(1)(i)].

Sections 1 (a) and 1 (b) of the Railroad Unemployment Insurance Act (45 U.S.C.

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

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

Based on the information summarized above, it is detemined that Lake Railway,

LLC, became an employer covered under the RRA and RUIA as of May 14, 2009,

the date as of which it commenced operations.

BA # 5743
4

UNITED STATES OF AMERICA

RAILROAD RETIREMENT BOARD

844 NORTH RUSH STREET

CHICAGO, ILLINOIS 60611-2092

MAR 0 3 2010

Board Members:

MICHAEL S. SCHWARTZ, CHAIRMAN

V.M. SPEAKMAN, JR., Labor Member

JEROME F. KEVER, MANAGEMENT Member

Office ofDivision Counsel

Associate ChiefCounsel

(Tax Exempt and Government Entities)

Internal Revenue Service

1111 Constitution Avenue, N.W.

Washington, D.C. 20224

Attention: CC:TEGE:EOEG:ETl

Dear Sir or Madam:

In accordance with the coordination procedure established between the Internal Revenue Service

and this Board, I am enclosing for your information a copy of an opinion in which the Board has 

expressed its determination as to the status under the Railroad Retirement and Railroad

Unemployment Insurance Acts ofthe following:

LRY LLC d/b/a Lake Railway

Ms. Trisha L. Hewitt 

Senior Tax Accountant

100 Madison Street 

Syracuse, New York 13202

/) Sincerely,

FOR FOR THE THE BOX BOy rD

Beatrice Ezerski

Secretary to the Board

Enclosure

cc:

bcc:

Mr. Dennis J. Scobie

Technical Advisor - Railroad Industry 

400 West Bay Street, Stop 4100

Jacksonville, Florida 32202

•''General Counsel

Chief, Audit & Compliance Division

Knnteo on recycled paper
UNITED STATES OF AMERICA

RAILROAD RETIREMENT BOARD

844 NORTH RUSH STREET

CHICAGO, ILLINOIS 60611-2092

MAR 0 2 2010

Board Members:

MICHAEL S. SCHWARTZ, CHAIRMAN

V.M. SPEAKMAN, JR., Labor Member

JEROME F. KEVER, MANAGEMENT Member

Ms. Trisha L. Hewitt

Senior Tax Accountant

LRY LLC d/b/a Lake Railway

100 Madison Street

Syracuse, New York 13202

Re: LRY LLC d/b/a Lake Railway

Dear Ms. Hewitt:

Enclosed is a copy ofthe Board’s determination regarding the coverage ofthe above-referenced

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

Railroad Unemployment Insurance Act (45 U.S.C. § 351 et. seq.).

The Board's regulations provide that you may request reconsideration ofthe Board's decision in

this case. Any such request must be in writing and must be filed with this office within one year 

following the date on which the initial determination was issued. (20 CFR § 259.3(a), 57 F.R. 

4366, February 5, 1992).

We will notify the Internal Revenue Service ofthe decision in this case.

Sincerely,

FOR THE BOA1

Beatrice Ezerski

Secretary to the Board

Enclosure

bcc: General Counsel

Chief, Audit & Compliance Division

o Printed on recycled paper