B.C.D. 01-24

MAR 0 8 ZOO!

EMPLOYER STATUS DETERMINATION

Caddo Valley Railroad Company (CVYR)

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

Caddo Valley Railroad Company (CVYR) 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).

CVYR’s authority to acquire a feeder line from the Arkansas Midland Railroad

Company (AMRC) (B. A. No. 3889) and operate approximately 52 miles of rail line

beginning at the interchange with Union Pacific Railroad Company (UP) (B.A. No.

1713) at mile post 426.3 at Gurdon, Arkansas and terminating at mile post 479.2 at

Birds Mill, Arkansas is contained in Surface Transportation Board (STB) Finance

Docket Number 32479, decided May 3, 2000.

Mr. Robert S. Hargraves, General Counsel for CVYR, provided information

regarding the railroad. Mr. Hargraves stated that Mr. Tim Bean is President and

Chief Executive Officer of CVYR and Mr. Bill Thompson is Superintendent of

Operations. Mr. Hargraves stated that the owners of CVYR are Mr. Tim Bean,

Mr. Grady Bean, Ms. Stacy Bean, Ms. Gina Garner, Ms. Melanie Hall, and

Mr. Corey Thomason. According to Mr. Hargraves, CVYR is a common carrier of

rail freight, primarily wood products, rock aggregate, roofing materials and

fertilizer. Mr. Hargraves stated that CVYR is “a new entity formed by some of the

shippers along the line after extensive litigation with the prior owner/operator, 

Arkansas Midland Railroad, necessitated by Arkansas Midland’s embargo and

refusal to fulfill its common carrier obligations under federal law.” Mr. Hargraves

reported that the shippers along the fine formed CVYR and then purchased the fine

in a cash purchase sale with AMRC pursuant to the terms mandated by the STB in

its May 3, 2000 decision. CVYR then contracted with East Texas Central Railroad 

(ETCR)1 to provide service until such time as CVYR could complete all of its

administrative filings, reach the necessary agreements with UP and acquire 

locomotive power, equipment and office space. Mr. Hargraves provided information 

which shows that CVYR hired twelve employees and began limited operations on

September 1, 2000, but the twelve employees were first compensated for services

beginning November 1, 2000. CVYR interchanges with UP at Gurdon, Arkansas.

Section 1(a)(1) of the RRA defines the term “employer” to include:

(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)(l)(i)].

1 The Board’s Office of Audit and Compliance has been requested to investigate the coverage status of East Texas

Central Railroad Company.

BA# 2885
Caddo Valley Railroad Company (CVYR)

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Section 1 of the RUIA contains the same definition.

The evidence of record establishes that CVYR is a rail carrier subject to the

jurisdiction of the Surface Transportation Board. Accordingly, it is determined that

Caddo Valley Railroad Company became an employer within the meaning ofsection

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

corresponding provision of the Railroad Unemployment Insurance Act effective

September 1, 2000, the date on which it commenced railroad operations.

I

V. M. Speakman, Jr.

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