EMPLOYER STATUS DETERMINATION

Live Oak, Perry & Georgia Railroad Company, Inc.

This is the determination of the Railroad Retirement Board

concerning the status of Live Oak, Perry & Georgia Railroad

Company, Inc. (LOPG), 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 seq.)(RUIA).

In Interstate Commerce Commission (ICC) Finance Docket 32811,

decided on December 19, 1995, LOPG filed a notice of exemption to

acquire and operate approximately 83.5 miles of rail line of

Norfolk Southern Railway Company, B.A. No. 1525, and its

subsidiary, Georgia Southern and Florida Railway Company, B.A. No.

1513. The rail line includes: (1) the segment from milepost GB

1.0 at Adel, Georgia, to milepost 77.3 at Perry, Florida, in Cook,

Lowndes, and Brooks Counties, Georgia, and Madison and Taylor

Counties, Florida; and (2) the segment from milepost LO 45.75 at

Perry, Florida, to milepost 39.0 at Foley, Florida in Taylor

County, Florida. LOPG and Georgia & Florida Railroad Company 

(G&FR) , B. A. No. 5562, entered into a contract agreement on

December 15, 1995 in which G&FR agreed to handle all railroad

operations for LOPG. See also. ICC, Finance Docket 32812, decided

December 20, 1995 (G&FR concurrently filed a notice of exemption to

operate over the line acquired by LOPG). Although G&FR operates 

over the line, LOPG retains a residual obligation to provide common 

carrier service. In Surface Transportation Board1 (STB) Finance 

Docket No. 32813, decided March 13, 1996, H. Peter Claussen and

Linda C. Claussen, the owners of LOPG, filed a petition for

exemption to continue to control LOPG and seven other rail carriers 

covered under the Acts upon LOPG's becoming a carrier.

Information regarding LOPG was provided by Mr. H. Peter Claussen,

CEO for LOPG. He stated that through a contract agreement with 

G&FR, G&FR provides rail operations on LOPG's rail line, effective 

December 14, 1995. He stated that LOPG does not have any

employees; however, employees compensated by G&FR are providing

rail operations. G&FR transports approximately 5,500 carloads each

year on LOPG's rail line. LOPG's rail line interchanges with 

Norfolk Southern, CSX Transportation and Georgia & Florida Railroad

Company.

1 The ICC Termination Act of 1995, Pub. L. No. 104-88, 109

Stat. 803, which was enacted on December 29, 1995, and took effect 

on January 1, 1996, abolished the Interstate Commerce Commission

(ICC) and transferred certain functions and proceedings to the

Surface Transportation Board.

BCD 1996-87
-2-

Live Oak, Perry & Georgia Railroad Company, Inc.

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, United Stated Code;

(ii) any company which is directly or indirectly

owned or controlled by, or under common control with one

or more employers as defined in paragraph (i) of this

subdivision, and which operates any equipment or facility

or performs any service (except trucking service, casual 

service, and the casual operation of equipment or

facilities) in connection with the transportation of

passengers or property by railroad, or the receipt,

delivery, elevation, transfer in transit, refrigeration

or icing, storage, or handling of property transported by 

railroad * * *. [45 U.S.C. §231(a) (1) (i) and (ii)] .

Section 1(a) of the RUIA (45 U.S.C. §351(a)) contains essentially

the same definition.

The evidence establishes that LOPG is currently not an employer 

covered by the Acts, as it is not actually operating the rail line.

LOPG has no employees or equipment. Rather, the line is operated

pursuant to an agreement with G&FR, a covered employer under the

Acts. That employer reports the employee service rendered to LOPG 

to the Board. This determination will be reevaluated if LOPG hires

its own employees or if it begins utilizing a non-employer under

Acts to perform railroad service.

Glen L. Bower