EMPLOYER STATUS DETERMINATION

Northern Nevada Railroad Corporation

This is the determination of the Railroad Retirement Board

regarding the status of Northern Nevada Railroad Corporation (NN)

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

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

et sea.1 (RUIA). NN has not previously been determined to be an

employer under the RRA and the RUIA.

Information about NN was furnished by Bryan R. R. Whipple, Chief

Operating Officer of NN. Although NN was formed in 1991 to lease

and operate the abandoned railroad properties of the former Nevada

Northern Railway,1 the first compensated service performed as a

rail common carrier was January 1, 1995. The rail line in question 

was acquired by the cities of Ely, Nevada and Los Angeles,

California, and in 1993 NN obtained long-term freight operating 

rights from the cities. See Interstate Commerce Commission (ICC)

Finance Docket No. 32623, 32624 decided December 15, 1994.

According to information provided by Mr. Whipple, NN began

operations on January 1, 1995, and has nine employees who were

compensated for rail carrier service from that same date. Mr.

Whipple stated that the line in question interchanges with the

Union Pacific Railroad, and by late 1995 will re-establish the

former interchange with Southern Pacific Transportation Company.

NN expects to ship about 3,200 carloads per year of copper

concentrate from Magma Copper Co.'s mine to its smelter at San

Manuel, Arizona. It also expects to handle crude oil, propane,

electric cable, lumber and plywood, and copper slag. Non-Magma 

business is expected to amount to over 3,000 carloads a year within 

two years. Two GE 70-ton locomotives have been delivered and are

in service on NN. Two additional secondhand locomotives are on

order for delivery in late 1995.

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

(i) any express company, sleeping car

company, and carrier by railroad, subject to

subchapter I of chapter 105 of Title 49;

(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

1 Nevada Northern Railway, B.A. No. 2742, has been terminated 

as an employer under the Acts. Notice No. 89-40.

BCD 1995-88 BA # 2772
-2-

Northern Nevada Railroad Corporation

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 NN is a carrier by rail engaged in

the transportation of persons or property in interstate commerce.

Accordingly, it is determined that Northern Nevada Railroad

Corporation became a rail carrier employer under the Railroad

Retirement and Railroad Unemployment Insurance Acts effective 

January 1, 1995, the date on which it began operations as a rail

carrier, and the date from which it first compensated employees.

Glen L. Bower