EMPLOYER STATUS DETERMINATION

Camas Prairie RailNet, Inc.

Great Northwest Railroad, Inc.

JUL 0 9 2004

This is the determination of the Railroad Retirement Board concerning the

continuing status of Camas Prairie RailNet, Inc. (CPR) (B.A. No. 2648) 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). CPR

was determined to be an employer under the RRA and RUIA with coverage

from February 1, 1998. This is also the determination of fhe Board concerning the

status of Great Northwest Railroad, Inc. (GNR). GNR has not heretofore been

ruled fa be a covered employer.

Mr. William E. Glavin, Executive Vice President of Norfh American RailNet, a noncarrier holding company and parent of CPR, advised fhaf CPR ceased railroad

operafions on March 2, 2004 and lasf compensated employees on March 31,

2004. Although CPR has not yet been dissolved as a corporation due to 2004

employee compensation reporting requirements, other financial matters and

certain existing railcars that still utilize CPR's car mark, all of its railroad assets

were sold to GNR on or about February 27, 2004. See Surface Transportation

Board Finance Docket No. 34474, decided February 20, 2004.

Section 202.11 of fhe Board’s regulafions provide that:

The employer status of any company or person shall be

terminated whenever such company or person loses any of the

characteristics essential to the existence of an employer status.

In view of the foregoing, it is the determination of the Railroad Retirement Board

that Camas Prairie RailNet, Inc. ceased to be an employer covered under the

RRA and RUIA on March 31,2004, the date on which it last compensated its

employees.

Mr. Craig R. Richey, legal counsel for Watco Companies, Inc., advised that GNR

began operations and compensated its employees effective March 3, 2004.

GNR is a wholly owned subsidiary of Watco Companies, Inc., a non-carrier

holding company. Surface Transportation Board (STB) authority for Watco to

continue in control of GNR is set forth in STB Finance Docket No. 34475, decided

March 10, 2004. GNR acquired CPR and now operates its predecessor's rail line

of approximately 179 miles located in the states of Idaho and Washington and

connects with the Union Pacific (UP) and Burlington Northern Santa Fe (BNSF).

.1

BA#4335
Camas Prairie RailNet, Inc.

Great Northwest Railroad, Inc.

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:

Section 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.C.S. § 3231).

Based on the information summarized above, it is determined that the

Great Northwest Railroad, Inc. became an employer covered under the

Railroad Retirement Act and the Railroad Unemployment Insurance Act

on March 3, 2004, the date it began operations.

(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)].

V. M. Speakman, Jr.
JUL 0 9 2004

B.C.D. 04-33

EMPLOYER STATUS DETERMINATION

Camas Prairie RailNet, Inc.

Great Northwest Railroad, Inc.

This is the determination of the Railroad Retirement Board concerning the

continuing status of Camas Prairie RailNet, Inc. (CPR) (B.A. No. 2648) 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. seg.) (RUIA). CPR

was determined to be an employer under the RRA and RUIA with coverage

from February 1, 1998. This is also the determination of the Board concerning the

status of Great Northwest Railroad, Inc. (GNR). GNR has not heretofore been

ruled to be a covered employer.

Mr. William E. Glavin, Executive Vice President of North American RailNet, a noncarrier holding company and parent of CPR, advised that CPR ceased railroad

operations on March 2, 2004 and last compensated employees on March 31,

2004. Although CPR has not yet been dissolved as a corporation due to 2004

employee compensation reporting requirements, other financial matters and

certain existing railcars that still utilize CPR's car mark, all of its railroad assets

were sold to GNR on or about February 27, 2004. See Surface Transportation

Board Finance Docket No. 34474, decided February 20, 2004.

Section 202.11 of the Board's regulations provide that:

The employer status of any company or person shall be

terminated whenever such company or person loses any of the

characteristics essential to the existence of an employer status.

In view of the foregoing, it is the determination of the Railroad Retirement Board

that Camas Prairie RailNet, Inc. ceased to be an employer covered under the

RRA and RUIA on March 31,2004, the date on which it last compensated its

employees.

Mr. Craig R. Richey, legal counsel for Watco Companies, Inc., advised that GNR

began operations and compensated its employees effective March 3, 2004.

GNR is a wholly owned subsidiary of Watco Companies, Inc., a non-carrier

holding company. Surface Transportation Board (STB) authority for Watco to

continue in control of GNR is set forth in STB Finance Docket No. 34475, decided

March 10, 2004. GNR acquired CPR and now operates its predecessor's rail line

of approximately 179 miles located in the states of Idaho and Washington and

connects with the Union Pacific (UP) and Burlington Northern Santa Fe (BNSF).
Camas Prairie RailNet, Inc.

Great Northwest Railroad, Inc.

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:

Section 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.C.S. § 3231).

Based on the information summarized above, it is determined that the

Great Northwest Railroad, Inc. became an employer covered under the

Railroad Retirement Act and the Railroad Unemployment Insurance Act

on March 3, 2004, the date it began operations.

(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)].

V. M. Speakman, Jr.