Inc.

EMPLOYER STATUS DETERMINATION

Rail Equipment & Transportation,

d/b/a Nobles Rock Railroad Co.

This is the determination of the Railroad Retirement Board

regarding the status of Rail Equipment & Transportation, Inc. d/b/a 

Nobles Rock Railroad Co. (RETI) as an employer under the Railroad

Retirement Act (45 U.S.C. §231 et sea.) (RRA) and Railroad

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

has not previously been determined to be an employer under the RRA 

and the RUIA, but has been pre-assigned BA No. 9623, and has

submitted annual reports for calendar years 1993 and 1994.

Information about RETI was furnished by Attorney Byron D. Olsen.

Mr. Olsen explained in a letter dated March 14, 1995, that the

original plan was to have RETI be a holding company owning another

corporate entity called Nobles Rock Railroad Company, which would

operate the line involved. RETI determined, however, not to follow 

this plan, but rather, RETI, using the name Nobles Rock Railroad

Company, has operated the railroad from its inception. RETI is the

sole corporate entity involved, and is doing business as Nobles 

Rock Railroad Company. Mr. Olsen further stated that RETI

employees began working on rehabilitation of the railroad July 1,

1993, and common carrier operations began October 8, 1994. Three 

employees have been employed at various times since July 1, 1993.

RETI operates the 41.44 mile line of railroad between Agate and

Manley, Minnesota.1 A Notice of Exemption was issued by the

Interstate Commerce Commission (ICC), service date November 1,

1993, for Nobles Rock Railroad Co. when it was thought to be a

wholly owned subsidiary of RETI. See, Finance Docket No. 32368.

Mr. Olsen has stated that the ICC would be notified of the "minor

change in status".

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 The railroad is actually owned by the Buffalo Ridge 

Regional Rail Authority, a public agency formed under Minnesota

law.

BCD 1995-104 BA # 9623
r

-2-

Rail Equipment & Transportation, Inc.

d/b/a Nobles Rock Railroad Co.

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 RETI is a carrier by rail engaged in

the transportation of persons or property in interstate commerce.

Accordingly, it is determined that Rail Equipment & Transportation, 

Inc. d/b/a/ as Nobles Rock Railroad Co. became a rail carrier 

employer under the Railroad Retirement and Railroad Unemployment

Insurance Acts effective July 1, 1993, the date from which it first

compensated employees.

t

Glen L. Bower

4