B.C.D. 10-2

EMPLOYER STATUS DETERMINATION J/\N 2 1 2010

Boise Valley Railroad, Inc. (BVRR)

This is a determination of the Railroad Retirement Board concerning the status of

Boise Valley Railroad, Inc. (BVRR) 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.j(RUIA). The status of BVRR under the Acts has not 

previously been considered.

BVRR is a privately held corporation owned by Watco Transportation Services,

Inc. Ms. Tamara Payne, Director of Payroll & Tax Services for BVRR, supplied 

information regarding the formation and start of operations for BVRR. Mr.

Richard B. Webb is the CEO of BVRR. Ms. Payne represented that BVRR began

operations on November 15, 2009. BVRR has eight employees who were first

compensated on or about November 1,2009.

In Surface Transportation Board (STB) Finance Docket No. 35259, decided

September 28, 2009, BVRR filed a verified notice of exemption to acquire by

assignment of lease from Idaho Northern and Pacific Railroad Company the

operating and lease rights over approximately 35.99 route miles (not including

yard tracks) of railroad line owned by Union Pacific (UP). BVRR will acquire rights

to track between milepost (MP) 0.2 near Caldwell, Idaho and MP 11.39 at

Wilder, Idaho; between MP 443.0 near Hillcrest, Idaho and MP 467.8 at Nampa,

Idaho; and track numbers 40, 401,402, 403,404, 406, 407, 408, 409, 410, 411,412,

413,414, and 415 in UP’s Nampa Yard at Nampa, Idaho. BVRR will also acquire

by assignment approximately 12.11 miles of incidental trackage rights over two

segments of UP’s lines in order to interchange traffic with UP at Nampa and to

access one of the leased lines. This track is between MP 465.91 at Caldwell and

MP 454.0 at Nampa and MP 465.91 at Caldwell and MP 0.2 near Caldwell on the

Wilder Branch.

BVRR will provide standard switching services with no passenger traffic. BVRR

anticipates an annual carload of 7,000 initally with an increase to the historic

average of 11,000 carloads in the future. BVRR will provide its own locomotive

and track maintenance. All of BVRR business will consist of this type of switching

service exclusively with UP. BVRR does not expect its annual projected

revenues due to this transaction to result in BVRR becoming a class II or class I

carrier. According to documents provided, the exemptions filed with the STB

became effective on September 28, 2009.

BA # 5742
2

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:

(i) any carrier by railroad subject to the jurisdiction of the Surface 

Transportation Board under Part A of subtitle IV of title 49, United States

Code;

Section 1 of the RUIA (45 U.S.C. § 351) contains essentially the same definition, as

does section 3231 of the Railroad Retirement Tax Act (26 U.S.C.§ 3231).

The evidence of record establishes that BVRR is a rail carrier operating in

interstate commerce. Accordingly, it is determined that Boise Valley Railroad,

Inc., became an employer within the meaning of section 1(a)(1) (i) of the

Railroad Retirement Act and its corresponding provision of the Railroad 

Unemployment Insurance Act effective November 15, 2009, the date on which

BVRR began operations.

FOR THE BOARD U

Beatrice Ezerski

Secretary to the Board