This is the decision of the Railroad Retirement Board regarding the continued
status of the Montana Western Railway Company as an employer under the Railroad
Retirement Act (45 U.S.C. § 231, et seq.) (RRA) and the Railroad Unemployment
Insurance Act (45 U.S.C. § 351, et seq.) (RUIA).
Montana Western was held to be an employer under the Acts effective September
15, 1986, (B.A. Number 3653). Montana Western sold its rail line to BNSF on July
25, 2003, and continued to operate the line for BNSF until August 8, 2003.
Montana Western maintained two employees to wrap up account receivables, account
payables, and other matters. All business activity ceased on July 29, 2005. The
corporation was dissolved in October 2005. A Surface Transportation Board
decision dated June 26, 2003, approved the acquisition by BNSF (STB Finance
Docket No. 34330).
Section 202.11 of the Board's regulations provides that:
The employer status of any company or person shall terminate whenever such
company or person loses any of the characteristics essential to the existence of
an employer status.
Through the cessation of operations, Montana Western has lost the
characteristics essential to the existence of an employer status. Accordingly,
the Board holds that Montana Western ceased to be an employer under the Railroad
Retirement and Railroad Unemployment Insurance Acts effective with the close of
business on July 29, 2005.
Original signed by:
||FOR THE BOARD
Secretary to the Board