Information about Grenada was provided by Mr. Michael J. Van Wagenen, Vice President of Grenada. Grenada is owned by Mr. Kern Schumacher and Ms. Rhonda Nicoloff1. According to Mr. Van Wagenen, operations began on July 1, 2009.

In Surface Transportation Board (STB) Finance Docket No. 35247, decided May 21, 2009, Grenada filed a verified notice of exemption to acquire (by purchase) and operate approximately 175.4 miles of railroad line from the Illinois Central Railroad Company (ICRC). In STB Finance Docket No. 35249, also decided May 21, 2009, Mr. Schumacher filed a verified notice of exemption to continue in control of Grenada as well as Natchez Railway, LLC2, upon Grenada and Natchez becoming Class III rail carriers.

According to Mr. Van Wagenen, Grenada expects to ship between 4,000 and 5,000 cars annually, and will interchange with ICRC, and will possibly interchange with CSX, NS, BNSF, UPRR, and CN. Grenada certified to the STB that its projected annual revenue as a result of the transaction will not exceed those that qualify it as a Class III rail carrier.

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 Grenada is a rail carrier operating in interstate commerce. Accordingly, it is determined that Grenada Railway, LLC, 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 July 1, 2009, the date on which it began operations.

1 Mr. Schumacher is the majority stockholder in A&K Railroad Materials, Inc., an entity we have found not to be covered under the Acts. See, B.C.D. 94-7. Mr. Schumacher is also the majority stockholder of T&P Railway, Inc., an employer under the Acts (B.A. No. 3778); Kern Valley Railroad Company (B.A. No. 5736); V&S Railroad, Inc. (B.A. No. 2796); and Gloster Southern Railroad Company, LLC (B.A. No. 2583).

2 The employer status of Natchez Railway, LLC is being considered under separate cover.