NWPCO is a privately held corporation that was incorporated in the State of California on June 30, 2006. Mr. John H. Williams, the chief Executive Officer for NWPCO, supplied information regarding the formation and start of operations for NWPCO. A letter dated August 24, 2011 represented that NWPCO began operations on July 13, 2011. The first employees were compensated beginning July 13, 2011.

In Surface Transportation Board (STB) Finance Docket No. 35073, decided August 16, 20071, NWPCO filed a verified notice of exemption to change operators from Northwestern Pacific Railway Co., LLC (NWPY, BA# 2793) to NWPCO on a line of rail owned by North Coast Railroad Authority and Sonoma-Marin Area Rail Transit District. The line is entirely within the state of California. The line is approximately 142 miles and includes: (1) the Willits Segment extending between NWP milepost 142.5 near Outlet Station to NWP milepost 68.22 near Healdsburg; (2) the Healdsburg Segment extending from NWP milepost 68.2 near Healdsburg to NWP milepost 26.96 near Novato; (3) the Novato Segment extending from milepost 26.96 near Novato to NWP milepost 25.6 near Ignacio; and (4) the Lombard Segment extending from milepost 25.6 near Ignacio to Lombard Station in Napa County, SP milepost 63.4. NWPCO will provide common freight rail service over the line and will interchange exclusively with California Northern Railroad Co. (BA# 5734), a RailAmerica subsidiary.

According to documents provided, the exemptions filed with the STB became effective on September 7, 2007, after the denial of a Stay request. NWPCO began operations on July 13, 2011 and will handle freight with revenues that will not result in NWPCO's becoming a Class I or Class II rail carrier. NWPCO estimates that it will handle an annual volume that will not result in revenue exceeding $5 million annually which projects out to 2,000 - 2,500 carloads annually. NWPCO does not now intend to provide any rail passenger service.

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 NWPCO is a rail carrier operating in interstate commerce. Accordingly, it is determined that Northwestern Pacific Railroad Company 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 13, 2011, the date on which NWPCO began operations.

1 Request for Stay of proceedings by Mendocino Railway denied September 7, 2007.