Doug,
The document you linked to is a good one and documents its sources. I know the author and her emphasis is related to Dayton, Nevada, near the north end of the C&C and the still existing (but cut down) depot building.
So, the line you quoted with the 1936 date is in relation with the track running through Dayton, Nevada. It relates to the standard-gauged segment between Mound House (the connection with the V&T) and the point that the SP connection from Hazen connected with the original C&C.
Further on in the document is the February 1938 approval for abandonment of the narrow gauge service between Mina, Nevada, and Benton, California.
Brian Norden