Thank you for that very interesting up date of RGS #36 being built to operate with steam and under FRA rules. It had been a number of years ago I was told of the air operation plans.
O' course the loop track would be up to standard if built with solid ties, properly spiked and to proper gage. But there are no Narrow Gauge track standard for which any FRA inspector could use so they will not be inspecting your track. Federal law does not permit the FRA to be your contractor, or inspector. There are no track standards for narrow gauge, only standard gauge. But you must develop a rule book and the FRA may be interesting to study your copy of rules, and they do review if you are operating in compliance with your own railroad rules. Being Insular, you would be very similar to the Colorado Railroad Museum railroad and exempt. If you truck the engine around, you will want it to comply with the Boiler Inspection Act. The state of Colorado does have jurisdiction to inspect your rail and the condition of rail joints to see if there are no lip rails. It sure would be great to see another new steam locomotive come alive. What a shame it has been delayed by that freak accident.
Also expected to be fired up this summer will be a former USA 2-6-2T 2' gauge tank engine from WW1. It had been in Iowa but a new owner relocated it.