heffner_dh.doc

March 2, 2000

VIA FED EX

John D. Heffner, Esq.
Rea, Cross & Auchincloss
1707 L Street NW, Suite 570
Washington, DC 20036

RE: Camas Prairie RailNet’s Abandonment of the Grangeville-Spalding Line

Dear Mr. Heffner:

As I mentioned during our telephone conversation several weeks ago, state law requires that the Idaho Public Utilities Commission conduct a public hearing when a railroad proposes to abandon a branch line within the state of Idaho. The purpose of the Commission’s hearing is to determine whether abandonment of the rail line would adversely affect the area being served and whether the line has a potential for profitability.

The Commission received Camas Prairie’s draft Environmental and Historical Report on February 14, 2000. In anticipation of the PUC hearing and the STB proceeding, the Commission has asked me to request several documents referenced in the EHR. In particular, could you please provide me copies of the property deeds, profile maps, right-of-way maps, bridge engineering reports, and “engineering maps” pertaining to the segment proposed for abandonment. Draft EHR at p. 10. In addition, could you send me the traffic statistics for 1997, 1998 and 1999 referenced on page 3 of the EHR.

In addition, the Commission would also like to request the following information:

1. What is the estimated net liquidation value of the line, with supporting data, broken down between land value and value of track materials?

2. Please provide a breakdown of revenues, costs and return on value for the line segment between Spalding and the location of the southern-most shipper at Craigmont (including adequate tail room for rail service).

3. What is the amount(s) of the annual subsidy necessary to keep: (1) the entire line in operation and; (2) the Spalding to Craigmont portion of the line in operation?

4. How does Camas Prairie derive freight revenues from its connecting carriers (i.e., allowance per car, percentage of total revenue, etc.)? What provision is there for increasing such revenue; and how are revenues and cost allocated between the second subdivision and the remainder of the Camas Prairie line from Spalding to the connecting carriers?

If you have any questions regarding this request, please contact me at [phone]. I look forward to receiving this material at your earlier convenience.

Sincerely,

Donald L. Howell, II
Deputy Attorney General

cc: Ron Law

bls/L:heffner_dh
John D. Heffner
March 2, 2000
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