Kane_dh.doc

March 8, 2000

VIA FED EX

Julie Kane
NezPerce Tribal Attorney
Main Street and Beaver Grade
Lapwai, ID 83540

Re: Abandonment of the Grangeville-Spalding Rail Line

Dear Julie,

As I mentioned during our telephone conversation, the Camas Prairie RailNet intends to file an Application with the U.S. Surface Transportation Board (STB) to abandon the 66-mile Grangeville-Spalding rail line. The STB is the entity within the U.S. Department of Transportation with the authority to approve or deny rail abandonments. The Railroad has notified the Idaho Public Utilities Commission that the Application will be filed around April 1, 2000.

Although the authority to grant or deny rail abandonment is governed by federal law, state law requires that the Public Utilities Commission schedule a public hearing on the proposed abandonment. The purpose of this public hearing is for the Commission to determine whether the abandonment would: (1) adversely affect the area being served; (2) impair the access of Idaho shippers to vital goods and market; and (3) whether the rail line has the potential for profitability. If the Commission finds that the abandonment would adversely affect the area being served and that the line has a potential for profitability, then the Commission may protest the abandonment in the STB proceeding.

Enclosed for your review is the draft Environmental and Historical Report (EHR) prepared by Camas Prairie RailNet. As noted in the Railroad attorney’s cover letter, Camas Prairie is seeking your “feedback or guidance” on a number of different issues. Specifically, the Railroad desires to know how the abandonment will affect your land use plans, transportation system, environmental considerations, etc. You will note that the Camas Prairie believes that the abandonment will not adversely affect the environmental or historical element within the boundaries of the reservation. This conclusion is generally considered railroad “boiler plate” and typically does not represent any in-depth evaluation of the environmental or historical issues as they pertain to the Tribe. I would urge you to carefully review the draft Report. In the event that you do provide any written comments to the Railroad’s attorney, John Heffner, I would like to receive a copy of your comments.

As indicated in the enclosed background material on STB proceedings and rail abandonments in general, the STB must balance the effect on local businesses, communities and the local economy against the Railroad’s financial burdens of continuing operation on the line proposed for abandonment. You may want to begin evaluating how or whether the abandonment of the Grangeville-Spalding line would adversely affect economic development, taxes, local businesses, jobs, lost opportunity for new businesses, increased traffic on roads, etc.

As I mentioned during our telephone conversation, I have scheduled an informal meeting of local officials and shippers to advise them about the PUC and STB proceedings, the importance of their participation, and to answer any questions. The meeting will be held Wednesday, March 15, 2000 at 6:30 p.m. at the Craigmont City Hall located at 109 East Main Street.

If you have any questions concerning the abandonment, please feel free to contact me at [phone].

Sincerely yours,

Donald L. Howell, II
Deputy Attorney General

Enclosure

cc: Ron Law
Terry Coffin

Vld/L:Kane_dh
Julie Kane
March 8, 2000
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