Mahn_dh2_rl.doc

May 2, 2000

Gary Mahn
Idaho Department of Commerce
Statehouse
Boise, ID 83720-0093

Re: Abandonment of the Grangeville-Spalding RAIL Line

Dear Director Mahn:

Camas Prairie RailNet has formally notified the Idaho PUC and the U.S. Surface Transportation Board (STB) that it intends to file an application to abandon and discontinue service on the Grangeville-Spalding rail line in Lewis, Nez Perce, and Idaho Counties. This 66-mile rail line serves the communities of Grangeville, Fenn, Cottonwood, Ferdinand, Craigmont, Reubens, Culdesac, and Lapwai. The STB is the entity within the U.S. Department of Transportation with the authority to approve or deny rail line abandonments.

Although the authority to grant or deny rail abandonments is governed by federal law, Idaho Code § 62-424 requires that the Public Utilities Commission schedule a public hearing on the proposed abandonment. If the Commission finds that the abandonment of the rail line would adversely affect the area being served and that the line has the potential for profitability, then the Commission represents the state in the STB proceeding.

Before the STB would authorize the abandonment of this rail line the STB must first “consider whether the abandonment or discontinuance will have a serious, adverse impact on rural and community development.” 49 U.S.C. § 10903(d). In at least two prior cases where the state has opposed the abandonment of a rail line, the Director of the Department of Commerce has appeared as a witness for the state and discussed the impact of the abandonment on rural and community development in Idaho.

At this point in time, we would like to identify a possible witness from the Department of Commerce who would offer testimony on behalf of the state at the STB’s proceeding. We anticipate that the Camas Prairie will formally file its application on or about May 15, 2000. Based upon the filing, written testimony (in the form of an affidavit) will be needed on or about June 30, 2000. I have enclosed for your review a copy of [then] Director Hawkin’s testimony in the last abandonment case. Once the Department identifies its potential witness, please provide me with the name and address of the individual.

If you have any questions, please contact me at 334-0330.

Sincerely yours,

Ron Law
Executive Administrator

Enclosures

Cc: Donald Howell
Vld/L:Mahn_dh2
Gary Mahn
05/02/00
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