Allen_dh.doc

May 8, 2002

Gerald J. Allen, General Manager
St. Maries River Railroad Company
318 North 10tth Street
St. Maries, ID 83861

Re: Your 2002 Regulatory Fee Assessment

Dear Mr. Allen:

On May 6, 2002, the Commission received your written objection to your 2002 regulatory fee assessment. As you explained in your letter, St. Maries mistakenly reported its interstate gross operating revenue instead of its intrastate gross operating revenue for 2001. Instead of the gross revenue amount you originally reported of $1,327,700, you assert that your correct intrastate gross operating revenue for 2001 should be $480,027.

Idaho Code § 61-1007 contemplates that all railroads, including St. Maries, must pay their first semi-annual installment no later than May 15, 2002. Consequently, the railroad should pay its first installment in the amount of $5,424.32 on or before May 15, 2002. If a refund is appropriate, this section further provides that the Commission shall refund any overpayment “upon the approval of the [State] board of examiners.” See also Idaho Code § 61-1005 (such fee shall be paid to the Commission).

The Commission’s next public meeting is scheduled for May 20, 2002. At that time, the Commission will decide how to process your objection and set the date for the hearing contemplated in Idaho Code § 61-1007. In the meantime, the Commission Staff believes it is appropriate to audit the railroad’s 2001 gross intrastate operating revenue to verify that amount. One of the Staff’s auditors will contact you in the near future to set up the audit.

If you have further questions, please contact me at [phone].

Sincerely,

David Hattaway
Deputy Administrator

cc: Alden Holm

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