Hurd_dh.doc

October 27, 2000

Gary Hurd
PO Box 525
Council, ID 83612

Re: Camas Prairie RailNet, Inc.

Dear Mr. Hurd:

Pursuant to our telephone conversation earlier this week, I have enclosed for your review two documents. The first is the Parson-Brinckerhoff (PB) Maintenance Report for Camas Prairie’s lender, LaSalle National Bank. As I mentioned in our telephone conversation, the PB Report was prepared prior to a major tie replacement project on the second subdivision (the Grangeville branch). I cannot provide you with any track or structure information for the other three subdivisions.

The second document is a copy of the State’s protest. You may want to review the verified statement of the State’s bridge inspector, Richard McDonald. As mentioned in the body of his verified statement, his observations about the condition of the Grangeville branch’s track and structures was based upon his inspection conducted on March 15, 2000.

I hope you find this information helpful.
Sincerely yours,

Donald L. Howell, II
Deputy Attorney General

Enclosures

Vld/L:Hurd_dh