McFarland_Plaistow_Morse_Peterson_Wyatt_dh2.doc

May 31, 2000

VIA FED EX

Thomas F. McFarland, Jr.
McFarland & Herman
20 N. Wacker Drive, Suite 1330
Chicago, IL 60606-2902

Joseph J. Plaistow
L.E. Peabody & Associates, Inc.
1501 Duke Street, Suite 200
Alexandria, VA 22314-3449

Paul Wyatt
PO Box 85
Lenore, ID 83541
(via FAX) Ed Morse
Morse & Company
2101 Lakewood Drive, Suite 225
Coeur d’Alene, ID 83814

Steve S. Peterson
Center for Business Development
and Research
University of Idaho
Moscow, ID 83843

Re: Camas Prairie’s Application to Abandon the Grangeville Line
STB Docket AB-No. 564

Gentlemen:

Enclosed for your information and review is the complete Parson-Brinkerhoff (PB) Report which was otherwise contained in Exhibit D of the Railroad’s Application. This Report, dated March 27, 1998, is the basis for much of Railroad’s calculation of the annualized maintenance for the track and bridge structures, as well as the deferred maintenance on the structures. I have not provided Ed or Steve a copy of the Report. However, if you think you need one other than that portion contained in Exhibit D, let me know.

As I mentioned in my letter of yesterday, I have established a conference call for Friday, June 2, 2000. I have set up the call for Noon Eastern time, 11:00 a.m. Central time, 10:00 a.m. Mountain time, and 9:00 a.m. Pacific time, the toll-free telephone number you need to dial is 1-888-232-0365 and the access code you need to punch in is 995463. As of today, I anticipate that everyone will be on the call with the exception of Dick McDonald, our structure and track expert.

In addition to topics you want to discuss, I thought it might be advantageous for us to discuss:

Coordination of the oral hearing requests due June 5, 2000. For instance, how much detail should we put in the request for oral hearing?

Should we request the proprietary material that was redacted from the “public version” of the Application? My understanding is that it showed the Union Pacific and Burlington Northern-Santa Fe revenues for U.S. Timber shipments. (See the blanks on page 3 of Exhibit P.) In addition, there are approximately six or seven pages that were redacted from the income statement in Exhibit N.

Discuss the likelihood of shipper involvement at the June 19 PUC hearing in Craigmont.

Should we set a date for the submission of discovery requests so that I can prepare interrogatories for the Railroad?

I look forward to talking with you on Friday. If you have any questions in the meantime, contact me at [phone].

Sincerely,

Donald L. Howell, II
Deputy Attorney General

Enclosures

bls/L:mcfarland_plaistow_morse_peterson_wyatt_dh2

May 31, 2000
Page 2