Plaistow_Peabody_dh.doc

March 20, 2000

VIA FED EX

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

Re: Copy of Camas Prairie Bid Package

Dear Joe,

Pursuant to our conversation last week, I have enclosed for Dick McDonald a copy of Camas Prairie’s sales booklet dated August 1, 1997. I have also included a hard copy of Lewiston Grain Growers’ estimated rail shipments in calendar years 2000 and 2001. I had previously sent the Lewiston Grain Growers’ data as an attachment to an e-mail I sent to Tom McFarland and Tom Crowley.

Last Friday I had a conversation with Roger Nelson, President of RailNet, Inc. The purpose of my telephone call was to determine whether there was anything short of the Railroad filing abandonment. He did provide me with rough estimates for net liquidation value (NLV) and an annual subsidization amount. Mr. Nelson estimated the NLV was approximately $3 million and the annual subsidy necessary to continue operations was approximately $500,000 (both figures plus or minus 10%). He calculated that the annual subsidy mechanism translated to approximately $250 per car based upon current car shipments or approximately $100-150 per car if traffic were to increase to about 3,000 cars per year.

He also mentioned that he had had some discussion with the owner of Shearer Lumber in Grangeville (John Bennett). Mr. Nelson indicated that John Bennett had mentioned the possibility of purchasing the line from Camas Prairie if the price was less than $6 million. Mr. Nelson also indicated that he had discussed the possibility of increasing the per car revenue allotment provided by BNSF and UP but these discussions were unfruitful.

As of noon today, we have not received Camas Prairie’s Notice of Intent to Abandon. Finally, what is a good time Wednesday to set up a conference call? I was thinking at 9:30 a.m. my time (10:30 CST and 11:30 EST). If the times sound okay to you, just let me know at [phone] and I will fax you the conference call number and password.

Sincerely,

Donald L. Howell
Deputy Attorney General

Enclosure

cc: Tom McFarland (VIA FAX)

Vld/L:Plaistow_dh
Joseph J. Plaistow
March 20, 2000
Page 2