abandonmentletter_dh.doc

February 17, 2000

«FirstName»«LastName»
«JobTitle»
«Company»
«Address1»
«City»«State» «PostalCode»

Re: Abandonment of Camas Prairie RailNet’s Grangeville-Spalding Line

Dear Mr. «LastName»«FirstName»:

As you know, Camas Prairie RailNet intends to file an Application with the Surface Transportation Board (STB) to abandon the 66-mile Grangeville-Spalding rail line. The STB is the entity within the U.S. Department of Transportation with the authority to approve or deny rail line abandonment. The Railroad has notified the Idaho Public Utilities Commission that the Application will be filed on or about April 1, 2000.

Although the authority to grant or deny rail abandonment is governed by federal law, state law requires that the Public Utilities Commission schedule a public hearing on the proposed abandonment. The purpose of this public hearing is for the Commission to determine whether the abandonment would: (1) adversely affect the area being served; (2) impair the access of Idaho shippers to vital goods and markets; and (3) whether the rail line has the potential for profitability. If the Commission finds that the abandonment would adversely affect the area being served and that the line has a potential for profitability, then the Commission may protest the abandonment in the STB proceeding.

In preparation for the PUC hearing and possibly the STB proceeding, it is important to find out the projected number of loaded cars received and shipped on the rail line for the “forecast” year beginning April 1, 2000 and ending March 31, 2001. As with any abandonment proceeding, the PUC must determine the railroad’s revenue from car shipments and the railroad’s costs of maintaining the rail line. To prevent a rail abandonment, shippers need to maximize the railroad’s revenues by increasing (if possible) car shipments, while at the same time examining the railroad’s expenses thereby reducing its operating costs.

The Staff of the PUC is in the process of acquiring the necessary expense and cost data from the railroad. In the meantime, it would be helpful if you could tell me the number of loaded rail cars you project to receive and ship in the forecast year on either a monthly or annualized basis. Please describe the inbound and outbound car shipments with their points of origination or destination and the type of commodity shipped. If you know the rates you are charged for shipping or receiving cars, you can include that. Even if you do not plan on future rail shipments in the forecast year, please fill out the form and return it to me in the enclosed self-addressed envelope no later than March 3, 2000.

Sometime in the near future, the PUC Staff and its investigators will be conducting the track and structure inspection on the line. In conjunction with that inspection, I anticipate scheduling a meeting with the shippers to advise them about the PUC and STB proceedings, the importance of their participation, and to answer any questions that you may have. I have also enclosed some background material on the STB proceeding. In the meantime, if you have any questions, please feel free to contact me at [phone].

Sincerely,

Donald L. Howell, II
Deputy Attorney General

Enc.

cc: Ron Law

Vld/L:Cpabandonment_dh

CAR SURVEY FORM

Shipper:
Location: Contact Person:
Telephone No.:

Loaded Cars In Loaded Cars Out Commodity Destination April 2000 May 2000 June 2000 July 2000 Aug 2000 Sept 2000 Oct 2000 Nov 2000 Dec 2000 Jan 2001 Feb 2001 Mar 2001

Cars shipped/received in 1998
1999

Percentage of your commodity shipped by rail % vs. truck %.
CP Abandonment
February 17, 2000
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