City_dh.doc

February 18, 2000

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Re: Abandonment of the Grangeville-Spalding Rail Line

Dear Mayor:

As you may 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.

Last week the Camas Prairie sent the city a draft Environmental and Historical Report. The Railroad is seeking your “feedback or guidance” on a number of different issues. Specifically, the Railroad desires to know how the abandonment will affect your land use plans, the transportation system, increases in motor vehicle traffic, etc. After reviewing the draft, you will notice that the Camas Prairie does not believe that the proposed abandonment will adversely affect the environmental or historical elements of your community. I would urge you to carefully review the draft report. If you do provide written comments to the Railroad’s attorney, John Heffner, please send a copy to me.

As indicated in the enclosed background material on STB proceedings and rail abandonments in general, the STB must balance the effects on local businesses, communities and the local economy against the Railroad’s financial burdens of continued operation on a line proposed for abandonment. In anticipation for the PUC and STB proceedings, you may want to begin preparing information on how (or whether) the abandonment of the Grangeville-Spalding line will adversely affect: local businesses that may fold or relocate, lost jobs, lost opportunities for new businesses or ventures, reduced property taxes, increased traffic on local roads, etc.

The PUC Staff has begun its investigation of the proposed abandonment. They will be conducting a track and structure inspection on the line. In conjunction with this inspection, a meeting with the shippers will be scheduled to advise them about the PUC and STB proceedings, the importance of their participation, and to answer any questions. I will notify you of that meeting and I invite your participation. You will be notified where and when the PUC will hold its public hearing.

If you have any questions concerning the abandonment, please feel free to contact the Commission’s attorney, Don Howell, Deputy Attorney General, at [phone].

Sincerely,

Ron Law
Executive Director

Enclosures

cc: Don Howell

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