McKechnie_dh.doc

June 21, 2000

Mr. Ed McKechnie
Director Governmental Affairs
WATCO Companies
315 W 3rd Street
Pittsburgh, KS 66762

Re: Your Inquiry About the Camas Prairie RailNet Abandonment

Dear Ed:

Pursuant to our conversation yesterday, I have enclosed for your review the NLV appraisal prepared by Camas Prairie RailNet for its second subdivision (commonly referred to as the Grangeville line). As I mentioned during our conversation, the Staff of the Public Utilities Commission has significant questions regarding the validity of RailNet’s NLV for both land and track materials. See Staff Exh. 8.

I hope you find this information helpful. If you have any additional questions, please contact me at [phone].

Sincerely yours,

Donald L. Howell, II
Deputy Attorney General

Enclosures

Vld/L:McKechnie_dh