Morse Peterson Ruffalo Twight_dh.doc

September 20, 2000

Richard B. Twight
Idaho Department of Commerce
PO Box 83720
Boise, ID 83720-0093

Steve S. Peterson
Center for Business Development
and Research
University of Idaho
Moscow, ID 83843 Kathy Ruffalo
Governor’s Office
PO Box 83720
Boise, ID 83720-0034

Ed Morse
Morse & Company
2101 Lakewood Drive, Suite 225
Coeur d’Alene, ID 83814
Re: STB Decision Granting Abandonment of the Grangeville Line

Dear Kathy and Gentlemen:

Enclosed for your information is the Surface Transportation Board’s decision allowing Camas Prairie RailNet to abandon the Grangeville line. Although the State was unsuccessful in blocking abandonment, your efforts contributed greatly to the State mounting a vigorous opposition to the abandonment Application. In particular, Ed’s verified statement regarding the marketability and value of the right-of-way (ROW) was adopted by the STB. This resulted in a reduction of the net liquidation value (NLV) of the line by more than $500,000.

The shippers or other interested parties have until September 25, 2000, to make an offer of financial assistance to either purchase the line or subsidize continued rail operation for one year. Given my conversation with the other parties, I believe it is unlikely that an offer of financial assistance will be made. The Idaho Transportation Department (ITD) has been granted permission to negotiate with the Camas Prairie Railroad for the possible acquisition of railroad ROW for highway uses. In addition, the Nez Perce Tribe has been granted an opportunity to discuss with Camas Prairie of converting the ROW into a rails-to-trails project. ITD and the Tribe each have 180 days to negotiate with the Railroad.

The STB’s decision becomes effective on October 13, 2000. The decision also requires Camas Prairie to consult with DEQ, National Marine Fisheries Service, and other agencies before undertaking any salvage operations. Decision at pp. 29-30. I have been advised that the STB will issue another decision to clarify that the Railroad must consult with the Idaho Department of Fish & Game regarding the preparation of a track salvage and stream restoration work plan.

Again, thank you for your assistance in putting together the State’s case. I could not have done it without your help. If you have any questions, please call me at 334-0312.

Sincerely yours,

Donald L. Howell, II
Deputy Attorney General

Enclosures

Vld/CP:Morse Peterson Ruffalo Twight_dh
Richard Twight
Steven Peterson
Kathy Ruffalo
Ed Morse
September 20, 2000
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