Peterson_dh.doc

May 26, 2000

VIA FED EX

Steve S. Peterson
Center for Business Development
and Research
University of Idaho
Moscow, ID 83843

Re: Contract for Economic Analysis

Dear Steve,

Enclosed for your review is a contract for technical services for the preparation of economic analysis regarding the abandonment of the Camas Prairie RailNet. If this contract meets with your approval, sign both copies, keep one for yourself and return the other to me. Pursuant to paragraphs 2 and 19, I also need a completed W-9 form and your tax identification number.

Today the Idaho Public Utilities Commission was advised that Camas Prairie filed its Application to abandon the Grangeville-Spalding line with the Surface Transportation Board (STB). The Commission does not expect to receive its copy of the Application and supporting documents until next week (probably the week you receive this letter). When we receive the Application, I will forward pertinent sections to you for your information. Although we will discuss the schedule in more detail, the State will have to submit its case to the STB on or about July 10, 2000. Consequently, we are probably shooting for your analysis being prepared about July 1, 2000. I also expect that various parties will request that the STB hold a public hearing in Idaho. These requests must be received by the STB no later than June 5, 2000.

For information regarding the STB and railroad abandonments, you may review 49 C.F.R. Part 1152 and information contained on the STB’s website at www.stb.dot.gov. If you have any questions, please contact me at [phone].

Sincerely yours,

Donald L. Howell, II
Deputy Attorney General

Enclosures

Vld/L:Peterson_dh