plaistow_dh4.doc

June 27, 2000

VIA FED EX

Joe Plaistow
L.E. Peabody & Associates
1501 Duke Street, Suite 200
Alexandria, VA 22314

RE: Preparation of Verified Statements

Dear Joe,

I have enclosed several documents for your information. First, is a copy of my letter to Ed Morse. As you can see in the letter, I reminded Ed that you need his NLV estimate for the value of the right-of-way (ROW). Second, I’ve enclosed a copy of your testimony and cross-examination from the PUC hearing. If your verified statement differs from your PUC testimony/exhibits, you should probably address the change. For example, revenues attributed to car shipments may be lower based upon later and more accurate information from shippers.

Third, I have enclosed for your information a synopsis of the National Marine Fisheries Service Section 4(d) rule regarding the protection of “threatened” steelhead trout. As you will remember, the lower portion of the Grangeville line crosses or runs immediately adjacent to Lapwai Creek. Lapwai Creek is habitat for the threatened steelhead trout. As Ed Morse testified at the PUC hearing, the presence of a federally protected threatened species will generally increase the cost of salvaging the track and OTM in the lower stretch of the line between MP 0.0 and approximately MP 15. I expect that Dick may be able to increase his salvage costs for that stretch of the line for reasons that Ed Morse discusses in his verified statement in greater detail.

Have you and Dick discussed a deadline for submitting your draft-verified statements to me? The verified statements must be filed with the STB no later than Monday, July 10, 2000. Normally, this would require that I send the verified statements and the protest to the STB via overnight mail no later than Friday, July 7. However, we could utilize the weekend to make last minute changes by sending you electronic documents. What do you think?

What do you think about me getting two original signature pages for everyone who is preparing a verified statement? I could then keep one original page and send the other original page to you. If we need to work on Saturday and Sunday (July 8 and 9), we could send you the electronic copies of the verified statements on Monday the 10th, and then you could attach one of the original signature pages to the downloaded material.

When you get a chance, please call me at [phone] so we may discuss this matter.

Sincerely,

Donald L. Howell, II
Deputy Attorney General

Enclosures

bls/L:plaistow_dh4
Joe Plaistow
June 27, 2000
Page 2