Surfacing Monthly Update #8

22 August 2007

2007 IS TO BE ANOTHER BIG YEAR FOR SURFACING CREWS ON THE TWO RAILROADS. OVER 900 MILES OF TRACK TO BE SURFACED USING OVER 200,000 TONS OF BALLAST!!

The Surfacing crews on the DM&E and IC&E Railroads will have another busy year in 2007 as we have scheduled nearly 1,000 miles of surfacing and over 200,000 tons of ballast for the year. We have currently scheduled one contracting crew to supplement our own forces with the projected needs. Details of the crews are listed below

¨ The “west end” project (CWR and ties north and east of Rapid City, South Dakota) and the remainder of the PRC Subdivision will be surfaced by three DM&E crews and one contract crew during the 2007 season. These crews will work under the direction of Project Supervisor Jim Nemec.

¨ The remainder of the DM&E will be primarily surfaced by another DM&E crew, under the supervision of Project Supervisor Tim Meyer.

¨ The IC&E Railroad will have three permanent IC&E crews and one seasonal crew to do the surfacing behind the tie and steel projects as well as the annual maintenance surfacing needs.

¨ All of these crews will have Jackson 6700 surfacing equipment.