Rail Weekly Update #1

16 April 2004

ON SCHEDULE

To date, we have installed 16 of the roughly 94 track miles scheduled to be completed by November 19th. As of now, it appears we will meet that schedule. Most of the 2004 work on the DM&E will be done by RJ Corman Construction Company with the remainder being done by a DM&E crew to be determined later. LA Colo, the IC&E Tie/CWR crew will install all of the CWR on the IC&E with LA Colo installing about 60% and our own crews installing 40%. The RJ Corman crew is the same crew that installed the 115# CWR on our Pierre sub in 1996.

¨ RJ Corman was scheduled to begin on April 12 and did. They set up equipment and trained personnel for 3 days and began laying rail on April 15^th.

¨ Two rail trains were delivered on the DM&E. Unloading went without incident. This brings the total rail delivered to 53 track miles.

¨ The remaining 6 rail trains (470,000 feet) are scheduled to be here by June 30, 2004

¨ As of April 15, 2004 a total 16 miles of rail has been installed.