Rail Weekly Update #2

22 April 2004

AHEAD OF SCHEDULE

To date, we have installed just over 22 miles of the roughly 97 track miles scheduled to be completed by November 19th. As of now, it appears we will meet or beat 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 began on April 12 with the set up of equipment and trained personnel for 3 days then began laying rail on April 15^th . They completed the installation of just over 7 miles of rail near Springfield on April 22, 2004. This is 3 days ahead of schedule.

¨ RJ Corman will then move equipment and material Volga (MP298) in preparation for the next project. They are planning on starting April 30 – (12 days ahead of schedule) heading towards Lake Preston (MP 318). They anticipate they will complete this by May 14th

¨ Total rail delivered thus far is 53 track miles.

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

¨ The RJ Corman welding truck will weld 1 mile of jointed rail at Cobden that was part of the 2002 rail relocation effort in conjunction with rebuilding Highway 14.