Rail Weekly Update #4

6 May 2004

AHEAD OF SCHEDULE

As of May 6, we have installed just over 25 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. The RJ Corman crew returned to the Volga area on May 1^st and started laying rail between MP 298 and Arlington on Sunday the 3^rd. We expect this 10 mile section to be completed on or before Saturday the 15th with the Arlington to Lake Preston section will be completed by months’ end.

¨ RJ Corman began the second section of CWR, which runs between Volga and Lake Preston, on May 2^nd and now expect to have this area completed by the end of May. This section totals over 20 track miles of CWR.

¨ When this section is completed, we will do some spot tie installation and spot surfacing and increase the speed from the current 10 mph to between 20 and 30 mph. When final tie installation and surfacing are completed this will be 40 mph.

¨ Total rail delivered thus far is 63 track miles.

¨ The remaining 5 rail trains (390,000 feet) are scheduled to be here by June 30, 2004.

¨ This week we received another rail train, CWR train #6, which was unloaded on Monday the 3^rd of May and we expect to receive train # 7 during the third week of May. Engineering forces in the Davenport area also unloaded 14 strings of 115# CWR in the Buffalo area during the week from a train which had more rail on it destined for another property.