Rail Weekly Update #12

1 July 2004

CWR PROGRAM NEARS COMPLETION ON DM&E

As of June 24th, we had installed just over 65 of the roughly 97 track miles to be completed by November 19th. It appears we will meet or beat that schedule. The RJ Corman crew completed the section of CWR on the DM&E between MP 235.5 and MP 258.3 on the 23^rd of June. They are off until July 7^th. We expect all of the CWR on the DM&E to be laid by July 15^th and all of the switches in the CWR project areas to be installed by the end of August. The CWR in the Calmar area is expected to be completely laid by the end of August and the switches are planned to be installed prior to the CWR, so that entire project is scheduled to be completed by the end of August also.

¨ All tie, crossing, and bridge work is now completed on the first stretch of CWR between Springfield and Sleepy Eye and ballast has been dumped in preparation for final surfacing and the raising of speed in this area to 40 MPH. We will complete the surfacing portion of this project in conjunction with the completion of the Cobden siding project which is now scheduled for between late July and mid August.

¨ Spot surfacing, bridgework, and tie work are continuing on the second stretch of CWR between Volga and Lake Preston. We now expect all of the track between De Smet and Volga to be up to at least an FRA class 2 (25MPH) by the end of the week of July 5^th. This area has been 10 MPH since early 1997.

¨ Project Supervisor Tom Goffinet unloaded a trainload of 136# CWR in the Calmar area last week in preparation for the rail laying that is to start on July 19th.

¨ The remaining 2 rail trains (150,000 feet) are scheduled to be here by the end of July. They have been delayed by traffic problems on other properties. The delays will not affect the schedule of any of CWR crews on either property.