Sidings Weekly Update #5

13 May 2004

SCHEDULE CHANGE; TWO MORE SIDINGS ADDED ONE, MORE BEING CONSIDERED

As of May 13, we have put 1 of the 5 sidings now tentatively planned for 2004 into service although it is not completely finished.

1. The Cobden siding construction began on April 27, and thanks to some excellent weather, has progressed to the point of being 80% complete. We are now awaiting final approval for our wetlands proposal, but at any rate we now expect this siding to be in service by late August. If the approval process is delayed, we may shorten the siding to 8000’ to get it in service prior to the grain rush.

§ Switches are ordered and expect delivery and installation of the west switch before June 15th

§ Tie delivery started this week and will continue thru the next three weeks.

§ The first two cars of rail have been shipped from Volga to the Sleepy Eye area for this project and one car of OTM has also been loaded and shipped. This material is being recovered from the Volga CWR project

2. The Tracy siding was put in service on Thursday the 6^th and has provided immediate relief to traffic congestion in the area.

§ We expect to install the crossovers later in June to complete the project, but the new pass is usable without the crossovers being installed.

§ The length of the new passing track is over 8000’

§ After the completion of the siding, the reconfiguration of the Tracy yard allowed transportation to have track 4 which can hold 60 cars.

3. The negotiations on the Florence siding appear to be making better progress this past week, but we are still awaiting a final agreement with BNSF before we can commit.

4. After receiving many suggestions from the field we have decide not to build the Manchester Siding this year. Instead we will rebuild the Sanborn siding and extend Elkton. We are also considering an extension at DeSmet.

5. The Elkton Siding will be extended over 4000’ to the east and will help with congestion and will enable the meeting of longer trains.

§ Dirt work will start immediately and will expected to be completed by the end of May

§ A new switch for east end is on order and will be delivered by the end of June.

§ Tie options are being considered and a firm order is expected to be made by Friday the 21^st

§ Rail and OTM will be recovered from the Volga / Lake Preston CWR project and will be delivered to the location.

§ Best estimate now for being in service is mid to late August.

4. The Sanborn Siding project involves renewing over ½ the ties in the current siding and changing the rail as well as adding ballast and surfacing.

§ Ties are ordered and will be delivered by the end of the month

§ Expect contractor LA Colo to install these ties when his crews are in the area around mid June

§ Will replace rail as soon as ties are installed

§ Ballast and surfacing will be completed after rail and expect this project to be completed by the end of July, depending on manpower issues.

6. We are currently doing a new evaluation at DeSmet and preparing new estimates to extend that siding to the west about 3700’. The decision on the DeSmet Siding will be made by the end of the month