Surfacing Weekly Update #2

22 April 2004

ON SCHEDULE

To date, we have surfaced 42 of the 800 pass miles to be surfaced in 2004, scheduled to be completed by November 24th. As of now, it appears we will meet that schedule. The surfacing is on track.

¨ 20 of the 53 new Ballast cars that were leased for 2 years have arrived on line.

¨ Surfacing started March 17, 2004

¨ As of April 15, 2004 12,500tons (approximately 175 car loads) of ballast has been delivered.

¨ Movement of loaded and empty ballast cars continues to be a concern in completing this year’s aggressive schedule. Transportation department has made commitments to engineering to get all ballast moved in a timely manner.

¨ Crews work between Volga and Lake Preston doing prep work for the CWR. They will complete this before April 30.