Surfacing Weekly Update #13

8 July 2004

CONTINUING ON SCHEDULE

As of July 8^th, we have surfaced over 300 of the 800 pass miles that we had projected to be surfaced in the 2004 production year, nearly 40% of the total miles scheduled. As of now, it appears we will meet that schedule.

¨ All of the 53 new Ballast cars that were leased for 2 years have arrived on line and are in service. The general consensus is that the addition of these cars as well as the Brandt truck are two of the major reasons that the engineering department has been able to keep up with the ballast requirements this year.

¨ As of July 1^st, over 115,000 tons of ballast has been delivered. This is a full 50% of the 230,000 tons of ballast that we now require to complete this year’s projects. From a historical perspective, the DM&E, in a normal year, would use a total of about 60,000 tons annually and the IC&E would use about 40,000 tons. This year’s requirements are over two times the normal usage.

¨ We are working very closely with the LG Everist Quarry and New Ulm Quartzite Quarry to provide adequate supplies of ballast throughout this busy season.