Surfacing Monthly Update #3

26, June 2006

ANOTHER BIG YEAR IN 2006 FOR SURFACING CREWS ON BOTH RAILROADS!!

The Surfacing crews on the DM&E and IC&E Railroads will have another busy year in 2006 as we have scheduled over 850 miles of surfacing and over 180,000 tons of ballast for the year. We have currently scheduled no contracting crews to supplement our own forces with the projected needs. Details of the crews are listed below

¨ The west DM&E crew will be under foreman Bob Tech’s guidance again this year. This crew will spend the entire season on the Black Hills, Crawford and PRC subs.

¨ Jared Hook is the foreman that will be supervising the crew which is headquartered on the PRC sub. This crew will spend nearly the entire year between Pierre and Rapid on this subdivision.

¨ Bob Pfeile has taken a break from his normal welding job to be foreman of the surfacing crew that normally works in the eastern half of South Dakota. This year the crew is scheduled to work on the Huron, Pierre, Onida, PRC, and Mansfield subs.

¨ Kent Maxon has remained foreman of the surfacing crew that normally works on the Minnesota subdivisions. This year Kent’s crew is scheduled to surface track on the Huron, Tracy, Waseca and Hartland subs.

¨ Remington Hill is again foreman on the north surfacing crew near Mason City Iowa. This crew will spend the entire year on the Mason City, Owatonna and Jackson subs.

¨ David Kleinow has replaced retiring Jason Teynor as foreman of the northeast surfacing crew this past winter. Dave’s crew will spend the year on the east end of the Mason City, the Marquette, the Chicago and maybe the River sub.

¨ Bruce Wold has again elected to be foreman on the surfacing crew that headquarters near the Quad Cities. This year Bruce’s crew will surface track on the River, Kansas City and Marquette subs and may help on the Chicago sub.

¨ The final surfacing crew will again have Mike Cherne as foreman. Mike’s crew is currently surfacing track on the double track north of Kansas City and this crew will spend the entire year on the Kansas City sub.

¨ Current estimates are for around 180,000 tons of ballast for the two properties for the 2006 capital season. New Ulm Quartzite Quarry and LG Everist will supply most of the ballast for the railroad east of Pierre and Pete Lien and sons will supply most ballast needed west of Pierre. We currently have unloaded over 60,000 tons of ballast to meet these needs.