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37960 SERVICE DATE MAY 18, 2007, DO FR-4915-01-P DEPARTMENT OF TRANSPORTATION Surface Transportation Board STB Docket No. AB-570 (Sub-No. 2X Pa louse River & Coulee City Railroad, Inc. Abandonment

17 miles in Latah County. The petition for exemption, filed by PRC at 936 P.M. on May 18, 2007, stated that “in order to improve access to a local water supply, PRC has abandoned its right-of-way easement under a section of the North Fork Coulee River, approximately 0.20 miles from (Pa louse River and Coulee City Railroad's) property line.” Section 10903 of the Act defines an easement as an “any right of way (including right-of-way easement) for a railroad that has been abandoned”. The petition stated that PRC was abandoning a right-of-way to a nearby water supply that PRC had the legal right to use. In reply, PRC argued that it had not abandoned any right-of-way, that it held not only valid easements for access to the natural water source, but also valid easements for the extension of the railroad, and that if the railroad extended past the water source to be used, it would not be possible for PRC to maintain right-of-way access to the water source. Accordingly, the board, finding that no valid issue of fact as to its validity under the Act, granted PRC's petition. This action was reviewed pursuant to Administrative Review Law, 5 U.S.C. § 551 et seq. The board, by order, found that the following matters were in issue prior to the Board's review of this petition: Whether PRC had a legal right-of-way to the water supply to be accessed by its proposed railroad extension; Whether PRC held valid easements for access to the natural water source; Whether that access was necessary to access the water supply; Who would reasonably use that access; Whether it would be practical and economical to obtain other means of access to the water source; How would PRC respond to any objections to access; How would PRC respond to any proposed changes in the location of the access, including access from either the railroad or from the nearby stream, with respect to the water source; Where such other means of access were to be located and how, on the basis of the facts disclosed by PRC at the hearing, it would operate without a substantial disruption and inconvenience for water users.

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