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Railroads [1]

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RR POLICY & ADVOCACY ASSOCIATES 1800 Diagonal Road, Suite 600 Alexandria, VA 22314 Phone: (703) 684-4417 Fax: (703) 683-7335 Karen Borlaug Phillips President March 28, 2000 The Honorable Karen Tramontono Assistant to the President & Counsel to the Chief of Staff The White House 1600 Pennsylvania Avenue, NW Washington, DC 20500 Dear Karen: Thank you very much for taking the time to meet with Jeff Ward, Sante Esposito, and me earlier this month to discuss the status of the proposed consolidation of the Canadian National Railway Company (CN) with the Burlington Northern Santa Fe (BNSF). As an update, the Surface Transportation Board (STB) conducted four days of hearings on March 7-10 in its STB Ex Parte No. 582 proceeding on rail merger issues; I have enclosed a copy of CN's testimony presented to the STB. On March 17, the STB issued a decision imposing a 15-month moratorium on its consideration of any mergers of Class I railroads and announcing that the Board will soon commence a 15-month rulemaking proceeding on rail merger rules. This precludes CN and BNSF from filing our consolidation application at the STB; under the statutory rail merger review process, we would have been authorized to file this application as early as March 20, absent the moratorium. I have enclosed for your information a copy of the STB's decision. CN and BNSF have filed at the STB petitions for a stay of the STB's decision precluding consideration of our proposed consolidation; copies of these petitions are enclosed. We also have informed the U.S. Court of Appeals for the District of Columbia of Circuit that we plan to appeal the STB's decision; I expect that we will make our formal filings to the court later this week. In addition, the Subcommittee on Surface Transportation and Merchant Marine of the Senate Committee on Commerce, Science, and Transportation

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