L-r 2. NYE COUNTY AGENDA INFORMATION FORM lxi Action Presentation II Presentation & Action. &_i, 4. IXI No financial impact.

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1 NYE COUNTY AGENDA INFORMATION FORM lxi Action Presentation II Presentation & Action Department: Public Petitioner Agenda : Category: Regular Agenda Item May 6, 2014 Contact: Mark Bassett Phone: Continued from meeting of: Return to: Location: Phone: Action requested: (Include what, with whom, when, where, why, how much ($) and terms) Discussion and deliberation regarding a letter of support for the Nevada Northern Railway TIGER Grant application submitted by NDOT to reopen the Nevada Northern Railway from Ely to Shafier, Nevada. Complete description of requested action: (Include, if applicable, background, impact, long-term commitment, existing county policy, future goals, obtained by competitive bid, accountability measures) Any information provided after the agenda is published or during the meeting of the Commissioners will require you to provide 20 copies: one for each Commissioner, one for the Clerk, one for the District Attorney, one for the Public and two for the County Manager. Contracts or documents requiring signature must be submitted with three original copies. Expenditure Impact by FY(s): (Provide detail on financial Form) Routing & Approval (Sign & ) IXI No financial impact 1. Dept HR : 8. Legal : &_i, 4 9. Finance : County Manager Pl Agenda : Item#: L-r 2

2 1100 Avenue A PO Box Ely, Nevada Toll Free: (866) Voice: (775) Fax: (775) Web: info@nnry.com May 5, 2014 Nye County Commissioners PO Box 153 Tonopah NV Dear Commissioners, I had planned to attend your meeting on Tuesday, but I unfortunately a conflict arose and I will not be able to attend your meeting. I wanted to explain the reasoning behind our request for your letter of support. The Nevada Northern Railway was built to support the copper mine in Ruth and the smelter in McGill and until 1999 it did just that. Freight service ended then but the tracks were never removed. Today, White Pine and Eureka Counties are enjoying a renaissance in mining. In White Pine County, the copper mine is still going strong and a new gold mine will open this fall. In Eureka County, a new molybdenum mine will be opening shortly. Our goal is to open the railroad to freight traffic. To do so we are working with NDOT and applying for a TIGER Grant to help fund the construction work needed to open the railroad. NDOT s interest in having the Nevada Northern Railway open once again is that it will remove over 7,000 long haul trucks off Nevada s highways each year. Currently, we have approximately half of the railroad open. The TIGER G,rant will allow us to open the rest of the railroad. In doing research for the project, we have contacted businesses in the area to see if having the ability to ship by rail would make a difference to their business. One of those businesses was Foreland Refinery. They own a refinery in Railroad Valley in northern Nye County. In discussions with the Mr. McSwain, President of Foreland Refinery, he stated that having the railroad open would be an asset to his business. He envisions needing 100 rail tanker cars a month, once the railroad is open. These cars would be used to haul oil in for refining and then to ship out the oil once it is refined. Opening the railroad would create business opportunities and jobs in northern Nye County. The County Commissioners in White Pine, Elko and Eureka Counties have all provided a Letter of Support. Receiving a Letter of Support from Nye County will strengthen the application and give it a better chance of being approved. Award Winning Destination Nevada State Treasure 2012 & 2013 Best Event in Rural Nevada The Polar Express Best Preservation Effort in the West Attraction of the Year Best Place to Take the Kids in Rural Nevada 2013, 2012, 2011, 2010, 2009, 2008 & 2007 Best Museum in Rural Nevada 2013, 2010, 2009, 2008 Best Museum - Special Recognition Favorite Nevada Attraction 2008

3 If the TIGER Grant is approved, construction would start in late 2015 and the railroad would be open by late 2016 or early I have attached a current map of the project showing the status of the railroad and the industries it could serve. Please contact me if you need any additional information. As the TIGER Grant moves forward, I will keep you informed of its progress. Sincerely, Mark S. Bassett Executive Director

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5 Nevada Board of County Commissioners Pahrump Office 2100 E Walt Williams Dnve Nye County Pahnimp, NV Pahrump, Nevada Phone (775) Fax (775) April 25, 2014 Anthony Foxx Secretary United States Department of Transportation 1200 New Jersey Avenue S.E. Washington D. C Subject: FY 2014 TIGER Discretionary Grant Application Rehabilitation Project Northern Railway Nye County supports the Nevada Department of Transportation, the City of Ely and the White Pine Historical Railroad Foundation (DRA the Nevada Northern Railway Museum) in their pursuit to re-open the Nevada Northern Railway to freight and passenger rail traffic. These are suggested points to emphasize in your letter of support. Please pick a few that provide the highest benefit to your organization. This project will provide better (safer) transportation choices and connections for the community. Please explain how opening the railroad could increase employment of local residents at the mines and other business. Opening the railroad will have a major positive economic impact on the economies of White Pine, Elko, Eureka and Nye counties. Awarding the grant will have immediate improvements in transportation efficiency and safety. Re-establishing freight traffic will have a positive impact on mining in the quadcounty area by lowering transportation costs. Awarding the grant will lower the cost of doing business in the four counties. Awarding the grant will remove heavy haul truck traffic from state and local roads. Awarding the grant will remove heavy haul truck traffic from roads that pass through the center of small communities where there are no bypasses available. Using the railroad is environmentally friendly, it will save fuel. Railroads can haul a ton of freight, approximately 500 miles, using just one gallon of fuel. Opening the railroad will tie the quad-county area to the international transportation grid, allowing Nevada products to be exported globally. It will create business opportunities in the quad-county areas IDS Nye County is an Equal Opportunity Employer and Provider

6 Anthony Foxx May 6,2014 Page 2 Opening of the Nevada Northern Railway carries the full support of Nye County Signed: Sincerely, Dan Schinhofen, Chairman / Encs: cc: 14-O12IDS Nye County is an Equal Opportunity Employer and Provider

7 Nevada Northern Railway Track Map Overview Cobre MP 0 Keystone MP Built in 1905/1 906 to develop the copper mines neat Ruth Rail service ended June 20, 1986 Cobre MP 0 McGill Junction MP Purchased 9/27/2005 by City of Ely & the Foundation for $1.5 million. Funding: CDBG $; State of Nevada Grant $500,000; Loan NV Energy $375,000 and Loan LS Power $375,000, Track Miles SHAtTER Interchange UP RR NNCOBRE MP 0 Wendover McGill Junction MP Keystone MP 147 HiLine MPO to Given to City of Ely & the Foundation 11/30/1987 Track Miles: Mainline 28.8 miles; Yard 6.7 miles; Total 35.5 PROJECT AREA Shafter MP 18.5 to Keystone MP Shafter MP 18.5 Curie MP 63 In Service - Track Miles 44.5 Returned to Service in 2010 Currie MP 63 McGill Junction MP Out of Service - Track Miles 65.8 McGill Junction MP Hiline Junction MP Out of Service - Track Miles 6.5 Scheduled for rehab in 2013 Club 50 Crossing rebuilt in 2009 Hiline Junction MP Keystone MP In Service - Track Miles 11.2 Track rehabbed 2009 Keystone MP Sunshine (Loadout) MP Out of Service - Track Miles 1.8 (Owned by the mine) The mine will pay for the rehabbing of this track. OPERATORS (STB Authority): S & S Shortline Railroad Cobre MP 0 McGill Junction MP Great Basin & Northern - May 19, 2004 McGill Junction MP to Keystone MP McGill Junction MP to McGill MP M2.6 Hiline Junction MP to Adverse MP 8 SUNSHINE ORE LOAD OUT MP I $ I White Pine County Nevada Northern Ry Track In Service 62.2 miles Track Out of Service 65.8 miles Other Railroads Roads MCGILL JUNCTION MP HILINE JUNCTION MP 135.3

8 The NEVADA NORTHERN RAILWAY A NATIONAL HisToRic LANDMARK :O) Depot: 1100 Avenue A, Ely, Nevada Mail: P0 Box Ely, Nevada Toll Free: (866) Voice: (775) Fax: (775) Web: director@nnry.com Dear Supporter, The Nevada Northern Railway Museum is working with the City of Ely and the Nevada Department of Transportation to submit an application for a federal Transportation investment Generating Economic Recovery (TIGER VI) Discretionary Grant. Funds from this grant will be used to open the Nevada Northern Railway for operation from its interchange point with the transcontinental railroads at Shafter, Nevada to the communities of Ely, Ruth and McGill, Nevada. To strengthen our grant application we are asking for letters of support and request that you provide such a letter. The opening of the railroad will impact the economies of White Pine, Elko, Eureka and Nye counties. What follows is a suggested format, please feel free to modify or emphasize points that are important to you organization. Please address your letter of support to: Anthony Foxx, Secretary, US Department of Transportation, see attached draft. If possible, we need your signed letter of support no later than April 2jst to be included in our application. Letters of support should be sent to me for inclusion in our grant package. Letters can be scanned and e mailed, but please still send the original too. If you have any questions please don t hesitate to contact me. Thank you for your support in this exciting project. Wa4st regards Ex cutive Director Award Winning Destination Nevada State Treasure 2012 & 2013 Best Event in Rural Nevada Polar Express Best Preservation Effort in the West Attraction of the Year Best Place to Take the Kids in Rural Nevada 2013, 2012, 2011, 2010, 2009, 2008 & 2007 Best Museum in Rural Nevada 2013, 2010, 2009, 2008 Best Museum - Special Recognition Favorite Nevada Attraction 2008