SURFACE TRANSPORTATION BOARD'S SECTION OF ENVIRONMENTAL ANALYSIS ISSUES ENVIRONMENTAL ASSESSMENT FOR PROPOSED "NORFOLK SOUTHERN" & "PAN AM RAILWAYS" APPLICATION FOR JOINT CONTROL & OWNERSHIP OF "PAN AM SOUTHERN"

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>From the Surface Transportation Board, Washington, D.C.
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The Surface Transportation Board (Board) announced today that its Section
of Environmental Analysis (SEA) has issued an Environmental Assessment (EA)
for public review and comment concerning the proposal by the Norfolk
Southern Railway Company, Pan Am Railways, Inc. (a noncarrier holding
company), and two of Pan Am's railroad subsidiaries, the Boston and Maine
Corporation and the Springfield Terminal Railway Company, to acquire, and
to jointly control and own, Pan Am Southern LLC, a new railroad to be
formed.


                               The EA identifies and analyzes the potential
                               environmental impacts (both beneficial and
                               adverse) that could occur as a result of the
                               transaction.  The EA also sets forth
                               preliminary recommended mitigation measures,
                               should the Board approve the proposal.  At
                               the conclusion of the comment period, SEA
                               will prepare a Post Environmental Assessment
                               (Post EA) in response to comments received.
                               The Board will then issue a final decision,
                               based on all comments received in the public
                               record in this proceeding, addressing the
                               transportation merits of the proposal and
                               the entire environmental record, including
                               the EA and the Post EA.


                               The EA has been distributed to all parties
                               on the Board's service list for this
                               proceeding, including key governmental
                               agencies, elected officials, and those
                               participating in the environmental review
                               process.  SEA invites public comment on all
                               aspects of the EA.  The Board is providing
                               the public 30 days—until December 15, 2008
                               —for the filing of comments on the EA.
                               Those wishing to file comments regarding the
                               EA must send an original and one copy to:


                               ATTN: Ken Blodgett (FD 35147)

                               Case Control Unit
                               Surface Transportation Board
                               395 E Street, S.W.
                               Washington, DC 20423-0001


                               Environmental comments also may be filed
                               electronically, via the Board's Web site at
                               www.stb.dot.gov, by clicking the "E-FILING"
                               link on the home page.  Please refer to "
                               Finance Docket No. 35147" in all
                               correspondence addressed to the Board.


                               The EA was issued today, November 14, 2008,
                               in Norfolk Southern Railway Company, Pan Am
                               Railways, Inc., et al.—Joint Control and
                               Operating/Pooling Agreements—Pan Am Southern
                               LLC, STB Finance Docket No. 35147(
                               http://www.stb.dot.gov/decisions/readingroom.nsf/WebDecisionID/39520?OpenDocument
 )
                               .  The EA is available for viewing and
                               downloading via the Board's Web site, under
                               "E-LIBRARY" on the home page, then under "
                               Decisions & Notices," beneath the date "
                               11/14/08."


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