Patriot Rail Corp., a privately-held short line and regional freight railroad holding company, has agreed in principle to purchase the shortline railroad assets of Weyerhaeuser Company. The acquisition is subject to certain closing conditions, including Patriot's due diligence and regulatory approval, and is expected to close in the fourth quarter of 2010.

The six railroads operate over approximately 160 miles of track in four states and currently handle approximately 60,000 carloads of freight annually. The railroads include:

• the DeQueen and Eastern Railroad Company consists of two railroads -- the DeQueen and Eastern and the Texas, Oklahoma & Eastern railroads -- that operate over a total of 87 route miles in southeast Oklahoma and southwest Arkansas;

• the Columbia & Cowlitz Railway operates over 8.5 route miles in southwest Washington;

• the Weyerhaeuser Woods Railroad operates over 30 route miles in southwest Washington and connects directly to the CLC;

• the Golden Triangle Railroad operates over 13.3 route miles in central Mississippi; and

• the Mississippi & Skuna Valley Railroad owns 21 route miles in Mississippi.

Each of the railroads interchange traffic with Class1 carriers. The railroads primarily source Weyerhaeuser and International Paper mills, move finished products and serve some third-party customers. The railroads employ approximately 120 people.