1. Challenges to Tubular Rail Innovation. Profitability. Acceptance by Public and Regulators. Multiple Jurisdictions. 1

2. 2 “Old Style Projects” Defined, Century-Proven Technologies – understood by Public, Regulators, Insurers, Financiers. Highways / Airports / Transit – Conceived and Built by Public Entities on Public ROW. Rail – Private, Self Governed, Self Funded, Profit Driven Reactive - not Proactive. On Private ROW.

3. 3 “New Style Projects” New Technologies – Not Just the Machinery - Need New Mechanisms for Operations, Politics, Governance, Ownership. Education of Public and Regulators. Public Private Partnerships – Can a Profit be Made? Can the Project be Divided Among Numerous Partners? Obvious Value to the Locals, Mobility and Money?

4. The Public’s Interest Identify the Public’s Interest. Safeguard the Public’s Interest. Ensure that the benefits continue, protect the public’s investment. 4

5. Issues For Tubular Rail to Address Public Acceptance – Route and Technology - Environmental, Permitting, and “Normal” obstacles. Establish a “Track” Record. Regulatory Issues: Is it a bird, plane, train, mass transit? Federal Oversight? or Federal and State? Local and “Last Mile.” Analyze Impacts on Nature and People, Noise, Socio- economics, construction, operation, wildlife, etc. 5

6. How to Address the Issues Early Coordination with Regulators and Stakeholders. Direct, Open, and Transparent Negotiations and Involvement with Representatives and Regulators. Coordination of Project with Federal, State, and Local Planners, Interconnection with other Modes, Fluidity of Transportation. 6

7. Questions (& Answers?) Mr. Allan K. Butcher, Jr., JD Phone: (210) 699-9090 Email: abutcher@rkci.comabutcher@rkci.com