Monday, April 27, 1998 
                                     9:30 am 
                                 Senate Chamber 
         Pursuant to a notice posted in accordance with Senate Rule  
         11.11, a public hearing of the Senate Interim Committee on  
         Economic Development was held on Monday, April 27, 1998 in the  
         Senate Chamber at Austin, Texas.   
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator David Sibley, Chairman          None 
         Senator Rodney Ellis 
         Senator Tom Haywood 
         Senator Frank Madla 
         Senator Steve Ogden 
         Senator Florence Shapiro 
         Senator Eliot Shapleigh 
         The Chairman  called the meeting to order at 9:40 am.  There  
         being a quorum present, the following business was transacted.   
         Chairman Sibley recognized Representative David Swinford, who  
         made a statement on behalf of his constituency expressing  
         concerns regarding the rail situation in Texas.  The Chairman  
         then welcomed Senator Carlos Truan, Chairman of the Senate  
         International Relations, Trade and Technology Committee, who  
         also presented a statement regarding the Texas rail situation. 
         Following Senator Truan's statement, Chairman Sibley called  
         the first invited witness, Charles R. Mathews, Chairman, Texas  
         Railroad Commission, to present his testimony and respond to  
         members' questions. 
         The Chairman then called the first panel to present their  
         perspectives on the current rail situation in Texas and to  
         respond to Committee members' questions.  The panelists were: 
              Robert F. Starzel, Union Pacific Railroad 
              Roger Hord, Greater Houston Partnership 
              Gaylord Hughey, Texas Railway Alliance for Competitive  
              Larry Roberts, Redland Stone Products Co. 
              Mark Rose, Lower Colorado River Authority 
              George Williamson, Port of Houston Authority 
         Chairman Sibley then called the second panel to present their  
         testimony.  These panelists were: 
              Sam Arrington, United Transportation Union 
              Professor Leigh Boske, LBJ School of Public Affairs 
              Joe Bateman, Union Pacific Railroad 
              Peter Rickershauser, Burlington Northern Santa Fe Railway 
              Larry D. Fields, The Texas & Mexican Railroad 
         Following the second panelists' testimony and response to  
         members' questions, the Chairman advised that public testimony  
         would begin.  All witnesses, including the panel members, are  
         listed in the order of appearance. 
              Jay Tumlinson, representing Texas Farm Bureau, Milam  
         Grain Co., Cameron, Texas 
              Andy Riffe, representing himself, Stratford, Texas 
              Michael Fleming, representing Harris County, Houston,  
              Adonn Slone, representing Lumberman's Association of  
         Texas, Santa Fe, Texas 
              Paul Broussard, representing Paul L. Broussard &  
         Associates, Inc., Houston, Texas 
              Hector Farais, representing the Mayor of Laredo, and the  
         Texas Mexican Border 
                   International Trade Association, Laredo, Texas 
              John Helsley, representing Gulfrail Corp., Granbury,  
              Robert Eckels, County Judge - Harris County, Houston,  
              Jim Woodrick, representing Texas Chemical Council,  
         Austin, Texas 
              Bill Huff, representing Dow Chemical, Freeport, Texas 
              Mike Spahis, representing Fina, Dallas, Texas 
              Pete Peltier, representing Peltier Brothers Construction,  
         Houston, Texas 
              Jim Ward, representing himself and Pete Peltier, Spring,  
              William Loocke, representing himself, Wharton, Texas 
         The following persons registered to testify but were unable to  
         remain at the hearing until called: 
              Ed Corbin, representing Harlingen Chamber of Commerce,  
         Harlingen, Texas - 
                   submitted written testimony 
              Richard Shiefelben, representing the Port of Houston,  
         Houston, Texas 
              Harvey Clemons, Jr. representing Houston Habitat for  
         Humanity, Houston, Texas 
         The following persons registered but did not wish to testify: 
              Ronald B. White, representing Rural Rail Districts, Gulf  
         Rail Corp., Dallas, Texas 
              James C. Harvey, representing Rural Search, Gulf Rail  
         Corp., Dallas, Texas 
              Raymond Holmes, representing Brotherhood of Locomotive  
         Engineers, Mineola, Texas 
              Ronald E. Ryder, representing Burlington Northern Santa  
         Fe Railway, Fort Worth, Texas 
              Dennis A. Kearns, representing Burlington Northern Santa  
         Fe Railway, Austin, Texas 
         There being no further business, at 3:35 pm Chairman Sibley  
         moved that the Committee stand recessed subject to the call of  
         the Chairman.  Without objection, it was so ordered.   
         Senator David Sibley, Chairman 
         Barbara Henderson, Clerk