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13 August 2004
CPR Responds to Elk Valley Coal Corporation's Notice of Intention to File for a Final Offer Arbitration

Canadian Pacific Railway (TSX/NYSE: CP) said today it received notice from Elk Valley Coal Corporation of its intention to submit the matter of rates charged by Canadian Pacific Railway for the movement of coal by rail from one of their five coal mines in Sparwood, BC, to the Port of Vancouver to the Canadian Transportation Agency for final offer arbitration.
 
CPR maintains that these rates are governed by the transportation contract that is currently the subject matter of the action filed by CPR on 21 Jul 2004, thus not eligible for final offer arbitration. CPR will continue to progress with the statement of claim as filed against Elk Valley Coal Corporation. CPR's claim is in respect of the defendant's failure to pay the full amount of rail freight charges, which are applicable pursuant to the transportation contract between CPR and Elk Valley Coal Corporation.