[Update 22 March, 2010: I have posted a more detailed summary of this issue here]
The Penticton Indian Band (PIB) has recently made a request to the federal government (Indian and Northern Affairs Canada—INAC) to reacquire the rail bed granted to the Kettle Valley Railroad (and subsequently the Canadian Pacific Railroad). As you are no doubt aware, this land runs through Sage Mesa and the West Bench.
INAC, as part of its duty to consult, has asked the RDOS to comment on the proposed transfer. Please let me know if you have any comments on this either by using the comment feature below or by email.
Please see the INAC letter for more detail. Click the map on the left to get a larger version.