What should be done when a restricted area is too close to a terminal to display a yellow flag two miles in advance?

When a restricted area is too close to a terminal to allow for the display of a yellow flag two miles in advance, the appropriate action is to display the flag as far in advance as possible. This approach ensures that train crews and personnel are adequately warned about the upcoming restricted area, even if they are unable to meet the standard two-mile advance alert.

By displaying the flag as far ahead as possible, it maximizes the opportunity for train operators to react safely and in accordance with the appropriate procedures to mitigate any potential risks associated with entering the restricted area. Safety is the primary concern, and providing advance warning helps maintain safe operations in and around potentially hazardous zones, especially near terminals where operations may be more complex and require additional awareness.

The other options, while they may seem pragmatic in various contexts, do not prioritize safety and the communication required for proper operational awareness in restricted areas.