Feds Like Powder River Plan But Locals Object to Route.

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RAILROADS

A freight railroad has one more obstacle to overcome before it can begin building a 280-mile new line to carry Wyoming coal from the Powder River Basin to Midwestern electric customers. The Dakota, Minnesota, & Eastern (DM&E) Railroad, Sioux Falls, S.D., got the green light to build from the Surface Transportation Board in February, but members of a Rochester, Minn., coalition filed court appeals April 14.

The initial phase of the project, which includes rebuilding 600 miles of existing track, will cost more than $1 billion. DM&E has also applied to the Federal Railroad Administration for a $2.5-billion loan, says Kevin Schieffer, president and chief operating officer.

The Rochester Coalition, which includes officials at the Mayo Clinic, says that once the new line is up and running, an additional 34 trains running on tracks bisecting town could tie up traffic and rattle nerves. "That's extremely disruptive," says City Attorney Terry Adkins. "Plus, if there are any derailments involving toxic materials, the Rochester Methodist Hospital could not be evacuated."

The coalition wants DM&E to reroute the line south of town on existing track owned by the Iowa, Chicago & Eastern (IC&E) Railroad. Both railroads are owned by Cedar American Rail Holdings, Sioux Falls. The coalition met with DM&E officials before filing the appeal in the Eighth Circuit Federal Court of Appeals in St. Louis to keep its legal options open. A decision is expected in a year, with discussions still possible between the coalition and the railroad.

Coal producers in the Powder River Basin and utility companies in the Midwest say the new line is sorely needed. The basin is currently served by two rail lines, but they "have not been able to move the amount of coal we need," says a spokesperson for the Western Coal Transportation League.

Schieffer says the line will carry 50 million tons of coal in its first year. "We've contacted a number of engineering firms but have no lead designations, yet," he says.