COURT OF APPEALS AFFIRMS SURFACE TRANSPORTATION BOARD DECISION APPROVING "DAKOTA, MINNESOTA & EASTERN'S" POWDER RIVER BASIN EXPANSION PROJECT

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>From the Surface Transportation Board, Washington, D.C.
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The Surface Transportation Board announced that its decision granting final
approval to Dakota, Minnesota & Eastern Railroad (DM&E) to construct a
280-mile rail line into Wyoming's Powder River Basin, subject to extensive
environmental mitigation conditions, was affirmed today by the United
States Court of Appeals for the Eighth Circuit.  Several parties had
challenged the adequacy of the Board's most recent environmental review in
the matter.  In its decision, the court rejected those challenges and
upheld the Board's decision in all respects.


 Commenting on the decision, Board Chairman Charles D. Nottingham stated:


 "We are pleased with the court's ruling, which is a significant step in
 allowing this important project to go forward.  DM&E now has the
 opportunity to introduce additional competition and capacity into the
 Powder River Basin and to rehabilitate its existing line to help meet our
 Nation's growing freight rail needs."


 The court's decision was issued in Mayo Foundation, et al. v. STB, No.
 06-2031 (8th Cir. Dec. 28, 2006).  For more information, contact Dennis
 Watson at (202) 565-1596.


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