SURFACE TRANSPORTATION BOARD ANNOUNCES DECISION TO PREPARE ENVIRONMENTAL IMPACT STATEMENT ON "DM&E" PROPOSAL TO ROUTE COAL TRAINS OVER FORMER "IMRL" NETWORK

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>From the Surface Transportation Board, Washington, D.C.
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The Surface Transportation Board (STB) announced its decision today to
proceed immediately with the preparation of a full environmental impact
statement (EIS) on the environmental effects of the proposal by the Dakota,
Minnesota & Eastern Railroad Corporation (DM&E) to route coal trains from
the Powder River Basin (PRB) on the former I&M Rail Link (IMRL) system in
Iowa, Illinois, Minnesota, Wisconsin, and Missouri.


 This decision derives from the STB's obligation, under the National
 Environmental Policy Act (NEPA), to consider environmental impacts of
 federal governmental actions, such as the STB's approval of the DM&E's
 purchase of the former IMRL.  The STB had previously imposed a condition
 on its approval of DM&E's purchase of the IMRL restricting DM&E coal train
 traffic from the PRB in Wyoming over the IMRL until completion of the
 environmental review process.  That condition will remain in effect until
 completion of the EIS.


 In the meantime, the DM&E is not restricted in any manner from operating
 trains carrying any commodity other than PRB coal or from undertaking
 track improvement work on the IMRL.  Today's announcement allows ample
 time for the STB to complete the EIS prior to the DM&E's planned
 commencement of PRB coal train traffic over the IMRL.


 In announcing today's unanimous decision, STB Chairman Charles D.
 Nottingham said:


 "The DM&E's proposal to bring safe, competitive rail access into the
 Powder River Basin and to deliver large quantities of clean, low-sulfur
 coal over several rail routes will significantly advance key national
 transportation and energy policy priorities.  The decision to proceed
 immediately with an environmental impact statement allows the STB to meet
 federal environmental law requirements, protects the project from legal
 attack, and should ensure that the environmental review process is
 completed prior to the DM&E's planned commencement of PRB coal train
 traffic over the IMRL.  The STB will continue to give the DM&E project our
 highest priority consideration-commensurate with the project's national
 importance."


 The STB's decision to conduct an EIS was made after reviewing a summary of
 potential environmental impacts submitted to the agency by the DM&E in
 November 2006.  This summary analysis (called an "Environmental Appendix")
 was published by the STB, and the STB received numerous comments on it in
 December 2006 and January 2007.  The U.S. Department of Transportation,
 the Illinois Department of Transportation, the Iowa Department of
 Transportation, the City of Dubuque and others presented strong arguments
 that the STB should conduct a thorough review of the anticipated
 cumulative environmental impacts of the DM&E's related and interconnecting
 rail improvement projects.


 The decision discussed above was made in Iowa, Chicago, & Eastern Railroad
 Corporation-Acquisition and Operation Exemption-Lines of I&M Rail Link,
 LLC, STB Finance Docket No. 34177.  The recommendation of the STB's
 Section of Environmental Analysis is available for viewing and downloading
 via this link. (Alternatively, the recommendation may be viewed and
 downloaded via the STB's Web site, at www.stb.dot.gov, under the
 "Environmental Matters" button on the home page; then under "Environmental
 Correspondence" on the dropdown; then, when the next page appears with the
 yellow band across the top, look to the top, left-hand corner and click on
 the fourth line item, "Outgoing by Docket Number."  When the next page
 appears, scroll downwardly until the docket number, "FD_34177_0" appears
 at the left and click on the right-pointing "carrot" just to the left of
 that number.  Finally, when the next page opens, click on the number,
 "EO-407.")                               .

 In a separate matter, the STB's 2006 decision authorizing the DM&E to
 construct and operate a new 280-mile line from Wall, South Dakota into the
 PRB was affirmed by the United States Court of Appeals for the Eighth
 Circuit in December 2006 (see the STB's December 28, 2006 news release,
 titled "Court of Appeals Affirms Surface Transportation Board Decision
 Approving 'Dakota, Minnesota & Eastern's' Powder River Basin Expansion
 Project," via this link.)


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