SURFACE TRANSPORTATION BOARD PROCEEDS ON TONGUE RIVER RAILROAD'S REVISED CONSTRUCTION PROPOSAL

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-----------------------------***-----------------------------
>From the Surface Transportation Board, Washington, D.C.
-----------------------------***-----------------------------


The Surface Transportation Board announced today its approach for the
continuation of the Tongue River Railroad Company, Inc.'s (TRRC) revised
proposal to build and operate a new rail line in Montana.  This approach
takes into account a number of recent changed circumstances and will allow
the Board to complete its review of TRRC's current plans for a new railroad
line.


                                                                    In
                                                                    December
 2011, the U.S. Court of Appeals for the Ninth Circuit issued a decision
                                                                    affirming
 in part the Board's decisions in two of the three Tongue River cases,
                                                                    while
                                                                    making
                                                                    it
                                                                    clear
                                                                    that
                                                                    TRRC
                                                                    may not
                                                                    build
                                                                    any
                                                                    part of
                                                                    the
                                                                    Tongue
                                                                    River
                                                                    Railroad
 without further environmental review.  TRRC also recently announced
                                                                    revised
                                                                    plans
                                                                    for the
                                                                    location
 of the line and a change in ownership of the railroad and stated that the
                                                                    purpose
                                                                    and
                                                                    need
                                                                    for the
                                                                    proposed
 line have changed.  Accordingly, the Board is requiring TRRC to file a
                                                                    revised
                                                                    application
 that presents fully TRRC's new proposal to build a rail line between Miles
                                                                    City
                                                                    and
                                                                    Ashland.
  The agency will conduct a new environmental review of that plan
 consistent
 with the Ninth Circuit's decision regarding these cases.


                                                                    In
                                                                    addition,
 the Board is dismissing the Tongue River proceedings concerning related
                                                                    lines
                                                                    that
                                                                    TRRC no
                                                                    longer
                                                                    intends
                                                                    to
                                                                    construct.


                                                                    Today's
                                                                    decision
 in
                                                                    Tongue
                                                                    River
                                                                    Railroad
 Company—Rail Construction and Operation—In Custer, Powder River and
                                                                    Rosebud
                                                                    Counties,
 MT, Docket No. FD 30186
 ( http://www.stb.dot.gov/decisions/readingroom.nsf/WebDecisionID/42434?OpenDocument )


                                                                    ;
                                                                    Tongue
                                                                    River
                                                                    Railroad
 Company—Construction and Operation—Ashland to Decker, Montana
                                                                    ,
                                                                    Docket
                                                                    No. FD
                                                                    30186
                                                                    (Sub-No.
 2); and in
                                                                    Tongue
                                                                    River
                                                                    Railroad
 Company—Construction and Operation—Western Alignment
                                                                    ,
                                                                    Docket
                                                                    No. FD
                                                                    30186
                                                                    (Sub-No.
 3) is available for viewing and downloading at the Board's website at
                                                                    www.stb.dot.gov

                                                                    .  The
                                                                    Ninth
                                                                    Circuit's
 decision is
                                                                    Northern
 Plains Resource Council v. STB
                                                                    , 668
                                                                    F.3d
                                                                    1067
                                                                    (9th
                                                                    Cir.
                                                                    2011).


                                                                    ###
                                                                    -----------------------------***-----------------------------

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