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.
Depending on how this appeal was handled, it will still be a while or longer before DM&E can begin applying to the banks for loans guaranteed by the United States Treasury. If the appeal was heard by a three-judge panel, this decision can be appealed to the full Court of Appeals. If the full Court made this decision, it may be appealed the Supreme Court. The Supreme Court has the option of deciding whether it will hear the case or not. If not, the decision of the Court of Appeals stands.
I think it is pretty likely that this is the end of it. From my–admittedly limited–knowledge of the case, this is not the kind of thing the Supreme Court grants cert for. An en banc hearing for the 8th Circuit is possible, but unusual.
I agree. I don’t see that there are constitutional issues at stake here, so the Supreme Court isn’t going to even give it a first look, much less a second look.
Opponents of the planned expansion of the Dakota, Minnesota & Eastern Railroad lost another round on Thursday (Dec. 28) when the 8th U.S. Circuit Court of Appeals ruled the federal Surface Transportation Board legally approved the project, according to the Associated Press.
The opponents, including the Mayo Clinic and the city of Rochester, argued the transportation board didn’t properly evaluate the environmental impact of the plan to expand rail traffic from Wyoming’s coal fields to eastern Minnesota through Rochester.
The court ruled that the board had based its latest approval on expanded environmental studies and imposed mitigating conditions on the project, some regarding quiet zones where the coal trains wouldn’t sound their horns.
“We’re obviously very pleased with the results today,” said Kevin Schieffer, chief executive officer of the DM&E. “It’s important from the standpoint that, obviously, it’s another milestone that has been passed.”
The board first approved the project in 2002, and the case has bounced back and forth between the regulators and the appeals court in St. Louis ever since.
The Rochester Coalition, which includes the clinic and the city, issued a statement saying it was reviewing the court’s decision and considering its legal options. It said would continue to fight the expansion.
“We remain firmly committed to doing everything possible to protect the people of Rochester and the many thousands of patients who visit our community to seek care at Mayo Clinic,” the statement read.
The $6 billion project would build about 280 miles of new track and upgrade another 600 miles of it. The railroad is awaiting word from the Federal Railroad Administration on its application for a $2.3 billion loan. The decision is expected in early 2007.
All this decision means is that the environmental impact statement submitted by DM&E properly considered all environmental factors. The loan guarantees are another issue and it will be interesting to see how long it will take the guarantees to be finally approved and what interest rates the various banks will charge even with the guarantees in place.
Assuming there are no more snags in the road, and everything procedes as planned, how long could it be until construction starts? Are there any timetables set concerning total construction time also?