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Brookings Residents Reject DM&E Agreement at Polls

BROOKINGS, S.D. – Fifty-six percent of Brookings voters rejected the city’s Community Partnership Agreement (CPA) with the Dakota, Minnesota & Eastern (DM&E) Railroad. The results show that many Brookings residents were dissatisfied with the railroad’s mitigation proposal, some pundits say. DM&E has requested a $2.3 billion federal subsidy to upgrade and expand the private railroad’s tracks to haul large volumes of coal from Wyoming’s Powder River Basin to distribution points in the East. If approved, the project could result in as many as 34 coal trains passing through Brookings each day at speeds of up to 50 miles per hour.

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Opponents of $2.3 Billion DM&E Loan Voice Concern as Public Comment Period Draws to a Close

WASHINGTON – As public comments came to a close, a distinguished group of national leaders has voiced their opposition to the loan and called on the Federal Railroad Administration (FRA) to deny a Dakota, Minnesota and Eastern Railroad (DM&E) proposal. “The American taxpayer is being railroaded again,” George Landrith, president of Frontiers of Freedom Institute, a public policy foundation dedicated to promoting free market principles, said in a statement during the comment period. “The DM&E railroad has a history of failing to live up to its financial obligations. American taxpayers deserve to know who the money is going to and

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Rochester Coalition: Largest Federal Loan in U.S. History Relying on Faulty Environmental Impact Statement

ROCHESTER, Minn. – The Federal Railroad Administration (FRA) erred in adopting the environmental impact statement (EIS) prepared by the Surface Transportation Board (STB) concerning the Dakota, Minnesota & Eastern Railroad’s (DM&E) coal train expansion proposal, the Rochester Coalition said in comments filed today. “The FRA is relying on a dated, insufficient EIS that the Department of Transportation’s General Counsel’s Office has indicated is problematic,” said Steve Ryan, of Manatt, Phelps & Phillips LLP and legal counsel for the Rochester Coalition. “When considering granting a $2.3 billion taxpayer-funded loan – the largest federal loan to a private company in U.S. history

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Surface Transportation Board Approves DM&E Request

SIOUX FALLS, S.D. – The U.S. Surface Transportation Board (STB) has approved DM&E’s application to utilize a separate subsidiary to build and operate a new 280-mile rail line into the Powder River Basin. “We’re pleased with this latest victory,” said Kevin V. Schieffer, DM&E president and CEO. “It’s another step closer to our goal of creating the best, safest, most efficient and most modern railroad in the United States.” The STB’s decision, released late yesterday, will help expand the market for financing the $6 billion project. “We have to attract a lot of private financing regardless of the outcome of

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Minnesotans Overwhelmingly Support DM&E Railroad Plan to Upgrade Track in Southern Minnesota

NEW ULM, Minn. – By a 7-to-1 margin, Minnesotans favor Dakota, Minnesota & Eastern Railroad’s plan to upgrade its existing tracks in southern Minnesota, according to a new statewide survey of Minnesota voters about the railroad improvement plan. Asked why they favor it, supporters most often said that it would improve rail safety. The statewide survey found that 74 percent favor the DM&E plan, 10.4 percent oppose it and 15.7 percent did not know or refused to answer. Minnesotans voiced an equally strong conviction that the project would benefit farmers. The survey found that 71 percent believed the DM&E upgrade

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Appalachian and Ohio Rail Workers Approve First Contract as BMWED Teamsters

WASHINGTON – Track maintenance employees of the Appalachian and Ohio Railroad have unanimously approved their first contract as members of the Brotherhood of Maintenance of Way Employees Division (BMWED) of the Teamsters Union. This is the first union contract on the short line railroad since being sold by Watco Companies. “This contract will provide an immediate increase in wages,” said Randall Brassell, General Chairman of the BMWED’s Eastern Federation. “The contract language standardizes pay rates and gives employees access to a 401(k) plan. This is a good first contract.” The contract ratification vote took place Aug. 3 in Buckhannon, W.Va.

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STB Releases Fall Peak Service Plans

WASHINGTON — The Surface Transportation Board has released letters from Class I railroads outlining their “peak season” service plans. In June, Chairman W. Douglas Buttrey sent letters to the chief executive officers of the seven largest railroads and to the American Short Line and Regional Railroad Association (ASLRRA), asking the railroads to inform the STB of their plans to ascertain the demand for, and to prepare for, the provision of peak-season service; their performance goals for the remainder of 2006 and their plans for achieving those goals; and their plans to communicate their service goals and plans with customers. In

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Twin Cities & Western Railroad Marks 15th Anniversary

GLENCOE, Minn. — The Twin Cities & Western normally is freight service only, but on July 21-22-23 the 229-mile regional railroad celebrated its 15th anniversary by running a series of diesel-powered passenger trains. Regularly scheduled passenger service ended on the line in 1969. "It’s our way of thanking customers, employees, government leaders and railroad officials who helped make our railroad a success," says TC&W Executive Vice President and Chief Operating Officer Mark Wegner. The general public had an opportunity to ride similar trains on July 29-30 when the city of Cologne, Minn. marks its 125th anniversary. As a bonus, the

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Buffalo & Pittsburgh Railroad Resumes Service After Bridge Fire

ROCHESTER, N.Y. –  The Buffalo & Pittsburgh Railroad (B&P) on June 22 announced that its freight rail service has resumed to three companies in Butler County, Pa., following a fire last month that destroyed a wooden railroad bridge on that line. With the cooperation of local, state and federal officials and regulatory agencies to expedite the permitting process, the B&P was able to replace the damaged bridge with new track on culverts and earthen fill in about six weeks. The branch line runs from East Butler to Bruin and was out of service since the fire on May 10, 2006.

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Sale of Grand Canyon Railway Possible

WILLIAMS, Ariz. – After nearly 20 years of devotion and resources, Grand Canyon Railway’s owners, Max and Thelma Biegert, are ready to be less involved with the day-to-day operation and have set forth a new goal for the future – to preserve the Railway as their legacy. Grand Canyon Railway has signed an agreement with Peacock, Hislop, Staley and Given, Inc. (PHSG) and are currently pursuing strategic business options, including the possible sale of Grand Canyon Railway. “Max and Thelma are looking forward to enjoying the fruits of their labor during their Golden Years,” said David Chambers, president of Grand