8 February 2008
Rivals Argue Over DM&E Measure
Pierre South Dakota USA - A bill to speed up state
hearings on a railroad's attempt to use condemnation for its proposed coal-train project brought two old rivals to the
state Capitol on Thursday.
Former Gov. Bill Janklow and Dakota, Minnesota & Eastern executive Kevin Schieffer squared off in the same
fourth-floor committee room where they clashed nine years ago over a bill that became the law that brought them back to
town.
The measure proposes that a hearing examiner in railroad eminent domain cases may only be excused with a showing of personal bias or
prejudice and that a hearing must be held within 60 days of receiving an application for use of eminent domain. Any pending
application, such as DM&E's current one, must be decided within 30 days of the effective date of the proposed bill.
At issue is a much-delayed hearing over DM&E's attempt to get state approval to acquire land by condemnation. The
railroad says it needs that authority as it tries to acquire rights-of-way for its proposed route from the coal fields of
Wyoming to the eastern edge of Minnesota. If the project becomes a reality, 30 or more coal trains a day could cross South Dakota.
The railroad needs state approval before it takes those condemnation cases to court because Janklow, then governor, persuaded the 1999
Legislature to pass a law allowing railroads to condemn land, but only with authority of the governor. That authority would require a
finding that the project is a public necessity. The company filed for that approval more than a year ago.
Changing the Rules
Before a standing-room-only audience, Janklow argued that with the proposed bill, "They're changing the rules in the
middle of the game. That's wrong. They're rigging it."
Schieffer said, "We're not trying to change the rules of the game. We're just trying to get to the game."
Schieffer argued that landowners opposed to having the coal line travel through their land have used stalling tactics.
"The name of the game is kill it by delay," he said.
Janklow said many delays could be blamed on the railroad, which objected to the first hearing examiner appointed for the case. He read
a letter from a railroad lawyer outlining several conflicts in a schedule that delayed the hearing again.
"They caused the first delay in the case," Janklow said. "Now they don't want anyone else to do it."
The Senate Transportation Committee voted 5-2 to pass the bill.
Property rights
Several landowners testified, asking the committee to help protect their rights.
Keith Anderson, a Fall River County rancher, said the coal line would split his ranch in two, would "tear the guts out of our
place. I hope that doesn't happen. I realize that it might. If, after a fair hearing on the coal project, the state decides it should
be built, I will live with that decision... What I can't live with is having my right to a fair hearing taken away from me by this
bill."
Chris Molitor of Smithwick, who said her college-senior son plans to be the fifth generation on their ranch, noted that
the Canadian Pacific Railway recently acquired DM&E. The new owners, she said, have indicated they'll take 12 to 30 months to
decide if they will continue with the coal project.
"So, why is DM&E so desperate to take our property and downgrade our business and way of life for a potential project?"
Molitor asked.
The DM&E line is essential to the state's economy, said Bill Chase of the South Dakota Corn Growers Association.
"We need an affordable, reliable, competitive railroad," he said.
Gov. Mike Rounds said later that he didn't have strong feelings either way.
"I think our position is, we can live with or without the bill," Rounds said.
He said he was "a little disappointed with the delays," but he added, "The system was designed to be as fair as possible
to landowners and to give individuals who would have their land acquired through the use of eminent domain the opportunity to express
themselves and have a fair hearing and make sure they're treated fairly."
The bill will be debated on the Senate floor next week.
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