30 April 2008
DM&E Alleges Minnesota Group Stirring Up Opposition to Expansion
Sioux Falls South Dakota USA - The "Rochester
Coalition" in Minnesota that is opposing a coal train expansion by Canadian Pacific's newly acquired DM&E railway has secretly
instructed Wyoming landowners how to drag out efforts to acquire land, according to a motion filed by the railway.
In a civil action in federal court in Wyoming, the Dakota, Minnesota & Eastern Railroad accuses the Rochester Coalition consultants
of "co-ordinating efforts with a minority of the landowners along the railroad route... to misrepresent DM&E's
dealings with landowners generally," it states.
DM&E was acquired last fall for US$1.5 billion by Calgary-based Canadian Pacific Railway, which is a major carrier of
coal and other commodities. However, the deal still requires regulatory approvals.
The DM&E expansion, estimated to cost $6 billion, would add and improve tracks in Wyoming, South Dakota, and Minnesota so it can
ship coal from Wyoming's Powder River Basin.
The Rochester Coalition's opposition to the expansion largely stems from concerns from the Mayo Clinic that a train accident near the
hospital could endanger its patients.
The coalition has tried to have the DM&E, which is now owned by Canada's second-largest railway, build a bypass at
Rochester to redirect the coal trains and increased traffic.
DM&E's allegation against its opponents stems from e-mails not disclosed to the Sioux Falls-based
railroad as part of the discovery process in a federal lawsuit over DM&E's condemnation proceedings against about 20 Wyoming
landowners.
DM&E wants a judge to order the violators to divulge electronic communications that should have been shared, allow computer experts
to check the hard drives of those involved, and impose sanctions.
Defendants include 400 acres in Campbell and Weston counties in Wyoming, Lenard Seeley, Teresa Seeley, Jeffery Seeley, Denise Seeley,
and Bank of the West on behalf of Harry Walter Keeline III trust, 170 acres in Weston County, Bryan Stroh, and First National Bank.
DM&E President Kevin Schieffer said the e-mails show that some of the opposition to the project isn't coming
independently from a few Wyoming landowners but rather from a well-financed Minnesota organization.
"It's being orchestrated by a paid consulting effort by the Rochester group, which obviously has nothing to do with anything in
Wyoming, other than its desire to kill the project that's good for South Dakota," he said.
In the communications to landowners, the consultant "basically gives them a menu of negative things to say about the railroad and
says, Just pick one," Schieffer said.
A lawyer for the landowners did not return a telephone call seeking comment.
A spokesman for the Minnesota opponents sent the following statement to The AP:
"The Rochester Coalition is not a party to the Wyoming litigation. We sympathize with the landowners who have to go up against a
railroad that has admitted under oath it is spending ($3.5 million to $4 million) a month to advance their plans to take their land.
"It's disappointing to see the DM&E going to these types of tactics to distract attention from their own tactics to acquire
with no regard for those impacted.
"It's bad enough that DM&E is trying to take their lands, but now they are getting sued for putting up a fight. The DM&E
tactics in the suit are more evidence of DM&E's inability to treat folks on the line respectfully or fairly."
Schieffer said the DM&E learned of the secret communications through a computer disk inadvertently provided as part of the
discovery process.
"You can see from the context that there's a ton of stuff we don't have," he said.
In a filing in March, the Mayo Clinic asked the federal Surface Transportation Board to require the Canadian Pacific Railway and
DM&E to carry out a list of mitigating actions before the panel approves the Canadian Pacific's acquisition of the DM&E.
Canadian Pacific said in its latest financial report, issued last week, that was still awaiting a decision by the Surface
Transportation Board.
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