10 May 2008
"It is Time to End ... Delays" on DM&E
Sioux Falls South Dakota USA - South Dakota farm, business,
and industry leaders chastised the Mayo Clinic and Rochester Coalition on Friday for their alleged role in colluding with Wyoming
landowners to block an expansion of the Dakota Minnesota & Eastern Railroad.
In an April court filing, the DM&E claimed e-mails between a paid Mayo Clinic consultant and Wyoming landowners are
proof of a scheme to string out negotiations for land easements while appearing to act in good faith.
DM&E wants to reconstruct its line across Minnesota and South Dakota and extend it to Wyoming Powder River Basin coal mines.
In a news conference Friday, participants urged that the rail project be completed and the Rochester Coalition and Mayo Clinic, both
based in Rochester, Minn., stop meddling in the process.
"It is time to end the planned and deliberate delays," South Dakota Farm Bureau CEO Mike Held said.
State Chamber of Commerce and Industry President David Owen said the improper tactics of DM&E opponents now are clear.
"We can see you," he said. "We now have the e-mails."
Lisa Richardson, South Dakota Corn Growers executive director, called for an inquiry into the Minnesota group's actions.
The railroad's court filing seeks to preserve for the legal record a series of e-mails proposing strategy to kill the
project by having affected landowners feign good faith negotiations with the DM&E to delay expansion efforts.
Some e-mails also disparaged DM&E officials, railroad supporters such as Sen. John Thune, and railroad regulatory
agencies.
In one exchange, Thune was characterized as "Senator Porky Thune," and the Federal Railroad Administration as "the
limp-wristed and obsequious FRA" by Mayo Clinic Foundation consultant Marshall Damgaard.
The e-mail traffic in question occurred before the DM&E and Canadian Pacific Railway announced a merger last
September.
Rochester Councilor: No Strategy of Delay
If DM&E foes in Rochester considered delaying tactics to kill the project, they no longer are doing so, according to Dennis Hanson,
president of the Rochester, Minn., City Council.
"I have not been at any meetings where that has been discussed," he said. "We have been up front in working with the
Surface Transportation Board and the federal government to make sure we have a place at the table."
Hanson also said they don't want to fight with the South Dakota shippers.
"Our disagreement is with the railroad," he said. "We understand the need for rail traffic and the ability to haul
cargo. Our dispute is with whoever owns the railroad, and we want to make sure our community is protected."
DM&E chief executive officer Kevin Schieffer, though, said more e-mails expressing similar themes were exchanged by
DM&E opponents after the merger.
"They're just not part of the public record," he said.
He also said of the Rochester Coalition and Mayo Clinic opposition to the PRB project: "They are still working it hard. At
least their consultants are."
Negotiating for Tunnels, Overpasses
While the federal board is reviewing the merger, Rochester Coalition leaders early this year acknowledged the sale of the DM&E to
the Class I and well-heeled CP pretty much ensures a notable increase in rail traffic through Rochester and near the Mayo
Clinic campus.
Instead of trying to stop rail traffic, Hanson said, the Rochester Coalition is trying to negotiate with the CP for tunnels or
overpasses where tracks cross major Rochester roads, for whistle-free crossings, fencing, and soundproofing where the
tracks come near the Mayo Clinic, for speed limits through Rochester, and a process for notifying public officials if the railroad
carries hazardous material through town.
CP Spokesman Mike LoVeccio has consistently declined comment on the CP's plans for Rochester, the DM&E and the expansion pending
merger approval.
Help for Ag Shippers in S.D., Group Says
Schieffer said Friday he appreciates the gesture from the South Dakota groups.
"They have been there every step of the way for the last 10 years," Schieffer said. "They have been great. It is very
helpful and positive," he said.
Corn Growers President Bill Chase, a Wolsey farmer, said a DM&E rebuilt to Class I status would be a godsend for South Dakota
agricultural shippers.
But he acknowledged the anxiety for the Wyoming ranchers whose land new tracks would cross.
"We understand this isn't a happy experience," he said. "We need to treat you fair."
West River rancher Leonard Benson, of Oral, is in a situation similar to his neighbors in Wyoming. The DM&E proposes to cross his
land with new tracks, and "our ranch will not function as previously. But we will adjust," he said. The DM&E has been
willing to work with him to minimize its impact on his ranch, he said, and railroad officials have treated him fairly.
However, with an eye toward the delaying tactics proposed in the e-mails, Benson said "the DM&E cannot negotiate
unless the impacted landowner is willing to negotiate."
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