[Federal Register Volume 63, Number 49 (Friday, March 13, 1998)]
[Notices]
[Pages 12576-12577]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-6557]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Finance Docket No. 33407]


Dakota, Minnesota & Eastern Railroad Corporation--Construction 
and Operation--in Campbell, Converse, Niobrara, and Weston Counties, 
WY, Custer, Fall River, Jackson, and Pennington Counties, SD and Blue 
Earth, Nicollet, and Steele Counties, MN

AGENCY: Surface Transportation Board.

ACTION: Notice of construction and operation application and request 
for comments on procedural schedule.

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SUMMARY: The Board is publishing notice of an application filed by the 
Dakota, Minnesota & Eastern Railroad Corporation (DM&E) requesting 
authority to construct and operate 280.09 miles of new railroad line, 
which would provide for an extension of DM&E's existing rail lines into 
the Powder River Basin coal fields in northeastern Wyoming. 
Specifically, the railroad seeks authority to build: (1) a 262.03-mile 
rail line between DM&E's existing main line in western South Dakota and 
the coal producing region of the Powder River Basin (PRB) south of 
Gillette, WY; (2) a 13.31-mile rail bypass around a portion of the line 
currently used by DM&E in and near Mankato, MN; and (3) a new 2.94-mile 
rail connection in Owatonna, MN, between DM&E's line and the line of 
I&M Rail Link, LLC.1 This notice also requests comments on a 
procedural schedule based on a schedule that DM&E has asked the Board 
to establish for this proceeding.
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    \1\ DM&E also plans several related projects, which it states 
are not subject to the Board's jurisdiction. These include the 
comprehensive rebuilding of approximately 597.8 miles of its 
existing rail lines consisting of: (1) a 467.55-mile segment of DM&E 
main line between Wasta, SD, and Mankato; (2) a 117.4-miles segment 
of DM&E main line between Mankato and Winona, MN; and (3) a 12.85-
mile segment of DM&E branch line north of Oral, SD, to a point south 
of Smithwick, SD. DM&E plans to perform a substantial upgrading of 
an additional 239.3 miles of its existing rail lines, including the 
relocation and upgrading of an existing connection with Canadian 
Pacific Railroad near Winona/Minnesota City.

DATES: Written comments must be filed by April 2, 1998 and concurrently 
served on applicant's representatives. Each comment must be accompanied 
by a certificate of service. Applicant's reply must be filed by April 
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7, 1998.

ADDRESSES: Send an original and 10 copies of all pleadings referring to 
STB Finance Docket No. 33407 to: Surface Transportation Board, Office 
of the Secretary, Case Control Unit, 1925 K Street, N.W., Washington, 
DC 20423. A copy of each comment shall concurrently be served upon 
DM&E's representative: Paul A. Cunningham, Harkins Cunningham, 1300 
19th Street, N.W., Suite 600, Washington, DC 20036-1609 [Fax (202) 973-
7610]. Comments should contain the name and address of the commenting 
party, any recommendations for changes to the attached proposed 
procedural schedule and support for any such changes.

FOR FURTHER INFORMATION CONTACT: Joseph H. Dettmar, (202) 565-1600. 
[TDD for the hearing impaired: (202) 565-1695.]

SUPPLEMENTARY INFORMATION: Along with its application, DM&E has 
submitted a petition to establish a procedural schedule for this 
proceeding. DM&E's proposed schedule would establish various due dates 
for submissions and due dates for Board action, both in considering the 
merits of the application and in carrying out the environmental review 
process.
    We believe it would be premature at this point to establish any 
sort of environmental review schedule for the Board to meet its 
responsibilities under the National Environmental Policy Act of 1969 
(NEPA) and related environmental laws. We lack substantive input from 
other Federal and state agencies (for example, the U.S. Forest Service, 
U.S. Army Corps of Engineers, U.S. Fish and Wildlife Service, and 
Wyoming State Historic Preservation Division) that may have an interest 
in this proceeding. Without information from these agencies, we cannot 
anticipate the range of potential environmental impacts that may be 
involved with DM&E's proposal and how long the Environmental Impact 
Statement (EIS) process is likely to take.2 We have, 
however, directed our Section of Environmental Analysis to begin 
preparation of a notice of intent to prepare an EIS and to initiate the 
public scoping process. This will enable us to begin to determine key 
environmental issues to be addressed in our NEPA analysis as 
expeditiously as possible.
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    \2\ Of course, if DM&E could work with these agencies to secure 
appropriate permits, identify potential environmental impacts, and 
minimize or avoid such effects, the time required for us to meet our 
NEPA obligations might be reduced.
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    With regard to the merits of the application, DM&E has proposed 
alternative schedules of 90 and 180 days in which to develop the record 
and issue a decision on the merits, conditioned upon completion of the 
environmental review process and consideration of the results of that 
process in a final decision.3 The proposal by DM&E that we 
issue a decision in 90 days does not warrant further consideration, and 
we will not request comments on it. That proposal simply does not 
provide adequate opportunity for public participation. Nor does it 
provide adequate time for the necessary evaluation of the record in 
light of the statutory considerations we must undertake in this case. 
The proposed 180-day alternative, however, does appear to provide 
adequate opportunity for public participation and for development of a 
sufficient record on which to base a conditional grant of the 
application and make the findings required by the statute. Therefore, 
we are seeking comments on the proposal by DM&E that we issue a 
decision in 180 days approving the applicant's construction proposal 
under section

[[Page 12577]]

10901 of the ICC Termination Act, conditioned upon consideration of the 
environmental impacts of the proposed construction. Under that 
proposal, we would issue a subsequent decision after the completion of 
the EIS process, allowing construction to begin, if appropriate, based 
on a consideration of the potential environmental impacts of the 
proposed transaction.
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    \3\ No actual construction could begin prior to issuance of that 
decision.
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    We understand that the DM&E has caused notices to be published 
stating that comments on the application are due March 27, 1998. While 
interested parties may file comments by March 27, 1998, the Board will 
establish a new due date for comments on the merits of the proposed 
transaction in any procedural schedule it ultimately adopts. 
Accordingly, we will require DM&E to cause notices to be published in 
the same places as the prior notices advising that comments will not be 
due until the Board establishes a procedural schedule. And after the 
Board publishes such a schedule, DM&E must cause to be published new 
notices setting forth the schedule adopted by the Board, including the 
due date for comments on the merits of the proposed transaction.
    The purpose of this notice is to solicit input as to the 
establishment of a procedural schedule that provides adequate time for 
the submission and consideration of comments while still enabling the 
proceeding to move forward as expeditiously as possible.4 
After reviewing the comments, the Board will establish an appropriate 
procedural schedule for consideration of the merits of the construction 
application.
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    \4\ DM&E's proposed 180-day schedule is set forth in the 
attached Appendix, but is modified to reflect the removal of the 
portion of the schedule pertaining to environmental review and to 
reflect the current status of this matter.
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    The Board's review of construction applications is governed by both 
49 U.S.C. section 10901 and the requirements of the National 
Environmental Policy Act of 1969, 42 U.S.C. sections 4321-4370d. The 
Board intends to prepare an EIS to assess the environmental impacts of 
DM&E's proposal. The Board's Section of Environmental Analysis will 
separately publish a notice of intent to prepare an EIS and request 
comments on its scope.
    Copies of the application are available for public inspection at 
the offices of the Board and the offices of the applicant, 337 22nd 
Avenue South, Brookings, SD 57006.

    Decided: March 9, 1998.

    By the Board, Chairman Morgan and Vice Chairman Owen.
Vernon A. Williams,
Secretary.

Appendix--Procedural Schedule on the Merits

    In the following schedule, the term ``P'' refers to the date 
that the Board issues a procedural schedule based on the comments 
received from this notice and ``P + n'' means ``n'' days following 
that date.

P
    Procedural schedule established by the Board.
P + 7
    Due date for publication by DM&E of newspaper notice announcing 
the procedural schedule.
P + 35
    Due date for written comments on Application.
P + 40
    Due date for DM&E's replies to written comments on Application.
P + 70
    Board decision ordering hearing under modified procedures.
P + 115
    Due date for evidence and argument in opposition to the 
Application.
P+ 135
    Due date for DM&E's reply evidence and argument in support of 
the Application.
P + 180 (or earlier)
    Service of decision (a) conditionally approving Application, 
contingent on completion of environmental review process, or (b) 
disapproving Application.

[FR Doc. 98-6557 Filed 3-12-98; 8:45 am]
BILLING CODE 4915-00-P