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U.S.Department of Transportation Office of Public Affairs Washington, D.C. www.dot.gov/affairs/briefing.htm News

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FRA Announces Action on Environmental Review of DM&E Loan Application

Contact: Steve Kulm or Warren Flatau
Telephone: 202-493-6024

Wednesday, August 16, 2006 (Washington, DC) The Federal Railroad Administration (FRA) today announced proposed action on two environmental requirements relating to its ongoing evaluation of a $2.3 billion Railroad Rehabilitation & Improvement Financing (RRIF) loan application to finance the Dakota, Minnesota and Eastern (DM&E) Railroad’s Powder River Basin project.

FRA noted that it intends to adopt the final environmental impact statements (EIS) issued by the U.S. Surface Transportation Board (STB) on the DM&E project. In addition, FRA announced the availability of its own draft findings, known as a Section 4(f) Statement, required under the U.S. Department of Transportation’s strict environmental review process, to address issues not fully covered in the STB review.

A public comment period on both proposed environmental actions continues through October 10.

The DM&E loan application is considered to be incomplete until FRA reviews all public comments received and a Record of Decision is signed by the FRA Administrator. The FRA then will have 90-days to approve or deny the loan application.

The DM&E has applied for the loan to finance construction of a new 280-mile rail line to Wyoming’s Powder River Basin coal mines and to reconstruct approximately 600-miles of existing track in South Dakota and Minnesota.

A copy of the notice containing detailed information about the actions taken by FRA can be found at www.fra.dot.gov/us/content/1711.