Dakota, Minnesota & Eastern Railroad CorporationConstruction and Operation of New Rail Facilities in Campbell, Converse, Niobrara, and Weston Counties, WY, Custer, Fall River, Jackson, and Pennington Counties, SD, and Blue Earth, Nicollet, and Steele Counties, MN

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 33407]

Dakota, Minnesota & Eastern Railroad Corporation--Construction

and Operation of New Rail Facilities 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, DOT.

ACTION: Notice of intent to prepare an environmental impact statement

(EIS), request for comments on the proposed EIS scope, and notice of

scoping meetings.

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SUMMARY: On February 20, 1998, the Dakota, Minnesota & Eastern Railroad

Corporation (DM&E) filed an application with the Surface Transportation

Board (Board) for authority to construct and operate new rail line

facilities in east-central Wyoming, southwest South Dakota, and south-

central Minnesota. The project involves a total new construction of

280.9 miles of rail line. Additionally, DM&E proposes to rebuild 597.8

miles of existing rail line along its current system to standards

acceptable for operation of unit coal trains. Because the construction

and operation of this project has the potential to result in

significant environmental impact, the Board's Section of Environmental

Analysis (SEA) has determined that the preparation of an Environmental

Impact Statement (EIS) is appropriate. SEA will hold agency and public

scoping meetings as part of the EIS process, at the dates and locations

described below. The exact locations of the meetings will be advertised

two weeks prior to the meeting dates.

Dates and Locations

Agency Scoping Meetings

April 29, 1998, Cheyenne, Wyoming 9-11 am

May 14, 1998, St. Paul, Minnesota 1-3 pm

June 17, 1998, Pierre, South Dakota 9-11 am

Public Scoping Meetings

April 29, 1998, Wright, Wyoming 4-7 pm

April 30, 1998, Edgemont, South Dakota 4-7 pm

May 1, 1998, Hot Springs, Wyoming 4-7 pm

May 12, 1998, Mankato, Minnesota 4-7 pm

May 13, 1998, Rochester, Minnesota 4-7 pm

June 16, 1998, Wall, South Dakota 4-7 pm

June 17, 1998, Pierre, South Dakota 4-7 pm

June 18, 1998, Huron, South Dakota 4-7 pm

June 29, 1998, Brookings, South Dakota 4-7 pm

June 30, 1998, Springfield, Minnesota 4-7 pm

Both the agency and public scoping meetings will be informal

meetings during which interested persons may ask questions about the

proposal and the Board's environmental review process, and advise the

Board's representative about potential environmental effects of the

project. SEA will make available to the public a draft scope of the EIS

before the first meeting. SEA will also provide time for the public to

submit written comments on the draft scope. That period will run

concurrently with the agency and public meetings. SEA will issue a

final scope shortly after the final meeting.

FOR FURTHER INFORMATION CONTACT: Ms. Victoria Rutson, SEA Project

Manager, Powder River Basin Expansion Project, (202) 565-1545.

SUPPLEMENTARY INFORMATION:

Background

The proposed rail construction project, referred to as the Powder

River Basin Expansion Project, would involve the construction and

operation of 280.9 miles of new rail line by the Dakota,

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Minnesota & Eastern Railroad Corporation (DM&E), Brookings, South

Dakota. The project would provide access for a third rail carrier to

serve the region's coal mines and transport coal eastward from the

Powder River Basin. New rail construction would include 262.03 miles of

rail line extending off DM&E's existing system near Wasta, South

Dakota, extending generally southwesterly to Edgemont, South Dakota and

then westerly into Wyoming to connect with existing coal mines located

south of Gillette, Wyoming. This portion of the new construction would

traverse portions of Custer, Fall River, Jackson, and Pennington

Counties, South Dakota and Campbell, Converse, Niobrara, and Weston

Counties, Wyoming.

New rail line construction would also include a 13.31 mile line

segment around Mankato, Minnesota within Blue Earth and Nicollet

Counties. DM&E currently has trackage on both sides of Mankato,

accessed by trackage rights on rail line operated by Union Pacific

Railroad (UP). The proposed Mankato construction would provide DM&E

direct access between its existing lines, avoid operational conflicts

with UP, and route rail traffic around the southern side of Mankato,

avoiding the downtown area.

The final proposed segment of new rail construction would involve a

connection between the existing rail systems of DM&E and I&M Rail Link.

The connection would include construction and operation of 2.94 miles

of new rail line near Owatonna, Steele County, Minnesota. The

connection would allow interchange of rail traffic between the two

carriers.

In order to transport coal over the existing system, DM&E proposes

to rebuild 597.8 miles of rail line along its existing system. The

majority of this--584.95 miles--would be along DM&E's mainline between

Wasta, South Dakota, and Winona, Minnesota. An additional 12.85 miles

of existing rail line between Oral and Smithwick, South Dakota would

also be rebuilt. Rail line rebuilding would include rail and tie

replacement, additional sidings, signals, grade crossing improvements,

and other systems.

DM&E plans to transport coal as its principle commodity. However,

shippers desiring rail access could ship other commodities in addition

to coal over DM&E's rail line. Existing shippers along the existing

DM&E system would continue to receive rail service.

Environmental Review Process

At this time, the Board's SEA is requesting information and general

comments on the scope of environmental issues to be addressed in the

EIS for the proposed project. The National Environmental Policy Act

(NEPA) process is intended to assist the Board and the public in

identifying and assessing the potential environmental consequences of a

proposed action before a decision on the proposed action is made. The

first stage of the EIS process is scoping. Scoping is an open process

for determining the scope of environmental issues to be addressed in

the EIS and their potential for significance. SEA will soon develop and

make available a draft scope of study for the EIS and provide a period

for the submission of written comments on it. Concurrently, scoping

meetings will be held as noted above to provide opportunities for

public involvement and input into the scoping process. Following the

issuance of a draft scope and the comment period, SEA will issue a

final scope of study for the EIS.

After issuing the final scope of study, SEA will prepare a Draft

EIS (DEIS) for the project. The DEIS will address those environmental

issues and concerns identified during the scoping process and detailed

in the scope of study. It will also contain SEA's preliminary

recommended environmental mitigation measures. The DEIS will be made

available upon its completion for public review and comment. A Final

EIS (FEIS) then will be prepared reflecting SEA's further analysis and

the comments to the DEIS. In reaching its decision in this case, the

Board will take into account the DEIS, FEIS, and all environmental

comments that are received.

Filing Environmental Comments

SEA encourages broad participation in the EIS process. Interested

persons and agencies are invited to participate in the scoping phase by

reviewing the scope of study, attending the scoping meetings, and

submitting written comments SEA. A signed original and 10 copies of

comments should be submitted to: Office of the Secretary, Case Control

Unit, STB Finance Docket No. 33407, Surface Transportation Board, 1925

K Street, NW., Washington, D.C. 20423-0001.

To ensure proper handling of your comments, you must mark your

submission: Attention: Elaine K. Kaiser, Chief, Section of

Environmental Analysis, Environmental Filing.

By following this procedure, your comments will be placed in the

formal Public Record for this case. In addition, SEA will add your name

to its mailing list for distribution of the final scope of study for

the EIS, the DEIS, and FEIS.

Issued: March 27, 1998.

By the Board, Elaine K. Kaiser, Chief, Section of Environmental

Analysis.

Vernon A. Williams,

Secretary.

[FR Doc. 98-8117 Filed 3-26-98; 8:45 am]

BILLING CODE 4915-00-P