(The Associated Press circulated the following story by Frederic J. Frommer on February 21.)
WASHINGTON, D.C. — The Rochester Coalition and the Mayo Clinic filed a lawsuit on Tuesday seeking the financial records of the Dakota, Minnesota and Eastern Railroad, which wants a $2.3 billion federal loan for its planned coal train project.
The lawsuit filed in U.S. District Court for the District of Columbia asked a judge to direct the Department of Transportation’s Federal Railroad Administration to release the material, which was sought last April in a Freedom of Information Act request.
According to the lawsuit, the law firm representing the coalition and clinic has not received the material, which includes financial information such as balance sheets, income statements, market capitalization, debt, feasibility and market studies related to DM&E.
The Rochester Coalition and Mayo oppose the train project because it would mean more trains running through the city and close to the clinic.
FRA spokesman Steve Kulm said the agency has not received the lawsuit so could not comment on it. But he did say that under federal law, federal agencies are prohibited from releasing trade secrets or privileged or confidential commercial or financial information obtained from a non-governmental entity.
“However, the law also directs that upon receipt of a FOIA request of this type, the entity submitting the materials to a federal agency must identify and justify information that it believes should not be publicly released,” Kulm said in an e-mail response. “FRA is currently reviewing the justifications made by DM&E. FRA will make the final decision on what information will be released.”
Stephen Ryan, legal counsel for the Rochester Coalition and Mayo Clinic, said in a statement that the FRA has permitted DM&E’s “secretive behavior” for 10 months.
“It is time for our government to require some public disclosure if DM&E wants the public’s money,” he said.
Kevin Schieffer, DM&E’s president, said he took exception to the “secretive” characterization.
“Obviously, we are not going to disclose information that competitors or opponents would use to undermine our business,” he said. “Nobody would.” But he insisted that the process has been open.
Last month, the FRA determined the DM&E’s project had met the requirements of the federal environmental review process, triggering a 90-day period during which the FRA must approve or reject the loan.
The DM&E wants to add track to the Powder River Basin coal fields in Wyoming and upgrade its existing line in South Dakota and Minnesota. The $6 billion project would involve building about 280 miles of new track and upgrading 600 miles of existing track so trains could haul coal for power plants.