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(The Associated Press circulated the following article on December 20.)

MANKATO, Minn. — The Federal Railroad Administration will likely rely on cold hard numbers – rather than impassioned pleas – as it considers a $2.5 billion low-interest loan application from the Dakota, Minnesota and Eastern Railroad.

But that isn’t stopping elected officials from Minnesota from trying to use their influence.

“We are not entirely toothless in this matter,” said U.S. Rep. Gil Gutknecht, R-Minn., who has DM&E railroad tracks running through his Rochester district.

The DM&E is seeking the loan to cover the costs of a major expansion and renovation plan that includes rebuilding the DM&E’s 600 miles of track through South Dakota and Minnesota; upgrading about 250 miles on its sister line, the Iowa Chicago & Eastern Railroad; upgrading 150 miles of track from Wall to Colony, Wyo.; and building 280 miles of new line into Wyoming’s Powder River Basin coal fields.

The Sioux Falls, S.D.-based railroad says it could haul 100 million tons of coal a year from Wyoming to eastern power plants.

The loan would come from a little-used program that Sen. John Thune, R-S.D., had amended to be tailored to the railroads’ needs.

Supporters of the expansion say it would help business, while opponents say it will disrupt neighborhoods, increase traffic and harm the environment.

Steve Kulm, a spokesman for the FRA, said arguments on both sides might not matter. A loan will generally be granted if a project passes environmental and engineering muster and if it appears the project will generate enough revenue to repay the loan, he said.

“On a loan application, we’re very much acting like a banker,” Kulm said. “We have outside independent experts that look at a variety of issues. … “My understanding is there is no public comment opportunity for us when considering loan applications.”

Members of the Minnesota congressional delegation still hope to use their influence.

Sen. Norm Coleman, R-Minn., supports the expansion, but hopes concerns of some Minnesota cities can be addressed.

Staffers for Sen. Mark Dayton, D-Minn., say he would support the project if concerns of Mankato, Eagle Lake, Rochester and Winona are met.

Dayton, however, seemed unimpressed when he learned the federal transportation bill contained an unnoticed provision that made the $2.5 billion federal loan available to the railroad.

Dayton called the project “a financial lemon as well as a boondoggle.”

Gutknecht said he understands the concerns of the Mayo Clinic, the largest employer in Rochester.

“At the same time, we need railroads,” Gutknecht said.

The city of Mankato, officially opposed to the project, has discussed seeking help from the railroad and from state and federal governments to deal with at-grade crossings, disruption in neighborhoods and other impacts of increased train traffic. Coleman said federal funding isn’t what he has in mind.

“I don’t know if mitigation money is the issue,” he said.

DM&E Chief Executive Officer Kevin Schieffer said he has no problem with the fate of the railroad’s expansion plans being based on the project’s costs.

“If there is a way to turn this into a public policy debate, I think it would be helpful to our efforts,” Schieffer said.

In the end, the FRA may ignore any and all attempts at influence and truly approach the loan application like a banker crunching the numbers.

Schieffer said utilities encouraged the DM&E more than a decade ago to expand into the Wyoming coal business. With FRA officials analyzing the revenue prospects of the DM&E’s expansion, he said utility support is important.