(The following story by Andrea J. Cook appeared on the Rapid City Journal website on September 24, 2009.)
RAPID CITY, S.D. — Claiming a rail line into Wyoming will not be built, a group of area landowners wants a circuit judge to tell the South Dakota Transportation Commission to reconsider granting the Dakota Minnesota & Eastern Railroad eminent domain.
However, 7th Circuit Judge John “Jack” Delaney said that before he makes a decision he wants evidence that the commission knew there was a chance DM&E would not build the line to haul coal from Wyoming’s Powder River Basin.
A few landowners along the rail line’s proposed route are appealing the commission’s March ruling giving the railroad the authority to condemn their land. They claim the railroad did not negotiate with them in good faith because the project was not going to be built.
“If there was no intent to take the land, the negotiations were based on a false or fraudulent premise,” Delaney said during a hearing Wednesday. “I’m troubled by that in concept.”
Attorneys representing the landowners, DM&E and the state Department of Transportation attended the hearing by conference call.
The railroad’s ambitious plan to build a 278-mile rail line linking Wyoming’s Powder River Basin coal fields with its existing line was announced almost 15 years ago. The rail line’s proposed route ventures west from Wall into Wyoming.
DM&E claims it has successfully negotiated with some of the property owners along the route, but sought condemnation authority to finish securing the land. The railroad said acquiring land along the route was necessary to finance the $6 billion project
The DM&E’s new owner, Canadian Pacific Railroad, has no immediate plans to build the line. The railroad has dropped lawsuits in Wyoming seeking condemnation authority there.
Delaney indicated he is inclined to remand the appeal to the Transportation Commission.
If the land isn’t needed for public purpose in the foreseeable future, Delaney said it raises the question of the necessity for condemnation.
“That must be considered by the board before me,” Delaney said.