(The Associated Press circulated the following article by Chet Brokaw on November 22.)
PIERRE, S.D. — Negotiations continue with the proposed sale of the state-owned railroad line to the Burlington Northern Santa Fe Railway, state Transportation Secretary Judy Payne said Monday.
Payne was scheduled to talk to the state Legislature’s Government Operations and Audit Committee on Monday about the deal, but committee officials announced she would not appear because the deal had apparently fallen through.
Payne told The Associated Press that the proposed sale has not fallen through.
“The bottom line is we don’t have an agreement yet, but there has been no decision to cut off negotiations,” the transportation secretary said.
Gov. Mike Rounds and BNSF officials announced in April that they had reached a general agreement under which BNSF would buy the state-owned rail line for $41.6 million, subject to details being worked out. Officials had set a deadline of Oct. 25 for reaching a settlement, but they have not agreed on all details.
Then-Gov. Bill Janklow persuaded the Legislature in 1980 to raise the state sales tax temporarily to buy track being abandoned by the Milwaukee Road.
The state later reached an agreement under which Burlington Northern would operate tracks on the 368-mile core line that runs from Aberdeen to Mitchell, Mitchell to Canton, Canton to Sioux Falls and Mitchell to Sioux City, Iowa.
BNSF has sought to invoke a contract provision that gives the railway an option to buy the core line, and the company went to court seeking to make the state honor that provision. That lawsuit and a related federal court lawsuit have been suspended while the state and BNSF seek to negotiate the details of the proposed sale.
In an earlier meeting with lawmakers, Payne said the settlement will not become final unless BNSF works out operating agreements with a number of short-line railroads that want to use the track.
The settlement also requires the state to make improvements to parts of the line if the sale becomes final, she said.