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Mayo Clinic Calls for Thorough Review of Canadian Pacific's Acquisition of the Dakota, Minnesota & Eastern Railroad

Current 'fast-track' schedule doesn't allow for meaningful dialogue with

affected communities

ROCHESTER, Minn., Oct. 26 /PRNewswire/ -- Late yesterday, the Mayo Clinic asked the Surface Transportation Board (STB) to revise its proposed timetable for reviewing the Canadian Pacific's recent acquisition of the Dakota, Minnesota & Eastern Railroad (DM&E).

"Mayo Clinic does not object to DM&E being sold," said Chris Gade, a Mayo Clinic spokesperson. "We are simply asking for a complete and thoughtful review of a transaction that may have a tremendous impact on our community and for the opportunity to have a constructive dialogue with the railroad's new owners before the purchase is approved."

In its filing, Mayo Clinic asked the STB to:

-- Reconsider the procedural schedule associated with review of the

transaction, because it fails to provide sufficient time for meaningful

dialogue between the affected parties and the new ownership.

Mayo Clinic also asked that the STB ensure that the application for the transfer of control include:

-- Information that verifies DM&E's revenues.

-- Meaningful operational information that fully addresses the future

movement of Powder River Basin coal.

-- Meaningful information that addresses the environmental effects of the


-- A safety integration plan.

"Our primary concern continues to be the safety of our patients, staff and community, as well as the safety of other communities along the line," said Gade. "We welcome the opportunity to meet with DM&E's new owners in the hope that these concerns can be adequately addressed."

Mayo Clinic's filing highlights the probability that the Canadian Pacific's purchase of the DM&E could result in as many as 43 trains passing through downtown Rochester every day. According to the proposed sale agreement, the Canadian Pacific would make about $1 billion in additional payments to the DM&E if it transports at least 125 million tons of coal in a calendar year. This is a substantial increase from DM&E's previous coal-hauling estimates and represents an additional 2.2 million cars per year (43 trains x 135 cars x 365 days) that would move at high-speeds over a rail line located just a few hundred feet from Mayo Clinic.

Due to these new projections Mayo Clinic maintains that an additional environmental review is appropriate. In its filing, Mayo Clinic suggested that Canadian Pacific provide a comprehensive safety integration plan that addresses DM&E's industry-worst safety record.

SOURCE Mayo Clinic
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