A Bluestem Prairie

Thursday news digest: DM & E sale and other news edition

The DM & E story dominates headlines across the district this morning.  It does seem that Canadian Pacific's management understands community relations better than Kevin Schieffer ever did. Whether this diplomacy will make a difference if and when communities are faced with increased coal train traffic remains unsettled.

Nonetheless, the headlines are mainly optimistic.  The PB reports DM&E sale seen as a 'fresh start' by Rochester leaders. In the Mankato Free Press, we read Merger makes coal line more viable (some city officials are wary) and DM&E proponents thrilled by merger.  The New Ulm Journal notes Canadian Pacific to buy DM&E.

In Winona, Sale of railroad stirs old concerns, according to the Winona Daily News.  The sale may raise Winona's profile in DM & E news:

Winona officials and residents may revive their concerns about a controversial plan to ship up to 37 coal trains per day through the city.

The plan-- which could cost up to $6 billion--may have found financial footing, following an announcement late Tuesday that Canadian Pacific Railways plans to purchase the Dakota, Minnesota and Eastern Railroad Corp.

If the coal-shipping plan moves ahead, Mayor Jerry Miller said Wednesday, city officials would approach Canadian Pacific with concerns about safety, noise, dust and property devaluation.

“We’re going to press the issue,” Miller said. . . .

If the Powder River plan is fully implemented, the tracks will carry 100 million tons of coal per year, or roughly 37 trains a day.

Miller said Winona wasn’t able to present its concerns about the plan to the STB in 2002 because the DM&E line doesn’t enter city limits. It connects with the Canadian Pacific line near Minnesota City.

“The argument always was that the DM&E didn’t have to negotiate with us,” Miller said. “Now, in my view, that has changed.”

In 2001, Marsha Neff organized Citizens Concerned about Coal Trains, a Winona group opposed to the coal-shipping plan. Neff noted Wednesday that other communities have mobilized against it--with a particularly vocal outcry from Rochester, Minn.

Winona has more buildings located near the rail line than Rochester does, Neff said.

“If they say this is terribly dangerous for Rochester, I’d say it’s as dangerous or more so for Winona,” Neff said.

In Iraq War news, the WaPo says Experts Doubt Drop in Violence in Iraq and Report: Iraqi Army Can't Displace Terrorists.  There's some ethanol news as well: Cultivating a Crop of Hope, an article about switchgrass in Virginia.  While switchgrass is a promising feedstock for ethanol production, we're big on the polyculture of Tilman blends ourselves.

The PB reports First FEMA mobile homes arrive in southeastern Minnesota.

The Madelia Times-Messenger offers a Younger Brothers Capture schedule of events. Those Younger boys will get caught again on Saturday.

Kevin Diaz notes that Walz has not taken a position on raising the federal gas tax in Gas-tax increase to fix bridges is a tough sell.

Netroots
Doug Johnson, media tech director for the Mankato Schools, reflects on End of summer Start of school at his Blue Skunk Blog. (We wish we would have thought of that name!). He writes:

US Representative Tim Walz re-joining us to offer a heart-felt thanks for our work in getting him elected to Congress last year. Tim, a social studies teacher from the high school across the alley from my office, is the only elected teacher serving in Congress. He also seems to be one of the most articulate and value-driven. Any surprise?

MnpACT spots Tim Walz on Norm Coleman's web site in Minnesota GOP: Spinning Their Way Forward.

Midday DM & E sale update: Rochester coalition statement and more

Early this morning, we posted about the CP purchase agreement for the DM & E railroad.  Today, we're getting news of the reaction. 

A statement from the Rochester Coalition:
We

are encouraged by the Canadian Pacific’s acquisition of the Dakota, Minnesota and Eastern Railroad (DM&E) and we look forward to meeting the railroad’s new owners.

As proposed, the DM&E rail expansion remains a major concern for our community and the railroad’s acquisition doesn’t change our commitment to protecting the people of Rochester and the patients and staff at Mayo Clinic.

Several major obstacles must be addressed before the rail expansion project moves forward, including litigating complex eminent domain challenges in South Dakota and Wyoming, completing an environmental impact review on DM&E’s critical Iowa line, solving bypass issues in Mankato, Minn., and Pierre, S.D., and reaching mitigation agreements with the cities of Brookings, S.D., and Rochester, Minn.

From the PB archives: now and then
A friend in Rochester sent us this information for the PB's archives:

Here's some interesting CP and DM&E history from the   Roch. PB  4/7/2000:

Title: "Canadian Pacific official: DM&E plan will never happen" "
There aren't any signs in the marketplace that this is going to be a reality," Mark Nordling, director of commercial development for CP Rail, told a group of about 30 people Thursday at an informational meeting at the La Crosse Public Library.
...
DM&E asked CP three years ago to be a partner, and CP declined, Nordling said. He said a CP analysis of DM&E's project showed it would cost twice as much as the company projected and would yield only half the revenue."

From the UTU's archives: CP on DM& E's project
Another wrinkle on the CP now-and-then story from the United Transportation Union's archives for 2000.  The CP criticizes the DM & E here in WISCONSIN: DM&E coal train plan is dead in its tracks, then backpedals in MINNESOTA: CP Rail official disputes Winona Daily News report. Both articles are originally from the Winona Daily News.  Thanks to our tipster; people seem to have a very long memory about the DM & E project.

UPDATE: Just a reminder, there's a DM & E-related meeting tonight in Winona.  We can't make it, but DJ Danielson at IDHA plans to be on hand and will provide a firt-hand account. The meeting:

Surface Transportation Board has Rescheduled a Public Information Session in Winona, Minnesota to Review DM&E Historic Structures

Washington, DC – The U.S. Surface Transportation Board’s Section of Environmental Analysis has rescheduled a public information session in Winona, Minnesota to review treatments for historic structures currently under review for the Dakota, Minnesota & Eastern (DM&E) Railroad’s Powder River Basin expansion project. This session replaces an information session originally scheduled for August 20, 2007 which was canceled due to severe weather.

The session will provide information on the DM&E’s preservation and treatment efforts, including documentation of historic structures—consisting predominantly of bridges and culverts—that will be replaced or modified as a result of the rehabilitation work on the DM&E’s existing route in Minnesota and South Dakota. The session will be held in an open-house format with displays describing the process and techniques involved in this effort. Representatives of the STB, as well as DM&E technical experts, will be available to discuss the effort. Individuals or organizations may arrive anytime during the three-hour session. The STB will take comments specifically pertaining to the treatment of historic structures for consideration in preparing a Historic Structures Treatment Plan for the project.

Session Time and Location

Wednesday, September 5

Winona, Minnesota

5:00 pm – 8:00 pm CDT

Winona County Historical Society, 160 Johnson Street

CNN: Canadian Pacific announces agreement to acquire DM&E Railroad

A kind reader sent us a tip about this breaking story, and we scurried off to find news of the agreement.  Given that the Canadian Pacific is only paying $1.48 billion for the line, the agreement suggests that the  federal government acted wisely in denying the $2.3 billion loan request.

We also wonder how this purchase will affect the plans to upgrade the existing tracks in Minnesota and if the agreement will once more stir the pot in Rochester. The press release makes much of the plans to vuild new track into the Powder River Basin--and the potential for  mile-long coal trains rolling through Rochester was a major bone of contention between the Rochester Coalition and DM & E.

CNN Money reports in Canadian Pacific announces agreement to acquire DM&E Railroad

Canadian Pacific Railway Limited announced today that it has reached an agreement to acquire the Dakota, Minnesota & Eastern Railroad Corporation and its subsidiaries (DM&E) for US$1.48 billion. With this value-enhancing transaction, CP expands its current network by approximately 2,500 miles and increases its access to U.S. Midwest markets including agri-products, coal and ethanol. The deal consists of a US$1.48 billion cash payment at closing and future contingent payments of up to approximately US$1.0 billion. Future contingent payments of US$350 million will become due if construction starts on the Powder River Basin expansion project prior to December 31, 2025. Further future contingent payments of up to approximately US$700 million will become due upon the movement of specified volumes of coal from the Powder River Basin over the Powder River Basin extension prior to December 31, 2025.

"The DM&E is an excellent fit for Canadian Pacific making this a strategic end-to-end addition to our network," said Fred Green, President and Chief Executive Officer of CP. "The DM&E is a high-quality, growing regional railroad that complements our existing franchise. This investment presents the opportunity for future growth through further expansion of our network and is accretive to our EPS in 2008."

"There are natural synergies between our two railroads which make this a very attractive transaction. We have a solid transition plan that I am confident we will implement successfully. CP is the safest railroad in North America and we will work together to build on the significant improvements the DM&E has made in operating efficiency and safety over the past several years. This includes CP's intention to spend an additional US$300 million of capital for further upgrading of the regional railroad over the next several years."

"Canadian Pacific is our natural partner and we are very pleased with this deal. The logic of this acquisition is compelling," said Kevin Schieffer, President and CEO of the DM&E. "I'm proud of the DM&E and the organization we've built; our operating ratio is one of the best in the industry. The combination of our two companies and the resulting efficiencies will be very positive for our customers. CP is not only a natural operating fit; we also share a commitment to our employees, our customers and the communities we serve as well as a vision for the potential of the Powder River Basin."

The addition of the DM&E extends the reach of CP's network. It increases the rail network, and adds new customers and expands the service available to customers of both companies. The DM&E is the largest regional railroad in the U.S. and the only Class II railroad that connects and interchanges traffic with all seven Class I railroads, connecting with Canadian Pacific at Minneapolis, Winona, MN and Chicago. It had 2006 freight revenues of approximately US$258 million, which is expected to grow to approximately US$280 million, or by nine per cent in 2007. The DM&E is headquartered in Sioux Falls, SD and has approximately 1,000 employees, 2,500 miles of track and rolling stock that includes 7,200 rail cars and 150 locomotives. It serves eight states; Illinois, Iowa, Minnesota, Missouri, Nebraska, South Dakota, Wisconsin and Wyoming with access to Chicago, Minneapolis/St. Paul, Kansas City and key ports.

The DM&E has been pursuing a strategy to become the third rail carrier in Wyoming's Powder River Basin. The Powder River Basin is North America's largest and most rapidly growing source of low-cost, low-sulphur coal as well as the largest single rail market in terms of volume.

"Canadian Pacific is excited about the prospect for growth in the coal-rich Powder River Basin," Mr. Green said. The DM&E's favorable geographic position provides a unique ability to create an efficient and competitive additional link to midwestern and eastern utilities. We have created a disciplined plan aimed at facilitating a decision on the expansion and ensuring the investment provides returns that exceed our thresholds. Our purchase agreement has been structured to share further upside as the benefits of the expansion are realized. We are confident this will provide maximum long-term value for our shareholders."

"With our strong balance sheet, this investment represents the best use of our free cash," said Mike Lambert, Chief Financial Officer of CP "We have secured fully committed acquisition financing as part of this transaction. Permanent financing for this acquisition and future financing for a potential PRB expansion will be structured to preserve appropriate debt and coverage ratios for our investment grade rating."

In conjunction with this purchase, Canadian Pacific has suspended activity under its current share repurchase program that commenced in March of 2007. CP has purchased 3,209,790 shares in 2007.

With the successful completion of this transaction, which is expected to close in the next 30 to 60 days, Canadian Pacific confirms that its outlook in 2007 for diluted earnings per share, excluding foreign exchange gains and losses on long-term debt and other specified items, remains unchanged in the range of CDN$4.30 to CDN$4.45.

The CP/DM&E transaction is subject to review and approval by the U.S. Surface Transportation Board (STB), during which time the shares of DM&E will be placed into an independent voting trust. The review process is expected to take less than a year. CP expects that the operation will become part of CP's U.S. network upon completion of the review. The voting trust is required by US law so that CP does not exercise control over DM&E prior to approval of the transaction by the STB.

Bloomberg reports on the sale here in Canadian Pacific to Buy Dakota Rail for $1.48 Billion (Update1). Reuters says Canadian Pacific to buy DM&E for $1.48 bln.

UPDATE: The Strib reports DM&E will be sold to Canadian Pacific

 

Update: STB reschedules Winona DM & E meeting for Sept. 5

The issues surrounding the DM & E loan and upgrade played an important part in the 2006 congressional contest between Walz and former Congressman Gutknecht. The $2.3 billion federal railroad loan was denied last winter, but the process for rehabbing the line continues.

A meeting about historic bridges, culverts, and other structures on the line was originally scheduled for Monday, August 20,  but it was postponed while flood damage was assessed.

As promised, we've tracked down the date for the rescheduled meeting for the "treatment" of historic bridges and culverts during the rehabing of the DM & E line.  It's now slated for Wednesday, September 5.

"Treatment" usually means replacement or modification.  The STB's media advisory (thanks to the kind friend who forwarded it):

Surface Transportation Board has Rescheduled a Public Information Session in Winona, Minnesota to Review DM&E Historic Structures

Washington, DC – The U.S. Surface Transportation Board’s Section of Environmental Analysis has rescheduled a public information session in Winona, Minnesota to review treatments for historic structures currently under review for the Dakota, Minnesota & Eastern (DM&E) Railroad’s Powder River Basin expansion project. This session replaces an information session originally scheduled for August 20, 2007 which was canceled due to severe weather.

The session will provide information on the DM&E’s preservation and treatment efforts, including documentation of historic structures—consisting predominantly of bridges and culverts—that will be replaced or modified as a result of the rehabilitation work on the DM&E’s existing route in Minnesota and South Dakota. The session will be held in an open-house format with displays describing the process and techniques involved in this effort. Representatives of the STB, as well as DM&E technical experts, will be available to discuss the effort. Individuals or organizations may arrive anytime during the three-hour session. The STB will take comments specifically pertaining to the treatment of historic structures for consideration in preparing a Historic Structures Treatment Plan for the project.

Session Time and Location

Wednesday, September 5

Winona, Minnesota

5:00 pm – 8:00 pm CDT 

Winona County Historical Society, 160 Johnson Street

Background

In February 1998, the DM&E sought authority from STB under 49 U.S.C. 10901 to construct and operate an approximately 262-mile rail line extension of DM&E’s existing rail lines from near Wall, South Dakota to coal mines in Wyoming’s Powder River Basin which included rebuilding 600 miles of existing line. In a decision served on February 15, 2006, STB granted final approval authority for the project subject to 147 environmental conditions.

One of the environmental conditions attached to STB’s decision (Condition 106), stipulates that DM&E comply with a Programmatic Agreement (PA) and associated Identification Plan (ID Plan) that had been developed through the Section 106 consultation process pursuant to 36 CFR 800.14.  The PA was formally executed in May 2003 and includes measures to mitigate adverse effects to historic properties identified within the project’s Area of Potential Effects or APE. The Louis Berger Group Inc. (LBG) is acting as SEA’s independent third-party contractor and will assist SEA in overseeing the implementation of the PA.

The PA was executed among: STB; DM&E; the State Historic Preservation Officers of Wyoming, South Dakota, and Minnesota (collectively referred to as SHPOs); five cooperating agencies (the Federal Railroad Administration, the U.S. Army Corps of Engineers [Omaha and St. Paul Districts], the Bureau of Land Management [Montana/Dakotas Office and Wyoming State Office], the U.S Forest Service [Region 2], the Bureau of Reclamation; and the Advisory Council on Historic Preservation (ACHP). All of the above acted as signatories to the PA. In preparing the PA, STB also consulted with 33 federally recognized Tribes and the five Tribal organizations.

Post-Bulletin: Flood damage to DM&E line apparent, but scope unknown

Jeff Pieters at the Post Bulletin reports Flood damage to DM&E line apparent, but scope unknown:

An Internet message board for "fans" of the DM&E collected members' eyewitness accounts and some photographs of damaged areas.

Damaged areas included:

• "Myriad washouts" between Stockton and Winona.

• A displaced bridge west of Stockton.

• A failure of the Whitewater River bridge west of Lewiston.

• A bridge two miles west of St. Charles knocked off its piers and looking "like a pretzel."

• Several more bridge washouts between Dover and Eyota.

Several writers to the message board speculate that the line will be restored to operation within eight weeks.

A friend in the Rochester area emailed us with news that a meeting in Winona about DM & E bridges has been rescheduled for Monday, August 27 Wednesday, September 5, 2007., and we are asking around for confirmation. Since it's the weekend, there's no calling a federal agency.  It's quite possible that the railroad is, like much of Southeastern Minnesota, still mired in flood clean up.

The meeting originally was to have held on the 20th, but was cancelled because of the flood emergency.  Original meeting notice from the Post Bulletin

The U.S. Surface Transportation Board's Section of Environmental Analysis will have public information sessions in South Dakota and Minnesota this month to review treatments for historic structures currently under review for the Dakota, Minnesota & Eastern Railroad's Powder River Basin expansion project.

The session nearest to Rochester will be in Winona on Aug. 20. Aug. 27 (We're not sure).  Wednesday, September  5, 2007.That session runs from 5 p.m. to 8 p.m. at the Winona County Historical Society, 160 Johnson St.

The open house sessions will provide information on the DM&E's preservation and treatment efforts, including documentation of historic structures -- predominantly bridges and culverts -- that will be replaced or modified in the project.

Representatives of the STB and the DM&E will be present to discuss the effort. Individuals or organizations may arrive any time during the times indicated in the schedule for each location. The STB will take comments specifically pertaining to the treatment of historic structures for consideration in preparing a Historic Structures Treatment Plan for the project.

We are double-checking to see if this is just one of those flood-related rumors or a genuinely re-scheduled meeting.

Early evening news digest: flooding relief and other news

Virtually the entire front page of the Caledonia Argus is devoted to flood coverage, include a photo album that included the mudslide on the left.  Quite literally a slideshow.

Lead headline: Area slammed by killer storm with over 19 inches of rain. More information about assistance in Flood information update: Twice As Nice donating clothes to flood victims; FEMA information.

The Rochester Post Bulletin reports At least 4,560 homes damaged in flooding.    A late afternoon headline also declares: Governor asks president for flood disaster declaration:

Gov. Tim Pawlenty asked President Bush to declare six southeast Minnesota counties a federal disaster, a critical step in ensuring the flow of federal aid to the victims of last weekend's flood.

Pawlenty said he decided not to wait for a preliminary damage assessment by federal officials, because he was convinced the amount of damage inflicted by the flood would meet federal thresholds. Officials put that benchmark at about $6 million.

"I'm not waiting for that," Pawlenty said this afternoon in a state capitol press conference. "I'm convinced those thresholds will be met."

The governor must ask for a federal declaration and the president must sign it before the ground workers and social workers with the Federal Emergency Management Agency can begin providing flood victims with low-interest loans and grants.

The article continues:

Pawlenty's decision comes as impatience and frustration has been growing among the communities hit by the flood. Rep. Tim Walz was one lawmaker urging the governor to skip the damage assessment and expedite flood relief to residents.

"It's a sense of urgency amongst the constituents down here. It's sense of urgency for me," Walz said. "We want to try and get going on this."

The Post Bulletin has created a special report on the Deadly Deluge here.

KEYC's video, Sen. Amy Klobuchar Tours Flooded Areas, ends with a note that she toured flood stricken areas via helicopter with Congressman Walz.

The Bluff Country Newspaper Group reports on damage and relief efforts in its various papers.  The Chatfield News reports Weather affects area; volunteers help.  An inventory of relief efforts:

Many area towns and individuals are helping the flood victims. A few examples follow.

The Lanesboro Area Chamber Board of Directors is working with the city of Lanesboro and churches to compile a list of resources for displaced flood victims.

People who come to Lanesboro in need of housing can be referred to the city office/Lanesboro Community Center.

Those who are willing to donate lodging or open a residence to the flood victims, can contact the chamber office, and staff will compile a list to be made available at the city office.

Dining establishments also can sign up to be a resource in Lanesboro.

Scott Winslow of the Fillmore County Pork Producers reported they were grilling around 700 pork burgers for flood victims at the shelter in Rushford, as well as emergency volunteers on Monday night.

Fillmore County coordinator Karen Brown said emergency management coordinator Deb Teske preferred people make monetary donations to the Red Cross for the victims.

However, people are still collecting goods for the victims.

Allison and Alex Hall at Village Foods in Lanesboro have started a drive for donations of food, clothing, and personal items for Rushford folks who have lost their homes. Those staying at the shelters are still wearing Saturday's clothing.

Everything is needed for all ages: all articles of clothing, personal supplies such as toothbrushes and toothpaste, shampoo, soap and laundry soap.

Just imagine what you would need if you left home with nothing, then put it in a bag or box and drop it off at Village Foods, 108 Coffee St. E. (close to the post office), in Lanesboro. Hours for the store are 8 a.m. to 7 p.m. Of course cash donations are also very welcome.

The Mabel Lions is another group starting a collection. It has set up boxes in the Mabel City Hall that it will be taking there nightly to Rushford.

Also needed right now are battery-operated radios with batteries, TV with VCR/DVD all in one, shoes of all sizes, scatter rugs, pillows, underwear of all sizes (especially new), baby clothes, rubber gloves, work gloves, clothing of all sizes (especially kids and plus sizes), large coolers that don't leak, can openers, deodorant, paper towels, diapers, denture grip, towels and washcloths, baby formula, body soap, coloring books and crayons, hairbrushes, shampoo, pens and paper, reading material for all ages and garbage bags.

Brown urged contacting the Red Cross or Salvation Army for further information on making a donation. The Fillmore County Sheriff's Department also can be contacted at the non-emergency number of (507) 765-3874.

The News Record reports Governor holds news conference in Caledonia; promises to rebuild southeast Minnesota.  The Republican Leader's new edition is nearly entirely flood related.  Included is this information  about donations to the Red Cross:

All American Red Cross disaster assistance is free, made possible by voluntary donations of time and money from the American people. You can help the victims of thousands of disasters across the country each year, including these floods, by making a financial gift to the American Red Cross Disaster Relief Fund, which enables the Red Cross to provide shelter, food, counseling and other assistance to victims of disaster. The American Red Cross honors donor intent. If you wish to designate your donation to a specific disaster, do so at the time of your donation. Call 1-800-REDCROSS or 1-800-257-7575 (Spanish).

Contributions to the Disaster Relief Fund may be sent to the Southeast Minnesota Chapter, 310 14th S.E., Rochester, 55904 or to the American Red Cross, P.O. Box 37243, Washington, DC 20013. Internet users can make a secure online contribution by visiting www.redcross.org

The Kasson-Dodge County Independent reports Rain, Rain and More Rain, but "only" 8 inches. We think the byline on this editor's column has to be a formatting error.  Maybe it's just raining Randies in Dodge County.

Read all about Flood enrages residents at council meeting in the Owatonna People's Press.  Its sister paper in Waseca reports Rainfall nears record.

Over in the west central section of the district there's been some rain, too. The St. James Plaindealer reports that Butterfield's wonderful threashing bee as a washout in And then it rained...and rained.  KEYC-TV was on the scene in St. James in Southern Minnesota Braces for More Rain.

The Murray News News reports over 10 inches in its area. The Worthington Globe reports Long-awaited rain comes in deluge and ‘From one extreme to the other’, which includes tales of road and bridge damage. Hail pummels farms in Rushmore, producing fist-sized hailstones.

Non-flooding news

The Community News Corps group reports DM&E derailment shakes night in the Byron area. DM & E's spokesman says that derailments are justification for the upgrade.

The federal loan reviewers weren't convinced by the DM & E application for $2.3 billion, but some women visiting Mankato from out of state weren't so lucky in evaluating material, according to the Mankato Free Press report Parody Web site fools two into visiting Mankato.

Created to teach college students the craft of evaluating web sites the fake Mankato site is one of the oldest running Internet hoaxes online.  In defense of the visitors, we must note that when we've used the site in our own classes, some students have believed it to be true, and placed angry calls to friends attending MSU-Mankato for not telling them about Mankato's beaches and whale-watching. 

We earnestly hope that the parody has not provoked any Walz-envy in Beltway-based NRCC interns  conducting oppo research about the Congressman's home town.

Update: No joking
While the Open Left may be trying to paint Walz as too conservative for their tastes, The Worthington Globe comes to a different conclusion as it ponders the rightwing candidacy of Brian Davis:

. . .Davis’ conservatism may end up playing well in a region that almost certainly can’t be described as liberal. But Walz — despite low overall rankings for Congress on a national scale — seems generally well liked and respected at home and in Washington, at least so far. . . .

Funny how the Globe takes it for granted that Davis, rather than any of the other three Republicans seeking the GOP endorsement, will emerge the winner to face Walz next November.

Mankato Free Press LTE: Cameron Olafson is a handsome devil

And boy, can Cameron Olafson write letters to the editor!  The Mankato Free Press has published one today: Farm Bill touted by Walz squashes family farmers.

It's not Cameron Olafson's first letter to the Mankato Free Press scolding Walz.  Last December, he sent in this epistle:

Walz should be working on DM&E issue 

After reading a recent story in The Free Press about the city of Mankato’s remaining concerns over the possible DM&E railroad expansion, I asked myself a few questions.

Isn’t Tim Walz from Mankato? Didn’t he campaign and get elected on this issue? Shouldn’t he do some real work on this now that he was elected? I would say the answer to all those questions is yes, which is why I found it quite odd that he was not even mentioned in the story.

Cameron Olafson

Mankato

Okay then. The handsome devil tried to spin the absence of Walz's name in an article as proof that his congressman-elect wasn't doing "any real work"  on the DM & E issue.  Awkward.

In today's letter, Cameron Olafson concludes:

The Farm Bill, which Walz is so proud of passing, props up huge corporate farms while squashing the family farmers in his district already struggling to get by. Maybe Walz should be reminded that he works for us, not the lobbyists in Washington with bottomless pockets.

It's good that Cameron Olafson is as concerned about family farms as he was about the DM & E railroad. As for those lobbyists in Washington with deep pockets, he must mean Blue Earth County farmer Kevin Papp, who travelled to DC to lobby Walz about the Farm Bill.  Or somebody.

Like the National Farmers Union and Land Stewardship, Papp's organization  was happy with the Farm Bill:

"We are pleased with the passage of the House version of the Farm Bill," said MFBF President Kevin Paap. "Congressman Collin Peterson, chairman of the House Agriculture Committee, showed exemplary leadership and a genuine commitment to agriculture in crafting this legislation in committee and leading it through the House."

"This fiscally responsible bill expands benefits to all sectors of agriculture and makes some significant policy reforms," said Paap. "The bill continues to provide an all important safety net for farmers, while at the same time provides a strong nutrition, conservation and energy title."

"We thank Congressman Peterson for his leadership," said Paap. "We also thank our members of Congress James Oberstar, Tim Walz, Betty McCollum and Keith Ellison for voting in support of this bill."

We must also wonder what Mr. Papp thinks at being accused of helping to squash family farms. He has some explaining to do to the 40,000 members of the Minnesota Farm Bureau. Maybe not.

Cameron Olafson also writes letters to the Minnesota State University, Mankato Reporter.  This one is typical:

Evening news digest: veterans, Iraq War, and economic summit

KTTC-TV reports on House Veterans Affairs Committee Chair Bob Filner's visit to Rochester:

Protecting the health of our veterans brings the House Veterans Affairs Committee Chairman to Rochester.
 
Congressman Tim Walz and Chairman Bob Filner met with the public this morning to discuss the 2008 VA Funding Legislation.
 
The proposed budget would surpass the president's budget by 3.8 billion dollars.
 
Walz says recent and long-standing veterans deserve equal care opportunities.
 
Chairman Filner says the VA still has a lot of work to do, and keeping the lines of communication open with war veterans is one of their biggest priorities.

There's video at the link, as there is at KAAL's report Tim Walz on Veteran Affairs, which concludes:

Both Walz and Filner are working to pass legislation to address the educational, employment, and physical needs of our vets.

Walz says he's also working on extending the amount of time veterans have to use the G-I bill.

Just last week, the Minnesota National Guard asked federal officials to look at the concerns of Iraq War Veterans.

This after some returning soldiers were not able to get the amount of financial-aid they needed to attend college.

The Star Tribune's Bob von Sternberg was in Rochester for the meeting this morning and reports back in Walz: Aiding veterans is a 'moral responsibility'.

New York Times: Dissonance in Harmony
The New York Times' Adam Nossiter travels to Harmony to learn about the "dual pull" of "urgency and uncertainty" about the Iraq War in Southeastern Minnesota.  Nossiter does a  pretty good job in catching the mood in Standing Against the War, but Unsure How to End It. The lead:

Congress is in a muddle about Iraq and so are the frustrated voters here who last fall elected a war critic promising a new direction in military policy.

Tim Walz, the new Democratic congressman from the First District here, has made tough statements, voted with his party for withdrawal and emerged as a leader among the Democratic freshmen who owe their November triumphs to weariness with the war.

Eight months later, nothing has changed. Though many here in this antiwar district express longing for an end, they are in a quandary about how to get there.

“A sense of confusion,” said Jane Hall, struggling for words behind the counter at the Kingsley Mercantile in this farming community near the Iowa line. “I’m at a point where I don’t know who to believe, or what to believe.”

Ms. Hall is fearful for an 18-year-old son heading to boot camp in the Army Reserve — “It’s scary” — and is skeptical of promises — “I think no matter what we do, it will be chaos.”

The voters here do not blame Congress for gridlock and mixed signals, saying they expected little in the first place. Mr. Walz is seen as a lone voice, principled but powerless in the morass; the recent all-night Senate talkfest barely registered here on the continuum of perceived inaction. And though many here condemn the war and call it a waste, only a few can conjure a quick withdrawal from Iraq.

      

Go read the whole thing.

Rochester Post Bulletin: Medical ethics during summit
Friday's economic summit, a cornicopia of ideas and talent, continues to be a source of news.  The PB looks at one aspect in Walz discusses medical ethics during summit:

Imagine meeting the perfect, well-qualified [job] candidate, but you discover that person is in the early stages of multiple sclerosis.

To complicate things, hiring that person could greatly affect the small pool of health insurance among the 45 employees of your business. What do you do, and how would you think -- economically or morally?

That's a situation 1st District Rep. Tim Walz posed during an economic summit Friday in Austin, a challenge faced by a small business in Rochester.

"I think we as a nation would probably share that burden (rather) than put that on the shoulders of one individual," the first-term Democrat from Mankato said.

Walz, however, is optimistic Minnesota may some day find a solution to those types of problems; for now, though, many remain.

As always, go read the original source.

DM & E News
The AP reports Thune thinks DM&E coal train project will be built.

 

Afternoon news digest: Walz on Minnnesota's congressional seats, and more

KAAL-TV reports on the chance that Minnesota might lose a House seat in Minnesota Battling For Congressional Seat. While some on the right and some on the left are using the occasion to speculate on how partisan advantage might be wrung from the state losing a seat, Walz hopes that Minnesota will retain all of its congressional districts:

The state's fate is based on the next census count in 2010.

Congressman Tim Walz may be one of the people affected if the census data doesn't swing in the state's favor.

"It’s the nature of the census,” he says. “I think we'll wait and see what happens. I think Minnesota is going continue to grow so it may not happen. But I think it's in our best interest to keep as many seats as we can and the representation is better."

DM & E: Thune asks for whom the bell tolls
An in-house blogger at the Rochester Post-Bulletin discusses John Thune's recent remarks about the need for the DM & E railroad to raise private capital soon. Info was originally in the Hog House blog entry: Bell tolls for  DM & E?

Benson's biomass gasifer; Grass energy shaken?
During his Farm Bill meeting in Marshall on Saturday, House Ag Committee chair Collin Peterson was asked about funding research into using prairie grasses for biomass energy. He cited plans to include funding for research for a variety of potential feedstocks for biomass and cellulostic ethanol, and the high possibility that the Benson area would be a research center because of the presence of a biomass gasifer.

Today's West Central Tribune reports Construction of gasifier under way at Chippewa Valley Ethanol’s plant.   The head of the Chippewa Valley ethanol co-op doesn't think cellulostic ethanol will replace corn ethanol, but does see a place for grass energy in ethanol production, as biomass that will replace the natural gas needed to run a conventional corn ethanol plant:

The gasifier project is a two-phase effort to replace the natural gas used in creating ethanol with renewable biomass — anything from wood chips to corn stover. The first phase, the portion that is now under construction, will burn 75 tons of biomass per day to replace 25 percent of the plant’s natural gas needs. The second phase will burn 300 tons of biomass a day to replace 90 percent of the natural gas needed for the ethanol plant.

The actual construction of the gasifier is just one area where Chippewa Valley Ethanol is working on the “greener” future of ethanol, Lee says. The company is also pushing for progress on research into the densification of biomass, such as corn stover, from bulky, light materials into condensed cubes or pellets that are much more efficient to store and haul. It is Lee’s belief that cellulosic ethanol, production of ethanol from corn stover and the like, is not the next step for the ethanol industry.

“The next role will be creating the energy for ethanol plants,” he said. Energy is the second-largest input, behind corn, and costs between $15 million and $20 million per year for the plant. “I’d rather spend it in my backyard, over sending (the money) to Alberta, Canada,” he said.

Lee and the ethanol plant shareholders are watching two key pieces of legislation, the 2007 farm bill and the energy bill, as both have renewable energy policies included.

The farm bill may include incentives for growing perennial grasses for biomass. Lee sees grasses as an opportunity for farmers and ethanol producers to reach across to conservationists, wildlife advocates and environmentalists. The grasses could be on “working conservation” land that still supports wildlife and provides water quality and soil erosion benefits while growing an energy crop that has commercial value as biomass.

“We have a vision for the future. … We are going to produce more ethanol in a green way,” he said. “Grass energy is a way to accomplish that.”

The Chippewa Valley ethanol co-op also makes Shakers vodka as a sideline. Those who want to lessen their alcohol consumption's carbon footprint might consider imbibing the booze produced in-state.

While the WCT article mentions that:

The Benson plant is the third Minnesota ethanol plant to use energy sources other than natural gas. The Corn Plus plant at Winnebago generates 60 percent of its energy needs from burning biomass, the plant’s byproducts, in a fluid bed reactor and is seeking to add wind turbines to generate the plant’s electrical needs. The Central MN Ethanol Co-op plant in Little Falls burns wood fibers in a gasifier to provide for the energy and a portion of the electrical needs of the plant.

Actually, the new ethanol plant being constructed in Heron Lake will use coal as an alternative to natural gas, a strategy that has drawn criticism from some ethanol advocates. The DM & E's Kevin Schieffer had called hauling in coal and hauling out ethanol "the perfect hat trick." Not everyone agreed, and the federal government denied the railroad's request for a hugh loan because of question about the line's ability to pay taxpayers back.

Update: Armenian Genocide resolution reaches critical mass
Tim Walz's work on the resolution acknowledging the Armenian Genocide resolution is acknowledged in Majority of House members support Armenian Genocide resolution:

"USAPAC has been working closely with Rep. Tim Walz (D.-Minn.), vice-president of the Freshman Class in the House, who has been recruiting fellow freshmen as cosponsors.

“'I am thrilled that the resolution recognizing the Armenian Genocide reached a critical mass of 218 co-sponsors today,' Mr. Walz said. 'As someone who taught genocide studies, I know that we must acknowledge genocide whenever and wherever it happens, regardless of international politics. We must work to curtail future genocides by not only addressing the cultural, economic, and religious factors that often contribute to these atrocities, but also by learning from past genocides. To learn from our past requires at a bare minimum that we acknowledge the past, which is what this long overdue resolution will do in the case of the Armenian genocide.' ”

Not a fire sale: Schieffer fiddles while railroad ties burn

Since we were visiting members and staff of Minnesota's congressional delegation yesterday, we missed some DM & E news other than the sale rumors.  Yesterday, KIMT-TV in Mason City reported that thousand of Kevin Schieffer's railroad ties went up in flames near Eyota, Minnesota:

The blaze on 19th Street southeast, owned by the Dakota Minnesota and Eastern Railroad had thousands of old railroad ties in flames and is still burning this afternoon. Just after midnight Eyota Firefighters received a call from someone at a nearby convenience store reporting flames by the railroad tracks. Firefighters worked to put out the fire until four in the morning.

Neighbors within a mile of the fire say the flames were so bright, they could even see them from their homes. David Higgins lives on the west side of Eyota. And he says this morning he woke up to some big flames over in the trees.

To paraphrase Brian Eno, burning railroads give you so much more.

Schieffer is going to have to clean that up, the station reports, but right now, he's fiddling with a numbers of ideas for getting his dream of hauling coal back on the front burner.  Dick Lammer of the Associate Press reports:

Kevin Schieffer, chief executive of the DM&E and parent company Cedar American Rail Holdings, responded to a published report that the company is listening to offers for all or part of the company.

Obtaining private financing for the project "is driving everything," he said.

"Whether in the process we end up partnering with somebody else or whether we end up buying somebody or selling somebody or selling something or buying something, there's a lot of things that can happen," Schieffer said. "We've got a lot of options that we're exploring."

It's good to keep your options open, we suppose. Schieffer remains upbeat even after the federal government thought his project was a poor risk for paying back the loan, and surely, Rochester's well-publicized opposition to having long, long coal trains moving through town will make the DM & E a great buy.  As the AP article notes:

The DM&E once hoped to be hauling coal by 2007, but getting environmental and regulatory approvals had proven tougher than it expected.

The project also faced opposition from the city of Rochester, Minn., and its Mayo Clinic, which argued that the additional high-speed trains could threaten the safety of patients at the clinic located a few hundred yards from the track.

Southern Minnesota and South Dakota definitely need a railroad to haul ag and manufactured products, but Schieffer's still thinking coal, always coal:

"I would just say our focus is getting this project built," Schieffer said. "We think it's very important for the entire country and for the state of South Dakota and for our company."

Take that, Minnesota!  Schieffer told the Rochester Post Bulletin:

"This is a project that makes too much sense not to happen," he said. "Nothing that has transpired has moved that fundamental belief one iota. We are committed to building this project. It will get built."

Neither bad credit reviews nor the health of medical patients will douse Schieffer's passion for coal.  As for putting out the flaming railroad ties, we can thank the everyday heroes of the Eyota fire department.

More on our excellent adventure in Washington DC later on.

DM & E up for sale

We had heard rumors over the past few days that the DM & E might be up for sale.  In today's Rochester Post Bulletin, Jeff Pieters reports that the railroad has asked for offers:

A sale announcement may be coming soon from the Dakota, Minnesota & Eastern Railroad, a rail industry magazine reports.

Trains magazine, in a report posted to its Web site on Tuesday, said that DM&E's parent company, Cedar American Rail Holdings, is accepting bids from about 10 bidders. The bidders are finalizing their offers this week, the magazine reported.

Among the bidders are three railroad companies: Canadian National, Canadian Pacific and a shortline railroad company that was not named.

Cedar American Rail Holdings owns both the DM&E and Iowa, Chicago & Eastern railroads, which together make up a 2,000-mile-plus railroad system.

DM&E was denied on Feb. 26 in its application for a $2.3 billion federal loan.

Selling all or some of its assets is apparently how the company plans to finance a $6 billion upgrade and expansion project that would extend DM&E's reach from near Winona to Wyoming coal fields.

Elsewhere in the Post Bulletin, DFL negotiates with Rochester for state convention. Walz plays a part in the decision:

State and local officials said there are several reasons for Rochester's prominence as a potential convention site. DFL Party leaders hope that holding the convention in the 1st Congressional District, which is home to U.S. Rep. Tim Walz, a first-term Mankato Democrat, will enhance his prospects for re-election.

"Democrats think he's doing a wonderful job in Congress and we would like to give him a boost in his first campaign for re-election," said Brian Melendez, chairman of the state DFL party.

Afternoon press release-palooza: Traumatic brain injury care, education, and transportation

There's a flood of press releases coming out of Walz's office today.

First up: traumatic brain injury centers for veterans.  Before last year's election, the New Ulm Journal scolded the administration's cuts to the Army's brain injury program.  Today, Walz has introduced legislation that will help treat those receiving traumatic brain injuries in the wars.

The You Tube of his statement on the House floor:

The press release:

Today, Congressman Tim Walz introduced H.R. 2179, the
Traumatic Brain Injury Centers Act.  "I introduced this bill because
Traumatic Brain Injury (TBI) has quickly become the signature injury of the
wars in Iraq and Afghanistan and it urgently needs our attention," said
Walz. 

H.R. 2179 would help veterans cope with TBI by creating five Traumatic Brain
Injury Centers around the country.  These centers would conduct TBI
research, develop improved models for TBI care and provide TBI education and
training for VA staff.  "While VA has built an impressive medical system
that includes high-quality polytrauma centers, H.R. 2179 would ensure that
the VA system also includes centers that focus solely on TBI.  These centers
will be the focal points for research and education dealing with a
devastating injury we are only now beginning to truly understand," said
Walz.

While new forms of military technology are routinely saving soldiers' lives
from deadly explosive attacks, these survivors often return home suffering
from TBI.  Veterans suffering from TBI often have to relearn simple skills
and are at times left permanently unable to perform daily functions.

"As America's service members return home, many of them suffering from TBI,
we owe them nothing less than the highest quality care as they learn to live
with their injuries," concluded Walz.

Download the text of the legislation here: tbi_center_walz.pdf.

It's National Teacher Day.  We'll let Representative Walz speak for himself on this. (audio file; text below the fold)

Even school children in the First District are articulate about the situation in Iraq. Two Austin High School students are among the first place winners in C-SPAN's StudentCam documentary contest:

Today, Congressman Tim Walz offered his congratulations to Austin High School students Anthony Hernandez and Dustin Gillard on receiving First Prize in the C-SPAN StudentCam documentary competition. 

"These two students offer a great example of the talent and innovation of our youth," Walz said.  "All of Southern Minnesota can be proud of Anthony and Dustin.  Their commitment to civic engagement and citizenship make them roll models for America's youth."

The two students won the prize for their documentary about the Iraq war, "Our Duty."  The film features interviews with Senator John McCain and anti-war activist Cindy Sheehan.  The documentary will air on C-SPAN, Wednesday, June 13 at 5:50 a.m. CST followed by a live interview at 7:30 a.m. CST.

Last year, Hernandez and  Gillard won the Grand Prize in the StudentCam competition.

One of the reasons ag and power co-ops in the First supported the DM & E railroad loan wasthey hoped to escape some of the burden of "captive" rail transport costs.  With the introduction of the Railroad Competition Act, Walz and other representatives hope to relieve this problem. Another press release:

Rep. Tim Walz joined with ten of his House colleagues,
including Transportation Committee Chairman and fellow Minnesota Jim
Oberstar, to introduce the Railroad Competition and Service Improvement Act
(H.R. 2125) last week.  The legislation will promote competition in the
freight rail industry and address the challenges faced by rail shippers who
are served by only one rail line. 

"Today, only four Class I railroads serve the entire North American
continent and control more than 95 percent of all rail business, said Rep.
Walz, who is a member of the House Committee on Transportation and
Infrastructure.  "In most industries, when there is a lack of competition,
it's the customers who suffer - the rail industry is no different.  Our
producers, businesses and consumers are paying the price for a rail system
that allows monopolies to dominate the market.  That needs to change."

The legislation Rep. Walz is cosponsoring would require the Surface
Transportation Board to promote effective competition among rail carriers at
origins and destinations, enforce reasonable rates for rail customers in the
absence of competition, and ensure efficient and reliable rail
transportation service for rail customers.  Additionally, it makes appeals
to the STB more accessible by reducing the current filing fee of $178,200 to
a filing fee equivalent to that of a Federal District Court. 

It's National Teacher Day.  We'll let Representative Walz speak for himself on this.  Text below the fold.

Injured DM & E worker awarded $4.6 million

The DM & E is back in the news, this time for a lawsuit over an on-the-job injury:

A railroad worker whose hand was crushed in a railyard accident was awarded $4.5 million in damages Friday.

Steven Tennant, 48, of Helena, Mont., contended he lost the use of his right hand when a load of wood shifted and crushed it as he tried to push a piece of wood back onto a Dakota, Minnesota & Eastern Railroad car in Rapid City, S.D.

“The railroad lied at trial, and we caught them. The incredible injury and damages prove it,” said attorney Bill Jungbauer. . . .

More at the Mankato Free Press.

Platts Coal Trader: DM&E loan decision based on repayment doubts

In its premium content section, Platts Coal Trader reported on April 19 that DM&E loan decision based on repayment doubts. Marcin Skomial's lead:

A top official at the Federal Railroad Administration said significant skepticism about the Dakota, Minnesota and Eastern Railroad's ability to repay a $2.3 billion loan it needed to become the third railroad to serve the Powder River Basin was the sole factor in the agency's decision to deny the loan. He deflected speculation that the agency's decision could have been influenced by the project's opponents.

Pressures from the two major western railroads that are serving the PRB and the opposition from communities along the proposed route had "absolutely no impact" on the agency's decision to deny the loan, FRA Deputy Administrator Clifford Eby told attendees at the National Coal Transportation Association's spring conference in Williamsburg, Virginia, Wednesday.

DM & E CEO and wannabe empire builder Kevin Schieffer complained on March 18 that other railroads had influenced the outcome of the FRA loan review in the Sioux Falls Argus article Sen. Thune: Competing railroads fought loan.  This article, in a truncated form, was picked up by the Associated Press and widely circulated.  The AP story ended with this paragraph:

He [Schieffer] also called the BNSF hypocritical for using FRA loans and grants "to compete against us for South Dakota corn and wheat traffic. ... That's good public policy, as opposed to bad public policy when somebody uses it against them."

But left off the final paragraph in the original article:

The BNSF does have a long corporate history with public largesse. In 1864, the federal government gave the railroad's predecessor, the Northern Pacific, right-of-way from Lake Superior to the Pacific Ocean and 40 million acres of public land to sell to raise capital to build that railroad.

The information isn't attributed to Schieffer or sourced in any way. It is curious, though, that the reporter would single out one historical predecessor from the BNSF's genealogy while ignoring another. In 1970, the Great Northern Railroad and the North Pacific were merged to become the Burlington Northern Railroad: the present configuration dates from the mid-nineties when the Atchison, Topeka and Santa Fe Railway merged with BNR.

The Great Northern was robber baron and empire builder James J. Hill's baby.  According to its amateur historical society:

Subsidies of large grants of land and cash had helped build earlier lines to the Pacific coast. Mr. Hill's venture was unique in that land grants or other government aids were neither sought nor given. Only government lands ever received by Mr. Hill's company were those attached to 600 miles of railway in Minnesota constructed by predecessor companies and acquired by purchase.

Most railroads received some kind of subsidies historically, so singling out the BNSF is somewhat perverse, given that the one "Pacific" railroad built without government funds is now part of the system.  What's more, the DM & E itself has received smalled loans in the past to upgrade its track, though not to expand.

Despite their differing views on using government largesse to expand their rail empires, the long-dead Hill and Schieffer do share one area of agreement: squeezing rail workers to make a buck.

Hill's losing battle with the striking American Railway Union in April 1894 is an important part of American labor history.  Schieffer and the United Transportation Union? Go read about the relationship here (page 12), and here.

Why the history lesson?  Must be something in the air other than just rain today. TheSioux Falls Argus-Leader reports that Train talk adds historical context to DM&E's quest. Augustana College is hosting a historical program today.

Tuesday morning letters edition

Winona Daily News LTE: Winona Walz office a great service
Valerie Clark reminds Winona residents of Congressman Walz's mobile office visits:

In case you hadn’t heard, our new congressman, Tim Walz, is sending members of his staff to Winona every other Wednesday to serve us, his constituents.

We can go and give them our ideas and opinions, ask for assistance if needed, or just chat and find out how Tim is doing in Washington. This is our system at its best: Our representative in Congress is reaching out to us even in our smaller cities like Winona.

Your next opportunity to visit Tim’s Winona office will be from 9 a.m., to noon, April 25, at Winona City Hall, 207 Lafayette St. (The following opportunity after that is May 9 at the Blue Heron coffeehouse.) And thank you, Congressman Walz, for all the hard work you are doing for us. We appreciate it.

Mankato Free Press LTE: Chrysler, DM&E loans are not the same
Liz McLoone, a Good Counsel Academy grad who worked as Tim Walz's scheduler last year, gets a letter in the Mankato Free Press:

A recent opinion piece titled “Walz to DM&E: Drop Dead” is full of incorrect information regarding my favorite new congressman, Tim Walz. This is my response from the perspective of a southern Minnesota gal who grew up in Mankato.

While campaigning, Walz learned how to listen to voters. In doing so, it became clear that the people of the 1st Congressional District (not just Rochester) were appalled about approving a $2.3 billion loan to a railroad with the worst safety record in its class. Walz took a thoughtful approach to this issue; not coming out against DM&E right away, but after serious consideration came to the conclusion that this “midnight deal” was not in the best interest of the residents of southern Minnesota.

The differences between the Chrysler loan and the secretive DM&E loan are twofold: The Chrysler loan was debated on the floor of the U.S. Senate and was paid back; and DM&E did not prove financially that it could pay the loan back in full to the taxpayers.

Not only did the Mayo Clinic oppose this project because of the legitimate risk to patient safety, the United Transportation Union (DM&E’s own union) opposed this project because of their inability to run a safe and fiscally sound railroad. In addition, many citizens took action on this issue by holding “Backyard BBQ’s” to educate their neighbors about the dangers of this deal.

As Minnesotans, we ought to join people like Walz, Minnesota Taxpayer League President David Strom and former Vice President Walter Mondale by fighting to not allow outside greedy interests to divide us and our most precious assets.

DM & E news breaking in the Strib: More than 100 evacuated after ammonia leak in train car

Today's rail mishap may have taken place on Canadian Pacific tracks, but the ammonia leak is apparently caused by an equipment failure on an Iowa, Chicago and Eastern train.  Lake City is in Wabasha County the far northeast corner of the First.
 
ICE is owned by the DM & E railroad.  Concern over safety was one factor that led to the creation of the Rochester Coalition to fight CEO Kevin Schieffer's application for a $2.3 billion loan, which was denied last month.  Many observers credit Tim Walz's sympathic ear for the Rochester Coalition's position as an important factor in winning Olmsted County, a traditional-but-trending-blue area that includes Rochester.

As we reported on Thursday (scroll down to Waseca County News story) trains had derailed on the DM & E's lines near Janesville, Minnesota, and Pierre, South Dakota, earlier this month.

Here's the gist of the story:

LAKE CITY, Minn. -- More than 100 people in southern Lake City were evacuated Saturday morning after fumes from a rail car leaking anhydrous ammonia became overpowering.

Hwy. 61 was closed and the smell was detected as far north as Red Wing.

The leak was detected at about 6:30 a.m. and the 37-car train was moved three miles south into a less populated area, authorities said, but the fumes kept building.

One resident told the Red Wing Republican Eagle newspaper she went to let her dog out at 6:30 a.m. and smelled a faint chemical odor. Five minutes later she went to let her pet back indoors and had to cover her face with her jacket in order to breathe.

Some residents in southern Lake City complained of feeling sick, and people on the north end of the town on Lake Pepin also reported headaches and nausea, the newspaper reported.

Hwy. 61 was closed from Hwy. 63 in Lake City south to Hwy. 42 in Kellogg. 

Evacuations started at about 7:45 a.m. in an area that includes a mobile home park and some businesses, including Wild Wings, a popular gallery along Hwy. 61. Evacuees went to stay with relatives or friends, or were taken to an emergency shelter at First Lutheran Church. Some disabled people were evacuated by ambulance. . . .

. . .The leaking car was part of an Iowa, Chicago & Eastern Railroad train operating on Canadian Pacific tracks.

Canadian Pacific spokesman Jeff Johnson said 11 of the 37 cars were carrying hazardous materials, such as anyhdrous ammonia. Eighteen of the cars were loaded; 19 were empty. . . .

. . .Officials told reporters a cap on the tanker car apparently failed.

At a news conference, state, city and railroad officials said the tanker is an older model. The ICE crew did not have a replacement cap onboard and one wasn't readily available in the area, they said. . . .

Go to the Iowa, Central, and Eastern railroad's web site. At the top of the page, visitors read:

Click   on the GOTRAC logo to visit our new site and
Voice your Support for the DM&E Railroad Upgrade   Today!

A slogan is splashed over the picture of a locomotive: "Bringing the Midwest Together." One coalition, protest, and evacuation at a time.

UPDATE: We have just been told by a reliable source that the leaky tanker belongs to a DM &E customer.  Would that make a difference to those leaving their homes?  We have to ask those who know more than we about liability. Update on the update: an acquaintance knowledgeable about these matters observes that, generally speaking, the tank car owner bears the liability for a failing of the car.  While railroad crews would have inspected the train in the yard, they would have been looking at wheels and brake lines, rather than tanker valves.

LATER SATURDAY NIGHT: The Post-Bulletin's ace reporter Jeffrey Pieters has posted stories about the incident at the PB online: Cause of anhydrous leak still uncertain and Cause of anhydrous leak still uncertain. The Post Bulletin also has photos.

 

Monday morning digest: Darfur and MARL DC visit

We have some early morning errands to run, and will post more later in the day about yesterday's Darfur Town Hall Forum, as well as some ag and rural development topics that we've been looking at on our own.  Here's the Strib's coverage, 'Keep the pressure up' on Darfur, speakers urge from the Star Tribune. We will have photos.

The New Ulm Journal has more about the MARL tour of Washington,  Representatives from agribusiness take part in study tour.  The article notes that class members from the First met with Representative Walz.  We had mentioned earlier coverage of the MARL visit from papers in Worthington and Crookston.

Saturday news digest: combat edition

Strib: Walz backs Democrats pullout plan
by 11:30 p.m. last night, the Star Tribune figured out what the Mankato Free Press already knew:

Rep. Tim Walz, D-Minn., said Friday that he would vote for the House Democratic leadership's proposal to withdraw U.S. troops from Iraq if the measure stays in its current form. . . .

. . ."It would sure be easier, and I think a lot of people think it would be easier if you didn't have to cast this vote," Walz said. "Well, you do. You're in charge, and you got to prove that you can govern. I'm totally comfortable casting that vote."

The withdrawal proposal would be attached to legislation providing nearly $100 billion for military operations in Iraq and Afghanistan and for some other programs. Walz said he preferred a cleaner bill with funding only for the war and veterans' affairs.

Preston-Fillmore County Journal: It's time for Cheney to resign
Editor John Torgrimson writes in his weekly column that It's time for Cheney to resign. Torgrimson concludes:

Some will argue that Cheney is a patriot by doing whatever it takes to defeat those who would harm us.

I would argue otherwise. Cheney is a thug in the Slobodan Milosivic mold - willing to use his power to serve his own views and biases, believing that the end justifies the means, even if it means trying to smear another American in an effort to alter the truth.

Dick Cheney's actions have discredited the office of the vice president. It is time for him to step down.

Owatonna People's Press: Keep Combat Pay
The Owatonna People's Press keeps its copy behind a subscription firewall and demands permission for all quoted material, so we'll paraphrase yesterday's editorial here. Basically, the paper's editors concur with the consensus that troops being deployed to Kosovo receive combat pay and benefits.

One claim in the final paragraph of the editorial does stick out, however.  The editorial praises members of Minnesota's congressional delegation for speaking out against Defense Department plans to downgrade the mission status in Kosovo.  The paper notes that the protests are bipartisan. 

For the Republican voices in Minnesota's delegation, the editors must be thinking of Senator Coleman, as we could find no record of Representatives Kline, Ramstad and Bachmann speaking to this issue, either in a Google News search (which yielded press accounts of Klobuchar, Coleman and Walz speaking up), or their web sites, or in Lexis Nexis's Acaddemic or Congressional database.  We'll continue to look, but are surprised that they have been silent about this issue.

Representatives McCollum, Ellison, Oberstar and Peterson signed the letter Representative Walz sent to Secretary Gates about the matter.

Rochester Post Bulletin: Coleman to talk DM&E Saturday in Rochester
We weren't able to attend this event but will share reports from our friends in Rochester as they come in:

Sen. Norm Coleman is scheduled to join representatives of the Rochester Coalition in downtown Rochester on Saturday for what is billed as an open forum to discuss the future of the Dakota, Minnesota & Eastern railroad expansion project.

. . .Friedrich said the event is not intended for Coleman to claim credit for the recent rejection of the $2.3 billion federal construction loan sought by the DM&E. Rather, the Senator planned a southeastern Minnesota schedule this weekend and sought to meet with the coalition and the public on the project, which could still go forward if the railroad can raise funds privately.

Was Representative Walz invited to this open forum, coordinated by the Rochester Coalition and its public relations firm with Coleman's office?

Friday morning digest: From Sioux Falls to Kosovo

Argus Leader: DM&E critic wants to give to rails
The Argus Leader's Pete Harriman seems to want to pick a fight for Tim Walz in his coverage of the 1st CD's support of the Progress act, which would set up a $350 million grant program for freight rail improvement. We had posted about the PROGRESS Act, which includes many other provisions, yesterday.

However, it doesn't look as if Walz or the Mayo clinic is buying into Harriman's set-up:

Walz spokesman Meredith Salsbery insists Walz's enthusiasm for a railroad grant program is no paradox and does not undercut his position that any DM&E track improvements mitigate Mayo Clinic safety issues. Passage of the Progress Act remains hypothetical, she said, and it is even less likely that if the bill becomes law the DM&E could secure a grant to improve its tracks through Rochester without Mayo leaders approving the project.

"When it comes to Rochester and mitigation, his position has not changed," Salsbery said.

Chris Gade, Mayo spokes-man, said Mayo Clinic officials have not scrutinized the Progress Act. However, "from our perspective, we feel whatever solution is ultimately arrived at, our patients, community and staff need to be protected. Whatever proposals come forward, we remain vigilant to ensure those needs are met.

"We have never been opposed to railroad expansion. Our concern from the outset is its potential for causing harm to our patients, staff and community and the reluctance of the DM&E to address those concerns."

Besides, there's a big difference between the huge loan for which the DM & E was turned down and the modest grant program that could be tapped by all eligible railroads:

The Progress Act would be much smaller - $350 million in annual grants - than the Rail Rehabilitation and Infrastructure Financing program through which the DM&E has already secured a $233 million loan and through which it sought the additional $2.3 billion. That program has loaning authority of $35 billion.

First District News Digest
The daily papers in the First are reporting on Walz's work in Washington and Thursday's district press call.

The Albert Lea Tribune's Sarah Light reports that  Walz says Kosovo isn't a "non-combat" mission. Light's article reviews Walz's leadership on protesting a change in the mission status that would deny 400 Minnesota National Guard members combat pay and benefits.

The Free Press's editorial board agrees with Walz that Kosovo is a combat zone:

This slap in the face comes at a time when the citizen soldiers of the Guard are sacrificing much with numerous deployments to places not only like Kosovo, but also to Iraq and Afghanistan. The U.S. Department of Defense and the Bush administration should not be balancing the budget on the backs of soldiers in the path of danger.

Not now. Not ever.

The New Ulm Journal's editorial page consistently calls for a strong commitment to our country's military hospitals and veterans' system.Today's lead article,  Walz: System must be ready for soldiers, vets,  spotlights the freshman congressman's own concerns about these institutions.  Walz points out the way in which the two are connected when it comes caring for those who serve our country:

Walter Reed Army Medical Center is run by the Department of Defense, while Walz serves on the House Veterans Affairs Committee. The Walter Reed issue is for the Armed Services Committee to deal with, said Walz, “but our fear is that that transition from soldier to veteran, and the burden that the system is going to start to absorb, we need to make sure we’re ready.

“We’re bringing in the directors of these hospitals, we’re bringing in the VA directors, to ask them and to have them provide evidence that they are prepared for the number of soldiers.”

Walz said the American public isn’t going to accept explanations like that given by the Walter Reed commander, Maj. Gen. George W. Weightman, “that he just didn’t know — his house, literally, is right across the street from Building 18. That’s pretty discouraging for veterans, and I think the public is discouraged too.”

Walz said he is willing to take on the oversight responsibilities, to ask questions and see that problems get solved for the soldiers and veterans.

The Journal's editorial board agrees that Kosovo-bound troops deserve combat pay, concluding:

If the DoD believes Kosovo is not a dangerous place, then maybe our troops don’t need to go there. If it is dangerous, the troops should be given the full benefit for going into harm’s way.

The Winona Daily News reports on the Kosovo story as well in Minnesota Guard troops headed to Kosovo amid proposal to cut combat pay for peacekeepers.

It's not online, and readers won't find his stance in yesterday's article in the Star Tribune (a subject of some pearl-clutching for a conservative blogger this morning)  but today's Mankato Free Press reports that Walz supports the House Democrats' plan for Iraq. Those who wish to carry on about Walz may actually have  to  venture out of their  comfort zone and follow the local papers.

Rochester Post Bulletin: DM&E met four of five criteria for loan

It's a quiet morning on the prairie, but we anticipate more news later in the day. The Rochester Post Bulletin reports that DM&E met four of five criteria for loan, citing Joseph Boardman's rejection letter:

The rejection letter sent to the Dakota, Minnesota & Eastern railroad this week reveals the company met four of the five criteria required to win the $2.3 billion construction loan it sought from the Railroad Rehabilitation and Improvement Financing program.

Joseph H. Boardman, administrator of the Federal Railroad Administration, wrote that he was able to certify in writing, as required by law, that the railroad's project met the intended purpose of the program and that sufficient present and probable future rail service demand existed.

Boardman also said he was ready to certify that the loan would be used economically and efficiently, and that the application met the 25-year repayment limit.

It was on the fifth criteria, that the loan was of low risk to the government, that Boardman rejected the loan. He would not certify that the loan "can be reasonably repaid" with collateral and credit risk premiums.

Boardman said elsewhere in the four-page letter that a number of financial uncertainties made it impossible to certify repayment. Those uncertainties included DM&E's highly leveraged financial situation, limited collateral, and other factors, such as high costs, that made it difficult for the company to withstand market downturns and overcome capacity restraints.

He cited potential cost overruns and timing issues, and the chance that additional capital would be needed in the future.

There's more at the Post Bulletin.

Update: The Minnesota Monitor reacts to Agri News in-depth coverage of the loan denial.