CP says it has met obligations from DM&E purchase

Canadian Pacific responds to gov's petition, says it has met obligations from DM&E purchase

Associated Press

SIOUX FALLS, S.D. (AP) -- Canadian Pacific Railway Ltd. says it has met its obligations from the 2007 purchase of the Dakota, Minnesota & Eastern Railroad.

Gov. Dennis Daugaard earlier asked the federal Surface Transportation Board to look into whether CP has lived up to its promises as it seeks a buyer for the former DM&E line west of Tracy, Minn.

CP spokesman Ed Greenberg says the company told the STB that it not only met its $300 million obligations but made an additional $100 million in improvements to enhance safety and efficiency.

But Matt Konenkamp in the governor's office says CP is counting money from other projects that didn't help the DM&E track.

CP announced in December it was looking into selling 660 miles of track in South Dakota, Minnesota, Wyoming and Nebraska.

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