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Ltd. and the former DM&E, which it acquired in 2007.
• Canadian Pacific bought 2,500 miles of track and equipment from South Dakota-based DM&E and its subsidiaries for $1.5 billion.
• Now CP and the state of South Dakota are at odds over whether the railroad has met its obligation to invest $300 million in upgrades as part of the purchase.
• A CP spokesman said last month the railroad showed the board it has invested substantially more than the $300 million.
• Gov. Dennis Daugaard's office disagreed, saying the figures are misleading.
• In December, Canadian Pacific announced that it was looking into the possibility of selling 660 miles of track in South Dakota, Minnesota, Wyoming and Nebraska. The announcement came a day after the company said it was mothballing plans to extend its DM&E network into the Powder River Basin to ship Wyoming coal to power plants in other states because of weakening demand for coal.
• The railroad did not directly link the two decisions.
• Daugaard filed the petition with the board in August. The governor met with Vilsack Sept. 12 in Washington to discuss the only east-to-west rail in South Dakota and its impact on agriculture.
• Access to competitive shipping prices for commodities, not abandonment of the line, is the major issue with ensuring Canadian Pacific has upgraded the rail line, said Matt Konenkamp, a policy adviser for the governor's office.
• "The governor's concern is that shippers in South Dakota, farmers in South Dakota supported the CP's acquisition of the DM&E based on the promises that were made. And so the petition seeks to determine whether or not those promises have been made," he said.
• Vilsack agreed that the issue is worth the STB's attention.
• "The loss of this line, or major portions of it, could eliminate rail service to a major portion of the state. Even where service would remain, agricultural shippers would only have access to a single railroad, which could increase rail rates for agricultural shippers and receivers," Vilsack wrote. "A full accounting of the promised investment, as requested by South Dakota, is a reasonable step forward."
• Before DM&E was sold to CP, the line provided shipping service to critical transportation hubs including Minneapolis, Chicago and Kansas City, Daugaard said earlier.