Wagner Native Ethanol given 90 days to buy state rail line
The State Railroad Board imposed deadlines Thursday for Wagner Native Ethanol to make good on its offer to buy the Napa-Ravinia stretch of rail line from state government and to rehabilitate the 54.5 miles of track. The board, which met in Mitchell, adopted a resolution in fall 2006 that was signed by then-Gov. Mike Rounds agreeing to sell the line to the ethanol project, but nothing further happened.By: Bob Mercer, The Daily Republic
The State Railroad Board imposed deadlines Thursday for Wagner Native Ethanol to make good on its offer to buy the Napa-Ravinia stretch of rail line from state government and to rehabilitate the 54.5 miles of track.
The board, which met in Mitchell, adopted a resolution in fall 2006 that was signed by then-Gov. Mike Rounds agreeing to sell the line to the ethanol project, but nothing further happened.
Other companies expressed interest recently in purchasing the entire line from Napa to Wagner.
Bruce Lindholm, manager of local transportation programs for the state Department of Transportation, recommended in a May 18 memo that the state board withdraw the 2006 resolution and consider proposals to sell all or a portion of the line to another party.
State Transportation Secretary Darin Bergquist and Lindholm met privately with Wagner Native Ethanol personnel Thursday morning.
Lindholm subsequently recommended to the railroad board Thursday afternoon that deadlines be set for Wagner Native Ethanol to complete its side of the deal.
The board in turn voted to add language to the resolution setting an Aug. 26 deadline for Wagner Native Ethanol to deliver a check of $1,488,812 to the state Department of Transportation.
The board also inserted a Dec. 31, 2012, deadline for the Wagner Native Ethanol to complete the work necessary to reopen the line for service.
State board member Jack Parliament, of Sioux Falls, spoke in favor of making the changes. The original resolution contained no deadlines. “To me it’s a way to settle any possible dispute that would come up,” Parliament said.
The board wants the money from the sale so it can be used to help pay for a $28.1 million rehabilitation project on the state-owned railroad line east from Mitchell. That project is tied to two new grain-loading facilities proposed in the Kimball area.
Board chairman Todd Yeaton, of Highmore, told Wagner Native Ethanol personnel in the audience that the board has stood behind their project a long time.
“We’ve got a time frame and we’ve got a lot of things to happen in a hurry,” Yeaton said. “Good luck.”
Tags: news, state, energy, railroad, trains, region, wagner
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