It is reported that a federal panel has rejected an attempt by conservationists to halt the construction of a long stalled 121-mile railroad that would open a new area of Montana to coal mining.

The Surface Transportation Board said opponents failed to show why the USD 550 million rail line needed further environmental review. The decision came Wednesday in response to a petition by the Northern Plains Resource Council and Montana rancher Mark Fix, who lives along the proposed railroad route.

The decision said "We believe that (the Tongue River Railroad Company) should be allowed to move forward with this project without being subjected to the delay, costs and uncertainty that reopening this case now would cause."

The petition was one of several legal challenges by environmentalists seeking to stall Governor Mr Brian Schweitzer push for a major expansion of coal mining in the state. Mr Schweitzer and industry representatives have heavily promoted the growth potential in Asian markets, although domestic coal markets are projected to remain relatively stable in coming years.

The mines best poised to serve those markets are in the Powder River Basin of Wyoming and Montana. The Tongue River Railroad would make it easier to get coal from the basin to ports on the West Coast by providing a new connection to an existing BNSF Railway Company line in Miles City.

(Sourced from www.flatheadbeacon.com)