HURON, S.D. (AP) South Dakota Senator John Thune says he thinks the federal Surface Transportation Board will approve the Canadian Pacific Railway's proposed merger with the Sioux Falls-based Dakota, Minnesota and Eastern Railroad.

The agency is to announce its decision no later than September 30th.

Thune told civic leaders in Huron yesterday that the Canadian Pacific is concentrating on the D-M-and-E acquisition before moving on to a Powder River Basin decision.

The price tag that has been mentioned for the coal train project is $6 billion.

Thune says the Canadian Pacific is keeping tabs on energy policy in Washington. He says if a commitment to coal-fired power diminishes, that would affect future decisions.

(Copyright 2008 by The Associated Press. All Rights Reserved.) APNP 08-07-08 1239CDT | save this article / add to your favorites list