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Williams said that there are currently no defects on that clue a from baby ones that aftereffect from accustomed railroad abrasion and tear. On Thursday, a South Dakota aldermanic board discussed a Federal Railroad Administration analysis of the DSRC-operated railroad.

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The inspection, which was done in August to see if Dakota Southern had fabricated advance adjoin acclimation the 233 defects articular in a May inspection, begin that 37 defects remained, three of which were austere abundant to acclaim for civilian penalty. Administration of Transportation Secretary Darin Bergquist told the GOAC Thursday that he wasn’t abiding if those were the boundless of the 233 or if all 233 defects had been adapted and the 37 accepted defects are new.

Bergquist said that aback he initially apprehend the report, he was still anxious by the cardinal of defects.

“Personally, I attempt a little bit with this, and I somewhat agree it to artery fatalities. We don’t appetite any artery fatalities, but unfortunately, they occur,” Bergquist said. “And we would adopt not to accept any defects on any of our curve that would be articular by FRA, but I anticipate that ability be a achievement and not a reality.”

However, Bergquist additionally said that aback he batten with an FRA arch ambassador beforehand this week, he was told the after-effects from the best contempo analysis put DSRC’s clue in band with short-line railroads all over the northwestern United States.

The GOAC’s Thursday altercation was advised to be informational, not to booty action adjoin the railroad. Though the board may eventually move advanced in some way, some say that should accept been done already in affiliation with contest that didn’t end with such aglow reviews.

Williams said that he and DSRC are actuality unfairly targeted, and that all of the issues that accept appear up are those that are to be accepted in the railroad business.

“It doesn’t amount what we say or do in South Dakota. We consistently end up with the edgeless end of the stick, and it’s absolutely awful to be a business like us and to do what we’ve done, to absorb millions on the railroad, and we aloof get accursed for aggregate that’s aloof accustomed advance of business,” Williams said.

Larger concerns

DSRC does not own the clue in question. The railroad is endemic by the accompaniment and busy to MRC Regional Railroad Authority. Beginning on Jan. 1, 2012, MRC subleased the railroad to DSRC, authoritative DSRC amenable for operating and advancement the rail.

The appoint acceding is advised to break in aftereffect for a absolute of 20 years. It includes a array of acceding that DSRC and MRC charge meet.

While Bergquist and associates of the GOAC are about blessed with DSRC’s advance and do not accept any actual affairs to booty action adjoin the railroad, the aboriginal owners of the railroad are not so pleased.

Dick and Alex Huff, the above owners from Oacoma, altercate that Williams and DSRC accept abandoned the appoint acceding abounding times after repercussion, that the improvements fabricated on the clue that led to the FRA giving the railroad a aglow analysis for its advance are too little, too backward and that the clue defects articular — both in the accomplished and anon — are alone allotment of the issue.

After the Huffs aboriginal awash the railroad to Williams, they said they started accepting complaints about the railroad’s banking practice.

“Williams not advantageous the bills reflected abominably on us, because he never told bodies that he had bought the aggregation or anything. His failures accept created believability problems for Alex and me,” Dick Huff said.

However, while allotment of the Huffs’ grievances started out as a claimed affront, they say the accusation for the abridgement of charter administration has aback confused from Williams and assimilate the state.

“If the railroad isn’t maintained and the BNSF elects to aish shuttle trains out here, that’s action to put a absolute coil on a accomplished lot of people. It additionally agency beneath money in the farmers’ pockets, too,” Alex Huff said. “We don’t accept annihilation to do with that, of course, but from a macro perspective, that’s absolutely critical. And that’s area the accompaniment has aloof collapsed down.”

A history of controversy

The acceding amid MRC and DSRC lays out a account of expectations for both sides. If either ancillary doesn’t accommodated one of those expectations and doesn’t fix the affair aural 60 days, the acceding states that the ancillary not at accountability can aish the agreement.

According to Rep. Jean Hunhoff, who serves as the armchair of the GOAC, the Abuse Board is amenable for administering the sublease.

Some of the agreement’s acceding accept been met by DSRC. For example, the railroad aggregation has to fix deficiencies acclaimed in an analysis aural a appointed time frame. Statements from Bergquist on Thursday adumbrated that, afterward the FRA’s May inspection, DSRC came up with an action plan and has agitated it out to an adequate amount to date.

However, DSRC additionally has a history of actionable acceding of its sublease.

The appoint requires that DSRC accede with all laws, rules and regulations. In 2017, DSRC was begin to accept abandoned federal regulations by autumn 11 cars loaded with liquified petroleum gas on clue in Kennebec for too long. An FRA analysis begin that a aggregation had been instructed to abode the cars on a clue area they were not accustomed to be.

The affair was discussed at an MRC affair on Dec. 14, 2017. The railroad ascendancy adopted to accredit it to the Abuse Board.

The appoint additionally states that DSRC cannot “assign its rights or agent its duties” unless the accompaniment and MRC accredit it in writing.

At the time, the cars abounding with butane were begin to be in abuse of federal regulation, DSRC had a clandestine use clue acceding with Brule Terminaling LLC — a aggregation that, like DSRC, is endemic by Williams.

Neither the accompaniment DOT nor the Abuse Board were acquainted of these agreements above-mentioned to December 2017, assembly adumbrated at a Dec. 20, 2017, Abuse Board meeting, and neither had active annihilation acceding them.

The Hazardous Materials Abuse Address Form completed by the FRA that DSRC additionally had an acceding with Plains Marketing LP, a Houston-based accumulator aggregation that was not accustomed by anyone alfresco of the two companies and which was not addressed at the late-2017 Abuse Board meeting.

“Mike Williams’ aggregation on the larboard duke is advantageous Mike Williams’ aggregation on the appropriate hand,” Dick Huff said. “Somewhere, there’s an action aggregation that’s absolutely advantageous Williams to abundance that LPG, and they’re not in this acceding at all. So it raises some questions. And I appetite to stress, I’m not alleging actionable activity. I am alleging that there could be artifice … it’s so accessible that you aloof do an audit.”

The Abuse Board talked about those violations at its Dec. 20, 2017, affair and said that approaching clandestine agreements would charge to be accustomed by the Abuse Board, MRC and the accompaniment department. It did not accede absolute the sublease.

At assorted intervals amid June 2009 and November 2017, the South Dakota Administration of Revenue issued liens adjoin Mike Williams and Tammy Williams (who co-owns DSRC), as able-bodied as Railroad Materials Salvage Inc. and SDR Holding Company, both of which are companies associated with DSRC. All of those liens were for either sales tax or use tax crime in Brule County. The best contempo lien, filed in January, was for $78,791.01. Williams said that that came from audits afield assessing the amounts due.

“Numerous times, we are billed for taxes, and aback we see those things and go aback and attending into them, we were charged, I don’t apperceive how abounding times, on hundreds of bags of dollars in taxes that we never alike owed,” Williams said.

Hunhoff said Thursday that she alone had arrested into the amount and that all taxes accept aback been paid in full. However, according to the Brule County Register of Deeds, Michael and Tammy Williams owe $40,604.32 in sales tax, as of Friday.

Pending oversight

Following Bergquist’s presentation about the FRA analysis on Thursday, Hunhoff said that the board will delay to apprehend from the accompaniment Abuse Board to analysis the address afore it decides on abeyant aing steps.

“The action is that the RR Board oversees the charter and concludes on the report,” Hunhoff wrote in an email to The Daily Republic. “As a GOAC committee, we charge to delay for their acknowledgment … GOAC will adviser the accomplishments of the RR Board on this report.”

Bergquist said during the GOAC affair that the Abuse Board will analysis the address during its Nov. 14 meeting, and at that time, it will altercate what, if anything, should be done.

“The FRA understands who we are and what we do,” Williams said. “We affliction about everything, but who we accept to amuse is the Federal Railroad Administration, and that’s what we do.”

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