The federal Surface Transportation Board has approved the Canadian Pacific Railway Corp.’s purchase of the Sioux Falls-based Dakota, Minnesota & Eastern Railroad.

The $1.48 billion sale was finalized by the parties a year ago but was subject to regulatory review.

The STB decision announced Tuesday clears the way for Canadian Pacific to become involved in day-to-day operation, pending a 30-day appeal period, said Kevin Schieffer of Sioux Falls, DM&E president.

“I don’t anticipate anybody’s going to do that (appeal), and if they do it, I don’t anticipate it will change anything,” Schieffer said.

The Surface Transportation Board approved the sale after concluding that it involves minimal operational overlap among the railroads, won’t remove the option of competitive rail service for any shipper and won’t create a monopoly.

The STB also said the railroad can’t transport any coal originating on a proposed Powder River Basin line until an environmental impact statement is prepared. The DM&E wants to build new track to the Wyoming coal fields and ship coal east.

The environmental impact statement would supplement such studies already done on the DM&E line, Schieffer said. A new statement would cover communities in the Canadian Pacific system, he said.

“What they’re really saying in there is if and when we decide to move coal, they will do an environmental impact statement for only those portions that they haven’t covered already,” Schieffer said. “All the DM&E line is done and wouldn’t be redone.”

A spokesman for Canadian Pacific, Leslie Pidcock, said the company has not yet decided if it will continue with expansion plans.

Pidcock said the railroad is holding off on a decision until at least after the merger is finalized. Canadian Pacific will examine economic and marketing conditions before making a decision on the expansion, Pidcock said.

“At the end of the day, Canadian Pacific is looking for a good investment for its shareholders and provide good value to CP,” Pidcock told South Dakota Public Broadcasting.

Schieffer said he doesn’t expect the merger will result in any layoffs of the 1,000-plus employees of DM&E and its subsidiary, the Iowa, Chicago & Eastern Railroad Corp.

Schieffer was noncommittal about his future in the combined companies.

“As of right now we’re just focused on making sure there is a successful deal here and a lot of that revolves around the Powder River Basin and things of that nature, so we’ll see,” he said.

Sen. Tim Johnson, D-S.D., said the merger is good for the South Dakota economy because it will improve the shipment of grain, ethanol and other commodities to other markets.