WASHINGTON, D.C. -- The federal Surface Transportation Board plans to approve Dakota, Minnesota & Eastern Railroad’s purchase of another rail company owned in part by Missoula businessman Dennis Washington, a wire service reported.

The board said it will approve the deal by June 28, unless opponents petition for a stay. DM&E’s purchase of I&M Rail Link, also known as IMRL, would double DM&E’s size, the Surface Transportation Board said.

Under the proposal, a subsidiary of DM&E, based in South Dakota, would acquire IMRL’s 1,125 miles of track and rights on another 275 miles of track. IMRL would also sell DM&E its operations in Kansas City, Mo., South Beloit, Ill., Clinton, Iowa, and in Janesville and Beloit, Wis.

DM&E currently operates about 1,100 miles of track. Kevin Schieffer, president of DM&E, said that if the acquisition of IMRL is approved, it will develop the regional grain shipper into a major rail line.

“It really transforms us from a feeder line to a true origin-to-destination carrier in many respects,” Schieffer said in a telephone interview. “It’s been a long-term goal.”

This is the second major project DM&E has before the Surface Transportation Board, which is an office within the U.S. Department of Transportation. DM&E also is seeking approval to expand 275 miles into Wyoming’s Powder River Basin for part of the coal-hauling business now dominated by major lines like Burlington Northern Santa Fe and the Union Pacific. That is a $2 billion project.

Schieffer would not say how much his company is paying to buy IMRL from its co-owners: Washington Cos. of Missoula, and Canadian Pacific Railway Co. of Calgary, Alberta. However, earlier published reports put the purchase price at $150 million.

The STB has already received several letters registering either opposition to or concern about the acquisition, including letters from the Iowa Department of Transportation, Tyson Foods Inc., and the Iowa cities of Dubuque, Marquette and Mason City.

Nancy Beiter, a lawyer for the STB, said opponents have until Friday to ask the board to grant a stay delaying its approval. If any petitions to grant a stay are filed with the board, the company has until June 21 to respond.

Schieffer said he wasn’t worried about opposition.

“We will be able to respond to whatever comes up,” he said. “We’re certainly not concerned about having a debate on the merits, because the merits are on our side.”

Under the plan, the DM&E plans to keep its name, but change its parent company and the name of the IMRL. The new parent company will be called Cedar American Rail Holdings Inc. The IMRL will be known as the Iowa, Chicago & Eastern Railroad Corp. and will be a sister company to DM&E.