Canadian Pacific Railroad has announced it will not move forward with plans to build a 260-mile extension of railroad into the Powder River Basin.
The company said in a media release that deteriorating demand for domestic thermal coal and low natural gas prices in 2012 solidified the decision to pass on the project.
Ed Greenberg, spokesman for Canadian Pacific, said doing business in the basin doesn't look as attractive today as it has in the past.
Greenberg declined to comment whether the announcement by Decker Coal Mine to lay off 75 employees contributed to the project's cancellation, but did allude that CP's withdrawal has more to do with the coal market in general.
CP Acquired the Dakota Minnesota & Eastern railroad in 2007, which included the option of laying down the extra track into the Powder River Basin coal mines. The Billings Gazette reports that in 2007, the railroad filed condemnation lawsuits against some landowners in northeast Wyoming, but later dropped the charges. The project is now suspended indefinitely.