CORRECTED-UPDATE 1-CP Rail drops plan to push into Powder River
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* Railway says will not extend line into Wyoming, Montana
* Option acquired under DM&E railroad purchase in 2007
* Thermal coal market appears in long term decline - analyst
* Decision came as no surprise; CP Rail stock slips on TSX
* New CEO Harrison to disclose turnaround plan this week
By Susan Taylor
TORONTO, Dec 3 (Reuters) - Canadian Pacific Railway will take a C$180 million ($181.2 million) charge to abandon plans to expand into the Powder River coal-mining region in the U.S. states of Wyoming and Montana, citing weakness in the thermal coal market.
Canada's No. 2 railway acquired the option to build a 260-mile extension into coal region of northeastern Wyoming and southeastern Montana as part of its C$1.48 billion purchase of the Dakota Minnesota and Eastern Railroad in 2007. Continued...