 The Dakota Northern Railroad was created in January 2006 after the BNSF Railway decided to lease approximately 72 miles (116 kilometres) of branch line trackage to KBN Incorporated and Independent Locomotive Service for an initial 10-year period.The track leased to the Dakota Northern Railroad consists of an approximate 23 mile (37 kilometre) segment of the Glasston Subdivision between Grafton, North Dakota and Glasston, North Dakota as well as the approximate 49 mile (79 kilometre) Walhalla Subdivision between Grafton, North Dakota and Walhalla, North Dakota.The piece of the Glasston Subdivision leased to the Dakota Northern Railroad is part of a segment of track that was once owned by the Great Northern Railway and extended from Grand Forks, North Dakota to Gretna, Manitoba.