Coal once again became an important Northern Plains issue when speculators focused their efforts on getting permits for as much coal mining as possible before restrictions are put on coal development because of its oversized role in damaging the earth’s atmosphere.
The Otter Creek coal tracts came under state ownership as part of the New World Mine buyout by the federal government, which was finalized in 2002. Originally federal coal, the Otter Creek tracts were given to the state as compensation for the jobs that were never created by the highly speculative and ill-conceived New World gold mine proposal.
In 2009, the Montana Land Board began the process of appraising and then leasing the state’s share of that coal. (Slightly more than half is owned by Great Northern Properties, a spinoff of the Great Northern Railroad.)
When that appraisal was completed, Northern Plains commissioned an economic study of the appraisal. That analysis by Dr. Tom Power (University of Montana economist) found that the appraisal failed in numerous ways to properly evaluate the value of the high-sodium Otter Creek coal. (Ironically enough, developing Otter Creek could well have the unintended consequence of putting other Montana coal mines out of business). We submitted this economic analysis to the Land Board, along with a set of legal comments.
However, the Land Board determined to proceed with leasing the coal. After several delays, they leased the Otter Creek coal tracts in March 2010, with no environmental study whatsoever. If developed, the Otter Creek mine will be far bigger than any other coal mine in Montana’s history. In all likelihood, it will also create tremendous pressure to build the Tongue River Railroad through this historic and precious rural valley.
In May 2010, Northern Plains filed a lawsuit against the Land Board for leasing the coal without conducting any environmental analysis. We were joined in that case by the National Wildlife Federation. We regard leasing that coal as an irretrievable commitment of resources, and we had made repeated requests of the state to conduct such studies before leasing. This case aims to overturn a 2009 Montana law that exempts coal leasing from having to conduct an EIS. As surely as a mining permit, the lease is the state’s commitment to see that the Otter Creek coal is mined. (It also puts the state in the position of having a financial interest in the mine while it is also responsible for regulating it.)
Because the impacts of fossil fuel development can be so hard on nearby farms and ranches, because it lays heavy impacts on land, water, and air, and because the effects of fossil fuel development will reach so far into the future, Northern Plains will likely be involved with these issues for many years to come. All the while, we will continue working to ensure that the voices of individual Montanans can be heard as clearly as those of corporate lobbyists, and that citizens will always be able to make a difference in how we treat our land and water, and in keeping family farming and ranching viable in Montana.
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