BMLA August-September 2011 newsletter

Signal Peak Energy is Where?

Signal Peak Energy is longwall mining approximately 600 to 800 feet under Ellen Pfister’s family ranch.  She and her husband, Don Golder, live northwest of Shepherd, Montana.

Severe cracking is happening because of subsidence caused by longwall mining under surface property.  Hidden in the tall grass, these cracks are causing it to be unsafe for horseback riding.

Bull Mountain / Otter Creek / Northern Cheyenne Swap

Montana’s U.S. senators are working on passage of their Montana Mineral Conveyance Act, which would give Great Northern Properties more than 2,000 acres of federal coal in Montana in exchange for the return of a similar number of acres to the Northern Cheyenne. Original language, if not amended, will result in swapping coal tracts in three Montana coal areas:  Bull Mountains, Otter Creek, and Northern Cheyenne Reservation and the loss of surface owners’ consent over federal coal now provided by the Surface Mining Control and Reclamation Act.  All these transactions would happen without a fair-market appraisal.

One trade swap is for speculation; one to ensure the Northern Cheyenne Tribe control of the land and minerals within its reservation boundaries; one to complete private ownership of the coal tracts in an entire life-of-mine plan.  In its entirety, this swap will solidify continued monopolization of speculation and development of Montana’s coal.

Montana’s representative is shepherding his version of the Montana Mineral Conveyance Bill through the House.

Bull Mountains has the only established coalfield with a proven production history of the lands in the controlled swap. These tracts, unlike the other two, contain Montana’s premium sub-bituminous coal: low sodium, low-sulfur, high BTU.  Royalties from Bull Mountain coal production will go to Great Northern Properties and Northern Cheyenne Tribe once the Signal Peak Mine expands into those areas.

Will two wrongs make a right?  Is the proposed deal the right one?  Will it really give the Northern Cheyenne Tribe the mineral ownership, return and control due it?  Will it be equitable for all Americans? See the bottom of this document for bill numbers, bill status, and contact information for Montana’s congressional delegation.

BMLA / DEQ / SPE Meeting

On August 24, 2011, Bull Mountain Land Alliance members met with representatives from Montana’s Department of Environmental Quality and Signal Peak Energy at the Crowne Plaza in Billings. The purpose was to work toward an agreement on:

• Financial bonding for water replacement, erosion control, and damage to improvements.
• Establishment of a systematic subsidence damage control and surveillance program for the entire mine area.
• Establishment of a subsidence control damage advisory committee.
• A slope failure assessment conducted by an expert.
• Mandate for replacement of water resources with like class, e.g. Class 1 with Class 1.
• Tours over time of subsidence areas open to the public and press.

Protection for landowners and reclamation guidelines and timelines in the Bull Mountains would be achieved locally.

Ellen Pfister and Don Golder will provide folks a tour of SPE subsidence on their property after the meeting.

 Pfister Meets with Baucus and Tester

Bull Mountain Land Alliance member, Ellen Pfister, and other Northern Plains leaders met with Montana’s Senators Max Baucus and Jon Tester individually on August 8, 2011.

These leaders presented the Northern Plains Resource Council Montana Mineral Conveyance Act Proposed Amendments, which include:

Otter Creek Tracts Removed; Surface Owner Protection; Valuation; Subsidence Study; Water Rights and Replacement; Bonding; Title Research Needed.

Valuation of minerals controlled by the government should be based on fair-market value. Valuation methodology needs to include the coal’s quality; mine’s proven production history, predicted life-of-mine value, etc.

Industry is weighing in on the side of valuation based on tonnage. A fair-market appraisal is being touted by decision-makers and industry as the way to “kill the deal.”

A title opinion needs to be done to ensure complete understanding of what is being conveyed.

Status of IBLA Appeal

On May 19, 2011, Bull Mountain Land Alliance and Northern Plains Resource Council jointly filed a Notice of Appeal and Petition for Stay, and on June 16, 2011, a Statement of Reasons with the Interior Board of Land Appeals (IBLA), the agency within the Department of the Interior charged with reviewing challenges to federal coal leases.  If the Petition for a Stay is granted, it will stop the proposed lease sale of the last five federal coal tracts in Signal Peak Energy’s 15-year life-of-mine plan for the Bull Mountains until the appeal is resolved.

A decision was due in 45 days, July 3, 2011, although there is no mandatory timeline. The original sale date was missed and a new one has not been posted.

 GIPSA

Bull Mountain Land Alliance signed on to a national support letter for the USDA’s proposed GISPA Rule on Wednesday, August 10, 2011. This rule would rein in America’s largest corporate meatpackers, banning many unethical practices that keep family cattle producers from having a fair shake in the marketplace.

GIPSA (Grain Inspection, Packers and Stockyards Administration) is an agency of the U.S. Department of Agriculture, which is supposed to enforce the 1920 Packers and Stockyards Act.  GIPSA regulates the marketing of livestock, poultry, meat, cereals, oilseeds and related agricultural products, and is supposed to promote fair and competitive trading practices for the overall benefits of consumers and American agriculture. It is intended to end monopolistic practices by the big meatpackers so that cattle producers have a fair shake in a fair marketplace?

CFC

Anyone interesting in attending Community Food Campaign meetings should call 248-1154 for the next meeting date (ask for Svein).  Location is Home on the Range, 220 South 27th Street, Billings, 5:30 p.m.  Current topic: Local Food Buying Club.

Northern Plains Board Rep Notes

September 30:  Submission deadline for resolutions to be considered at Northern Plains 40th Annual Meeting.  Get them to the Northern Plains Office.

Events: Miles City Harvest Fest on Sept. 11; Wild and Scenic Film Festival on Sept. 16, and Lindsay Benefit on Sept. 17. Check www.northernplains.org or The Plains Truth for more information.

Anyone interested in being an official Signature Gatherer for the repeal of HB198.  Contact Ellen Pfister: 406-947-5931 or epg@mid-rivers.com.

Discussion regarding raising the Montana Renewable Energy Standard from 15% to 25%.  For more information, contact Northern Plains at 248-1154.

Congressional Happenings

H.R.1158, Montana Mineral Conveyance Bill, Sponsor Dennis Rehberg (R-MT), passed out of the House Natural Resources Committee.  U.S. Department of Interior testified in opposition due to valuation concerns.

S.647, Montana Mineral Conveyance Bill, Sponsor Max Baucus (D-MT), Co-Sponsor Jon Tester (D-MT), is the bill Northern Plains and Bull Mountain Land Alliance leaders requested be amended and stipulation language included. A hearing date has not been set.

Contacting Montana’s Congressional Members

U.S. Senate

The Honorable Max Baucus
United States Senate
511 Hart Senate Building
Washington, DC  20510
202-224-2651
1-800-332-6106 Toll Free

The Honorable Jon Tester
United States Senate
724 Hart Senate Building
Washington, DC  20510
202-224-2644
1-866-554-4403 Toll Free