Candidates are pushing for coal development

Montana's "second-tier" statewide political races don't always involve big issues and differences between candidates, but at least two of those candidates are saying that's not the case when it comes to energy development.

Secretary of State Brad Johnson and attorney general candidate Tim Fox contend that the State Land Board - currently dominated by Democrats - has not been nearly as aggressive as it can and should be in advancing development of the Otter Creek coal tracts in southeastern Montana.

During recent campaign visits to Kalispell, the two Republicans said Otter Creek presents huge potential for Montana's statewide economy and school system.

"The potential is enormous," Johnson said. "Montana has the largest coal reserves in the country … Anybody who believes coal won't be part of the national energy mix in the future just isn't being honest with themselves."

"Until we have a change in the makeup of the land board, we will continue to miss opportunities" to advance the development of Otter Creek, said Fox, a former chief attorney for the Hard Rock and Coal Mining division of the Montana Department of Natural Resources and Conservation.

The three Otter Creek coal tracts were acquired from the federal government in a settlement that ended a controversial mining project near Yellowstone National Park.

The administration of Gov. Judy Martz got 7,623 acres south of Ashland with coal reserves estimated at 550 millon tons.

A 2005 report developed by the Department of Natural Resources and Conservation estimates the coal would generate $500 million to $750 million in school trust revenue.

But the potential for Otter Creek has not been a high priority for the Land Board lately. The last time Otter Creek was discussed as a major agenda item was in June 2006, according to Land Board meeting minutes posted on the DNRC Web site.

"There just hasn't been any sense of urgency," Fox said, noting that there is growing frustration in Republican ranks about the lack of progress on energy development in Montana, particularly development that would generate school trust funding. "People are fed up with the inaction and the stalemating of new projects."

Five land board positions will be filled through this year's elections - governor, secretary of state, attorney general, auditor and superintendent of public instruction - and three of the races do not involve incumbents because of term limits.

Johnson, currently the sole Republican on the land board, acknowledges that there isn't much disagreement over most land board decisions. But how to proceed with Otter Creek has been an issue, he said.

There has been a "circular discussion" involving the need for infrastructure development to go along with leases for the Otter Creek tracts, he said.

Specifically, any coal mining would require the construction of 90 miles of railway to connect the coal with existing railroad transportation in Miles City. There is some disagreement as to whether the coal tracts can be leased before or after infrastructure is developed, said Johnson, who believes that lease contracts can be written with contingencies that require infrastructure development.

In any case, Johnson expects Otter Creek to be back on the land board's agenda on a regular basis because of a recent agreement he reached with Gov. Brian Schweitzer.

"I expect to see this conversation progress on a regular basis before the board" over the next couple of years, he said.

One of Fox's opponents in the attorney general race, Democrat Mike Wheat, also was campaigning in Kalispell recently. Wheat is less optimistic about the realistic potential for Otter Creek coal development.

The tracts, he notes, are intertwined with private holdings in a "checkerboard" pattern that will require the state to pursue a development partnership. There is no railroad transportation. There is no value-added facility such as a coal-fired energy plant in place. There are no transmission lines.

"None of those things exist," Wheat said. "What's important about all that is now we have an environment where global warming is becoming more of an issue … That creates a regulatory environment that will be more difficult to advance development."

Wheat said he does not oppose development of the tracts.

"If we can get over all those hurdles, and then it can be demonstrated that this coal can be extracted in a way that satisfies all of our environmental requirements, then I'm not opposed to that."

Johnson, Fox and Wheat all agree that there would be an immense amount of environmental review before any actual coal mining or railroad construction can begin. And they agree there would be stiff opposition from some environmental groups.

But Johnson and Fox assert that Democratic candidates generally are more beholden to forces that resist coal development, and because of that, coal development is not a top issue in many Democratic campaigns.

They say it will be an issue in their campaigns.

"This will be a priority for me," Fox said.

Reporter Jim Mann may be reached at 758-4407 or by e-mail at jmann@dailyinterlake.com