Mine payoffs deserve questions

The recent clash between Montana’s Democratic senators and Gov. Brian Schweitzer over federal funding to pay off Canadian mining companies has been unusual indeed, and perhaps an eye-opening look into a future of much-needed government austerity.

Schweitzer recently goaded the congressional delegation to “get on the bus and sit beside the driver” when it comes to finding federal money to compensate Cline Mining Corp. and Max Minerals for the costs they already have incurred in exploration in British Columbia’s Flathead drainage.

Earlier this year, Schweitzer and British Columbia Premier Gordon Campbell signed a memorandum of understanding to end mining and oil and gas development in the drainage on both sides of the border.

It was an uplifting breakthrough, seemingly putting an end to proposals that have been popping up for years that raised threats to transboundary wildlife and water quality.

But as the agreement was reached, the details behind it were not exactly clear, and it should have been predictable that the devil would be in the details — and those details probably would involve cold, hard cash.

Schweitzer told the Inter Lake editorial board that compensating the mining companies is estimated at the high end to be around $17 million. That’s a pretty steep sum, in the view of Sens. Max Baucus and Jon Tester, who penned a response to Schweitzer’s recent comments.

“U.S. taxpayers are being asked to send money to private, foreign corporations. And in these tight economic times, we must justify every expense,” their letter states. “The federal government was not involved in the negotiation of the MOU, nor is the federal government a party to the agreement.”

The senators inquired where Schweitzer thinks the money should come from and they ask if there are other possible sources besides federal funds.

Their observations and their questions are on target.

Perhaps British Columbia or the Canadian government can do more — but that raises other complications.

In fairness, the British Columbia provincial government needs to be recognized for giving up billions in future royalties and taxes by agreeing to the ban on resource development.

But still, doling out U.S. money to foreign mining companies is something that many Americans would choke on, especially in the wake of recent unprecedented federal spending.