As the U.S. looks to broaden and diversify its domestic energy portfolio, coal is at the center of the equation, especially for states like Montana who are now America’s version of Central Asia’s Kazakhstan in terms of latent reserves and a God-blessed thing called the Bakken. And just this week, figures arose from a study estimating over $1 billion in state-owned royalties could come from Eastern Montana’s Otter Creek Coal tracts. And all of it will fund education.
The AP’s Matt Brown gives the run-down on the deal in yesterday’s Helena Independent-Record, here. Another version of this same story ran in today’s Chicago Tribune, here.
In Montana's Tongue River Basin, the Otter Creek Coal tracts share both private and state ownership and could produce an estimated $1.4 Billion in revenue for the State School Trust. (Image Courtesy: MT Conservation Voters)
The tracts include what people in the business call “HueMonguss” coal reserves in the Tongue River Basin beneath a checkerboard of land owned by both the State of Montana and Great Northern Properties. Because all revenue generated from state lands goes directly into the state’s school trust–not the general fund–coal revenues of this size are a double-edged sword for left-leaning political interests.
Big money for schools, big damage to the environment and property owners.
Environmental groups like Montana Conservation Voters, along with Tongue River ranchers have long opposed this project for a combination of reasons. The former aren’t into coal, especially in the Tongue River Basin. The latter aren’t into major infrastructure-like railroads-cutting through their land.
Regardless of where you stand on the issue, reading MCV’s accounts of the long-standing battles in courts and at the Montana State Land Board is great reading and crucial background on the issue. For heavier industry tilt, here’s a power point given by a Bechtel representative to the Western Governor’s Association back in 2003. There’s also a load of helpful background info on the subject at Northern Plains Resource Council’s website, here.
Nifty maps, nifty spin.
Coal: The burning question for the Tongue River Basin, Northern Cheyenne Tribes, and Brian Schweitzer.
But the coal is only half the equation, at least logistically. Getting the stuff to market will require a railroad extension connecting Miles City and the Otter Creek tracts, a project called the Tongue River Railroad, which has also been sued by ranchers who aren’t as happy about having a railroad running through their property as Walt Disney or the folks at Knott’s Berry Farm might be. A couple weeks ago, Marilynn Hayes, whose family ranches in the area, wrote an editorial in the IR from this point of view, here.
There’s also the issue of the Northern Cheyenne Tribe, whose support for the project has waffled over time, as some support development but not rails, others support rails but not development, and so on.
We can’t forget to point out the huge stake Governor Brian Schweitzer’s career has in this issue. After all, he’s marketed himself in the past as the “Coal Cowboy,” a calling card to the major national energy and political interests that will have a huge say in the behind-the-scenes mechanics that will eventually take his career to the national level.
Governor Brian Schweitzer has staked his political career on the energy issue, and Otter Creek's Coal tracts are loaded with the stuff. (Photo Courtesy: Newwest.net)
[Margo Kidder nods quietly in agreement as author types. Her and other media insiders know the jockeying that's been going on to court national interest. Energy. Cameras. Message. Image.]
For him, at least our opinion goes, Otter Creek and other major energy projects aren’t about the if questions. It’s not about if they get developed, or even where, or how, they get developed, but when. Ideally, these developments occur at a time that’s late enough to capitalize on spiking energy prices and peaked demand in the market. One also needs to secure the Montana State Land Board, comprised of the state’s top five elected officials who make most of the decisions on these things; the Democrats have done that. They also need a democratic operative running the Montana Department of Natural Resources and Conservation, which oversees oil and gas leases on state lands… someone like Director Democrat Mary Sexton… Check.
It’s also about squeezing-out potential enviros or certain GOP legislators from gaining major leadership positions in the state legislature that could spearhead legislative efforts to curb or stall this growth… Check.
[Roy Brown (R-Billings) and Michele Reinhart (D-Missoula) nod bitterly in agreement as author types. Squeeze-out indeed.]
The when question also gets to Schweitzer’s last term in office at sky-high approval ratings following a major splash performance at the DNC’s national convention along with key political insiders being positioned in places like the White House and the U.S. Senate. Messina. Baucus. Tester… Check.
With all the checks lined-up, the political capital from this will be huge. Tapping those reserves at the right time allows Schweitzer, as well as the other Demo Land Board members–A.G. Steve Bullock, O.P.I. head Denise Juneau, Auditor Monica Lindeen, and S.O.S. Linda McCullough–to claim billions supporting public education, landmark energy development, and a vital piece of their political resume.
For Schweitzer, it’s the final piece of everything he needs to go national–a shining emblematic example of the kind of domestic energy development national policy-makers and the industrial interests behind them want to see.
We will miss Jag.
[Roy Brown, the pale vegetarian sissy who spent months on a campaign drinking crude oil with his breakfast and whining in snide tones about Schweitzer's bullying, scoffs at his desk in the legislature as author types. He won't miss Jag a damn bit.]
In the end, we can’t really take a side on this sort of thing. The equivocation is evident to anyone with a strong political viewpoint. Education funding, economic growth, national security, the country’s energy portfolio, troops dying in the sand and mountains. But… there’s also Montana’s constitutional guarantee of a “clean and healthful environment,” rancher’s rights, property rights, tribal sovereignty, and a thing people say is not exactly clean coal. Water quality. Yeah…
The balance is yours to make.
Tags: Brian Schweitzer, Coal Development, Great Northern Properties, Knott's Berry Farm, Margo Kidder, Marilynn Hayes, Michele Reinhart, Montana Conservation Voters, Montana DNRC, Montana Energy Development, Northern Cheyene Indian Reservation, Northern Plains Resource Council, Otter Creek, Roy Brown, Sierra Club, Tongue River, Tongue River Railroad, Walt Disney
