Northern Plains disappointed with Land Board decision on Otter Creek
Released March 18, 2010

    Members of Northern Plains Resource Council expressed disappointment
    with the Land Board’s decision to approve Arch Coal’s (subsidiary Ark Land
    Company) 15-cents a ton bonus bid to lease the state-owned Otter Creek coal
    tracts. Northern Plains continues to oppose the leasing of Otter Creek and the
    construction of the Tongue River Railroad to transport that coal, developments
    that would turn one of the last agricultural valleys in Montana into an industrial
    corridor.

    The Land Board voted 3-2 to approve Arch Coal’s offer. Northern Plains
    supports the position of Superintendent of Public Instruction Denise Juneau
    not to lease Otter Creek and Attorney General Steve Bullock’s position that the
    15-cent bonus bid is “not getting the maximum benefit for the state.”

    “Northern Plains – again – says that the process the Land Board has used for
    this issue is flawed,” Beth Kaeding, a Past Chair of Northern Plains, testified
    at the hearing. “There has been NO overarching public process that includes
    a discussion of the environmental, economic, and social aspects and costs
    associated with leasing this coal.

    “Developing Otter Creek coal will mean the construction of the Tongue River
    Railroad – and that railroad will devastate another productive rural
    southeastern Montana valley. The state should play no part in any way of
    financing that rail line and, as we said last month, lowering the bonus bid is
    essentially giving the TRR a subsidy.”

Northern Plains members emphasized that they welcome the state’s recent agreement with British Columbia banning development of
mining, oil and gas, and coal in the Flathead Valley of western Montana. However, Kaeding did point out to the Land Board the double
standard this sets by not protecting the equally valuable Otter Creek and Tongue River area.

Later during the Land Board meeting, Clint McRae, a Rosebud Creek rancher and member of Northern Plains, also praised the
protection of the Flathead Valley but said it created a double standard for the Otter Creek coal tracts and enforcement of state laws.

McRae testified, “The state of Montana is unwilling to enforce the water quality laws in eastern Montana. Examples of that would be the
leaking ash ponds at Colstrip and numeric water quality standards on the Tongue River that are being violated by coal bed methane
companies in Montana. This creates a distrust of public agencies’ willingness to fulfill their public trust responsibilities.”

Kaeding  concluded, “Frankly, Northern Plains is considering petitioning the U.S. Board of Geographic Names to rename the Tongue
River as the East Fork of the Flathead River. Maybe then you would consider this area of the state special enough to protect from the
ravages of mining, oil and gas, and coal development.”

..............................................................................................................................................................................................................................................

CONTACTS: Beth Kaeding, Past Chair of Northern Plains Resource council, (406) 585-5644.
Clint McRae, Colstrip-area rancher and Northern Plains member, (406) 749-2132.


Larry Winslow
Communications Coordinator
Northern Plains Resource Council
220 South 27th Street, Suite A
Billings, MT 59101
Phone: 406.248.1154 X 114
Fax:  406.248.2110
larry@northernplains.org
www.northernplains.org

Northern Plains Resource Council is a grassroots conservation and family agriculture group. We organize Montana citizens to protect our
water quality, family farms and ranches, and unique quality of life. If you aren't a member, you should join!