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State lands board duty vs. development: Cooney says trustees must weigh long-term stewardship on McDonald Gold Mine site
Summary
Secretary of State Mike Cooney, a member of Montana’s State Board of Land Commissioners, said the board must balance its fiduciary duty to return income to the school trust with stewardship of land and that the proposed McDonald Gold Mine — located on or adjacent to state lease land — will be closely scrutinized.
Secretary of State Mike Cooney said Montana’s State Board of Land Commissioners has a fiduciary duty to maximize returns to the school trust but also must act as a steward of state lands when evaluating development proposals — including the contested McDonald Gold Mine.
"It is clear that the board's major responsibility is a fiduciary one, and it's to return the...the highest amount of money to the...school trust," Cooney said. He added the board also has "a responsibility to be good stewards of the land" so that it can continue producing returns for future generations.
Cooney told interviewer McCarthy Coyle that the McDonald Gold Mine proposal is a "fairly controversial issue" and that the company is proposing to mine on terrain that is "right smack dab on a state lease." Because of that, he said, the land board will have to give "a final okay or a final disposition" for the project before it can proceed.
Cooney said the land board will weigh both the immediate return to the school trust and "the long range public interest," and he signaled the board intends to be attentive to environmental and intergenerational impacts in its consideration.
In his remarks Cooney also described the related role of the Board of Examiners for state borrowing and gave an example of tax revenue anticipation bonds ("trans bonds") as one instance where the board's decisions have fiscal consequences. He recalled a past special legislative session that resulted when the Board of Examiners refused to approve a particular financing instrument.
No formal land-board decision was made during the interview; Cooney said the land board — which includes the governor, secretary of state, attorney general, superintendent of public instruction and state auditor — will play a central role in any final disposition.
Cooney's comments indicate that at least some members intend to treat the McDonald Gold Mine proposal as more than a straightforward revenue maximization question; he framed the matter as requiring review of both financial return and long-term public interest.
