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DEQ seeks funds for long‑term mine water treatment; lawmakers asked to cover Zortman and C.R. Kendall needs
Summary
Officials said DEQ needs increased authority and funding for long‑term mine water treatment at sites such as Zortman‑Landusky and C.R. Kendall, and is proposing statutory fixes to use orphan‑share funds and add fee authority for hard‑rock reclamation. Agency leaders also flagged rising litigation costs after recent court rulings.
The Department of Environmental Quality told the Section C appropriations committee it will seek added appropriation authority and statutory changes to fund long‑term water treatment at legacy mine sites and to stabilize funding for reclamation work.
Dan Walsh, division administrator for Air, Energy and Mining, highlighted a decision package (DP 5,010) to restore appropriation authority for Zortman‑Landusky water treatment, saying annual operating costs have exceeded current appropriation levels. "DEQ currently has cash to cover the near term annual cost for water treatment at Zortman, but not the appropriation to do so," Walsh said, asking the committee to approve DP 5,010 so the department has the necessary appropriation authority.
The department also asked for funding to support C.R. Kendall reclamation under DP 5,003 and identified a multi‑year funding approach. Director Sonya Nowakowski urged the committee to support House Bill 58, which would allow the agency to use the Environmental Quality Protection Fund/orphan share money to help fund C.R. Kendall reclamation activities for a limited period. "We're able to take advantage of some federal abandoned mine lands funding and shift those dollars towards C.R. Kendall," Nowakowski said, and the proposed change would make the state match authorities align with current needs.
Why it matters: Several Montana mine sites require multi‑year or indefinite water treatment to limit contaminants leaving mine complexes and protect downstream waters. Walsh and Nowakowski said surface reclamation does not eliminate the need for treatment where groundwater and mine water continue to discharge to streams.
Nowakowski also told lawmakers the agency has absorbed significant litigation costs this cycle. She reported the state paid roughly $700,000 in attorney fees following an adverse district court ruling on a coal case at Rosebud Mine that was later litigated through the Montana Supreme Court; the agency also reported a high‑court win in an appeal concerning the Black Butte copper mine. "I must report that the state of Montana had to pay roughly $700,000 in legal fees as a result of a coal decision that we did not come out on top on in district court," Nowakowski said.
The budget packet includes requests tied to hard‑rock mining fee changes (House Bill 69) and to extend a general fund backfill to the Natural Resource Operations fund (Senate Bill 71) to allow new fees to phase in. Walsh said hard‑rock fee authority (DP 5,005) and the Zortman request reflect rising treatment and maintenance costs and an evolving funding mix.
Committee members pressed for detail on contaminant types and treatment horizons. Walsh said some sites, including Zortman‑Landusky, will likely require treatment in perpetuity; C.R. Kendall had a previously estimated multi‑decade treatment horizon and the department is seeking bridging authority while federal funds and other remedies advance.
DEQ asked the committee to consider the decision packages alongside pending policy bills. The committee did not adopt formal actions and staff said follow‑up documentation would be provided on projected treatment costs, bond/trust balances and the timelines tied to federal funding.
