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DEQ-backed bill would raise hard-rock mining fees and create permit account; industry largely supportive
Summary
House Bill 69 would increase operating and application fees for hard-rock mining and create a dedicated permitting-program account to fund DEQ’s implementation of the Metal Mine Reclamation Act. DEQ and major industry groups, including the Montana Mining Association and Montana Resources, supported the measure after negotiation.
Representative Steve Gist opened the hearing on House Bill 69, a Department of Environmental Quality (DEQ) bill to update decades-old hard-rock mining fees and create a new permitting program account to support implementation of the Metal Mine Reclamation Act (MMRA).
DEQ Administrator Dan Walsh and Mining Bureau Chief Eric Dahlgren outlined the need: fees for operating permits and exploration licenses have not been updated since 2001, DEQ said, and current mining-fee revenue averages roughly $12,000 per year and is directed to an account that is not eligible to support regular MMRA program implementation. DEQ estimated MMRA implementation costs of about $1.25 million in natural resource operations and $461,000 in general-fund support; the proposed fee changes would create a third funding source and direct fees into a new hard-rock mining permitting program account.
Industry witnesses said they had worked with DEQ to shape the proposal. Matt Vincent of the Montana Mining Association said his group evaluated western-state fee structures and concluded the proposal is a reasonable update. Mark Thompson of Montana Resources said the schedule was fair and consistent with peer states. Representatives of wood products companies that run rock pits — including Julia Altimus of the Montana Wood Products Association and Jason Callahan of Green Diamond Resource Company — also testified that DEQ had been responsive and that a phased approach to increases was more workable for operators.
DEQ explained the bill sets tiers and fees for operating permits, exploration licenses and small-minor exclusions, establishes annual fees and application fees for permit categories, and moves fee receipts into the new permitting program account. DEQ said fines and penalties would still go to the environmental rehabilitation and response account.
No opponents registered in committee testimony. Committee members asked detailed questions about fee tiers, exemptions for very small mines and timing; DEQ and industry witnesses said the bill was negotiated to balance program funding needs with operator ability to plan and budget.
