The committee heard House Bill 58, which would revise distribution of certain orphan-share and Environmental Quality Protection Fund dollars to allow ongoing reclamation and water-treatment costs at the CR Kendall mine.

DEQ’s Air, Energy and Mining Division Administrator Dan Walsh said current statute directs transfer of $1,200,000 each fiscal year from an orphan-share account to the Environmental Quality Protection Fund; by statute that $1.2 million is split evenly between Libby Asbestos Superfund long‑term operation and maintenance obligations and metal‑mine reclamation projects. HB 58 would allow $500,000 of the $600,000 allocated for metal‑mine reclamation to be applied annually to the CR Kendall site and $100,000 to remain available for other hard‑rock abandoned‑mine projects.

Walsh said the CR Kendall mine entered bankruptcy in 2015, a trust intended to manage reclamation and water treatment was depleted in 2023, and ongoing water treatment and reclamation needs remain. He told the committee that federal abandoned‑mine funding from the Office of Surface Mining and the Infrastructure Investment and Jobs Act is committed through 2038 and that authorizing the transfer in HB 58 will not reduce funding for the Libby Asbestos Superfund obligations.

Trout Unlimited’s Montana policy and advocacy manager Jeff Lucas testified in support and the DEQ presenter said the bill includes protective language clarifying transfers only occur “if sufficient funds remain.” No opponents testified at the hearing; DEQ asked the committee to consider HB 58 for the stability it would bring to ongoing treatment obligations at CR Kendall.

No executive action was taken at the hearing.