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Montana bill to redefine 'material damage' for coal permits draws sharp local concern over water impacts
Summary
Proponents in the mining industry said HB587 aligns Montana law with federal Office of Surface Mining guidance to preserve primacy and funding; ranchers and conservation witnesses warned the proposed changes would weaken protections for downstream water quality and shift burdens onto landowners.
Representative Gary Perry opened House Bill 5 87 by saying the bill adopts language OSM identified as approvable after a prior 2023 proposal was denied, with the aim of preserving state primacy over the coal program and federal funding for reclamation.
Daryl James of Westmoreland Mining and George Harris of the Montana Coal Council testified in favor, saying the change simply aligns Montana statute with OSM direction and does not alter the duty to protect downstream beneficial water uses. "HB 5 87 really does very simply align the definition in MSUMRA," James said.
Opponents described observed and alleged harms. Art Hayes Jr., a rancher and president of Tongue River Reservoir, testified to persistent discharges he characterizes as "toxic" and said fish populations and irrigation uses have declined; he cited measured high electrical conductivity and sample results. Tom Baratta of Bull Mountain Land Alliance said the existing statutory threshold — impacts beyond a permit boundary that violate water quality standards or affect beneficial use — is a clear protection that the bill would undermine.
DEQ Air, Energy and Mining Division Administrator Dan Walsh and Director Sonya Nowakowski answered members' technical questions. They said DEQ had submitted the 2023 language to OSM and it was not approved; DEQ would not implement changes until OSM approval is obtained. Committee members pressed the sponsor and DEQ on how the bill would affect water quality standards, who would carry the burden of proof for material damage, and the role of models and quantifiable thresholds in the proposed language.
