Committee hears bill to redirect abandoned‑mine funds to CR Kendall reclamation

Representative Gerry Schillinger presented House Bill 58 to modify the statutory distribution of certain abandoned‑mine and orphan‑share funds so a portion (up to $500,000 of $600,000) allocated for metal‑mine reclamation could be directed to reclamation and water‑treatment needs at the CR Kendall Mine while continuing the state contribution for Libby Asbestos Superfund long‑term operation and maintenance.

Dan Walsh, Air Energy and Mining Division administrator at DEQ, explained the statutory mechanics: existing law transfers $1,200,000 annually from the orphan‑share fund to the Environmental Quality Protection Fund, which is then disbursed with 50% ($600,000) designated for Libby Asbestos long‑term costs and 50% for metal‑mine reclamation. HB 58 would authorize transferring $500,000 of the $600,000 to the CR Kendall Mine and keep $100,000 for other hard‑rock reclamation. Walsh said the change would not reduce funding for Libby and noted federal Office of Surface Mining and Infrastructure Investment and Jobs Act funding provides federal support to abandoned‑mine work through 2038, enabling this reprioritization.

Walsh told the committee the CR Kendall mine entered bankruptcy in 2015, a trust established in 2016 has been depleted and reclamation and water treatment needs persist; the requested statutory clarification also adds an "if sufficient funds remain" phrase to address an audit finding. Trout Unlimited’s Montana policy manager Jeff Lukas testified in support. Committee members asked whether transfers would be prorated if funds are insufficient and whether Fergus County supports the change; DEQ said it would transfer whatever amount is available and that it had spoken with local legislators though not the county commission directly.

Representative Schillinger closed urging a do‑pass recommendation.