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Updated 1 October 2004

 

2004 News on Flathead Basin Coal & Coalbed Methane

B.C. Holds CBM Lease Auction -- But No One Submits a Bid

A somewhat unexpected reprieve from the threat of coalbed methane development occurred when no bids were submitted for the coalbed methane tenures offered for auction by British Columbia in August.

The two tenures, or leases, that did not receive bids are the two with the potential to incur impacts downstream in Montana. One was located in the headwaters of the North Fork Flathead watershed and one in the headwaters of the Kootenai Watershed.

The Flathead Lakers, along with numerous other groups including the reinvigorated Flathead Coalition, an alliance of community groups from Montana and B.C., had been working for several months to engage public officials in pressing B.C. and the Canadian federal government for a comprehensive impacts assessment prior to auctioning the tenures.In spite of efforts by Governor Judy Martz, the Montana Congressional delegation, the Confederated Salish and Kootenai Tribes, and the Flathead Basin Commission to assure that such as assessment was undertaken, B.C. refused to delay the tenure auction.

Flathead Lakers' President Rose Schwennesen said she "applauds the oil and gas companies for their clear-sighted pragmatism" in declining to bid on the tenures. She said she believes the pressure from Montana played a significant role in their decision, as did discussions the Flathead Coalition initiated with potential lessees in Canada regarding transboundary concerns.

Coalbed methane development and production requires disposal of tremendous amounts of water pumped from the coal seam to release the gas. No information about the quality or quantity of the wastewater has been provided by B.C.

Working with the Flathead Coalition and others, the Lakers plan to take advantage of this reprieve to continue to advocate for a comprehensive evaluation of potential impacts of coalbed methane development in the North Fork watershed.

Erin Sexton, who completed her Masters degree research in 2002 at the University of Montana on the potential disturbance resulting from coalbed methane production in southeast British Columbia, spoke on the topic at the Lakers' annual membership meeting in July. Describing the North Fork watershed as remote, with steep, rugged terrain, complex geology, and exceptional water quality and wildlife values, she said that coalbed methane development here would be "an unparalleled experiment on the landscape."

The Lakers will continue to work to ensure that such an experiment will not be conducted without careful analysis and assurance that the Flathead's waters and other natural values will be protected. It's time to roll up our sleeves and get to work to make sure the needed impact assessment is completed and to craft a long-term solution before the next coal development proposal comes down the pike. Robin Steinkraus.

Flathead Lakers Urge Martz to Request Canadian Government Intervention

The Flathead Lakers membership unanimously supported a motion by member Art Thompson of Lakeside to ask Governor Judy Martz to officially request that the Canadian federal government invoke its Environmental Assessment Act to evaluate potential impacts of coalbed methane development. The call for state action came at the Lakers' annual meeting in Polson on July 20.

The letter subsequently sent by President Rose Schwennesen on behalf of the Lakers' members thanked Martz for her ongoing efforts to ensure that a thorough environmental assessment is conducted prior to any development, including exploratory development, of British Columbia coalbed methane projects in the North Fork Flathead River headwaters.

Provisions of the Act allow a foreign government to request an environmental assessment when a project may have impacts in its jurisdiction. In a July 19 letter to B.C. Premier Gordon Campbell, Martz indicated she was considering making such a request of the Canadian government prior to B.C.'s sale of coalbed methane tenures scheduled for August 25.

The Lakers' letter calls for "a thorough assessment of baseline environmental conditions in the North Fork Flathead River watershed and a thorough assessment of the potential environmental impacts of the lease of coalbed methane development and production in the B.C. East Kootenay coal fields."

Dave ThomasThe motion came after keynote speaker David Thomas (left) described the challenges the citizens and government of Fernie, B.C. have experienced in getting B.C. to address their concerns about coalbed methane development. Thomas is a member of the Fernie city council and a former journalist.

Those concerns include the quality and quantity of wastewater that would be pumped from the coal seam in order to release the gas, the wastewater disposal method, and impacts to water quality, fish, wildlife, air quality and the growing Fernie area tourist industry. Thomas said a company awarded the five-year tenures would have the right and obligation to explore, with the ability to convert them to full production at any time with very little environmental review.

Thomas said the relevant provision of the Environmental Assessment Act has not been used before and that he believes the request would likely be approved, as it would be a "terrible precedent for the Canadian government to say no on the first try." Speaking of the need for an environmental assessment, Thomas said that "You in this room probably have more power than all the citizens in Canada in getting this done."

B.C. Coal Mine Stopped -- A Victory for Water Quality!

A huge victory for water quality was achieved when the British Columbia government announced on May 28 that it will not allow a proposed coal mine to be developed in the Flathead Watershed in British Columbia, headwaters to the north fork of the Flathead River and Flathead Lake. B.C.'s Minister of Energy and Mines attributed the decision to the 1985 International Joint Commission's recommendation to deny a similar mine proposal and to the new cooperation agreement for the Flathead Watershed between Montana and B.C.

"This is outstanding news," said Lakers' Vice President Paul Williams upon learning of the B.C. decision. "The B.C. government says that the North Fork of the Flathead is an inappropriate place for an open-pit coal mine, and we heartily agree. This is a big victory for protecting water quality and wildlife in the Flathead."

The specter of coal development north of the border reared up again earlier this spring. The Flathead Lakers, along with other concerned groups and individuals, immediately mobilized an effort to engage the Montana Congressional delegation and Montana public officials in pressuring the B.C. government to acknowledge the earlier IJC recommendation.

"The Flathead Lakers is particularly grateful to Senator Max Baucus and Governor Judy Martz for their actions to ensure that Montana's waters are not degraded by B.C. coal projects," said Lakers' President Rose Schwennesen.

Cline Mining Corporation had planned to revive the "Cabin Creek" coal mine proposal of the 1970s and 1980s, mining two million tons of coal per year for 20 years. President and CEO Ken Bates had said he planned to fast-track the project to full operation in the next two to three years. B.C. now says the Cline leases will be terminated.

But this victory does not end threats to water quality from Canada. A proposal to lease and develop coalbed methane fields continues to move forward with the support of the B.C. government.

Coalbed Methane Leases

The Lakers became aware of a British Columbia proposal to auction tenures, or leases, for coalbed methane exploration earlier this spring. The tenures are located both in the upper North Fork Flathead drainage and the Elk River drainage. The tenures would give the company that obtains them the right and obligation to do exploratory work that could lead to a development lease.

Concern about possible impacts of coalbed methane development from Fernie, B.C. residents led the Fernie City Council to pass a resolution asking the government of British Columbia to "defer any action on coal bed methane tenures...until completion of a comprehensive assessment of the potential impacts of large-scale gas exploration and production on the environment, economy, and human community of the Elk Valley." The B.C. government then decided to delay the tenure auction.

Project Evaluation Needed

Schwennesen expressed the Lakers' concerns about both the coal mine and coalbed methane proposals in letters sent on March 31 to British Columbia Premier Gordon Campbell, Governor Judy Martz, the International Joint Commission, the Montana Congressional delegation, the Confederated Salish and Kootenai Tribes, Glacier National Park, and Flathead Basin state legislators.

Schwennesen encouraged the provincial and state governments to "discuss these proposals and carefully evaluate their potential impacts before any decisions are made that would allow the projects to move forward." The letters cited the Boundary Waters Treaty of 1909, the 1988 International Joint Commission's unanimous recommendation to deny the 1980s Cabin Creek mine proposal, and the 2003 agreement between British Columbia and Montana to cooperate "...to ensure the protection, conservation and enhancement of our shared environment..." as grounds for a careful evaluation of potential downstream impacts.

Baucus Requests IJC Review

On April 30, Senator Max Baucus wrote to Secretary of State Colin Powell (PDF) urging him to review the 1988 IJC decision and whether it applies to the current mine proposal. Baucus played a lead role in efforts to stop the similar project 20 years ago. "This is about protecting an extremely valuable resource to folks in the Flathead, and it's about what's right for our state," Baucus said. He also raised concerns about the cumulative water quality impacts of the proposed mine along with coalbed methane development, saying those impacts "should be considered relative to requirements of the treaty prior to actual on-ground disturbance." The U.S. State Department responded with its confirmation that the IJC decision remains in effect (PDF).

Flathead Basin Commission Adopts Resolution

The Flathead Basin Commission (FBC), at its May 3 meeting, adopted a resolution asking the British Columbia government to "defer any action on coal bed methane and coal mining proposals until completion of a comprehensive assessment by the International Joint Commission." The FBC resolution also requests that the Montana congressional delegation ask Secretary Powell to invoke provisions of the Boundary Waters Treaty through the International Joint Commission. The IJC was established by Canada and the U.S. to resolve disputes related to the Boundary Waters Treaty of 1909. It is comprised of three Canadian and three American representatives.

Other Officials Weigh-In

Senator Conrad Burns announced his support for IJC action on the coal and coalbed methane proposals. "I feel if this project is to go forward," said Burns, "it must meet all the environmental standards of a United States project and I hope the Canadian government will see fit to work with us to protect the border drainage north of Glacier Park."

Governor Judy Martz also wrote to the Premier and IJC requesting a careful analysis of cumulative impacts of the proposals to ensure protection of Montana waters.

In a May 21 letter to B.C. premier Gordon Campbell, Confederated Salish and Kootenai Tribal Council Chair Fred Matt urged B.C. to honor the Boundary Waters Treaty and evaluate the potential impacts of both the proposed coal mine and coalbed methane development.

History & Significance

At the FBC meeting, Rich Moy, Commission member and chief of the Montana Water Management Bureau, presented an overview of the history of the previous mining proposal. He was involved as the U.S. Secretariat for the Flathead International Study Board when the IJC reviewed the original coal mine proposal. Along with his counterpart from Canada, he was responsible for overseeing the technical committee reports and for drafting the Board report.

Moy also outlined the numerous, significant designations given to the North Fork of the Flathead watershed by various governments to protect its exceptional wildlife habitat and water quality, including:

  • Establishing Glacier National Park in 1910;
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  • Establishing Waterton LakesGlacier International Peace Park in 1932;
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  • Designating the parks as a Biosphere Reserve in 1976 and a World Heritage Site in 1995;
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  • Designating the North Fork as a Wild and Scenic River in 1976;
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  • Establishing federal reserved water rights in 1992;
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  • Securing Endangered Species Act protection for several wildlife species, including the grizzly bear, bald eagle, gray wolf, and bull trout;
  •  
  • Designating the North Fork a state Class A-1 water body, the highest quality designation, with strict nondegradation standards;
  •  
  • Establishing the Flathead Basin Commission in 1983 "to protect the existing high quality of the Flathead Lake aquatic environment; the waters that flow into, out of, or are tributary to the lake; and the natural resources and environment of the Flathead basin;"
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  • Approving the North Fork Conceptual Strategy (Montana Gov. Stan Stephens) in 1992 to "define and implement compatible, equitable, and sustainable activities and management strategies in the upper Flathead River Basin of Montana and British Columbia;"
  •  
  • Signing (Montana Gov. Judy Martz and B.C. Premier Gordon Campbell) the MontanaB.C. Environmental Cooperation Arrangement in 2003. The North Fork watershed still sustains the diversity and abundance of wildlife found historically, with unique predator and prey relationships and the highest density of grizzly bears in the interior of North America.

Coalbed Methane Impacts

Coalbed methane development requires pumping vast amounts of water from the underground coal deposit to release the methane gas. It can take up to two years of water pumping before commercial amounts of the gas are available, said Erin Sexton, who presented information about coalbed methane development impacts at the FBC meeting from her recently completed Masters degree research. That water likely would be released directly into streams. Information about the quality of that water is not currently available.

Sexton said that development would also require extensive infrastructure, including many more wells than typical oil or gas development requires and a very large road network.

Fernie Councilman Urges Action

Fernie City Councilman Dave Thomas also spoke to the Basin Commission, exhorting the Commission to take action before it is too late. The B.C. government's response to the council's resolution was a statement of "caveats" or conditions that would be required for the development of the coalbed tenures. Thomas said, "This does not even begin to satisfy Council's resolution calling for a comprehensive impact study."

Two rules could allow development to go forward with little or no environmental review and evaluation of impacts, Thomas said. New legislation allows the government to overrule all normal processes if the project is declared of "provincial significance." And a special rule for coalbed methane development allows a company to avoid getting a water discharge permit as long as it "adheres to a code of practice developed by the Ministry and industry."

Thomas said he could guarantee that a study of impacts before development will not happen unless transboundary political action puts enough pressure on the government.

Lakers Continue to Defend Clean Water

The Flathead Lakers worked to protect the Flathead's waters from impacts of coal development in the late 1970s and continue to do so. The Lakers are urging intergovernmental cooperation to carefully review and evaluate the potential impacts to water quality and other resources of coalbed methane development before any decisions are made that would allow a project to move forward. We will provide updates on this issue on the Flathead Lakers web site as new events unfold. Robin Steinkraus

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