HOUSE BILL NO. 573
INTRODUCED BY K. BALES, CLANCY, GROSFIELD, OLSON, SHEA, WOLERY
AN ACT AUTHORIZING THE BOARD OF OIL AND GAS CONSERVATION TO PERMIT CERTAIN COAL BED METHANE GAS WELLS; PROVIDING REQUIREMENTS FOR COAL BED METHANE WELLS THAT INVOLVE PRODUCTION OF GROUND WATER; PROVIDING THAT CERTAIN MANAGEMENT PRACTICES FOR GROUND WATER PRODUCED IN ASSOCIATION WITH A COAL BED METHANE WELL MAY NOT BE CONSTRUED AS WASTE; AMENDING SECTION 85-2-505, MCA; AND PROVIDING EFFECTIVE DATES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Short title. [Sections 1 through 3] may be known as the "Coal Bed Methane Production Offset Act".
Section 2. Legislative findings -- purpose. (1) The legislature finds that a delay in the development of certain coal bed methane wells may inadvertently result in the loss of coal bed methane resources.
(2) The legislature further finds that because of the nature of this subsurface mineral resource, it is highly susceptible to collateral extraction and use through development efforts on adjacent federal, tribal, or other states' lands to the economic detriment of Montana and its citizens.
(3) The legislature further finds that there is a compelling state interest to authorize the board through this limited program to act in a timely and expeditious manner to permit coal bed methane wells to offset the collateral permitting of wells by other entities on nonjurisdictional lands that are not subject to permitting by the board under 82-11-103 in order to:
(a) protect coal bed methane mineral reserves from collateral extraction by others;
(b) provide economic benefits to the state;
(c) protect the private property rights of the owners of the mineral reserves;
(d) promote the balanced development of state lands and protect the mineral reserve interest held in trust for the benefit of state schools; and
(e) assist in providing much needed energy resources to the region.
Section 3. Offset permitting -- geographic requirements. The board is authorized and directed to issue upon application and subject to the regulatory requirements of the program and [section 4] permits for coal bed methane production wells that will offset permitting by federal agencies, tribal agencies, or agencies of other states of coal bed methane wells that are located within 1 mile of the perimeter of lands that are under the jurisdiction of the board.
Section 4. Coal bed methane wells -- requirements. (1) Coal bed methane production wells that involve the production of ground water must comply with this section.
(2) Ground water produced in association with a coal bed methane well must be managed in any of the following ways:
(a) for use as irrigation or stock water or other beneficial uses in compliance with Title 85, chapter 2, part 3;
(b) reinjected to an acceptable subsurface strata or aquifer pursuant to applicable law;
(c) discharged to the surface or surface waters subject to the permit requirements of Title 75, chapter 5; or
(d) managed through other methods allowed by law.
(3) (a) Prior to the development of a coal bed methane well that involves the production of ground water from an aquifer that is a source of supply for appropriation rights or permits to appropriate under this chapter, the developer of the coal bed methane well shall notify and offer a reasonable mitigation agreement to each appropriator of water who holds an appropriation right or a permit to appropriate under this chapter that is for ground water and for which the point of diversion is within:
(i) 1 mile of the coal bed methane well; or
(ii) one-half mile of a well that is adversely affected by the coal bed methane well.
(b) The mitigation agreement must address the reduction or loss of water resources and must provide for prompt supplementation or replacement of water from any natural spring or water well adversely affected by the coal bed methane well. The mitigation agreement is not required to address a loss of water well productivity that does not result from a reduction in the amount of available water because of production of ground water from the coal bed methane well.
Section 5. Section 85-2-505, MCA, is amended to read:
"85-2-505. Waste and contamination of ground water prohibited. (1) No ground water may be wasted. The
department shall require all wells producing waters which that contaminate other waters to be plugged or capped. It shall
also require all flowing wells to be so capped or equipped with valves that the flow of water can be stopped when the water
is not being put to beneficial use. Likewise, both flowing and nonflowing wells shall must be so constructed and
maintained as to prevent the waste, contamination, or pollution of ground water through leaky casings, pipes, fittings,
valves, or pumps either above or below the land surface, provided, however. However, in the following cases the
withdrawal or use of ground water shall may not be construed as waste under this part:
(a) the withdrawal of reasonable quantities of ground water in connection with the construction, development, testing, or repair of a well or other means of withdrawal of ground water;
(b) the inadvertent loss of ground water owing to breakage of a pump, valve, pipe, or fitting, if reasonable diligence is shown by the person in effecting the necessary repair;
(c) the disposal of ground water without further beneficial use that must be withdrawn for the sole purpose of improving or preserving the utility of land by draining the same or that must be removed from a mine to permit mining operations or to preserve the mine in good condition;
(d) the disposal of ground water used in connection with producing, reducing, smelting, and milling metallic ores and
industrial minerals or that displaced from an aquifer by the storage of other mineral resources.; and
(e) the management, discharge, or reinjection of ground water produced in association with a coal bed methane well in accordance with [section 4(2)(b) through (2)(d)].
(2) The department at any time may hold a hearing on its own motion or upon petition signed by a representative body
of users of ground water in any area or subarea to determine whether the water supply within such that area or subarea is
used in compliance with this part."
Section 6. Notification to federal and tribal governments. The secretary of state shall send a copy of [this act] to each tribal government located on the seven Montana reservations, to the Little Shell band of Chippewa, and to the U.S. secretary of the interior.
Section 7. Codification instruction. (1) [Sections 1 through 3] are intended to be codified as an integral part of Title 82, chapter 11, part 1, and the provisions of Title 82, chapter 11, part 1, apply to [sections 1 through 3].
(2) [Section 4] is intended to be codified as an integral part of Title 85, chapter 2, part 5, and the provisions of Title 85, chapter 2, part 5, apply to [section 4].
Section 8. Severability. If a part of [this act] is invalid, all valid parts that are severable from the invalid part remain in effect. If a part of [this act] is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.
Section 9. Effective dates -- contingency. (1) Except as provided in subsection (2), [this act] is effective on passage and approval.
(2) [Section 3] is effective when the director of the department of environmental quality and the administrator or the presiding officer of the board of oil and gas conservation certify to the governor that a final environmental impact statement on coal bed methane development has been prepared and a record of decision has been signed. The director of the department of environmental quality and the administrator or the presiding officer of the board of oil and gas conservation shall provide a copy of the certification to the Montana code commissioner.
- END -
Latest Version of HB 573 (HB0573.ENR)
Processed for the Web on April 25, 2001 (11:57AM)
New language in a bill appears underlined, deleted material appears stricken.
Sponsor names are handwritten on introduced bills, hence do not appear on the bill until it is reprinted. See the status of this bill for the bill's primary sponsor.
Status of this Bill | 2001 Legislature | Leg. Branch Home
All versions of this bill (PDF Format)
Authorized print version w/line numbers (PDF format)
(406)444-3064