HOUSE BILL NO. 7

INTRODUCED BY M. MCCANN

BY REQUEST OF THE DEPARTMENT OF NATURAL RESOURCES AND CONSERVATION AND THE OFFICE OF BUDGET AND PROGRAM PLANNING

A BILL FOR AN ACT ENTITLED: "AN ACT APPROPRIATING MONEY TO THE DEPARTMENT OF NATURAL RESOURCES AND CONSERVATION FOR GRANTS FOR DESIGNATED PROJECTS UNDER THE RECLAMATION AND DEVELOPMENT GRANTS PROGRAM; PRIORITIZING GRANTS AND AMOUNTS; ESTABLISHING CONDITIONS FOR GRANTS; AMENDING SECTION 2, CHAPTER 552, LAWS OF 1991, SECTION 2, CHAPTER 454, LAWS OF 1995, AND SECTION 2, CHAPTER 108, LAWS OF 1997; AND PROVIDING AN EFFECTIVE DATE."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

NEW SECTION. Section 1. Appropriations for reclamation and development grants. (1) The amount of $3,233,197 is appropriated to the department of natural resources and conservation from the reclamation and development grants special revenue account from funds allocated for appropriation from the interest income of the resource indemnity trust fund set forth in Title 15, chapter 38.

(2) The funds appropriated in this section must be awarded by the department to the entities listed in [section 2] for the prescribed purposes and in the prescribed grant amounts, subject to the conditions provided in [sections 2 through 4].

NEW SECTION. Section 2. Approved grant projects.	(1) The legislature approves the grants listed in subsection (2), to be made in the order of priority as indicated within the following list of projects and activities. If the conditions in [sections 3 and 4] are met, funds must be awarded up to the amounts approved in this section in order of priority until available funds are expended. Funds not accepted by grantees or funds not used by higher-ranked projects and activities must be provided for projects and activities lower on the priority list that would otherwise not receive funding. Descriptions of the various projects and activities and specific conditions established for each project and activity are contained within the department of natural resources and conservation's reclamation and development grants program report to the 56th legislature for the 2001 biennium.

(2) The following are the grants program prioritized projects and activities:

Applicant/Project	Grant Amount

MONTANA BOARD OF OIL AND GAS CONSERVATION*

1999 "A" Orphaned Well Plug and Abandonment

and Site Restoration	$300,000

MONTANA BOARD OF OIL AND GAS CONSERVATION*

1999 "B" Orphaned Well Plug and Abandonment

and Site Restoration	300,000

ENVIRONMENTAL QUALITY, DEPARTMENT OF*

Toston Smelter Reclamation Project	300,000

ENVIRONMENTAL QUALITY, DEPARTMENT OF*

Frohner Mine Reclamation Project	300,000

ENVIRONMENTAL QUALITY, DEPARTMENT OF*

Great Republic Smelter Reclamation Project	300,000

PARK CONSERVATION DISTRICT*

Upper Yellowstone River Cumulative

Effects Investigation	299,940

TOOLE COUNTY*

Toole County Plugging and Abandonment,

Aid to Independent Small Oil Operators	300,000

BUTTE-SILVER BOW LOCAL GOVERNMENT

Upper Clark Fork Basin:

Superfund Technical Assistance	95,236

FERGUS COUNTY CONSERVATION DISTRICT*

Central Montana Artesian Basin

Ground Water Project	150,000

TOOLE COUNTY

North Toole County Reclamation Project	150,000

BUTTE-SILVER BOW LOCAL GOVERNMENT

Mining City Mineyard Preservation and Enhancement	297,104

TOWNSEND, CITY OF

East Pacific Mine Reclamation	202,500

MONTANA TECH OF THE UNIVERSITY OF MONTANA

Champion International Gravel Pit

Reclamation Project	57,494

LEWISTOWN, CITY OF

Source Location of Hazardous Organic Contaminants

Spring Creek Drainage	50,000

GLASGOW IRRIGATION DISTRICT

St. Mary Diversion Repairs	110,818

MONTANA BOARD OF OIL AND GAS CONSERVATION

Oil Well Abandonment	20,105

The board of oil and gas conservation is authorized to expend remaining funds from grants to the board in this subsection (2) and remaining funds from grants previously awarded to the board to pay for the proper plugging of additional abandoned oil and gas wells. In determining which wells to plug, abandoned wells that represent the greatest threat to the environment and public health and safety should be given priority over all others.

(3) To the entities listed in this section, this appropriation constitutes a valid obligation of these funds for purposes of encumbering the funds within the 2001 biennium pursuant to 17-7-302.

(4) The funding provided to the grant projects in this section and identified by an asterisk (*) following the applicant's name is eligible for and may be designated for use as a nonfederal match for the federal funding acquired for the nonpoint source pollution control program administered by the department of environmental quality.

NEW SECTION. Section 3. Coordination of fund sources for grants programs projects. A sponsor of a grants program project who has applied for a grant for that project under both the reclamation and development grants program and the renewable resource grant and loan program may not receive duplicate funding.

NEW SECTION. Section 4. Condition of grants. Disbursement of grant funds under [sections 1 through 8] is subject to the following conditions that must be met by the project sponsor:

(1) A scope of work and budget for the project must be approved by the department of natural resources and conservation. Reduction in a scope of work or budget may not affect priority activities or improvements.

(2) Other funds required for project completion must have been committed, and the commitment must be documented.

(3) The project sponsor shall show satisfactory completion of conditions described in the recommendation section of the project narrative of the reclamation and development grants program report to the legislature or the 2001 biennium.

(4) An agreement between the department and the project sponsor must be executed in a timely manner, taking into consideration any changed conditions or circumstances that govern the administration and disbursement of funds.

(5) Any other specific requirements considered necessary by the department must be met to accomplish the purpose of the grant as evidenced from the application to the department or as defined by the legislature.

NEW SECTION. Section 5. Other appropriations. There is appropriated to any entity of state government that receives a grant under [sections 1 through 8] the amount of the grant upon award of the grant by the department of natural resources and conservation. Grants to state entities from a prior biennium are reauthorized for completion of contract work.

Section 6. Section 2, Chapter 552, Laws of 1991, is amended to read:

"The appropriations for reclamation and development grants in section 2, Chapter 552, Laws of 1991, at page 1801 of the 1991 Montana Session Laws, are amended to read:

CHINOOK IRRIGATION DISTRICT

Milk River Water Supply Project, Rehabilitation and Betterment Element	189,182"

Section 7. Section 2, Chapter 454, Laws of 1995, is amended to read:

"The appropriations for reclamation and development grants in section 2, Chapter 454, Laws of 1995, at page 2157 of the 1995 Montana Session Laws, are amended to read:

STATE LANDS, DEPARTMENT OF*

Oil Well Abandonment	163,155"

Section 8. Section 2, Chapter 108, Laws of 1997, is amended to read:

"The appropriations for reclamation and development grants in section 2, Chapter 108, Laws of 1997, at page 559 of the 1997 Montana Session Laws, are amended to read:

ENVIRONMENTAL QUALITY - ABANDONED, DEPARTMENT OF

Nancy Lee Mine Complex Reclamation	84,640"

NEW SECTION. Section 9. Reversion of funds. All funds appropriated from the reclamation and development grants special revenue account under [sections 1 through 8] that are unspent and unencumbered on June 30, 2001, revert to that account.

NEW SECTION. Section 10. 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.

NEW SECTION. Section 11. Effective date. [This act] is effective July 1, 1999.

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