Signal Peak Energy’s plans to expand their coal-mining operation in central Montana have been foiled by a federal judge in Missoula, who has invalidated the Interior Department’s prior approval.
In a ruling on Feb. 10, U.S. District Court Judge Donald Molloy found that errors in the federal government’s environmental reviews were “sufficiently serious” to reverse an approval of an expansion to the Bull Mountains Mine located north of Billings that Signal Peak Energy operates.
The Office of Surface Mining Reclamation and Enforcement had previously agreed to carry out an environmental impact statement, which would thoroughly evaluate the expected impact of the project. However, Molloy was not convinced by the agency’s efforts to proceed with their initial approval for the expansion. Molloy essentially instructed the federal government and Signal Peak to begin anew with a fresh application that adheres to the requirements of the National Environmental Policy Act, should they desire to proceed with mining federally owned coal in the Bull Mountains.
Judge Molloy wrote that the mistakes made by the Enforcement Office raise significant concerns about the agency’s initial approval of the Mine Expansion. Furthermore, the agency’s decision to prepare an Environmental Impact Statement (EIS) at this late stage of the proceedings only adds to these doubts rather than alleviating them. As a result, the agency’s errors are severe enough to warrant the revocation of their decision.
For decades, the mine has been operating without any concern for the local ranchers and the water supplies they rely on. The recent court order finally holds the mine accountable, granting the much-awaited justice.
Western Environmental Law Center attorney Melissa Hornbein
Signal Peak has been engaged in a legal battle for six years over their proposed expansion, which aims to secure approval for a 7,100-acre extension. This expansion would enable them to extract 175 million tons of coal from beneath the Bull Mountains. The opposing parties in this dispute include environmental and agricultural organizations who worry about the potential consequences on water supply and greenhouse gas emissions. Additionally, the federal and state regulators who initially granted approval for Signal Peak’s application are also involved in this ongoing tug-of-war.
According to the Montana Environmental Information Center and Sierra Club, the Bull Mountains Mine has put the water supply of local landowners at risk, resulting in the depletion of once dependable springs and wells. They argue that both state and federal regulators have neglected their duty towards these landowners.
In an email regarding the ruling, Melissa Hornbein, an attorney from the Western Environmental Law Center, stated that the court’s decision finally holds the mine accountable for its complete disregard towards local ranchers and the water sources they rely on. She further added that Signal Peak’s irresponsible actions have pushed the community to the edge, and hopefully, this outcome marks a significant change for the families who have dedicated generations to the caretaking of this land.
After years of dedicated efforts to bring attention to the impacts of Signal Peak’s current operations and proposed expansion, Anne Hedges, MEIC’s director of policy and legislative affairs, hailed the ruling as a significant achievement.
“The judge finally said, ‘No more. We are done trying to pretend you’re going to come into compliance if we treat you with kid gloves,” Hedges said. “The law is the law, and it is time for you to comply.’”
Signal Peak did not respond to Montana Free Press’ request for comment Monday afternoon.
In court filings, Signal Peak argued that environmental assessments the federal government conducted were sufficient to weigh the project’s environmental impacts and there would be greater total greenhouse gas emissions resulting from a change to its operations given the massive amount of concrete and steel that would be required to move its longwall, a 10,000-ton piece of equipment that removes huge swaths of coal from an underground seam. (Both concrete and steel manufacturing have sizable carbon footprints.)
Signal Peak also argued that a change to its planned operations could threaten worker safety and result in the loss of more than $150 million of U.S. and state revenue.
Molloy noted in his ruling the Bull Mountains Mine has access to enough non-federal coal — coal belonging to the state or private entities — to continue operations for about two more years. That’s roughly the time it would take for the Interior Department to conduct an EIS.
Signal Peak and its executives have been the subject of several headline-grabbing scandals in recent years, ranging from cocaine trafficking and firearm violations to embezzlement, worker safety and environmental infringements.
This story was updated Feb. 14, 2022, to correct the name of Judge Donald Molloy’s court.
