by Derf Johnson
Montana’s coal mining industry pursued a number of different legislative reforms during the 69th Legislative Session. While most of these passed and were signed into law by Gov. Greg Gianforte, the changes were relatively minor in terms of environmental and water quality-related protections. However, HB 587 (Rep. Gary Parry, R-Colstrip) made very significant and problematic changes to Montana’s Surface and Underground Mine Reclamation Act (MSUMRA), the primary law regulating coal mining in Montana. If implemented, these changes could have a dramatic impact on water quantity and quality for water bodies directly adjacent to coal mines, impacting not just the environment but people who depend on water for their homes and livelihoods.
In 2023, at the request of the coal industry, the Montana Legislature passed HB 576 (Rep. Rhonda Knudsen, R-Culbertson), which dramatically changed the definition of “material damage” in MSUMRA. “Material damage” is a term used to define impermissible impacts to water quality and quantity outside of a coal mines permit boundary. Prior to HB 576, the definition included “violation of water quality standards” in the definition of material damage, meaning that coal mining companies could not violate water quality standards without causing material damage. The prohibition on violation of water quality standards was originally included in MSUMRA to protect sensitive prairie streams in eastern Montana from the dramatic impacts associated with coal strip-mining. HB 576 specifically stripped this language from the definition of material damage, with the intent of allowing for coal mining companies free reign to violate water quality standards.
Thankfully, while Montana Department of Environmental Quality (DEQ) administers the coal mining program and the implementation of MSUMRA, the program must still comply with federal standards and regulations. To assure compliance, the U.S. Office of Surface Mining (OSM) reviews and rejects any changes to state standards that do not comply with minimum federal standards. OSM reviewed HB 576 and ultimately rejected the change to the definition of “material damage” this past January. With OSM’s decision, the requirement that coal mines not violate water quality standards remained intact.
Fast-forward to this session, when the coal industry took another run at changing the definition of material damage with HB 587, past precedent be damned. The definition once again removes the inclusion of water quality standards as a compliance requirement for coal mining companies, even though OSM has clearly stated that such standards must be included within state programs. HB 587 went even further by requiring an expensive statistical analysis in order to demonstrate material damage that is “measured to a significant degree of confidence.” The “degree of confidence” required is not defined or further explained in the legislation and will almost certainly lead to mischief from the coal industry.
While HB 587 went into effect immediately, it cannot be enforced by the DEQ unless and until OSM approves of the changes through the review process. While past precedent should be a guide for how OSM decides to consider this significant change, there is a possibility that the Trump Administration’s OSM may develop a different interpretation for the requirements under material damage.
This simple definition is incredibly significant for assuring that eastern Montana’s water quality is protected, especially as the coal industry continues to recede and yield to cheaper and cleaner energy sources. As part of OSM’s review process, there will be a comment period and potentially a hearing on the change, perhaps as soon as this summer. Be on the lookout for information on how you can engage, so that we can all raise our voices to OSM and request that it protect Montana’s water in the face of destructive coal mining practices.
This article was published in the June 2025 issue of Down To Earth.
