Rezoning Approved for Controversial Montana Coal-Plant Site

February 5, 2008

Long-time locals hoping to sell their land to a Montana co-op that wants to build a coal-fired power plant nestled in some of the state's best farmland were granted their request for a rezone in late January, but plant opponents say they're undaunted.

A rezone of nearly 700 acres of farmland from agricultural to heavy industrial was approved Jan. 31 by the Cascade County Commission in a two-to-one vote, overturning its May 2007 decision to revoke the rezone it initially granted in 2006.

But the issue remains far from settled, according to opponents of Southern Montana Electric, the rural electric co-op that wants to build the 250-MW circulating fluidized bed project, now the only conventional coal-fired power plant in development in the Northwest, and one of only a few still being considered in the West (see "Montana Co-op Makes Last Stand for Coal Power," Sept. 18, 2007).

"We knew that no matter how they voted, this was not the end of the road," said Tammie Lynne Smith, spokeswoman for a group of neighboring landowners opposing the Highwood Generating Station. SME was expected to file suit, if the county commission had rejected the rezoning request, Smith said.

Commissioner Joe Briggs, widely viewed as the swing vote, said in a statement, "Beyond any doubt, this is the single most difficult decision I have had to make as a county commissioner."

Briggs told Energy Prospects West that he had wrestled with the issue up until the morning of the vote.

"Being the swing vote is something I'm not used to," he said.

Briggs explained in his statement that he made his final decision "based not on personal feelings but on the laws of Montana," and after much deliberation, found the zoning application in compliance with the county growth policy and the state's 12-step criteria for a valid zoning request.

He added that he felt a county commission wasn't the appropriate vehicle to set environmental policy or to overrule the precedents of eminent domain.

However, Briggs told Prospects he has problems with SME wielding eminent domain against neighboring landowners for a seven-mile railroad spur and transmission lines because "in this case, it's not being wielded by an elected body, it's being wielded by an electric co-op that doesn't even service this area, so the people who will be disrupted by eminent domain not only have no recourse against the officials making the judgment, they don't even derive benefit from the public necessity being created."

Briggs added he also has concerns with the project's air permit, which is currently being challenged by the Montana Environmental Information Center (see "Hassles Abound for Montana Coal-Power Project," Jan. 22).

"[SME] made the assumption that Particulate Matter 2.5 would have the same distribution pattern as P.M. 10, and I find that hard to believe," he said.

The other vote in favor of rezoning was made by Lance Olson, a Republican who announced in late January his bid for Great Falls' seat on the state Legislature. In a written statement, Olson explained he voted for the rezone out of consideration of the county's tax base and growth policy.

Peggy Beltrone, the lone Democrat on the commission, voted against the rezone.

The Urquharts, who had requested the rezone of their farmland eight miles east of the city of Great Falls, were pleased with the commission's decision, "but weren't elated that the neighbors felt about us the way they did," according to Mary Urquhart.

Mrs. Urquhart, who declined to disclose the amount of money offered for their land by SME, told Prospects that their decision to rezone the land and sell it for a coal-fired plant wasn't about the money.

"The reason we did it is for the community," said Mrs. Urquhart. "We thought it would be a good gesture to put the coal-fired power plant and then there'd be lots of jobs. It was our gift to the community."

But other members of the community feel the prospect of a coal-fired power plant in their midst isn't so much a gift, but a Trojan horse.

"How could they interpret an old-technology coal plant as a gift to the community?" said Smith. "The electricity is not going to stay here. Nobody will benefit, and you have to disrupt all these other farmers' lands. You're coming right through the middle of these adjacent fields with a railroad with 100-foot easements on each side."

Smith added that if the Urquharts had chosen to sell their land for a strip mall with perhaps a post office and grocery store or to switch from dry-land farming to irrigated, no one would have questioned their right to do so. And if they had chosen to sell their land for a wind farm, "they probably would have been cheered."

"The neighbors realize Mr. Urquhart has private property rights, but they don't believe their own property rights should be ignored or diminished in order to protect his," she said.

J.C. Kantorowicz, a wheat farmer who lives about four miles from the project site, faces the prospect of a rail spur running through his land, either to service the Highwood plant or to service a coal-to-liquids plant proposed for nearby Malmstrom Air Force Base (see "Air Force Eyes Montana for Coal-to-Liquids Plant," this issue).

But while the rail spur for the Highwood station would cut off the end of one of his fields, the spur for the CTL plant would run right where his newly built house and outbuildings currently lie.

"It would destroy my life," he said. "Still, I'd rather see the coal-to-liquids plant than the Highwood Generating Station." He explained that while the power plant would threaten "the finest farm ground in the state," the CTL plant offered a value to society in terms of creating thousands of gallons of fuel per day that would otherwise come from overseas.

Tim Gregori, CEO and general manager of SME, said he feels good about the prospects for Highwood, and as for landowner opposition, "there are processes in place to deal with that systematically."

Gregori added that SME would be working to put together the project's finance package while a loan application was pending with the Rural Utilities Service (see "Enviros Sue to Block Montana Coal Plant, End Financing Program," Aug. 7, 2007).

In the meantime, SME would be waiting to see what happens during the automatic 30-day protest period, which started after the commission announced their decision on the rezone.

"IÕm not exactly sure what that means, maybe to let the decision sit there and simmer for 30 days, then they take the issue back up again," Gregori said.

SME's opponents, however, don't plan to let the issue simmer. Currently, they are gathering signatures for a petition against the rezone. Under county regulations, if they can get at least 40 percent of the agricultural freeholders in the district to sign on, the rezone will be overturned and the applicants will have to wait a year before they can reapply.

In the meantime, the Salem Road and Area Landowners are preparing to file suit in district court, on grounds that the rezone is an illegal case of spot zoning. Montana Environmental Information Center will be a co-plaintiff.

As for their prospects of ultimately defeating Highwood, Smith says her group has never looked back and will continue to fight.

"How do you eat an elephant?" Smith said. "One bite at a time."

- Penelope Kern