Montana

Industry experts say that lower energy demand, spurred by the pandemic, is responsible for the decline.

NTEC waived its “sovereign immunity” from Montana state regulations but still hasn’t been able to secure $400 million in cleanup bonding and hasn’t acquired the federal land leases it needs.

Montana, Utah, and Wyoming want to force West Coast states to expand export terminals, even though that agenda “make little financial sense” because of weak foreign demand for U.S. coal.

A tribal enterprise that recently acquired distressed out-of-state mines without consulting Navajo leaders is losing its footing back home, too, as Four Corners power plant is marked for early shutdown.

The company that bought Cloud Peak Energy’s mines in the Powder River Basin of Montana and Wyoming is being called out for not paying taxes owed state and federal governments.

“By all indications, the pain will continue, with the EIA projecting that coal companies will cut production by an additional 100 million tons this year, to about 600 million tons.”

Tribal officials acted wisely in protecting Navajo Nation from $400 million in cleanup liabilities associated with the ill-advised acquisition of struggling Powder River Basin coal mines, write the authors.

Navajo Nation leaders terminated indemnification agreements that are seen as important to the viability of a tribally-owned company buying the Montana and Wyoming mine assets of bankrupt Cloud Peak Energy.

An economics think tank emphasizes the importance of replacing lost revenue through well-planned programs that include federal reinvestment and holding utility companies accountable.

“This tight-knit community with high incomes and safe streets is bracing for the potential loss of hundreds of jobs.” The Colstrip power plant employs 372 workers, the Rosebud mine 361.

A call for stronger state leadership in Montana and Wyoming to address “the displacement and financial devastation to families and communities” that stands only to worsen.

As the coal economies of Montana and Wyoming shrink, companies long involved have shown little interest in the fate of local communities. “The hardworking people of the region deserve far better,” writes the author.

Research around post-coal reclamation possibilities at Colstrip Power Plant sees more than 200 jobs year in and year out, a sizeable number for the town of Colstrip, population 2,100.

Proper cleanup and waste storage at the Colstrip power complex in Montana would create over 200 long-term jobs and sustain a post-coal economy in the for years to come.

The shrinking national customer base for the Powder River Basin coal industry will create “continued pressure on the PRB’s mines and lead to rising economic uncertainty in the region.”

Legislators in Montana and Wyoming are passing bills to counter market forces that are putting coal-fired power plants out of business. It remains to be seen whether they will make a difference.

Some lawmakers support a coal-production tax increase to support transition in communities like Colstrip. Others see it is an industry killer. All agree that Montana coal mining is in decline.

The Colstrip power plant, a pillar of the economy of southeastern Montana, may close earlier than anticipated as a result of the bankruptcy of Westmoreland Coal, its sole supplier.

Further declines in demand for Powder River Basin coal are prompting many companies to “cut staff or benefits, reduce their exposure to the basin or leave it entirely.”

Preparing for economic transition is the best way to head off corporate fear-based campaigns that “companies can hold over communities and workers,” said one speaker at a Montana coal conference.

Colstrip Power Plant, which is one of the biggest power plants in the western U.S. and is struggling to survive a sea change in how electricity is generated, would probably not benefit from the Trump administration’s proposed revision to the EPA’s Clean Power Plan. Two of the plant’s four units are already scheduled for retirement and the other two have been closed recently for failure to comply with federal rules that are not addressed in the Trump proposal. “In terms of the big picture, it doesn’t really change the underlying pressures on the utilities, and particularly Colstrip, that are facing things like customer calls to divest in coal and restructure assets,” said one industry analyst. “It’s one thing to set policies that try to help, but it’s not a bailout and it’s not going to make power plants any younger.”

A New York company is in negotiations with Montana officials for permission to build four windfarms in the state. The projects, which would come online by 2020 if approved, would include an electricity-storage component that represents the leading edge of technology innovation across the industry. The company, Caithness Beaver Creek, says the windfarms would have the capacity to generate 320 megawatts of electricity and to store 160 megawatts of power, enough in total to power almost 400,000 homes.

Community activists in Colstrip, Mont., are urging the corporate owner of Colstrip Power Plant to invest in the excavation and removal of its coal-ash ponds once two of the plant’s three electricity-generating units shut down in 2022. A report by the Northern Plains Resource Council concludes that such a reclamation initiative would help sustain the town’s declining economy. “Doing a thorough cleanup now will employ more people, make the land more attractive to businesses and industries looking to come to Colstrip and potentially will keep taxpayers from footing the bill.”

The Montana Public Service Commission approved a sale that moves ownership of the Colstrip Power Plant to a Canadian corporation in a deal that includes a $4.5 million payment to the city of Colstrip as part of an arrangement meant to blunt the impact of the eventual closure of the plant. Commissioners said the deal “appears to be in the public interest, for Montana consumers and the state.”

A coal-mining company has stopped communicating with Montana officials on its intentions around development of a 7,000-acre coal-reserve lease with the state. A subsidiary of Arch Coal, which went through bankruptcy reorganization in 2016, holds the lease on the tract in the Powder River Basin. Its silence “has left the state with questions about future intentions for mining and who would buy the coal given a softening domestic coal market and a projected long-term decline globally.”

In a blow to the coal industry in Montana and Wyoming, a federal judge has ruled that the Bureau of Land Management must consider potential impacts on climate change in deciding on further permitting of federal coal leases. The case could ultimately put a legal limit on the amount of coal mined in the region. “This ruling is the latest example of courts forcing the federal government to be honest with the American public,” one plaintiff said.

In anticipation of the closure of Colstrip Generating Station in Montana, one of the power plant’s owners has pledged $3 million “to help its host community transition beyond coal.” The commitment brings the total in such funding from the station’s owners to $10 million. “Any help is a good thing,” said one advocate for keeping the struggling plant alive. “There’s going to have to be a lot done.”

A former Montana lawmaker is promoting a ballot initiative that would have the state’s utilities increase their reliance on renewable energy to 80 percent by 2050. The proposal calls for job retraining and unemployment benefits for up to two years for workers currently employed by coal mines, power plants and railroads. And it includes a mechanism for replacing coal taxes and protecting government and tribal revenue.

An analysis of Colorado-based Westmoreland Coal shows that it is in deep financial peril, a situation that may affect communities in Montana, New Mexico, Ohio, and Wyoming as the company’s customer base dries up. “The cost inherent in coal-fired power are moving (utilities) away from coal," says the study’s author.

As market trends continue to shrink the coal industry and plants shut down, communites are faced with the challenge of transitioning. With two of four units closing by 2022, the community of Colstrip, Montana prepares for the phaseout.

The owner of a relatively new coal-fired power plant in Montana says it will probably close next year after having lost money since 2014. The closing will affect about 30 people and will put the company, Heorot Power, further behind on $2 million in delinquent tax obligations to local schools and government.

The challenges facing Colstrip, Mont., are a microcosm of those seen in similar communities nationally: “Coal states across the country face a similar future, and while heel-dragging may help coal company owners maximize their profit in the short-term, it does nothing for coal miners and their families.”

One of the biggest coal-fired power generation stations in the West, unable to compete against market forces, is slated for shutdown. Its closing will affect Powder River Basin mines in Montana alongside the community of Colstrip, which is planning for transition.