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Judge Delays Decision on Environmental Groups’ Challenge for Lucky Minerals Mine, Montana

Published: July 12, 2018 |

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A judge found that the environmental groups seeking to prevent an exploratory drilling project in the mountains north of Yellowstone National Park skirted procedural rules, a move that delays any final judicial action on their lawsuit to prevent the work.

Park County District Judge Brenda Gilbert found late last month that attorneys for the Park County Environmental Council and Greater Yellowstone Coalition failed to give proper notice to the state attorney general in their bid to invalidate the Montana Department of Environmental Quality’s approval of Lucky Minerals Inc.’s drilling plans in Emigrant Gulch, a narrow canyon east of the Paradise Valley.

The groups asked the court to vacate the drilling license in early June, just weeks after the court previously found that DEQ’s approval was rooted in a flawed environmental review. The challenge goes after an amendment to state environmental laws the plaintiffs say violates the state’s constitution, which guarantees a right to a “clean and healthful environment.”

But Gilbert found they ran afoul of a rule requiring that the Montana Department of Justice receive notice of a case involving constitutional issues so the department can decide whether to intervene. Gilbert ruled that a conditional notice the plaintiffs filed in May didn’t meet the requirements.

The ruling resulted in the cancellation of a hearing scheduled for Tuesday and a new schedule that will slow the process. The plaintiffs had hoped to reach a decision before next Monday, which is when a drilling license for Lucky Minerals Inc. could become valid. The company wants to drill for gold on private land in Emigrant Gulch, a narrow canyon east of the Paradise Valley.

Jenny Harbine, an EarthJustice attorney representing the plaintiffs, said the order was disappointing but that she’s “still confident that we can get this resolved in short order.”

The company celebrated the decision with a statement posted to its website but isn’t likely to run drilling equipment up the gulch next week. It still hasn’t paid DEQ a reclamation bond for the project, which amounts to roughly $154,000.

Shaun Dykes, Lucky’s vice president, said they are waiting to see how the court proceedings shake out before they pay the bond.

“We’re kind of waiting to see what will happen on the next round,” Dykes said.

The company first proposed drilling there in 2015.

Opponents of the work argue that it could lead to a large-scale mine with the potential to harm wildlife and the region’s tourism-based economy. The company disagrees, arguing that mining can be done safely and that it could actually be a boon for the economy.

DEQ signed off on their plans in 2017. The environmental groups sued over the project last fall, arguing that DEQ’s environmental review of the proposal was deficient and ignored key issues.

Gilbert sided with the plaintiffs in May but the ruling didn’t block the work. A 2011 amendment to the Montana Environmental Policy Act bars district courts from invalidating a state agency’s decision to approve a project even if the underlying environmental review was found unlawful.

Department of Justice attorneys are now weighing whether they should intervene in the case and defend the law. The agency has 60 days to decide. Eric Sell, a Department of Justice spokesman, said in an email that a decision will come “in the next several weeks.”

Source: Bozeman Daily Chronicle


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