*Q2 Mobile News

Otter Creek coal deal offers new momentum for controversial Tongue River Railroad

Posted: May 25, 2010 3:43 PM by Jay Kohn - Q2 News
Updated: May 25, 2010 3:43 PM

MILES CITY - Mark Fix and his family bought their ranch along the Tongue River south of Miles City twenty years ago. But these days Fix says he barely has time for ranching.

"We spend more time going to meetings, when we'd rather be out farming, taking care of the land, fixing fence, and doing our business instead of having to fight to keep a way of life," explained Fix.
A past Chairman of the Northern Plains Resource Council, Fix is one of the plaintiffs in a new lawsuit challenging the Land Board's decision to lease the Otter Creek Coal tracts. That lawsuit claims the land board's decision to lease the Otter Creek tracts without first examining the impacts on farming, ranching, water and wildlife, puts Montana citizens at risk and violates the state constitution.

"Are we going to support the ranchers and farmers ? That's our base, our sustainable base that we've have had for years, and will keep us going for years to come," asked Fix. "Or are we going to sacrifice it for the short term coal industry ?"

The proposed Tongue River Railroad that would connect Otter Creek to the state's main east-west rail line, would cut right through the middle of Fix's ranch. "Basically they would be cutting off the river for our cattle," said Fix. "They let us know right away that they have the right of emminent domain, and they can condemn our land and build the railroad."

Arch Coal Vice President Greg Schaefer says the Tongue River Railroad is not an intergral part of his company's Montana plans, but he acknowledged that gaining access to the north from Arch coal's Otter Creek holdings would open up new opportunities. "We'll be looking at all options on getting this coal to market," said Schaefer. "If we're able to tie in with the rail load out to the north of the Otter Creek property, there would be an opportunity to take that coal to various power plants along the northern tier of the United States." Plus Schaefer says both China and India are very attractive coal markets, as that part of the world looks to elecrtify and raise their standard of living.

Popular and outspoken Montana Governor Brian Schweitzer is one of the biggest proponents of the Otter Creek coal project. "This is our opportunity," Schweitzer emphatically saiys. "Either they're going to mine it in Wyoming and they're going to get billings of dollars of revenue and thousands of jobs, or you mine it in Montana, and we get those jobs."

Arch Coal offiicals say they are still years away from actually digging coal in the Otter Creek area. "We still have to collect a year's worth of baseline data, get the necessary permits, and run the economics of the mine," said Schaefer. "I can't really say if the mine will open in 3, 4 or 5 years," Schaefer said. "Suffice it to say, we've got a lot of work ahead of us."

In our final report on Otter Creek Tuesday night, we'll meet a man who knows as much about the Otter Creek coal than anyone, and we check in with ranchers in the Otter Creek area as they share their concerns about the impact the mine may have on their way of life.