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44
MINUTES MONTANA HOUSE OF REPRESENTATIVES 51st LEGISLATURE - REGULAR SESSION COMMITTEE ON NATURAL RESOURCES Call to Order: By Chairperson Bob Raney, on February 15, 1989, at 2:55 p.m. ROLL CALL Members Present: All members except: Members Excused: Rep. Cohen Members Absent: None Staff Present: Claudia Montagne, Secretary; Hugh Zackheim, Staff Researcher, Environmental Quality Council Announcements/Discussion: REP. GILBERT distributed the booklet, House Joint Resolution 49, Forest Practices and Watershed Effects, Final Report by the Environmental Quality Council, for the committee to review in preparation for their consideration of HB 678. HUGH ZACKHEIM discussed HB 552, the tank licensing bill, which, being a revenue bill, would not have to meet transmittal. MR. ZACKHEIM said that because HB 552 creates a new licensing board, the committee would normally be restricted in passing the bill out until the Legislative Audit Committee heard the bill. In anticipation of this event, DHES drafted a bill which specifically exempted this bill from review by the Audit Committee. Once that bill was signed by the Governor, this committee could act on HB 552. REP. RANEY brought up HB 498, which had been tabled 2-6-89. REP. GILBERT said that he had spoken with Rep. Grady and the well drillers, and the consensus was that an 10 number on tags affixed to the well would be acceptable. MR. ZACKHEIM said that he had looked at the letter from the water well drillers, as directed by the committee. He said that if there was interest on the part of the committee, an amended bill could be developed. REP. HARPER said that he had talked to another well driller, and that he thought the owner should affix the 10 tag. The committee decided not to make any additional motions on the bill and it remained tabled.

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Page 1: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

MINUTES

MONTANA HOUSE OF REPRESENTATIVES 51st LEGISLATURE - REGULAR SESSION

COMMITTEE ON NATURAL RESOURCES

Call to Order: By Chairperson Bob Raney, on February 15, 1989, at 2:55 p.m.

ROLL CALL

Members Present: All members except:

Members Excused: Rep. Cohen

Members Absent: None

Staff Present: Claudia Montagne, Secretary; Hugh Zackheim, Staff Researcher, Environmental Quality Council

Announcements/Discussion: REP. GILBERT distributed the booklet, House Joint Resolution 49, Forest Practices and Watershed Effects, Final Report by the Environmental Quality Council, for the committee to review in preparation for their consideration of HB 678.

HUGH ZACKHEIM discussed HB 552, the tank licensing bill, which, being a revenue bill, would not have to meet transmittal. MR. ZACKHEIM said that because HB 552 creates a new licensing board, the committee would normally be restricted in passing the bill out until the Legislative Audit Committee heard the bill. In anticipation of this event, DHES drafted a bill which specifically exempted this bill from review by the Audit Committee. Once that bill was signed by the Governor, this committee could act on HB 552.

REP. RANEY brought up HB 498, which had been tabled 2-6-89. REP. GILBERT said that he had spoken with Rep. Grady and the well drillers, and the consensus was that an 10 number on tags affixed to the well would be acceptable. MR. ZACKHEIM said that he had looked at the letter from the water well drillers, as directed by the committee. He said that if there was interest on the part of the committee, an amended bill could be developed. REP. HARPER said that he had talked to another well driller, and that he thought the owner should affix the 10 tag. The committee decided not to make any additional motions on the bill and it remained tabled.

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HOUSE COMMITTEE ON NATURAL RESOURCES February 15, 1989

Page 2 of 9

DISPOSITION OF HB 399 Hearing 2/01/89

Executive Action 2/06/89 and 2/13/89

Motion: REP. O'KEEFE moved to RECONSIDER HB 399.

Discussion: REP. O'KEEFE stated that the amendments had been passed in previous executive action (Monday, 2-13-89, EXHIBIT 2), and that subsequently there was a language problem discovered with the use of the words "changes" and "permits". A motion to reconsider put the bill back into committee so that the language could be changed to be consistent. The motion to reconsider CARRIED unanimously.

Amendments, Discussion, and Votes: REP. O'KEEFE moved the amendments. REP. ROTH asked if the amendments had been shown to the cattlemen, and REP. HARPER said that these were the amendments that had been voted on previously. The motion on the amendments CARRIED unanimously.

Recommendation and Vote: REP. O'KEEFE moved DO PASS AS AMENDED and the motion CARRIED unanimously.

HEARING ON HJR 25

Presentation and Opening Statement by Sponsor:

REP. BROWN, District 72, Butte-Silver Bow, introduced the resolution and stated that it attempted to accomplish several things. It would support the position protecting Montana's coal interests taken by the Montana Congressional Delegation on the resolution to the acid rain problem. It would emphasize the MHO technology as well as the possible retrofit of the Corrette plant in Billings. This would be a near $400,000,000 project that would be the first near commercial test of the MHO technology, and would be under the National Clean Coal Technology program, which this resolution also supported. The resolution directed all of this activity to the attention of the Montana Congressional Delegation and the new governor.

REP. BROWN stated that Mr. John North, of the MERDI Corporation, Butte, and Mr. Bob Labrie, MHO Development Corporation, were in support of this resolution, but were unable to attend the hearing.

Testifying Proponents and Who They Represent:

Gerry Funk, Vice President, MSE Inc., Butte Ken Williams, Entech, Butte Jim Jensen, Montana Environmental Information Center (MEIC)

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HOUSE COMMITTEE ON NATURAL RESOURCES February 15, 1989

Page 3 of 9

Proponent Testimony:

GERRY FUNK testified in favor of HJR 25 (EXHIBIT 3).

KEN WILLIAMS testified in favor of the resolution, stating the Clean Coal Technology aspects of this resolution be encouraging to them.

that would

JIM JENSEN testified that MEIC supported the continued development of cleaner burning coal technology supported by this resolution, as well as the message to Congress regarding the Acid Rain legislation under consideration. He expressed the opinion that this legislation should be punitive to those sources of the problem; i.e., that midwestern and Appalachian coal producing states bear their fair share of the burden of cleaning up emissions which add to the acid rain problem.

Testifying Opponents and Who They Represent:

None

Opponent Testimony:

None

Questions From Committee Members:

REP. RANEY asked Mr. Funk what the chance was of the MHD technology going into commercial production, and when this might occur. MR. FUNK replied that they had been in this process for 12 years in Butte, and that within 5 years they would complete the phase that they are in. They could then go commercial. The design work on the Corrette Plant retrofit could begin in the early 1990's, and was dependent upon funding.

REP. ADDY asked what was the likelihood that Congress would fund the program. REP. BROWN answered that the national MHD program was funded by the Dept. of Energy, and that it has been at zero. However, they have managed to allow up to $37,000,000 in the past year in the budget for MHD technology. Also there is a cost share by the private sector that runs approximately 30% in the base R&D program, and the retrofit of the Corrette Plant would be funded by Clean Coal Technology Program. The federal government has put up $2.8 billion to date for a 50% cost share with the private sector. He said that he expected the Corrette Plant in Billings would be funded by a 60% private sector cost share with a 40% cost share by the federal government. With the application of the MHD technology, this plant would be able to produce 30-40 more MW due to this technology.

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HOUSE COMMITTEE ON NATURAL RESOURCES February 15, 1989

Page 4 of 9

REP. HARPER asked about how the resolution affected the Acid Rain legislation under consideration by Congress, and REP. BROWN said that the resolution does not address the legislation directly, but says that more stringent methods should not be taken that directly impact Montana's coal market and at the same time encourages the promotion of clean coal burning technologies as a means to clean up the environment without the additional burden on the taxpayer or the utilities.

Closing by Sponsor:

REP. BROWN closed with the introduction of a technical amendment.

DISPOSITION OF HJR 25

Motion: REP. GIACOMETTO moved DO PASS.

Amendments, Discussion, and Votes: REP. GIACOMETTO moved the amendments. The motion CARRIED unanimously.

Recommendation and Vote: REP. GIACOMETTO moved that HJR 25 DO PASS AS AMENDED. The motion CARRIED unanimously.

HEARING ON HB 609

Presentation and Opening Statement by Sponsor:

REP. HARPER, carrying HB 609 for Rep. Cohen, who was ill, stated that the bill established a Water Quality Rehabilitation Account. The purpose of the account would be to deal with small, emergency spills or clean-up projects, when the responsible party could not be found. It would allow the department to move quickly.

REP. HARPER offered amendments (EXHIBIT 4) at Rep. Cohen's request, limiting the yearly allotments to the fund to $10,000, and capping the fund at $50,000. The money would come from water quality fines and civil penalties.

Testifying Proponents and Who They Represent:

Steve Pilcher, Chief Water Quality Bureau, Department of Health and Environmental Sciences

Stan Bradshaw, Montana Council of Trout Unlimited Jim Jensen, Montana Environmental Information Center (MErC)

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Proponent Testimony:

HOUSE COMMITTEE ON NATURAL RESOURCES February 15, 1989

Page 5 of 9

STEVE PILCHER testified in favor of the bill and its amendments on behalf of the agency. He stated that in their past experience, the protection of public health and the environment would be enhanced by several of the provisions in this legislation. One was the financial ability to respond to minor emergency water pollution events in a timely fashion. Promulgation of rules, provided within the legislation, would ensure that the funds within the account would be used in accordance with the directives established by the bill. The account, even with the restrictions, would be sufficient to allow the department to meet the need and carry out the intent of the legislation. The department's priority would continue to be to place the burden of response and clean-up on the responsible party, and their insurance carrier, but this bill would provide a very important back-up provision.

STAN BRADSHAW testified in favor of the bill (EXHIBIT 5).

JIM JENSEN, MEIC, testified in favor of HB 609, stating that it allowed the department to move in rapidly, thus avoiding more expensive clean-up and problems later on.

Testifying Opponents and Who They Represent:

None

Opponent Testimony:

None

Questions From Committee Members:

REP. RANEY asked when this account would be used, and Mr. Pilcher gave the example of Whitefish Lake, where recently an oil truck oiling a road spilled its contents. Because of delays in locating and convincing the responsible party and its carrier to clean up the spill, the oil did reach the lake, and the costs of clean-up were greatly increased.

Closing by Sponsor:

REP. HARPER closed, encouraging support of the legislation as a responsible means to allow immediate response to a problem.

DISPOSITION OF HB 609

Motion: REP. ADDY moved the bill DO PASS.

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Discussion: None

HOUSE COMMITTEE ON NATURAL RESOURCES February 15, 1989

Page 6 of 9

Amendments, Discussion, and votes: REP. ADDY moved the amendments to HB 609. The motion CARRIED unanimously.

Recommendation and Vote: REP. MOORE moved DO PASS AS AMENDED, and the motion CARRIED unanimously.

HEARING ON HB 657

Presentation and Opening Statement by Sponsor:

REP. OWENS, House District 7, Flathead/Evergreen, introduced the bill as an industry/Dept. of State Lands bill, a timber slash and waste reduction agreement. He said that it was the product of the work of a joint wood products industry/DSL task force, which worked on the issue of fire hazard reduction over the past two years to develop a standard consensus for hazard reduction. The bill requires an operator to give DSL the earliest possible notice of proposed activities so that they could monitor slash disposal and also lays out the structure for fee amounts and collection. REP. OWENS went through the bill with his recommended amendments (EXHIBIT 6).

Testifying Proponents and Who They Represent:

Mark Simonich, Forester, F.H. Stoltze Land and Lumber Co., Columbia Falls, and Montana Wood Products Industry

Andy Lukes, District Land Manager, Champion International Gary Brown, Forester, Dept. of State Lands (DSL) Henry E. Lohr, Montana State Voluntary Firefighters Association

Proponent Testimony:

MARK SIMONICH stated that he had served as the industry chairman of the task force. They tried to develop a standard for hazard reduction in the state. He said that the changes in fee structure proposed were particularly important in that the costs would be shifted so that the burden would fall upon those who create more work for DSL.

ANDY LUKES, forester from Champion International in Missoula, said that he too had served on the task force. He stated that the bill is supported by Champion International, and that it would improve the efficiency of DSL as well as improve the fairness to the industry and small landowners.

GARY BROWN testified in strong support of the bill, (EXHIBIT 7). Most significant portions of the bill were the new fee structure, and the authorization to bond mills.

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HOUSE COMMITTEE ON NATURAL RESOURCES February 15, 1989

Page 7 of 9

HENRY LOHR testified in favor of the bill.

Testifying Opponents and Who They Represent:

None

Opponent Testimony:

None

Questions From Committee Members:

REP. RANEY asked where the amendments mentioned by the DSL were. Mr. Brown described the changes made the morning of the hearing, changes that were agreed to by all parties. (EXHIBIT 6), and that had slipped through into printing without being the original intent of the task force.

Closing by Sponsor:

REP. OWENS closed, urging the support of the committee for HB 657.

DISPOSITION OF HB 657

Motion: REP. GIACOMETTO moved that the bill DO PASS.

Discussion: None

Amendments, Discussion, and Votes: REP. GIACOMETTO moved the amendments. The motion CARRIED unanimously.

Recommendation and Vote: REP. BROOKE moved that HB 657 DO PASS AS AMENDED. The motion CARRIED unanimously.

DISPOSITION OF HB 143 Hearing 1/20/89

Motion: REP. GILBERT moved DO PASS on HB 143.

Discussion: None

Amendments, Discussion, and Votes: REP. GILBERT moved the amendments (EXHIBIT 8). REP. O'KEEFE, member of the subcommittee working on the bill, spoke to the amendments. He said that what they had thought was important was the

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HOUSE COMMITTEE ON NATURAL RESOURCES February 15, 1989

Page 8 of 9

protection of two mechanisms that this bill provided for. One was the establishment of an oil gas production damage mitigation account, and the other was an attempt to help the industry with their bonding problems in order to keep funds moving into the RIT Fund.

REP. O'KEEFE said a Statement of Intent was drafted as part of the amendments, the $250,000 was reduced to $50,000, and the cap on the fund was set as $200,000. The amendments also provided for another mechanism for monies to go into this account. The net effect was that this was now a revenue bill, and therefore there was more time to work on this.

REP. O'KEEFE went through the rest of the amendments. REP. ADDY asked if this could provide illusory protection and a discussion followed. REP. O'KEEFE said that once a well started producing, the bond would be released, and an amount should be paid into the mitigation account of an undetermined amount; e.g., $50 to $200 per year. REP. GILBERT said that occasionally the state would have a situation in need of mitigation, but most of this would be for old wells drilled 40 - 50 years ago.

REP. RANEY asked how soon the account would build up to $200,000, and REP. O'KEEFE said that $40,000 from forfeited bonds would go in right away, $50,000 next biennium, and that there would be a the deposit on each new well. REP. RANEY asked if all forfeited bonds would go into this account, and REP. GILBERT said yes.

REP. BROOKE moved the deposit amount to be $150 (amendment #20), and the motion was withdrawn.

REP. O'KEEFE moved $125, and the motion CARRIED, with Reps. Hannah, Roth and Giacometto voting no.

REP. O'KEEFE moved amendments #21-28, dealing with the lien issue, stating that the lien would apply to any property or assets in the state of Montana, on or off site of the particular lease. The motion CARRIED with Rep. Hannah voting no.

REP. O'KEEFE requested Mr. Zackheim to correct the amendments to HB 143 as directed by the committee. He also requested that the subcommittee be expanded to include Rep. Owens and Addy, and that they address the definition of the responsible party, individual or corporation.

Recommendation and Vote: None

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Adjournment At: 4:35 p.m.

BR/cm

3912.min

HOUSE COMMITTEE ON NATURAL RESOURCES February 15, 1989

Page 9 of 9

ADJOURNMENT

irperson

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DAILY ROLL CALL

____ H_O_U_S_E __ N_A_T_U_RAL ____ R_E_SO_U_R_C_E_S ____ COMMITTEE

stth LEGISLATIVE SESSION 19sCf Date

------------------------------- --------- -- -----------------------NAME PRESENT ABSENT EXCUSED

Rep. Bob Raney, Chairman / Rep. Ben Cohen, Vice-Chairman / Rep. Kelly Addy V'

Rep. Vivian Brooke / Rep. Hal Harper /' Rep. Mike Kadas / Rep. Mary McDonough V Rep. Janet Moore J Rep. Mark O'Keefe V Rep. Robert Clark V

,

Rep. Leo Giacometto V Rep. Bob Gilbert V

Rep. Tom Hannah V t ~-"

Rep. Lum Owens V -

Rep. Rande Roth V

Rep. Clyde Smith V

I

I

I I CS-30

Page 11: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

STANDING COF.:'lITTEE REPORT

February 15, 1989

PagE': 1 of 2

Hr. Speaker: He, the cOl1'unittee on Natural Resourc~s report

that HOUSE BILL 399

amended • ---_._-

1. Page 10. Following: line 3

(first reading copy -- white) _do~ass ~s

Signed: ----------=B-o~b-~R~a-n-e-_-y-,~C~h-a~irm~n

Insert: "(3) (a) If the department approves an application for a trial change in appropriation right under subsection (2):

(i) the appropriator shall allow access by the department throughout the trial period to the Eite wherp th~ change is being implernented1

(ii) the depcrtment shall inspect the ~itc upon thA request of any person holding El val ia 1'J8 tpr right in the source of supply~ and

(iii) any water user may, throughout the trial pe~io~, pc,ti t ion thE: departmpnt to termin<1tp the t.rial cn<'I?1~Te (;Tl~ ~~ny the application for ~ change in apprO?riDtion ~ight b~C~US8 water users are experiencing actual advcr~e effects of the trial change. The depRrtment sha 11 investigatf3 the allegations contained in e petition and, if it determinee that there are adverse effects, the trial p~riod ~ust be terminated and the application for change in appropriation right must be denied unless the applicant can establish by clear and convincing evidence that the adverse effects arc caused by unique climatological events or other unfore~een circumstances that ,.,ill not reoccur throucThout thf.! remainder of the trial period. ~

(b) If the application for change in appropriation right is denied during or after the trial period, the department shall require the appropriator to remove the diversion structures or facilities that implemented thr trial change. 1f

Renumber: sub~equent subsections

391747SC.HP,V

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2. Page Strike: Insert:

3. Page Strike: Insert:

4. Page Strike: Insert:

5. Page Strike: Insert: Strike: Insert:

6. Page Strike: Insert: Strike: Insert:

7. Page Strike: In~ert:

:3 • Pagn Strikf~ : Insert:

9 . Page Strike: Insert:

10, line 4 • "(4)" " (5 ,-"

10, line S. "(6)" "Tn" 10, line 25. "(3)"

"m" 12, line 2. "(3)"

"l4T" "(4)" "(5)"

13, line 1. " (3) n

"T4T" "(4)" "ma 13 , line 9. rl (6) (b) (ii) n

"(7) (b) (ii) ft

13, line 10. "( 6) (b) fiii) " Ilr711I;lTiiiT"

15, line 24. "is n

"are"

February 15, 1989 Page 2 of 2

39174.7SC.HBV

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STANDING COHHITTEE REPORT

r·~r. Speaker: We, the committee on

that HOUSE JOINT RESOLUTION 2S

~ass as amended •

February 15, 1989

Page 1 of 1

Natural Resources report

(first reading copy -- white)

Signed:

A..'1d, that such amendments read~

1. Page 3, line 15. Strike: "Selegation" Insert: "Delegation n

Bob Raney, Chairman

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STANDING COMMI7TEE REPORT

February 15, 1989

Page 1 of 1

Mr. Speaker: t-le, the committee on Natural Resources report

that HOUSE BILL 609 (first reading copy -- white) do pass as

amended •

Signed: ____________ ~~=_------~--.-----Bob Raney, Chairman

~~that such amondments read:

1. Title! line 12. Strike: "15-5-635" Insert: "75-5-635"

2. Page 2, lines 10 and 11. Followina: "17-2-102" Strike: i," on line 10 through "department" on line 11

3. Page 2, 1 inc 16. Follmdng : "account" Insert: "in the aMounts provideJ for in 75-5-634"

4. Page 4, lines 2 anJ 3. Strike: "Fines" on line 2 Insert: "Disposition of fines" Following: "penalties" on line 2 Strike: "to" on line 2 through "Fines" on line 3 Insert:" (1) Except as provided in subsection (2), fines"

5. Page 4. Following: line 6 Insert: "(2) (a) No more than $10,000 in fines and civil

penalti~s may be deposited in the water quality rehabilitation account in any fiscal year. Fines and civil penalties iri excess of the $10,000 limit must be deposited in the general fund.

(b) Nhenever the amount of money in the water quality rehabilitation account exceeds $50,000, all fines and civil penalties must be deposited in the general fund."

391751SC.HEV

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STANDING COH?-1IT'I'EE REPORT

Februar.y 15, 1989

Page 1 of 1

Hr. Speaker: We, the conuni ttee on lJatural Resources report

that HOUSE BILL 657 (first reading copy -- white) do pass as

amended •

Signed: ----------~~~----Bob Raney, Chairman

And, that such amendments reac:

1. Page 2, lines 14 and 15. Strike: "in" on line 14 through "fire" on line 15

2. Page 2, lines 21 through 23. Strike: "operators" on line 21 through "planned" on line 23 Insert: ~perEons engaged in continuing cutting operations of

sufficient number anc siz~ to warrant covering these operations under a single agreement and a ~inglc bond"

3. Page 6, line 7. Following: "~onE":..truct):!2.9" Stril~e ~ ", It In £f-rt: "'Or"

4. Page 6, Ii ne 8. Following: nreconstructinq~

Strike: "L-P.r improvln~~

5. Page 7, lines? through 5. Striko: "In" on linp 2 through r. " . on line 5

391757SC.HBV

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t-<------.. -.'-~.~ ..... ,-.-----------J-...... --.. --.. --.--~-----~ .. --.. --.---.-- .. ----_,.. _"';::::"_"""' ___ ,,""_-.,

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Amendments to House Bill No. 399 Introduced (White) Copy

Requested by Rep. Harper For the House Committee on Natural Resources

Prepared by H. Zackheim February 15, 1989

1. Page 10. Following: line 3 Insert: "(3) (a) If the department approves an application for

a trial change in appropriation right under subsection (2): (i) the appropriator shall allow access by the

department throughout the trial period to the site where the change is being implemented;

(ii) the department shall inspect the site upon the request of any person holding a valid water right in the source of supply; and

(iii) any water user may, throughout the trial period, petition the department to terminate the trial change and deny the application for a change in appropriation right because water users are experiencing actual adverse effects of the trial change. The department shall investigate the allagations contained in a petition and, if it determines that there are adverse effects, the trial period must be terminated and the application for change in appropriation right must be denied unless the applicant can establish by clear and convincing evidence that the adverse effects are caused by unique climatological events or other unforeseen circumstances that will not reoccur throughout the remainder of the trial period.

(b) If the application for change in appropriation right is denied during or after the trial period, the department shall require the appropriator to remove the diversion structures or facilities that implemented the trial change."

Renumber: subsequent subsectioris

2. Page 10, line 4. Strike: "ill" Insert: "(5)"

3. Page 10, line 5. Strike: "ill" Insert: "(7)"

1 HB039901.AHZ

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~ L,;i rE d.- -15 -gJ Hi3_ :3qj --

4. Page 10, line 25. Strike: "ill" Insert: "(4)"

5. Page 12, line 2. Strike: "ill" Insert: "(4)" Strike: "ill" Insert: "(5)"

6. Page 13, line 1. Strike: "ill" Insert: "(4)" Strike: "ill" Insert: "(5)"

7. Page 13, line 9. Strike: "(6}(b}(ii}" Insert: "(7)(b)(ii)"

8. Page 13, line 10. Strike: "(6} {b} (iii}" Insert: "(7) (b) (iii)"

9. Page 15, line 24. Strike: "is" Insert: "are"

2 HB039901.AHZ

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S EXH:SiT _____ _

f) / .. - J-IC ' f)' ,. "E ,~' -" -, L;\ I •. :- : ____ :-"__ . __

riB ___ . /;,j)c'd--S-

TESTIMONY SUBMITTED IN SUPPORT OF HJR-25

by

MSE, INC.

February 15, 1989

Mr. Chairman, members of the Committee, my name is Gerry Funk, Vice President of MSE, Inc. of Butte, Montana. MSE, Inc. is a private Montana corporation which operates the Department of Energy's magnetohydrodynamic (MHD) Component Development and Integration Facility located in the Butte Industrial Park. I am here today to voice my support of HJR-25.

As some of you may be aware, MHD is a clean coal-burning technology whereby coal is burned at temperatures approaching 50000 F in a combustion chamber to form a gas plasma that is exhausted into an MHD channel where a portion of the energy produced is extracted in the form of direct electric current and the gas exiting the channel is utilized as a heat source to drive a conventional steam turbine producing additional electricity. The technology has the potential to increase coal-fired generation plant efficiency from 32% to 55-60% while reducing SOx' NOx, and C02 emissions to well below the Federal New Source Performance Standards.

In regard to the national program for the development of MHD, we are in the second phase of a three-phase program directed toward demonstration of the technology by retrofitting an existing power plant through addition of the direct conversion MHO topping cycle.

The present phase consists of demonstrating the MHO technology on a duration and reliability basis utilizing a new prototypic combustor and channel and by running approximately 1500 hours of tests over the next three years. Upon completion of this phase, it is envisioned that a retrofit to an existing commercial plant will provide for a large-scale demonstration in the mid 1990's. This commercial demonstration could be at Montana Power Company's Corette Plant in Billings.

In summary, we believe that the MHD technology provides potential answers to

1) Federal acid rain considerations;

2) the greenhouse effect - through higher efficiency;

3) expanded utilization of Montana's coal resource; and

4) economic development through an MHO retrofit at the J.E. Corette plant in Billings.

To this end, we would encourage support of HJR-25 by this Committee and the houses of the Montana legislature.

Page 20: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

3 i /HiB!T ____ _

[lA it. ~t!-: __

ex -/~ - ~7 liJl&;<. S-

BUTTE-SII .. VER CHAMBER OF COMMERCE

BOW RESOLUTION

A Resolution endorsing the construction of a Magnetohydrodynamics (MHD) retrofit of the J.E. Corette Plant in Billings, Montana and authorizing the Butte-Silver Bow Chamber of Commerce to participate wi th other interested parties to ensure that the retrofi t is constructed.

Whereas,

Whereas,

Whereas,

Whereas,

Whereas,

MHD is a clean coal technology that mitigates acid rain and the greenhouse effect;

MHD is a more efficient and, therefore, more cost effective method of producing electricity;

MHD testing at the U.S. Department of Energy, Component Development and Integration Facility in Butte, Montana has established the necessity for a larger facility to be built in Billings, Montana to show commercial potential;

Community and State support for the MHD retrofit is necessary to show others that MHD and the retrofit are important to us and the nation; and

the Community and the State have the opportunity to promote and lead the nation and the World in the application of "high technology".

NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE BUTTE SILVER BOW CHAMBER OF COMMERCE OF THE CITY AND COUNTY OF BUTTE­SILVER BOW, MONTANA that the Chamber of Commerce of the City and the County of Butte-Silver Bow, Montana endorses the MHD retrofit of the J.E. Corette Plant in Billings, Montana and authorizes the participation of officials of the Chamber of Commerce with other interested parties to ensure that the MHD retrofit is constructed.

"-~-~.,---)l ~ l~ .J Executive Director

Page 21: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

BUTTE LOCAL CORPORATION

3 02 -/S::[J

HD_ j./.JIG ~.s--

DEVELOPMENT RESOLUTION

A Resolution endorsing the construction of a Magnetohydrodynamics (MUD) retrofit of the J.E. Corette Plant in Billings, Montana and authorizing the Butte Local Development Corporation to participate with other interested parties to ensure that the retrofit is constructed.

Whereas,

Whereas,

Whereas,

Whereas,

Whereas,

MIlD is a clean coal technology that mitigates acid rain and the greenhouse effect;

MUD is a more efficient and, therefore, more cost effective method of producing electricity;

MUD testing at the U.S. Department of Energy, Component Development and Integration Facility in Butte, Montana has established the necessity for a larger facility to be built in Billings, Montana to show cODDUercial potential;

Communi ty and State support for the MUD retrofit is necessary to show others that MUD and the retrofit are important to us and the nation; and

the Community and the State have the opportunity to promote and lead the Nation and the World in the application of "high technology".

NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE BUTTE LOCAL DEVELOPMENT CORPORATION OF BUTTE-SILVER BOW, MONTANA that the Local Development Corporation of the City and the County of Butte­Silver Bow, Montana endorses the MHD retrofit of the J.E. Corette Plant in Billings, Montana and authorizes the participation of officials of the Local Development Corporation with other interested parties to ensure that the MIlD retrofit is constructed.

/ Sl Q <or PASSED THE ___ DAY OF __ ~/_ J'()_tJ ___ _

Page 22: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

1.7

18

19

20

21

I

RESOLUTION NO. 1114

A RESOLUTION ENDORSING THE CONSTRUCTION OF A MAGNETOHYDRODYNAMIC~

(MHD) RETROFIT OF THE J.E. CORETTE PLANT IN BILLINGS, MONTANA

AND AUTHORIZING THE CITY AND COUNTY OF BUTTE-SILVER BOW TO PARTI-I

CIPATE WITH OTHER INTERESTED PARTIES TO ENSURE THAT THE RETROFIT

I IS CONSTRUCTED.

WHEREAS, MHO is a clean coal technology that mitigates aCidl

rain and the greenhouse effect;

WHEREAS, MHD is a more efficient and, therefore, more costl

WHEREAS,

WHEREAS,

WHEREAS,

effective method of producing electricity~

MHD testing at the U.s. Department of Energy, componentl

Development and Integration Facility in Butte, Montanal

has established the necessity for a larger facility

to be builtin Billings, Montana, to show commercial I potential;

Communi ty and State support for the MHD retrofit is i necessary to show others that MHO and the retrofit I;

are important to us and the nation~ and

the Community and the State have the opportunity to I promote and lead the Nation and the World in the

application of "high technology".

NOW, THEREFORE, BE IT RESOLVED THAT THE COUNCIL OF COMMISSIONERS

OF THE CITY AND COUNTY OF BUTTE-SILVER BOW, STATE OF MONTANA I that the local Government of the City and the County of Butte- I Silver Bow, Montana endorses the MHD retrofit of the J.E. Corette

Plant in Billings, Montana and authorizes the participation I

I of officials of Butte-Silver Bow with other interested parties.

PASSED this ---- day of _________________ , 1988.

Page 23: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

1

2

3

4

5

6

APPROVED this ---

CHIEF EXECUTIVE

ATTEST:

7 CLERK AND RECORDER

8 APPROVED AS TO FORM:

9

day of , 1988. -------------------

10 I

11 CHAIRMAN, JUDICIARY COMMITTEE

12

13 COUNTY ATTORNEY

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Page 24: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

Amendments to House Bill No. 609 Introduced (White) Copy

Requested by Rep. Cohen For the House Committee on Natural Resources

1. Title, line 12. Strike: "15-5-635" Insert: "75-5-635"

Prepared by H. Zackheim February 13, 1989

2. Page 2, lines 10 and 11. Following: "17-2-102" Strike: "," on line 10 through "department" on line 11

3. Page 2, line 16. Following: "account" Insert: "in the amounts provided for in 75-5-634"

4. Page 4, lines 2 and 3. Strike: "Fines" on line 2 Insert: "Disposition of fines" Following: "penalties" on line 2 Strike: "to" on line 2 through "Fines" on line 3 Insert:". (1) Except as provided in subsection (2), fines"

5. Page 4. Following: line 6 Insert: "(2) (a) No more than $10,000 in fines and civil

penalties may be deposited in the water quality rehabilitation account in any fiscal year. Fines and civil penalties in excess of the $10,000 limit must be deposited in the general fund.

(b) Whenever the amount of money in the water quality rehabilitation account exceeds $50,000, all fines and civil penalties must be deposited in the general fund."

1 HB060901.ahz

Page 25: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

HOUSE BILL 609

TESTIMONY OF STAN BRADSHAW House Natural Resources Committee

February 16, 1989

Mr. Chairman, members of the committee, I am testifying on behalf of the Montana Council of Trout Unlimited in favor of House Bill 609.

HB 609 simply provides the department with a funding source that can be used to initiate quick response to pollution events that need immediate attention to stabilize or stop damage before it worsens. Under current law, the Water Quality Bureau has no ready source of funds to which it can turn to handle these problems. This solves that problem.

The sponsor has proposed. amendments to address concerns that some legislators expressed about incursions into the general fund. The amendments simply cap the fund at $50,000 and limit the amount of money that can go into the fund in anyone year to $10,000. In addition, section 4(2) on page 6 allows the department to collect money spent in any clean up under this bill and deposit it into the fund. Thus, once the fund has reached the $50,000 cap, the maintenance of the fund should be self­sustaining and should rarely, if ever, need additional deposits from penalties. As a result, the bill, as amended, should represent minimal incursions into the general fund over the long term.

This bill represents a reasonable approach to the problem that it addresses, and I urge your support.

Page 26: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

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Page 27: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

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fire

--h

azard

as

pro

vid

ed

in

7

6-1

3-4

05

an

d

any

o

ffic

er

L o

r

off

icia

l L of-s~eh-ageney

or

emp

loy

ee o

f th

e

dep

art

men

t o

r

oth

er

reco

Qn

ized

fo

rest

fire

p

rote

cti

on

ag

en

cy

sh

all

~ n

ot

be

liab

le

for

any

d

amag

e to

th

e

lan

d,

pro

du

ct,

im

pro

vem

en

t,

or oth~r

thin

gs o

f v

alu

e

of-

wh

ats

oe¥

er-

nato

re

up

on

th

e

lan

ds

on

w

hic

h

the

fire

h

azard

s are

b

ein

g

man

aged

o

r re

du

ced

in

acco

rdan

ce

wit

h p

rov

isio

ns o

f ~6-l3-.9~--thre~9h--16-i3-.9S

an

d--

-16

-l3

-41

1tl

t th

is

part

. th

e

rule

s

ad

op

ted

u

nd

er

76-!1:~.~3.

an

d

the fi

re

hazard

re

du

cti

on

ag

reem

en

t w

hen

aH

req~isite

reaso

nab

le care

an

d

cau

tio

n

has

been

u

sed

an

d s~eh

the

wo

rk

is b

ein

g o

r h

as

been

p

erf

orm

ed

in

co

mp

lian

ce w

ith

the

rule

s

pro

vid

ed

in

7

6-1

3-4

03

."

Sec

tion

6.

Secti

on

7

6-1

3-4

07

, M

CA

, is

am

end

ed

to

read

:

"76

-13

-40

7.

Red

ucti

on

o

f sla

sh

an

d

deb

ris

alo

ng

-4-

Page 28: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

1 2 3 4 S 6 7 8 9 10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

I.e

15

73

/01

rig

ht-

of-

way

. (1

) A

per

son

cle

ari

ng

ri

gh

t-o

f-w

ay

fo

r an

y

rail

road

, p

ub

lic h

igh

way

. p

ub

lic tr

ail

. p

riv

ate

ro

ad

. tr

ail

.

dit

ch

. d

ike.

pip

eli

ne

or

wir

e

lin

es.

or

any

o

ther

tran

smis

sio

n o

r tr

an

spo

rtati

on

u

tili

ty

rig

ht-

of-

way

. ex

cep

t

tem

po

rary

ro

ads

locate

d w

ith

in

the

bo

un

dar

ies

of

the cu

ttin

g

are

a

and

w

hic

h

are

u

sed

in

th

e a

ctu

al

log

gin

g o

pera

tio

ns.

sh

all

re

du

ce

the

haz

ard

re

sult

ing

fr

om

th

e

cle

ari

ng

o

r fr

om

the cu

ttin

g o

f m

ate

rial

for

the co

nst

ructi

on

of

the

pu

bli

c

or

pri

vate

u

tili

ty

un

less

ex

emp

ted

by

th

e d

ep

art

men

t.

At

least

10

day

s b

efo

re

com

men

cem

ent

of

the

cle

ari

ng

, th

e

pers

on

co

nd

uct

ing

th

e c

leari

ng

sh

all

n

oti

fy

the d

ep

art

men

t

of

com

men

cem

ent

of

the c

leari

ng

in

th

e

form

an

d

man

ner

th

e

dep

artm

ent

pro

vid

es.

(2)

Haz

ard

re

du

cti

on

, in

cie

din

g

excl

ud

ing

bu

rnin

g w

her

e

this

met

hod

cf-di~pc~al

is

use

d.

sh

all

b

e d

on

e as

ra

pid

ly a

s

cu

ttin

g o

r cle

ari

nq

pro

gre

sses7

-ho

wey

er7

-ep

on

-ap

pii

cati

on

-te

the--depart~ent7--it--~ay--grant-a-per~it-extending-the-time

within-whieh-the-berning-~a~t-be--done--in--eompiianee--with

this--ehapter--reiating-to-barning-permits-daring-the-elo~ed

seaso

n.

(3)

Th

is

secti

on

ap

pli

es

to

all

cle

ari

ng

o

f

rig

hts

-of-

way

acro

ss

pri

vate

la

nd

an

d

on

b

eh

alf

o

f th

e

sta

te.

cou

nty

, hi

ghw

ay

dis

tric

ts,

and

ro

ad

dis

tric

ts.

wh

eth

er

the

wor

k is

d

on

e b

y d

ay

lab

or

or

by c

on

tract,

an

d

un

less

u

nav

oid

able

em

erg

ency

pre

ven

ts,

pro

vis

ion

sh

all

b

e

-5-

1 2 3 4 5 6 7 8 9 10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

cx~

':/::I. ~

.1-/

5-4

7-

LC

15

73

/01

mad

e by

th

e

pro

per

o

ffic

ials

co

nd

ucti

ng

. d

irecti

ng

, o

r

lett

ing

th

e w

ork

for

wit

hh

old

ing

u

nti

l it

is

co

mp

lete

a

su

ffic

ien

t p

ort

ion

o

f th

e

pay

men

t th

ere

fer

to

ass

ure

com

pli

ance

wit

h t

his

p

art

.-

Sec

tio

n 7

. S

ecti

on

7

6-1

3-4

08

. M

CA.

is

amen

ded

to

read

:

-76

-13

-40

1.

Fir

e

(1)

Bef

ore

cu

ttin

g

impr

ovem

ent

such

as

ha:a

rd

red

ucti

on

ag

7m

en

t an

d b

on

d.

,1/"

"

any

fo

rest

p

rod

uctr

££!

!~i!

.~£!

-:;}

:\-C

-o

ad

in c

on

tem

pla

tio

n o

f :~

no

t'li

mit

ed

to

th

inn

ing

. w

eed

ing

. o

r

pru

nin

g

upon

p

riv

ate

la

nd

s w

ith

in

the sta

te.

the p

ers

on

con

du

ctin

g sa

ch

-pra

ctt

ce

the

wor

k sh

all

p

rov

ide

for

the

red

ucti

on

o

r m

anag

emen

t o

f th

e fi

re

hazard

to

b

e cre

ate

d

by

en

teri

ng

in

to a

fi

re

hazard

re

du

cti

on

ag

reem

ent

or

a m

aste

r

fire

h

azar

d

red

ucti

on

ag

reem

ent

wit

h

the d

epar

tmen

t an

d-b

y

po~tin9-a-bond-tc-the-state-in-saeh-form-and-fcr-~ach-a~oant

as-

may

-be-p

rese

rib

ed

-by

--th

e--

dep

art

mcn

t.

ecncit~ened--epon

pro

vid

ing

fo

r th

e

full

an

d

fait

hfu

l co

mp

lian

ce w

ith

all

req

uir

emen

ts

un

der

th

is p

art

an

d

the fa

ith

ful

red

ucti

on

o

r

man

agem

ent

of

the

fire

h

azard

in

th

e

man

ner

p

resc

rib

ed

by

law

an

d b

y ru

les

ado

pte

d

by

the b

oard

.

(2)

Eit

her

the

pers

on

co

nd

ucti

ng

th

e

wor

k o

r th

e

pu

rch

ase

r as

pro

vid

ed in

76

-13

-40

9(2

) sh

all

p

ost

a

bond

to

the sta

te

In a

fo

rm a

nd

fo

r an

am

ou

nt

as

may

b

e p

resc

rib

ed

by

the d

epar

tmen

t.

bu

t th

e a

mo

un

t m

ay

no

t ex

ceed

$6

for

each

-6-

Page 29: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

I

1 2 3 4 5 6 7 8 9 10

11

12

1)

14

15

16

17

18

19

20

21

22

23

24

25

r I'

I I

r r

I"

I

LC

15

73

/01

1.0

00

b

oard

f~~t

(lo

g

scal~)

or

th~ ~9uivalent

if

fore

st

pro

du

cts

o

ther

than

lo

gs

ar~ cu

t.

/;}

/ .'~'f

.;.?

':?'rv

> __ (

u_

I))

Th

e ag

reem

en

t m

ust

p

rov

ide

that:

la)

all

fi

re

hazard

re

du

cti

on

o

r ma~~qement

wo

rk

co

mp

risi

ng

n

on

bu

rnin

g

met

ho

ds

and

2reparat~ons

for

bu

rnin

g

mu

st

be

comp1~t~d

wit

hin

18

m

on

ths

of

com

men

cem

ent

of

cu

ttin

g

in

the are

a

co

vere

d

by

the a3ree~ent;

and

Ib)

all

b

urn

ing

w

ork

m

ust

b

e co~pleted

as

sp

ecif

ied

in

the a9ree~ent

an

d

in

co

mp

lian

ce

wit

h

rule

s

ad

op

ted

b

y

the

bo

ard

. ti!t

lli

Th

e b

end

sha~~

mu

st

be

releas~d

up

on

th

e

issu

an

ce

of

the certi

fic

ate

of

cle

ara

nce eo~p~etton--oE--the

work-done-~n-eompi:anee-w~th-the-te:~3-oE-the-a9ree~ent."

Sec

tio

n B

. S

ecti

on

7

6-l

l-",0

9.

MC

A,

is

amen

ded

to

re

ad

:

-76

-11

-40

9.

Du

ty

of

pu

rch

ase

r . to

tn

:!are

en

su

re

co

mp

lian

ce

state

men

t --

bo

nd

. 11

) T

he

init

ial

pu

rch

aser

of

fore

st

pro

du

cts

w

hic

h

hav

e b

een

cu

t o

r are

ab

ou

t to

b

e

cu

t fr

om

an

y

pri

vate

la

nd

s w

ith

in

the sta

te sh

all

. b

efo

re

mak

ing

th~

purchas~

or

co

ntr

act

to p

urc

hase

, d

ete

rmin

e

that

the

pers

on

en

gag

ed

o

r ab

ou

t to

~ngage

in

the

cu

ttin

g

of

these

fore

st

pro

du

cts

h

as

pro

vid

ed

fo

r th

e

red

ucti

on

o

r

man

agem

ent

of

the

fire

h

azard

th

as-e

reate

d.-

os--

pro

ytd

ed

--in

-7-

I

1 2 3 4 5 6 7 I 8 9 10

11

12

13

14

15

16

17

18

19

20

21

22

2)

24

25

I I

r~

" I~~ -

t;,

I

~"IS-J'/

LC

15

73

/01

this

-po

rt

by

~ntertng

into

a

fir

e

hazard

re

du

cti

on

a9reem~nt

as provid~d

in 7

6-1

3-4

08

.

(2)

Whe"--the--ha£ard-redaetion-.9ree~ent-pro.ides-th.t

the ~ p

urc

hase

r eE

-fere

st-

pro

daets

sh

all

w

ith

ho

ld

mo

ner

s

su

ffic

ien

t m

on

ey

to

meet

the

req

uir

em

en

ts

of

the

bo

nd

pro

vid

ed

fo

r in

7

6-1

3-"

'08

te-tnsare-Eaithfal-eomp~i."ee-with

this

-part

r p

lus

the

fees

for

ad

min

istr

ati

on

. in

sp

ecti

on

. an

d

en

forc

em

en

t b

y

the d

ep

art

men

t as

pro

vid

ed

in

th

e

hazard

red

ucti

on

ag

reem

en

t.

the ~

pu

rch

ase

r sh

all

tr

an

sm

it all

mo

ney

" m

oney

an

d fe~

wh

ieh

~ are

w

ith

held

an

d

a re

?O

rt

of

vo

lum

es

of

pro

du

cts

p

urc

hase

d

to

the

dep

art

men

t o

n o

r

befo

re

the

15

th d

ay

o

f eaeh

th

e

foll

ow

ing

m

on

th.

cle

arl

y

iden

tify

ing

b

y

nu

mb

er

the ~ h

azard

re

du

cti

on

agreem~nt

to

wh

ich

th

e

wit

hh

eld

m

en

er"

m

on

ey.

fees.

and

p

rod

uct volum~s

pert

ain

. T

he

pu

rch

ase

r sh

all

k

eep

accu

rate

re

co

rds

of

the

pu

rch

ase

an

d

the

am

ou

nts

w

ith

held

, w

hic

h

may

b

e

insp

ecte

d

by

the

dep

art

men

t at

an

y

reaso

nab

le

tim

e.

t3t--~po"--the--department-makin9-the-deter~inatten-that

faithfa%-eomp%ianee-with-this-part-hss--b~en--.e"ieyedr--the

depart~ent--shsll--r~tarn--to--the--owne:--thereeE--a~l-s~eh

withhe~d-~cner-with-the--exeepticn--of--4'--for--in~peeticn7

admini~trstio"r-e"fcree~ent7-and-s~eke-mansgementT

ell

If

fo

rest

pro

du

cts

are

n

ot recei~ed

or

pu

rch

ase

d

in

a g

iven

m

on

th,

a r~port

Sh

ow

ing

a

zero

.bala

nce

and

sta

tin

q

that

pro

du

cts

w

ere

n

ot

pu

rch

ase

d

mu

st ~f

' ..

su

bm

itte

d

to

the

-8-

r

Page 30: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

1 2 3 4 5 6 7 8 9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

LC

1

57

3/0

1

dep

art

men

t.

(4,

Th

e d

ep

art

men

t m

ay

req

uir

e

the p

urc

hase

r to

p

ost

a

bo

nd

to

th

e sta

te

in

a fo

rm

and

fo

r an

am

ou

nt

as

may

b

e

pre

scri

bed

b

y

the

dep

art

men

t to

en

sure

fa

ith

ful

co

mp

lian

ce

wit

h th

is p

art.

-

Sec

tio

n 9

. S

ecti

on

76

-13

-41

0,

MC

A,

is

amen

ded

to

re

ad

:

-76

-13

-41

0.

Fail

ure

to

co

mp

ly.

(1)

If

a p

ers

on

fail

s,

refu

ses,

or

neg

lects

to

p

rop

erl

y

red

uce o

r m

anag

e th

e

fire

hazard

di~po~e-ef-~la~h

in

acco

rdan

ce w

ith

th

e

req

uir

em

en

ts

of

76

-13

-40

7

an

d

76

-13

-40

8 and-i~-engege~--er--i~--abe~t--te

en9ageT-either-fer-him~eif-er-fer-anetherT-in-e~ttin9-timber

er--ether-fere~t-pred~et~-an~-therebr-ereate~-e-fire-harar~,

he

may

b

e

en

join

ed

fr

om

fu

rth

er

cu

ttin

g,

cle

ari

ng

, an

d

co

nstr

ucti

on

timber--har¥e~tin9

op

era

tio

ns

un

til

76

-13

-40

7

an

d

76

-13

-40

8

hav

e

been

co

mp

lied

w

ith

. T

he

dep

art

men

t m

ay

init

iate

th

e

pro

ceed

ing

s an

d

may

o

bta

in

a te

mp

ora

ry

restr

ain

ing

o

rder,

in

jun

cti

on

, o

r w

rit

of

man

date

. T

he

pro

ceed

ing

s sh

all

b

e

co

nd

ucte

d

in

the d

istr

ict

co

urt

o

f th

e

co

un

ty

wh

ere

the

lan

d is

lo

cate

d.

(2)

If

a p

ers

on

fa

ils

to

com

ply

w

ith

7

6-1

3-4

07

o

r

76

-13

-40

8

and--ha~--e~t--anr--fere~t-prod~et~

an

d

fail

s

to

com

ply

wit

hin

3

0

day

s aft

er

bein

g n

oti

fied

to

d

o so

b

y

the

dep

art

men

t,

the

dep

art

men

t m

ay

co

mp

lete

, d

irect,

o

r

au

tho

rize

the dispe~ai-of-the-~la~h

fire

h

azard

re

du

cti

on

o

r

man

agem

ent

at

the

ex

pen

se o

f th

e co

ntr

acto

r o

r o

f th

e

ow

ner

-9-

1 2 3 4 5 6 7 8 9

10

11

12

13

14

1S

16

17

18

19

20

21

22

23

24

25

l '>'.

.:;

dt G;

'

~-J5 -

:Jr

LC ~7

3/01

of

the

tim

ber

or

oth

er

fore

st

pro

du

cts

cu

t o

r p

rod

uced

fr

om

the

lan

d

up

on

w

hic

h th

e ~ndi~pesed-ef

un

ab

ate

d

fire

h

azard

rem

ain

s.

(3)

Th

e co

st

and

ex

pen

se o

f th

e d

isp

esal

fire

h

azard

red

ucti

on

or

man

agem

ent

wo

rk,

plu

s 2

0\

of

the

co

st

an

d

ex

pen

se o

f the-di~posa~

the

wo

rk as

a p

en

alt

y,

co

nsti

tute

s

a

lien

u

po

n

the

fore

st

pro

du

cts

se cu

t o

r p

rod

uced

fr

om

th

e

lan

d

and

u

po

n

the

real

and

p

ers

on

al

pro

pert

y

of

the

co

ntr

acto

r.

If

pay

men

t o

f th

e

sum

d

eman

ded

is

~ot

mad

e to

the

dep

art

men

t w

ith

in

10

d

ay

s o

f it

s

wri

tten

ee

man

d,

the

dep

art

men

t sh

all

b

rin

g

leg

al

acti

on

on

b

eh

alf

o

f th

e sta

te

to

reco

ver

the d

eb

t.-

Sec

tio

n 1

0.

Secti

on

7

6-1

1-4

11

, M

CA

, is

am

end

ed

to

read

:

-76

-13

-41

1.

Cert

ific

ati

on

of

cle

ara

nce.

tit

Whe

n th

e

dep

art

men

t m

akes

a

dete

rmin

ati

on

o

f fa

ith

ful

co

mp

lian

ce

by

the co

ntr

acto

r w

ith

th

is

part

, th

e

rule

s

ad

op

ted

u

nd

er

76

-13

-40

3,

and

th

e

hazard

re

du

cti

on

ag

reem

en

t,

the

co

ntr

acto

r m

ust

b

e is

sued

a

cert

ific

ati

on

o

f cle

ara

nce

by

the

dep

art

men

t an

d

be

reli

ev

ed

o

f an

y

furt

her

liab

ilit

y o

r

resp

on

sib

ilit

y

for

fire

h

azard

re

du

cti

on

o

r m

anag

emen

t u

nd

er

the

fire

h

azard

re

du

cti

on

ag

reem

en

t.

A--per~en---whe--ha~

en

tere

d--

-in

te--

a--

eo

ntr

aet-

-wit

h--

the--

dep

art

men

t--f

er-

-th

e

red~etien-er-management-ef-anr-fire-herardT-~pen-perment--ef

the--eentraet--priee--in--aeeordanee--with--the-term~-ef-the

eentraet-and-the-f~li--eompiianee--with--the--term~--eE--the-

-10

-

Page 31: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

I

1 2 3 4 5 6 7 8 9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

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read

:

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3.

Fail

ure

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su

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it

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ing

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rem

ed

y.

(1)

If

a p

urc

hase

r d

oes

no

t su

bm

it

wit

hh

eld

m

on

ey

an

d

req

uir

ed

re

po

rts

on

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r b

efo

re

the

15

th

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th

e

foll

ow

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on

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vid

ed

in

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hen

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cer

76

-13

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9.

he

mu

st

be

no

tifi

ed

b

y re

gis

tere

e-o

r certi

fie

d

mail

th

at

he

is

in

no

nco

mp

lian

ce

and

b

e g

iven

IS

d

ay

s to

sub

mit

all

m

oney

an

d

rep

ort

s

then

d

ue.

If

he

fail

s

to

sub

mit

all

m

on

ey

du

e w

ith

in

the

req

uir

ed

ti

me.

the

dep

art

men

t ~

init

iate

a

lien

u

po

n

the

real

pro

pert

y o

f th

e p

urc

hase

r an

d

may

in

itia

te

pro

ceed

ing

s to

en

join

fu

rth

er

pro

cessin

g o

f all

woo

d p

rod

ucts

u

nti

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on

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e is

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aid

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ll

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men

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rts are

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bm

itte

d.

-11

-

, I 1 2 3 4 5 6 7 8 9

10

11

12

13

14

IS

16

17

18

19

20

21

22

23

24

25

r I

r f

I E

1:::

1:1

I Y

. C;

c:;l

-/ ~ -

sf"

LC

1

57

3/0

1

(2)

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pay

men

t an

d

rep

ort

s

are

n

ot

receiv

ed

b

y

the

dep

art

men

t is

--n

ct-

-meee

wit

hin

th

e

IS-d

ay

p

eri

od

afte

r

no

tifi

cati

on

as

pro

vid

ed

in

su

bsecti

on

(I),

a p

en

alt

y o

f 5

\

of

the

pay

men

t am

ou

nt

du

e

mu

st

be assessed

. T

he

dep

art

men

t

may

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ate

th

e

pen

alt

y if

th

e

pu

!ch

ase

r esta

bli

sh

es th

at

the

fail

ure

to

su

bm

it

the

amo

un

t d

ue

or

the

rep

ort

s

as

req

uir

ed

was

d

ue

to

reaso

nab

le

cau

se

an

d

was

n

ot

du

e

to n

eg

lect

on

his

p

art

. T

he

dep

art

men

t,

in ad

dit

ion

to

th

e

pen

alt

y,

may

imp

ose

in

tere

st

at

the

rate

o

f 1

0\

a y

ear

on

an

y

bala

nce

rem

ain

ing

u

np

aid

.

(3)

All

m

on

ey withhelct~~urchaser

for

the

co

ntr

acto

r's

bo

nd

an

d

for

dep

art

men

t fe

es

are

co

nsi

dere

d

to

be

ex

cis

e

tax

es

wit

hh

eld

fo

r th

e

ben

efi

t o

f th

e sta

te w

ith

in

the

mea

nin

g o

f 11

U

.S.C

. 5

07

."

NEW

S

EC

TIO

N.

Sec

tio

n 1

2.

Fees.

(1)

In ad

dit

ion

to

an

y

bo

nd

. th

e

dep

art

men

t sh

all

ch

arg

e

the

co

ntr

acto

r fe

es

for

ad

min

istr

ati

on

. in

sp

ecti

on

s,

an

d

en

forc

em

en

t w

ork

co

nd

ucte

d

in

the

ex

erc

ise

of

its d

uti

es

un

der

this

p

art

. T

he

fees

mu

st

be

dep

osit

ed

in

th

e sta

te sp

ecia

l re

ven

ue

fun

d

to

the

cre

dit

o

f th

e

dep

art

men

t.

(2)

(a)

Th

e fe

e

for

a fir

e

hazard

re

du

cti

on

ag

reem

en

t

is

$2

5

and

m

ust

b

e co

llecte

d

by

th

e

dep

art

men

t u

po

n

issu

an

ce

of

the

ag

reem

en

t.

(b)

In ad

dit

ion

, a

fee

of

60

cen

ts

for

each

1

,00

0

bo

ard

feet

(lo

g scale

) o

r eq

uiv

ale

nt

mu

st

be

ch

arg

ed

if

p

rod

ucts

-12

-

I

Page 32: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

LC

15

73

/01

1 o

ther

than

lo

gs

are

cu

t.

Th

is

fee

mu

st

be

wit

hh

eld

b

y

the

2 p

urc

hase

r as

pro

vid

ed

in

7

6-1

3-4

09

(2),

ex

cep

t th

at

an

y

fee

3 m

oney

w

ith

held

fo

r p

rod

uct

vo

lum

es

ex

ceed

ing

5

00

,00

0

bo

ard

4 fe

et

per

ag

reem

en

t in

a

cale

nd

ar

year

mu

st

be

retu

rned

to

5 th

e co

ntr

acto

r b

y th

e d

ep

art

men

t.

6 (3

) F

ees

for

mast

er

fire

re

du

cti

on

ag

reem

en

ts

mu

st

be

7 eq

ual

to

lOO

t o

f th

e d

ep

art

men

t's actu

al

co

sts

in

cu

rred

in

8 9

the

ad

min

istr

ati

on

,

ag

reem

en

t,

and

th

e

insp

ecti

on

, an

d

dep

art

men

t sh

all

10

an

nu

all

y

to co

llect

such

fe

es.

en

forc

em

en

t o

f each

bil

l th

e

co

ntr

acto

r

11

NE

W

SE

CT

ION

. S

ecti

on

13.

R

ep

eale

r.

Secti

on

7

6-1

3-4

04

,

12

M

CA

, is

re

peale

d.

13

NE

W

SE

CT

ION

. S

ecti

on

14.

E

xte

nsi

on

o

f au

tho

rity

. A

ny

14

ex

isti

ng

au

tho

rity

to

m

ake

rule

s

on

th

e su

bje

ct

of

the

15

p

rov

isio

ns o

f (t

his

act)

is

ex

ten

ded

to

th

e

pro

vis

ion

s o

f

16

(t

his

act)

.

17

NE

W

SE

CT

ION

. S

ecti

on

15

. C

od

ific

ati

on

in

str

ucti

on

.

18

(S

ecti

on

1

2)

is

inte

nd

ed

to

b

e co

dif

ied

as

an

inte

gra

l p

art

19

o

f T

itle

7

6,

ch

ap

ter

13

, p

art

4

, an

d

the

pro

vis

ion

s o

f T

itle

20

76

, ch

ap

ter

13

, p

art

4

, ap

ply

to

(s

ecti

on

1

2).

21

NEW

S

EC

TIO

N.

Sec

tio

n 1

6.

Eff

ecti

ve d

ate

. (T

his

act)

is

22

eff

ecti

ve '

July

1

, 1

98

9.

-En

d-

-13

-

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:d-~

~-1::S-8~

Page 33: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

STATE FORESTER'S ALTERNATE TESTIMONY

ON '89 SLASH BILL (BB 0657)

DRAFT 13 (Et:Y, I-~q 2-~-:.-) I WOULD LIKE TO OFFER MY STRONG SUPPORT FOR HB0657, REVISING THE FIRE

HAZARD REDUCTION LAWS.

BACKGROUND

IN RECENT YEARS, THE STATE'S FOREST INDUSTRIES AND LOGGING CONTRACTORS

HAVE BECOME INCREASINGLY CONCERNED THAT THE SLASH LAW SHOULD BE

ADMINISTERED AS EFFICIENTLY AND EVEN-HANDEDLY AS POSSIBLE. IN

PARTICULAR, THEY ASKED ME TO CLARIFY OUR STANDARDS FOR COMPLIANCE WITH

THE LAWS AND RULES, SO THAT THEY COULD PLAN AND EXECUTE THEIR

OPERATIONS MORE EFFICIENTLY.

IN DECEMBER 1987, I INVITED REPRESENTATIVES OF MONTANA'S FOREST

INDUSTRIES, LOGGERS AND PRIVATE LANDOWNERS TO PARTICIPATE IN A TASK

FORCE TO IMPROVE THE DEPARTMENT'S SLASH PROGRAM. IN ADDITION TO

STANDARDS FOR SLASH WORK, THE REPRESENTATIVES AGREED TO WORK ON

RELATED ISSUES INCLUDING DEPARTMENT PROCEDURES, LAW ENFORCEMENT, DSL'S

PERSONNEL NEEDS AND FINALLY, FUNDING OF DSL' S PROGRAM. THIS CONSEN­

SUS-BUILDING TASK FORCE FINISHED ITS WORK IN DECEMBER 1988. I AM VERY

PLEASED WITH THE RECOMMENDATIONS PRODUCED BY THE SLASH TASK FORCE,

SOME OF WHICH ARE REPRESENTED IN THIS BILL.

Page 34: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

KEY PROVISIONS

1 .. '1,l"J ...

DATE eX -ls-F9 /eO? HB~~ ___ ~_~_++-__ __

FROM DSL'S STANDPOINT, THE MOST SIGNIFICANT FEATURES OF THIS BILL ARE

THE PROVISIONS FOR A NEW FEE STRUCTURE (SECTION 12), AND THE AUTHORITY

TO BOND MILLS (SECTION 8,76-13-409 MCA, NEW SUBSECTION 4).

THE REVISED FEE STRUCTURE CREATES MORE EQUITY AMONG THOSE WHO DEPEND

ON OUR SERVICES TO ACHIEVE COMPLIANCE WITH THE SLASH LAWS. UNDER

CURRENT LAW, DSL IS AUTHORIZED TO RETAIN 4% OF THE CONTRACTOR'S

PERFORMANCE BOND FOR ADMINISTRATION, INSPECTION AND ENFORCEMENT WORK.

AT A BONDING RATE OF $6 PER THOUSAND BOARD FEET (MBF), THIS PROVIDES

ONLY 24 CENTS PER MBF, WHICH GROSSLY UNDER-COMPENSATES DSL FOR THE

REAL COSTS OF ADMINISTERING MOST AGREEMENTS. FOR EXAMPLE, A TYPICAL

NONINDUSTRIAL AGREEMENT INVOLVING 50 MBF EARNS DSL ONLY $12, COMPARED

TO ACTUAL COSTS OF $100 OR MORE FOR FIELD WORK, OFFICE WORK AND

ACCOUNTING. THIS BILL WOULD ESTABLISH A NEW FEE STRUCTURE TO SUPPORT

THE SLASH PROGRAM AT A LEVEL COMMENSURATE WITH SERVICES PROVIDED. FOR

AGREEMENTS COVERING INDIVIDUAL OPERATIONS, THERE WOULD BE A FEE OF $25

TO OPEN THE AGREEMENT PLUS 60 CENTS PER MBF HARVESTED.

APPROXIMATELY THREE-QUARTERS OF THE AGREEMENTS WOULD HAVE TOTAL FEES

OF $25 TO $150. IN A TYPICAL, NONINDUSTRIAL HARVEST OF 50 MBF, THESE

FEES WOULD NORMALLY INCREASE THE LOGGING COSTS BY LESS THAN ONE

PERCENT. FOR LARGER OPERATIONS, AN ANNUAL LIMIT ON THE VOLUME SUBJECT

TO FEES - 500 MBF - WOULD CREATE A CAP ON THE YEARLY COST OF AN

AGREEMENT OF $325.

- 2 -

Page 35: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

EXHIBIT 1 DATE. ~ -l:F.:::t£:.. HB_ (,51 ..

HOLDERS OF MASTER AGREEMENTS - THOSE COVERING MANY OPERATIONS, AND

TYPICALLY SUPERVISED BY INDUSTRY FORESTERS - WOULD BE BILLED ANNUALLY

FOR 100% OF DSL'S ACTUAL COSTS INCURRED IN THE ADMINISTRATION,

INSPECTION AND ENFORCEMENT OF EACH AGREEMENT. THIS SETS INTO LAW

CURRENT BILLING PRACTICE FOR THESE MASTER AGREEMENTS, WHICH ARE MORE

EFFICIENT FOR BOTH DSL AND THE PRIVATE PARTY CONDUCTING MULTIPLE

OPERATIONS.

THE REVISED FEES WOULD BE VERY COMPLEMENTARY FOR DSL'S CURRENT

RESOURCE NEEDS. ON FEBRUARY 15, 1989 I TESTIFIED BEFORE THE _HOUSE

NATURAL RESOURCES APPROPRIATIONS COMMITTEE REQUESTING AUTHORITY FOR

2.81 ADDITIONAL FTES FOR THE SLASH ADMINISTRATION SUBPROGRAM. THIS

COMMITTEE APPROVED THIS BUDGET MODIFICATION PENDING PASSAGE OF THIS

BILL. THESE RESOURCES ARE NEEDED TO HANDLE A SHARPLY INCREASED

WORKLOAD (ABOUT 29%) IN THE NUMBER OF NONINDUSTRIAL PRIVATE HARVESTS,

AND TO IMPLEMENT CHANGES IN OUR PROGRAM RECOMMENDED BY THE TASK FORCE

(HBOG5? DOES NOT, OF ITSELF CAUSE ANY NEW WORKLOAD OR EXPENDITURES).

A KEY BENEFIT OF THE REVISED FEES IS THAT THEY ARE EXPECTED TO PROVIDE

ALL OF THE INCOME NECESSARY TO SUPPORT THE ADDITIONAL PERSONNEL. THAT

IS, NO ADDITIONAL GENERAL FUNDS WOULD BE NEEDED FOR THIS BIENNIUM, NOR

IN THE FORESEEABLE FUTURE.

THE OTHER KEY PROVISION OF THIS BILL INVOLVES THE BONDING OF MILLS.

THE AUTHORITY TO BOND MILLS IS NEEDED BY DSL TO REMEDY CERTAIN CASES

OF NONCOMPLIANCE BY LOG PURCHASERS. CURRENT LAW OBLIGATES MILLS TO

- 3 -

Page 36: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

.,:.,l8tr __ L.~_. _ ,J; -, c 61.. - IS"Sl. H n_----'-{p_0--t1 ___ -'

DETERMINE THAT A LOG SELLER HAS A SLASH AGREEMENT WITH DSL BEFORE

BUYING LOGS, AND TO WITHHOLD MONEYS FROM THE PURCHASE PAYMENT AS A

PERFORMANCE BOND FOR SLASH WORK. A MONTHLY REPORT IS REQUIRED TO DSL

DETAILING LOG PURCHASES, PLUS A TRANSMITTAL OF ALL MONEYS WITHHELD.

UP TO 5% OF MONTANA SAWMILLS MAY NOT BE IN COMPLIANCE WITH,THIS LAW AT rEljl..(.\N t1

ANY GIVEN TIME. THIS BILL PROVIDES AUTHORITY FOR DSL TO/BOND f '(""i) n'1

PURCHASERS OF FOREST PRODUCTS, SO THAT IN CASES WHERE THE PURCHASER

DOES NOT TRANSMIT WITHHELD MONEYS TO DSL, DSL HAS A VEHICLE FOR

REFUNDING THE BONDS OF CONTRACTORS WHO HAVE ACTED IN GOOD FAITH BY

DOING THEIR SLASH WORK. IT IS MY INTENT THAT RULES WILL BE SET FORTH

TO ESTABLISH THE CRITERIA DSL WILL USE TO DETERMINE THAT A PURCHASER

SHOULD BE BONDED. PURCHASERS WHO HAVE A GOOD RECORD OF COMPLIANCE ~i~

SHOULD NOT BE PENALIZED BY"BONDING,,,(..(.~v"'tyY\.~,

SECONDARY PROVISIONS

THIS BILL CONTAINS SECONDARY MEASURES THAT WILL PROMOTE A FAIR, EVEN­

HANDED APPROACH TO ENFORCEMENT OF THE SLASH LAWS. ALL OF THESE

REVISIONS ARE BENEFICIAL FOR ADMINISTERING AN EFFICIENT SLASH PROGRAM.

SUMMARY

, THIS IS A GOOD BILL. COMBINED WITH THE ADDITIONAL FTES JUSTIFIED IN

THE GOVERNOR'S BUDGET, THIS BILL WILL ENHANCE THE DEPARTMENT'S ABILITY

TO PROVIDE EFFECTIVE SERVICE TO FOREST LANDOWNERS AND OPERATORS, PLUS

GUARANTEE THE PUBLIC A CONTINUED, HIGH LEVEL OF COMPLIANCE WITH FIRE

- 4 -

Page 37: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

c.:dil!ji 1___ 7 DATL oi-=~tl HB_~_~-,-1_~

HAZARD REDUCTION STANDARDS. THE BILL IS FAIR, IT HAS BROAD-BASED

SUPPORT, AND IT DOESN'T ASK THE LEGISLATURE FOR MORE GENERAL FUNDS. I

STRONGLY URGE PASSAGE OF THIS BILL.

- 5 -

Page 38: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

Amendments to House Bill No. 143 Introduced Copy

1. Page 1. Following: line 11

Requested by Rep. O'Keefe

Prepared by H. Zackheim February 10, 1989

Insert: " STATEMENT OF INTENT

.1 I J?

It is the intent of the legislature to create an oil and gas production damage mitigation account to be administered by the board of oil and gas conservation for the purpose of properly plugging and abandoning oil and gas wells when a responsible party cannot be found or when the responsible party does not have sufficient financial resources. The board shall adopt rules to help it define "sufficient financial resources", shall require a responsible party to pay the costs of plugging and abandoning to the extent of his available resources, and shall pursue full cost recovery for funds spent from the account through the procedures provided in [section 9] or other lawful means. The board may adopt rules to administer instituting a lien on the party's personal and real property to cover the cost of plugging and abandoning.

The legislature intends that the board use the account for reclamation related to land, water, or wildlife resources disturbed by abandoned oil and gas wells, injection wells, sumps, and seismographic shot holes.

It is also the intent to remove producing wells completed after June 30, 1989, from drilling bonds and to limit the liability of the bond or its equivalent to the period between issuance of the bond and either proper plugging and abandoning of a dry hole or completion of a producing well. The board shall adopt forms for the producer to indicate that a well has been completed and shall, upon receipt of the information and payment required under [section 7], release and absolve the owner of the well from the bond required under 82-11-123.

It is further the intent of the legislature that the board of oil and gas conservation respond promptly to emergency situations that may arise."

2. Page 2, line 8. Following: "(ii)" Insert: "beginnlng in fiscal year 1992," Strike: "$250,000" Insert: "$50,000"

3. Page 5, line 24. Strike: "list" Insert: "record"

1 HB01430l.ahz

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4. Page 6, line 3. Strike: "the preceding" Following: "subsection" Insert: "(I)"

5. Page 6, line 4. Following: "determine" Insert: "and list"

6. Page 6, lines 12 and 13.

EXHl8lT_.--:;...6 __ _

DA TE d2. -(~-.I:i. HB_ .. /113 ____ _

Strike: "under" on line 12 through "subsection" on line 13 Insert: "or when the person does not have sufficient financial

resources to pay for complete reclamation"

7. Page 6, lines 17 and 18. Strike: "established" on line 17 through "available" on line 18

- Insert: "in a manner consistent with the requirements for the use of the account provided in (section 6] and [section 9]"

8. Page 9, line 8. Strike: "as reguired " Insert: "for the purposes of using the oil and gas production

damage mitigation account established"

9. Page 11, line 7. Following: "the" Insert: "ownernotifies" Strike: "is" through "[section 7]"

10. Page 11, line 9. Strike: "is" through "provisions" Insert: "meets the requirements"

11. Page 12, line 6. Strike: "1989" Insert: "1991"

12. Page 12, line 8. Strike: "$250,000" Insert: "$50,000"

13. Page 12, line.13. Strike: "$500,000" Insert: "$200,000"

14. Page 12, line 15. Strike: "$500,000" Insert: "$200,000"

15. Page 12, line 17. Strike: "$500,000" Insert: "$200,000" Strike: "$250,000" Insert: "$50,000"

2 HB014301.ahz

Page 40: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

~_ A ri il311 ___ f' ___ _ DATE =2 -10-67

~/-=-:. / {3 ---H8. _7 ....

16. Page 12. Following: line 19 Insert: "(3) In addition to the allocation provided in

subsection (2), there must be deposited in the oil and gas production damage mitigation account:

(a) all funds received by the board pursuant to 82-11-136; and

(b) all fees received by the board from owners of producing wells pursuant to [section 7]."

Renumber: subsequent subsections

17. Page 12, line 25 through line 1, page 13. Following: "abandoned" Strike: "," on line 25 through "quantities," on line 1

_ 18. Page 13, line 2. - Strike: "located"

Insert: "or the responsible person does not have sufficient funds to pay the costs. The responsible person shall, however, pay costs to the extent of his available resources and is subsequently liable to fully reimburse the account or shall be subject to a lien on property as provided in [section 9] for costs expended from the account to properly plug the well and to mitigate any damage caused by the well."

19. Page 13, line 11. Strike: "application of" Insert: "receipt of notification by"

20. Page 13, line 12. Strike: "in" Insert: "on" Following: "board" Insert: ", payment by the owner of {$50/$lOO/$200}, " Strike: "upon providing" Following: "proof" Insert: "from the owner"

21. Page 14, line 5. Strike: "-- priority"

22. Page 14, lines 7 and 8. Following: "account" Strike: "," on line 7 through "[section 6(3)]" on line 8 Insert: "under [section 6(4)]"

23. Page 14, line 9. Following: "year" Insert: ","

24. Page 14, lines 11 and 12. Following: "person," on line 11 Strike: "as" on line 11 through "[section 4]," on line 12

3 HB01430l.ahz

Page 41: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

25. Page 14, lines 14 and 15. Following: "person," on line 14

8 : ,-~_~-L.:£-ff

" \ /1J3- --____ _

Strike: "as" on line 14 through "[section 4]," on line 15 Following: "not" Insert: "fully"

26. Page 14, lines 19 through 21. Strike: "has" on line 19 through "may" on line 21 Insert: "must" Following: "to" on line 21 Strike: "the" Insert: "all"

27. Page 14, line 22. _ Following: "the" Insert: "responsible" Strike: "as determined under [section 4]"

28. Page 14, lines 23 through 25. Strike: "has" on line 23 through "[section 4]" on line 25 Insert: "is valid until paid in full or otherwise discharged.

The lien must be foreclosed in accordance with applicable laws governing foreclosure of mortgages and liens."

4 HB014301.ahz

Page 42: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

VISITORS' REGISTER

VUl1L/u<-J.",< ~(A./CS COMMITTEE " , BILL NO. ;lute .:J~- DATE c:; -/6 J 2 SPONSOR J-dZL\' )~3\U)L-{./~ -----------------------------

RESIDENCE --------1-------SUPPORT OPPOSE NAME (please print)

'J v

IF YOU CARE TO WRITE COMMENTS, ASK SECRETARY FOR WITNESS STATEMENT FORM.

~-. PLEASE LEAVE PREPARED STATEMENT WITH SECRETARY.

CS-33

Page 43: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

VISITORS' REGISTER

, 1\ a IjJ Gte a 2 KJ(.i)IL-lc C! (' S COMMITTEE c

BILL NO. HB Gog DATE ex) - /:~ - ,~ --~------~~------------

SPONSOR _~0..:;;:.'It---,tL=LL:;....-~ _____ _

----------------------------- ------------------------~-------- -------NAME (please print) REPRESENTING SUPPORT OPPOSE

IIV1 El L.

I

IF YOU CARE TO WRITE COMMENTS, ASK SECRETARY FOR WITNESS STATEMENT FORM.

PLEASE LEAVE PREPARED STATEMENT WITH SECRETARY.

CS-33

Page 44: MINUTES MONTANA HOUSE OF REPRESENTATIVES › portals › 189 › leg › 1989 › house › 02-15-hnr.pdf · that he had looked at the letter from the water well drillers, as directed

VISITORS' REGISTER

, /\ f.lLt;,), a I ·hJ!\/i)U. rtf! <'j COMMITTEE

BILL NO. jltS -cq n (:. / i DATE __ ,_;J_-_l..::..5_-.-:,:8::....-L..9 _____ _

S PON SOR _t--c:~'-=-' U-C=--.;:·...:.:h_~4---"":::!:-:....-.-___ _

----------------------------- ------------------------~--------. -------NAME (please print) REPRESENTING SUPPORT OPPOSE

/?1ARlc.... Si.0'1cl"1 'J:.....!:r F. l~ . Soh) +-z-e Lc. ... J'-i Lb r. X A(\£tJ:! lu\~ c.~ .£ lOo"'" T(w,~~ ':L ,

'-f{().A.,'l' j -~~ D5'L. X ~t/ j//U? b>L- -Y ~'-',/,-l. ;j '/.'1 '- ,d ~ d{Z lffi A/I:. .'J~ " d£j'<4t!J~'A. k

/

~ ..,. /'\ -.- .

Q-4';x:_~~(J!! J X JJ~~ .C9.~ rd~ MJv.J:/!..A K ,

IF YOU CARE TO WRITE COMMENTS, ASK SECRETARY FOR WITNESS STATEMENT FORM.

PLEASE LEAVE PREPARED STATEMENT WITH SECRETARY.

CS-33