minutes montana house of representatives › portals › 189 › leg › 1989 › house ›...
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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
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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.
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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
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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 ___ _
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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.
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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
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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
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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.
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51
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1.
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s.
As
use
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in
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p
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s th
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bo
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r in
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. see~
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on
4
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f th
e
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nta
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nsti
tuti
on
.
(2)
"C
ert
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ati
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o
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ara
nce"
mea
ns
a cert
ific
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on
issu
ed
b
y
the d
ep
art
men
t ac
kn
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led
gin
g th
at
the fi
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has
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o
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anag
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rdan
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is p
art
an
d
the fi
re
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du
cti
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reem
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or
ag
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ts.
(3)
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eans
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e
pers
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ecu
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re
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reem
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re
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nsi
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l th
e
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lig
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on
s esta
bli
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th
e
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t.
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-Dep
art
men
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s th
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f sta
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r in
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itle
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ap
ter
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. p
art
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1 2 3 4 5 6 7 8 9
10
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tim
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a.
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) "F
ire
hazard
re
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m
ean
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ntr
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e to
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sure
co
mp
lian
ce w
ith
th
is
part
an
d
wit
h
the
rule
s
ado
pte
d
un
der
7
6-1
]-4
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fo
r fi
re
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re
du
cti
on
o
r
man
agem
ent.
17)
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ire
hazard
re
du
cti
on
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r m
anao
emen
t"
mea
ns
the
abat
emen
t o
f a
fire
h
azard
by
met
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inclu
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t are
no
t li
mit
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se
para
tio
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re~oval.
scatt
eri
ng
. 1
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g.
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ury
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ees
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1 2 3 4 5 6 7 8 9
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12
13
14
15
16
17
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20
21
22
23
24
25
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urc
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mea
ns
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ers
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ho
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ase
an
y fo
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t fr
om
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th
e sta
te.
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rm
inclu
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s
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e cu
ttin
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a."
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, M
CA,
is
amen
ded
to
re
ad
:
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Basi
s fo
r m
anag
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t o
f fi
re h
azard
s.
Th
e
fir
e
hazard
re
du
cti
on
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r m
anag
emen
t o
f-fi
re-h
azard
s
refe
rred
to
in th
is p
art
sh
all
b
e carr
ied
on
b
y
the
dep
art
men
t an
d
the--
-sta
te--
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-ward
en
s
in
keep
ing
w
ith
m
od
ern
an
d
pro
gre
ssiv
e
fore
st
pra
cti
ces
an
d ~ere eff
ecti
ve
fore
st
fire
eo
ntr
el
pro
tecti
on
an
d
may
in
clu
de
bu
t is
n
ot
lim
ited
to
th
e
tak
ing
o
f p
rote
cti
ve
measu
res
to
pre
ven
t in
jury
o
r th
e
destr
ucti
on
o
f fo
rest
reso
urc
es
wit
ho
ut
actu
al
ab
ate
men
t o
f
the
hazard
."
Sec
tion
3.
Secti
on
7
6-1
3-4
03
. M
CA.
is
amen
ded
to
re
ad
:
"7
6-1
3-4
03
. S
up
erv
isio
n
by
d
ep
art
men
t.
Th
e d
ep
art
men
t,
un
der
s~eh
rule
s
as
ad
op
ted
by
th
e
bo
ard
ad
ep
ts,
may
su
perv
ise
an
d
insp
ect
the
fire
h
azard
re
du
cti
on
o
r
man
agem
ent
of
an
y
!!!
fire
h
azard
h
azard
s cre
ate
d
by
th
e
e~tttn9-of-any-ferest-prod~et
fore
s_t _
_ p~oducts harvesti~~
tim
ber
sta
nd
im
pro
vem
en
t,
and
ri
gh
t-o
f-w
ay
cle
ari
ng
o
n
pri
vate
la
nd
in
th
e sta
te."
Sec
tion
4.
Secti
on
7
6-1
3-4
05
, M
CA,
is
amen
ded
to
re
ad
:
"7
6-1
3-4
05
. C
on
tracts
w
ith
fo
rest
pro
teeti
ye !l~
pro
tecti
on
ag
en
cie
s.
Th
e d
ep
art
men
t is
h
ere
by
au
tho
rized
to
-3-
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
~"'I-S -1
'1'
LC
15
73
/01
en
ter
into
co
ntr
acts
wit
h fo
rest
fire
p
rote
cti
on
p
rote
eti
Ye
ag
en
cie
s,
inclu
din
g ag
en
cie
s o
f th
e U
nit
ed
S
tate
s,
for
the
fire
h
azard
re
du
cti
on
o
r m
anag
emen
t ef-s~eh-fire-hazards
whe
n in
it
s o
pin
ion
th
e
wo
rk
can
b
est
be
acco
mp
lish
ed
in
that
man
ner.
"
Sec
tion
5.
Secti
on
7
6-1
3-4
06
, M
CA
, is
am
end
ed
to
read
:
"76
-13
-40
6.
Lia
itati
on
on
li
ab
ilit
y.
Th
e d
ep
art
men
tT
sta
te--
fire
ward
en
s7
an
d ~
reco
gn
ized
fo
rest
pro
tecti
Ye
fire
p
rote
cti
on
ag
en
cie
s,
inclu
din
g
any
ag
en
cy
o
f th
e
Un
ited
Sta
tes.
wit
h
wh
ich
th
e
dep
art
men
t h
as
en
tere
d
into
an
ag
reem
en
t fo
r th
e
fire
h
azard
re
du
cti
on
o
r m
anag
emen
t o
f-an
y
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](https://reader035.vdocuments.site/reader035/viewer/2022062921/5f04539f7e708231d40d6d57/html5/thumbnails/28.jpg)
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](https://reader035.vdocuments.site/reader035/viewer/2022062921/5f04539f7e708231d40d6d57/html5/thumbnails/29.jpg)
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](https://reader035.vdocuments.site/reader035/viewer/2022062921/5f04539f7e708231d40d6d57/html5/thumbnails/30.jpg)
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](https://reader035.vdocuments.site/reader035/viewer/2022062921/5f04539f7e708231d40d6d57/html5/thumbnails/31.jpg)
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
25
I I
" I
I ,
I I
LC
1
57
3/0
1
ecn
traet-
ey
-th
e-p
ers
cn
T--
sh
aii
-ee-g
ren
tee-e
-eert
i£ie
ati
on
-cf
eieerenee--ey--the-eepart~ent-and-ee-reiie¥ee-of-any-enc-aii
fart
her-
iiaeii
ity
-an
c--
resp
on
sib
iiit
y--
£cr-
-th
e--
rem
o¥
ai-
-or
recaetion--cf--the--£ire--hezerd~-~he-depertment-mey-reqaire
that-
a-e
esh
-bo
ncT
--eq
ai¥
aie
nt-
-tc--
the--
eo
ntr
eet-
-pri
ee--
an
c
eo
nd
itio
nec--
ap
on
--th
e-f
ait
hfa
i-p
erf
orm
en
ee-o
f-th
e-e
on
traetT
ee-eepositee-ey-the--person-with-the-eepertment~
tit--~he-department-sheii-nct-fiie-for-reeorc--eny--iien
ag
ein
st-
-th
e--
pro
pert
y--
of-
-en
y-p
ers
on
-wh
o-h
as-b
een
-issaec-a
eertifieetion-o£-eo~piienee--with--~6-i3-498--enc--i6-i3-499
ec¥ering-the-prcperty~"
Sec
tio
n 1
1.
Secti
on
7
6-1
3-4
13
, M
CA
. is
am
end
ed
to
read
:
-76
-13
-41
3.
Fail
ure
to
su
bm
it
wit
hh
old
ing
--
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
o
r b
efo
re
the
15
th
day
o
f eech
th
e
foll
ow
ing
m
on
th as
pro
vid
ed
in
w
hen
-req
air
ee-t
c-e
o-s
o--
un
cer
76
-13
-40
9.
he
mu
st
be
no
tifi
ed
b
y re
gis
tere
e-o
r certi
fie
d
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
l all
m
on
ey
du
e is
p
aid
in
fu
ll
or
seti
sfe
eto
ry-a
rran
gem
en
ts-£
cr-
-pey
men
ts--
ere
--m
eee
an
d
all
req
uir
ed
re
po
rts are
su
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)
If
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
ab
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](https://reader035.vdocuments.site/reader035/viewer/2022062921/5f04539f7e708231d40d6d57/html5/thumbnails/32.jpg)
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
-
U.
: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](https://reader035.vdocuments.site/reader035/viewer/2022062921/5f04539f7e708231d40d6d57/html5/thumbnails/33.jpg)
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](https://reader035.vdocuments.site/reader035/viewer/2022062921/5f04539f7e708231d40d6d57/html5/thumbnails/34.jpg)
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 -
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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
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.,:.,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
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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.
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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"
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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"
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~_ 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
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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."
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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
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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
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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