Speech

Montana Coal Council

Remarks of Governor Judy Martz
Bigfork
7/23/2003

***Check Against Delivery***

Thank you very much. I am truly honored that you have invited me to meet with you today. I can never say how much I appreciate all you do for the state of Montana.

I also enjoy meeting with your group because of your uniqueness. This group’s leadership, including your representative in Helena, Jim Mockler, does an excellent job of advocating for the issues important to you and Montana.

Another reason you are unique is the fact that you often come to the table with solutions. You know that lip service doesn’t do anyone any good.
You understand full well that in order to achieve goals you must come to the table ready to work. I really appreciate that characteristic.

Finally, the most important aspect of your group that makes it so enjoyable to meet with you is your Montana spirit. You are honest, both with yourselves, and statewide elected officials.

You have a great sense of hard work and knowledge of government that gives you credibility. It is that ethic that truly captures the spirit of service in Montana.

Our society has an increasing appetite for energy. With the increase in computer usage, air conditioning - it seems we cannot get enough of the air conditioning lately- microwaves and all the amenities in life that we enjoy, is it really a surprise that energy consumption has increased?

And while our appetite for energy has increased, we have not done nearly enough to meet our increased demands.

While the nation searches to meet its power needs and Montana seeks economic growth, we need to recognize that we hold an important key to both challenges.

The technology is available to remove resources and turn it into the source that fuels our economy. And we can do it while protecting the environment we enjoy.

In addition, we have several state-of-the-art technologies to ensure high-level production while maintaining a quality environment.

We can provide a clean natural resource to allow low-cost generation of energy supply to reduce and stabilize skyrocketing power prices.

You and I know that Montana has a wealth of natural resources. Montana can contribute to the economic health of this country through responsible and environmentally sensible development of those resources.

We can compete. We can produce. And we can grow our economy in the process.

We’re on track to complete the EIS on the development of coal bed natural gas in Eastern Montana.

The potential $4 billion positive impact to our economy, along with nearly $675 million for schools and services, is an enormous opportunity. We must push forward.

Coal bed natural gas is booming in Wyoming and it appears Montana may have some of the greatest coal bed natural gas reserves in the country.

All of these potentials, if utilized properly, and in a timely fashion not only will help address the energy concerns of our nation, but also provide economic growth for a state hungry for a better future for our kids and our grandkids.

Northeastern Montana in the Williston Basin is seeing oil well development unlike any since the late 1970’s. People are excited about the possibility of revived communities, school repairs and economic development.

More specifically, coal is where we are the strongest. I don’t have to tell you that Montana has abundant sources of clean, high quality coal.

We’re on track with the transfer of Otter Creek Tracts 1,2 and 3 for the development of over 533 million tons of super-compliant coal.

The technology is available to remove that coal and turn it into the source that fuels our economy. And we can do it while protecting the environment we enjoy.

A 400 million ton coal reserve with another 350 million tons of probable reserves. This is a proven 40-year supply of coal.

Not only is the supply stable, but the coal is a ‘clean coal’ in compliance with the Clean Air Act.

This project is going to play a key role in reducing and stabilizing power prices. As Governor, I am committed to working with everyone to make sure this project continues for that very reason.

As you know Montana is poised to be the nation’s energy leader. These developments did not happen by accident. They were brought about by hard work and dedicated leaders like all of you.

You know on each issue concerning resource extraction -- we will do the right thing at the state level too.

That is why we are moving forward. As we all know, one of the most critical factors to economic growth is affordable, reliable power. Without it, Montana will find it more difficult to improve our economy.

And therein lies the enormous opportunity for Montana. We can reverse the decades long movement away from the responsible development of our natural resources.

Montana must rise to help meet the energy demands of our state and our nation.

As you and I know, the world is a highly competitive environment these days. And, we’re fortunate to live in such a great state. Now our challenge is to prove that Montana is also a great place to do business.

As long as I am in office, I will work as hard as I can to make Montana a more business friendly place.

We will put Montana on the business map, and turn the state’s image as a vacation destination into an equally recognized business location.

That is one reason why my meeting with Northwestern Energy was so important last week. Some folks may have called the company to the woodshed and attempted to make political hay out of a difficult situation.

But, that is not the way a business friendly state operates. Northwestern didn’t come for a hand out and I didn’t see any reason to make their life more difficult.

We heard from their CEO, that Northwestern has some serious financial problems, and a turnaround plan in place. We can all hope they succeed.

It was also good to learn that Northwestern has more gas in storage than it did last year at this time and that the company will have enough natural gas to make sure Montanans get through the winter.

And, I was also pleased to hear that they are working on a proposal to spare local governments and school districts from dramatic increases. I will be monitoring the progress of that effort.

That was good news but there is still more work that needs to be done.

While Northwestern is working to repair its financial status, my administration is going to be working to protect Montana consumers.

That is why I have developed a three-pronged plan to protect Montana’s utility users.

First, we must conserve. In 2001, I launched Energize Montana, my energy conservation plan.

We are going to reformulate and redouble that effort to help Montanans know the benefits of energy conservation. We are already working on energy conservation efforts in state government.

Second, we absolutely must have every dollar necessary for the Low Income Energy Assistance Program. I see the congress is preparing to set this year’s level. I will be working very hard to make sure our less fortunate neighbors have a warm place to live this winter.

It is critical that this program is available to help as many people as possible, and I am glad to know our Congressional delegation shares that opinion.

Third, I will be establishing a high level task force to develop recommendations for the protection of consumers during this difficult period.

I have asked John Hines of the Northwest Power Planning Council to chair the task force.

Within the next few days I will issue an Executive Order to formally create the task force, name several individuals with knowledge and expertise in these issues to the task force and detail the group’s charge.

Among the most critical issues I want the task force to pursue immediately are:

1. Development of proposals to mitigate power bill increases for low-income Montanans who use gas to heat their homes or their water;

2. An evaluation of whether our laws and rules are sufficient to support Montana consumers’ interests in the event Northwestern Energy’s financial condition deteriorates further; and

3. An examination of how electricity default supply customers can receive the most reliable, affordable and stable electricity prices over the long term.

This plan is a major step to ensure that Montana is not weakened by this situation.

We will remain strong, we will thrive and we will continue to build a better economy…because as we transition to the new economy, we remain committed to our traditional economic sectors like agriculture, resource development, and timber harvest.

We cannot forget the roots of this great state.
Every tax dollar derived from a resource related business is one more dollar we have to prepare our children and grandchildren to be leaders in the information age.

We must pass on a new Montana by recognizing and capitalizing on everything that built this great state.
You know what that is, because you give your blood, and sweat and sometimes your tears to make this state work.

We are prepared for a bold agenda. Our vision is to make our new Montana a better Montana by building on our traditional values.

We must be aggressive. And collectively, we must send a message loud and clear, far and wide, that Montana is open for business.

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