Natural Resources Committee, March 7, 2001

Remarks of Gov. JUDY MARTZ
10:00 a.m., Natural Resources Committee
Longworth House Office Building
Washington, D.C.
March 7, 2001

CHECK AGAINST DELIVERY

Mr. Chairman, members of the committee, for the record I am Governor Judy Martz, representing the Big Sky State of Montana. It is an honor to be here today to testify on the role of public lands in developing a self-reliant energy policy. I appreciate the efforts and interest this committee has shown in this issue.

Let me begin by putting into context the size of Montana. Overall, Montana has more than 93 million acres of land. That is more than 145,000 square miles.

Of the 93 million acres, more than 19 million acres are managed by the United States Forest Service-- 8 million by the Bureau of Land Management and another 1.1 million by the National Park Service. 33% of our land mass is managed by the federal government.

Montana has a wealth of natural resources. From vast super-compliant coalfields in the east, to thousands of acres of timberland in the west, Montana can contribute to the economic health of this country through responsible and environmentally sensible development of our resources.

Unfortunately, the federal government has systematically reduced the number of opportunities for responsible development of our natural resources in recent years.

At the end of President Clinton’s term in office, he succeeded in closing the door on many opportunities to responsibly manage and develop natural resources. President Clinton’s Roadless Initiative will lock up over 6 million acres of U.S. Forest Service land.

Additionally, the Roadless Initiative will prohibit sensible and environmentally sensitive exploration of natural gas and oil.

Also, just days before leaving office, President Clinton designated nearly half a million acres of land along the Upper Missouri River a national monument.

President Clinton and Secretary of Interior Bruce Babbitt permanently set aside one of our states greatest natural gas reserves due to “concerns over a great influx of tourists”.

Last year, approximately 420,000 acres along the Rocky Mountain Front were withdrawn for mineral development for the next 20 years. The Rocky Mountain Front has untold reserves of natural gas. In fact, our Canadian neighbors to the north have been responsibly developing natural gas along the Front for years.

But the news is not all bad. In fact, despite the previous Administration’s attempt to lock up the West, we believe Montana still has tremendous potential to meet the demands of a growing nation.

Montana anticipates the imminent transfer of federal mineral rights in super-compliant coal reserves in Southeast Montana. This area of land known as the Otter Creek tracts is the result of an exchange for the mineral development rights outside Yellowstone National Park.

While serving as Montana’s Lieutenant Governor under former Governor Marc Racicot, Montana successfully negotiated a deal with the federal government that resulted in the buyout of mineral rights, and an exchange for the lost economic development. Under the leadership of Senator Conrad Burns and former Congressman Rick Hill, HR 2107 was signed into law in 1998, mandating the transfer of Otter Creek Tracts 1, 2 and 3 to the State of Montana.

Former Secretary of Interior Bruce Babbitt ignored the law, refusing to make the transfer. I am pleased to say that working with the new Secretary of Interior Gale Norton, I anticipate Montana will receive ownership of these tracts in the near future.

The development of over 533 million tons of super-compliant coal is at stake. And I call it super-compliant because it far exceeds federal Clean Air requirements with high BTU values and low sulfur output.

This high quality coal will be in great demand in the Midwest as power-generating facilities struggle to improve air quality as mandated under the Clean Air Act.

The development of these tracts is also bringing increased interest from investors who recognize the need for additional power sources in the western half of our country. We have already had several inquiries about the potential coal development, but also coal fired electric generating facilities that will fuel the power needs of Montana and the West.

Along with potential coal development, Montana has vast reserves of a resource only recently acknowledged as a viable energy source. Coal bed methane. Currently, Montana’s Department of Environmental Quality and the BLM are working jointly to assess environmental impacts from proposed development. Wyoming Governor Geringer has had tremendous experience in the development of coal bed methane and we hope to learn from efforts in Wyoming.

Today, nearly 57% of our energy needs are supplied by foreign nations. Not only is that a national security risk, it takes good paying jobs away from hard-working Americans. It is unacceptable.

We have the resources to meet a greater portion of our country’s energy needs. And we can do it in an environmentally sensitive manner. As a nation, we need to re-evaluate the role our public lands can play in supplying this country with the energy it so desperately needs.

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