Mining The Prairies
The New Republic, March 24, 1973
Billings, Montana
UNDER the rolling plains of eastern Montana, Wyoming and the Dakotas is one of the world’s last great energy reserves — nearly a trillion tons of lignite and sub-bituminous coal, about 35 billion of which are readily strippable.
Lewis and Clark first noted the coal beds a century and a half ago, but they were far from energy consumption centers and remained largely forgotten until the late 1960s. Then, with little public awareness, giant energy companies began gobbling up coal leases and water rights and laying plans for strip mining, coal burning and coal gasification on a massive scale — plans that, if implemented, will radically alter the landscape and economy of the northern plains.
The energy companies’ interest in prairie coal was stimulated by several concurrent happenings: rising urban smog levels which have made high-sulfur Appalachian coal unburnable in many cities; recent federal mine safety laws, which have made deep-mined coal more expensive to get at; and the soaring demand for fossil fuels, especially natural gas. Prairie coal is not only low in sulfur but cheap to mine (it comes in thick seams with shallow overburdens). It converts nicely to pipeline-quality gas. And it was ripe for the taking.
The major owners of coal rights in the northern plains are, or were, the federal government, the Crow and Northern Cheyenne Indians and the Burlington Northern railroad. The federal government until recently was eager to dispose of its coal rights with no environmental impact studies and with little regard for control of competing fuel sources by oil companies. Until it stopped granting leases in 1971, the Interior Department had issued perpetual mining leases or exploratory permits on 323,000 acres of coal lands in Montana, Wyoming and North Dakota.
The standard price for these coal rights was one dollar an acre per year plus 17.5 cents per ton of coal mined, plus, in a few cases, initial bonuses ranging up to a few hundred dollars per acre. An acre of prairie coal land, depending on the thickness of the seam, can yield anywhere from 10,000 to 100,000 tons of coal, worth two to three dollars a ton at the mine mouth. The companies acquiring federal leases included Exxon, Mobil, Gulf, Atlantic-Richfield, Continental Oil, Sun Oil, Kerr-McGee and Peabody Coal.
The Crows of southeastern Montana own coal rights both on and off their reservation. With encouragement from the Bureau of Indian Affairs, they and the Northern Cheyennes sold mining leases and exploratory permits on 517,000 acres at about the same prices as the federal government. In one 1970 deal the Crows sold coal rights for 31,000 acres to Westmoreland Resources, an independent coal company, for $450,000, or about $15 an acre. On much of this land white ranchers have owned surface rights for three or four generations. Montana law gives owners of mineral rights the power to condemn surface lands necessary to their mining operations. Westmoreland has used this power to drive out ranchers around Sarpy Creek, 100 miles southeast of Billings, and plans to begin strip mining there next year.
The enormous mineral holdings of the Burlington Northern are the legacy of the 40 million acre land grant to the Northern Pacific, stretching in a checkerboard pattern from Minnesota to the Oregon and Washington coast. Though much of that land was sold off, the Burlington Northern retains 2.4 million acres of surface rights plus 6.1 million acres of mineral rights. (Keep in mind that the size of Rhode Island is 768,000 acres, of New Jersey 4.8 million acres.)
The railroad estimates that its land contains 11 billion tons of recoverable coal. It has leased about half of that at undisclosed prices to Continental Oil, Peabody Coal and other energy companies and intends to keep on leasing. “Coal is the ‘now’ energy source,” says BN assistant vice president for minerals Ernest Thurlow.
THE AMASSING of coal rights is one part of the picture. The other part is water, which is essential to coal-fired generating and gasification plants.
Water is a scarce commodity in the arid West and generally has to be stored and transported by government-built dams and aqueducts. The agency that builds dams and dispenses water rights — the Bureau of Reclamation — is enthusiastically in favor of rapid coal development.
As the need for additional irrigated farmland disappears, the Bureau must find other justifications for new projects. Development of coal resources is an ideal one. The Bureau talks of diverting water from the Yellowstone, Bighorn and other rivers to the coal-rich basin between Gillette, Wyoming and Colstrip, Montana. Though aqueducts have not yet been built, the Bureau has sold 10-year options on 700,000 acre-feet of water to a dozen oil, gas and coal companies, including Exxon, Gulf, Shell, Mobil, Sun, Kerr-McGee, Westmoreland, Peabody and Colorado Interstate Gas. Westmoreland’s water had previously been reserved for agricultural use by the Crows.
With the basic resources coal and water largely locked up by energy companies, the future of the northern plains depends on what those companies are allowed to do. A vision of what could be in store is contained in the 1971 North Central Power Study, conducted by the Bureau of Reclamation in collaboration with 35 electric utilities.
The NCPS proposes construction of 42 mine-mouth generating plants that would be fueled with strip-mined coal and cooled with government-transported water. These plants would generate 400 billion kilowatts of electricity annually, more than is currently produced by any country in the world save the US and Russia. They would require 210 million tons of strip-mined coal and 2.6 million acre-feet of water per year, or about one-third the average flow of the Yellowstone River. Electricity generated by the plants would travel by high-voltage transmission lines to St. Louis, Kansas City, Minneapolis-St. Paul and other Midwest cities, and west to Seattle and Portland. In all probability the NCPS plan will never be fully implemented, but even partial implementation would dwarf the mine-mouth complex currently being built in the Four Corners area of the Southwest.
Besides electricity generation, the energy companies are talking about building scores of plants to convert strip-mined coal into pipeline gas. The impact of all these energy-exporting plans would be tremendous. The strip mining necessary to feed the generating and gasification facilities would devour hundreds of thousands of acres. Though restoration of strip-mined land is theoretically possible, it is exceptionally difficult in arid areas. Smoke from coal-fired generating plants, though relatively low in sulfur, would pour an enormous amount of pollutants into the clear Big Sky, causing unknowable damage to downwind agriculture. The Environmental Defense Fund estimates that the 42 plants envisioned by the NCPS would emit more sulfur oxides, nitrogen oxides and fly ash than are currently emitted by all sources in New York City and Los Angeles combined. Ranching, farming and recreation would also be affected by the diversion of scarce water for industrial purposes. Construction and operation of mines and plants would bring in hundreds of thousands of new residents, more than quadrupling the population of the coal-bearing area. Along with rapid population growth would come trailer camps, tract homes, highways, inflated land prices, higher taxes and a host of social problems that have thus far eluded small towns and rural areas.
THE REACTION of prairie residents to these potential changes is divided. Many local businessmen welcome the imminent transition from a slow agricultural economy to a booming energy-exporting one; they feel it will be good for jobs and profits. Some old-time ranchers, while not enthusiastic, accept the coal rush as inevitable and have sold or leased their land to energy companies for slightly more than its value as ranchland.
A good many ranchers, young people and others, however, are fighting mad. Their ancestors homesteaded this land and they want their children to go on farming it. They like its unspoiled vistas, free-flowing rivers, fish and wildlife. They find it difficult to believe that cattle and wheat and rural values can co-exist with strip-mining and coal-burning, and they worry about what will happen when the coal is gone. What will then become of the unemployed workers, the abandoned power plants, the piles of overburden, dammed rivers and empty pipelines? “Don’t underestimate us,” warns Carolyn Alderson, wife of a Wyoming rancher. “Don’t lump us with the topsoil, as overburden to be tossed aside. We are descendants of those who fought for this land and we are prepared to do it again. ”
Resistance is taking shape in several ways. Farmers, ranchers, conservationists and others have formed a regional coalition called the Northern Plains Resources Council to seek a moratorium on coal development until strict environmental safeguards are adopted, a position also taken by the Farmers Union and many national environmental organizations. The Northern Cheyennes have had second thoughts about Continental Oil’s proposal to build four gasification plants on their reservation, have postponed negotiations and decided to draft their own environmental code. (Indian reservations are not covered by federal or state environmental laws.)
Public officials have grown wary too; they’ve seen the fate of Appalachia and earlier mining ventures in the West and don’t want a repetition. “Coal development represents a continuation of what has been the traditional history of Montana exploitation of its resources with a minimum of economic benefit to the state,” says Montana Lands Commissioner Ted Schwinden. Tom Judge, the newly elected Democratic governor of Montana, has called for an increased tax on coal and “the strongest strip mining control regulations in the history of this country.”
Pending in the state legislatures of Montana, Wyoming and North Dakota are bills that would require the issuance of annual — and revocable — permits to strip miners, impose strict reclamation standards, revise the eminent domain laws (now stacked in favor of sub-surface rights owners) and boost severance taxes on extraction of minerals. Another proposal would create local publicly owned energy districts with popularly elected directors that could own coal land, build generators and sell electric power. The districts would operate under environmental rules that reflect local concerns, and would retain their profits for local public purposes.
WHATEVER happens to these state-level bills — and they all face stiff opposition from private energy interests — the deeper questions raised by the prairie coal rush have to do with national energy policy and the relation between people, corporations and government.
Sooner or later sources of energy will be developed that don’t ravage land, air and water — but why not sooner rather than later? Most government and corporate thinking seems to presume that fossil fuels, because they are there, must be exploited. Thus, the federal government subsidizes coal gasification and liquefaction research (a subsidy that the energy corporations, who’ll make billions off the processes, hardly need) but shows only passing interest in solar, wind and other hydrocarbon substitutes. Development of technology that would make fossil fuel utilization more efficient — coal-burning generators waste about 60 percent of coal’s energy, and big automobile engines are notoriously wasteful of petroleum — is also low on the federal priority list.
And what of the people’s right to participate in decisions that affect their lives in fundamental ways? Energy companies have already scarred Appalachia and sullied the Southwest without much compassion for, or consultation with, the residents of those regions. The citizens of the northern plains now appear to be equally at the mercy of absentee corporations. The owners of most mineral rights are outsiders who pay little in the way of taxes and royalties mostly to the federal government and a private railroad.
Federal agencies such as the Bureau of Reclamation have their own interests to look after. State governments offer the most hope, but state officials are often connected with or influenced by outside corporations. Some form of local public ownership of basic resources might be an answer, but it is a distant possibility at best.