Appeals court panel grants emergency injunction in methane case

June 2005

U.S. Water News Online

BILLINGS, Mont. -- An appeals court panel has granted a request by the Northern Cheyenne Indian Tribe and a conservation group to halt new coal-bed methane development in Montana's portion of the Powder River Basin pending their appeal in an ongoing dispute over drilling in the region.

The decision, by a panel of the 9th U.S. Circuit Court of Appeals, temporarily prevents the U.S. Bureau of Land Management from approving coal-bed methane projects in the basin in Montana and keeps Fidelity Exploration & Production Co. from drilling additional wells in one of its projects and building related infrastructure.

John Arum, an attorney for the tribe, said he was pleased and viewed the ruling as a positive sign.

A spokesman for Fidelity said that attorneys for the firm were reviewing the order. Greg Albright, a BLM spokesman, said the order ties officials' hands.

"It's somewhat disappointing, because we felt Judge Anderson's ruling was fairly well reasoned and dealt with the issue of phased development," Albright said.

In April, U.S. Magistrate Judge Richard Anderson decided BLM could allow limited coal-bed methane drilling on federal leases in a portion of southern Montana while the agency worked on an environmental study looking at phased development. His decision was similar to a plan proposed by BLM and followed one he made in February that said a 2003 study was inadequate because it failed to look at a staged development alternative.

Anderson's decision allowing limited development was a blow to the tribe and Northern Plains Resource Council, which wanted new drilling on federal leases stopped until the supplemental study was done. The tribe and conservation group sought an emergency injunction, pending their appeal of Anderson's ruling.

The dispute dates to 2003, when Northern Plains and the tribe sued. They argued, among other things, that BLM didn't consider alternatives to full-field development or take a hard look at the possible effects on such things as air quality and water.

Drilling for coal-bed methane involves the release of groundwater to ease the pressure holding the natural gas in coal seams. Some conservationists and ranchers say the water can be salty and damage crops. Concerns also have been raised about the potential draw down of aquifers and landowners' water wells.

Northern Plains said the temporary stay will allow existing projects to continue but keep BLM from approving new projects until the appeal is decided.

"There really wasn't any incentive for the BLM to go forward and look at phased development very quickly," said Mark Fix, a Northern Plains member. "Hopefully, they'll move forward now and look at it."

William Walks Along, a member of the Northern Cheyenne tribal council, said he was celebrating the injunction "and the fact that somebody's listening to the tribe."

The appeals court panel also granted a request for expedited briefing and arguments.


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