Montana groups voice concern over Cline's proposed Lodgepole mine

Montana groups voice concern over Cline's proposed Lodgepole mine

Washington (Platts)--25Apr2006

Montana environmental and wildlife agencies sent an 18-page letter to British
Columbia officials last week with concerns about a proposed coal mine north of
Glacier National Park.

"It's page after page of concerns," said Hal Harper, chief policy adviser for
Montana Governor Brian Schweitzer. "It's quite extensive and specific." Among
the top concerns is that the timeline set forth by Cline Mining "does not
adequately allow for a comprehensive environmental review."

Montana officials expect it could take up to three years to collect baseline
data about the area surrounding the Lodgepole project, but Cline wants to be
in production by December 2007.

Cline's application is the second for the area. British Columbia put on hold
the previous plan.

State officials also are concerned the regulatory process in Canada does not
fully take into account the effects of other development in the region. Gold,
coal and coalbed methane for the area north of the park are being discussed.

"Cumulative impacts will be addressed," said Kathy Eichenberger, the
province's liaison to Montana's Flathead Basin Commission and a regional
manager for the Ministry of the Environment in Nelson, British Columbia.

Canadian officials have put a permit for Cline to develop its Sage Creek
project in the disputed area on hold. It is in the Flathead Basin, about 12
kilometers north of the border.

Now the company has applied for a permit to open its Lodgepole project, about
40 kilometers north of Montana. Cline would mine about 2 million mt tons/year
of pulverized coal injection material from the Foisey Creek coal deposit for
about 20 years, a plan being evaluated by the province's environmental
assessment office.

Studies have estimated that there are 154.6 million mt of measured and
indicated reserves there, and 40.6 million mt of clean surface minable coal,
according to Cline.

The letter was received and will be considered as part of the Cline proposal's
environmental assessment, Eichenberger said. The Montana departments of
Environmental Quality, Natural Resources and Conservation and Fish, Wildlife
and Parks, along with the Flathead Basin Commission and the US Environmental
Protection Agency sent the letter.

-- Mark E. Heckathorn, mark_heckathorn@platts.com

For more information, take a trial to Platts Coal Trader at
http://www.coaltrader.platts.com.

Please visit: www.platts.com

Their coverage of energy matters is extensive!!.