Committee kills bigger bond for metal mines

A bill that would have increased the amount of bonding required for developers of metal mines — a move supported by conservation groups and opposed by the mining industry — was killed Wednesday by the Senate Natural Resources Committee on a 10-2 vote.

The bill would have required that the bond for an exploration license related to an ore body that contains sulfide mineralization be 150 percent of the bond amount required by the state Department of Environmental Quality.

In other words, if the DEQ's bond requirement was $1 million, it automatically would increase to $1.5 million, or by 50 percent, if the bill passed.

It would pertain to metal mine operations in ore bodies that contain sulfide mineralization, the type of formation that can cause acid mine drainage.

The bill's sponsor, Sen. Mary Sheehy Moe, D-Great Falls, told committee members Monday that increasing the bond amount is an insurance policy if things don't go well following the closing of mine and additional environmental cleanup is required. She specifically cited the problem of acid mine drainage.

A DEQ representative testified that the current process for setting bonds amounts is working.

Voting against the bill and increasing the bonding amount were Sen. Brad Hamlett, D-Cascade; Sen. Rick Ripley, R-Wolf Creek; Sen Duane Ankney, R-Colstrip; Sen. John Brenden, R-Scobey; Sen. Pat Connell, R-Hamilton; Sen. Jennifer Fielder, R-Thompson Falls; Sen. Brian Hoven, R-Great Falls; Sen. Jim Keane, D- Butte; Sen. Cliff Larsen, D-Missoula; and Sen. Chas Vincent, R- Libby.

Voting for the bill and increasing the bonding amount were Sen. Christine Kauffmann, D-Helena, and Sen. Mike Phillips, D-Bozeman.

The proposed increased in the bonding amount came as Tintina Resources Inc. proposes the Black Butte copper mine on Sheep Creek, a tributary of the Smith River, near White Sulphur Springs. Some of those who testified in favor of the bonding increase wore stickers that said, "Save the Smith."

That proposal has prompted concerns from opponents about acid mine drainage. Supporters say the mine can be developed without problems while creating good-paying jobs.

But Sheehy Moe said her bill was about protecting all Montana waters from environmental problems, and was not specifically in response to the Sheep Creek mine.

Reach Tribune Staff Writer at 406-791-1471, 1-800-438-6600 or kpuckett@greatfallstribune.com. Twitter: @GFTrib_KPuckett.