Huber may be giving up on coalbed methane drilling

By WALT WILLIAMS Chronicle Staff Writer

J.M. Huber Corp. has relinquished four leases to drill for coalbed methane near Bozeman Pass in recent months, but the company isn't saying whether that means it is dropping its controversial plans for the area.

Huber recently gave one lease to a subdivision developer who is building homes on the site where the most productive coalbed methane wells were to be located.

The deal assures that no coalbed methane development will take place on that land, the developer's attorney, Susan Swimley of Bozeman, said Monday. The details of the acquisition were not provided.

Huber also relinquished three oil and gas leases on state lands around Bozeman Pass at the end of November, according to public records.

Both moves could signal an end to Huber's efforts to drill for coalbed methane, closing a five-year fight that spilled over to the courts and state Legislature.

But as of Tuesday the company was still pursuing two lawsuits against Gallatin County officials for restricting its access to the half-trillion tons of methane gas that may be locked up in the coal seams under Bozeman Pass.

Company representatives are not talking about their plans. Spokesman Robert Curri said Tuesday it is Huber's policy not to comment on such matters while the case is tied up in litigation.

The debate over whether to drill in Bozeman Pass began in 2001 when Huber announced its intent to drill for methane gas there.

The Gallatin County Commission created an emergency zoning district around Bozeman Pass to temporarily halt coalbed methane exploration in 2002, and Huber was denied a conditional use permit to drill a test well in the Jackson Creek area by the Bridger Canyon Planning and Zoning Commission that same year.

Huber sued county officials in state and federal courts, contending they had deprived the company of its property rights without just compensation. Both cases are still in court.

There have been several unsuccessful efforts in the Legislature to give surface owners more say over coalbed methane development on their lands, several led by former Sen. Emily Stonington of Bozeman, who represented the district.

More recently, neighbors concerned about what drilling would do to the area's water quality and their property values created the Bozeman Pass Zoning District, which set tough new standards for oil and gas development in the area.

Then on Monday, developer SICO Montana announced it had acquired the lease of mineral rights for the Jackson Creek area from Huber, meaning that there will be no coalbed methane development in the portion of Bozeman Pass located in the Bridger Canyon Zoning District.

Jackson Creek was where Huber was concentrating its efforts to drill.

SICO Montana, on the other hand, is building homes there and has no interest in seeing wells that could potentially drive down property values.

County officials didn't have any new information about the status of coalbed methane development in Bozeman Pass when asked Tuesday.

Reader Comments