Great Falls Tribune - January 18, 2002
Gas drilling in Breaks nearer: Eight wells in, around monument pass review, BLM seeks comments, by Sonja Lee

Leases already exist for proposed natural gas wells on BLM's Bullwhacker area on the eastern end of the Missouri Breaks monument in southern Blaine County.

Drilling eight natural gas wells on land inside and adjacent to the Upper Missouri River Breaks National Monument wouldn't harm the environment or wildlife, based on an analysis by the Bureau of Land Management.

During the next month, the public can comment on the environmental analysis of proposed wells on existing leased BLM property on the eastern end of the monument in southern Blaine County. After the BLM reviews the comments, a final decision will be issued on the wells in the area known as Bullwhacker Coulee.

"My whole intent was to encourage the public to read the analysis and become part of the environmental process," said Don Judice, field station supervisor with the BLM in Great Falls.

The analysis requires mitigation of any impacts on the environment and limitation of surface disturbance.

The wells also would not affect bald eagle prey or habitat, according to the analysis. The bald eagle is the only threatened or endangered species with habitat in the project area. The companies will also use existing trails to access the sites.

Historically, natural gas development has been allowed in the area. And the January 2001 proclamation designating the area a national monument also states that all existing leases will be honored, although no new oil and gas leases will be issued.

"It's consistent with the proclamation and with our policy," said Judice. "And the long-term disturbance is minimal."

Allowing exploration in the eight wells also will help define how sizeable gas reserves are inside the monument, Judice said. The monument proclamation requires a resource management plan.

"We don't know enough information geologically about the area and its oil and gas resources to enter into a field development plan at this time," Judice said. "These wells will better help us define that."

BLM also will not authorize any more wells on existing leases until the field development plan is done.

Macum Energy Inc. filed six of the applications to drill. Klabzuba Oil and Gas Inc. filed two and Ocean Energy Resources Inc. filed one.

One of the Macum leases is currently being challenged in Great Falls District Court, and the BLM's environmental analysis does not include the lease involved in litigation. The leases were issued to the companies between 1967 and the early 90s.

The Montana Wilderness Association lawsuit filed in March 2000 challenges the validity of seven natural gas leases issued to Macum Energy Inc. of Billings. The MWA accuses the BLM of failing to analyze the impacts of oil and gas exploration before issuing the leases in the Missouri River Breaks.

The wilderness group claims the BLM did not notify the public about the leases and violated the National Environmental Protection Act.

Macum President Ralph Gailey said he was pleased that the analysis shows the limited impacts the wells have on habitat.

"These little natural gas wells, they don't make a footprint at all," he said. "We don't do anything like the hunters in there, and they still are going to let them hunt."

The small company has spent a lot of money trying to drill on its leased land and dealing with the lawsuit, Gailey said.

"The government sold me all those pieces, and now I can't drill," he said. "The national monument proclamation honors all existing oil and gas leases. That's all I'm asking them to do."

Dennis Tighe, a member of the Montana Wilderness Association, said the organization has not decided yet if it will join the wells discussed in the BLM's recent analysis to its current lawsuit.

"I really think the most important thing to remember with gas exploration in the monument is that there are insignificant amounts of gas there," he said.

Tighe said the organization recognizes the right to drill on existing leases, but questions the validity of the leases. The leases already being challenged fall within the 50,000-acre area known as Bullwhacker, which is known for its rock formations, steep breaks, forested slopes and grassland. It's part of land along the 149-mile Upper Missouri National Wild and Scenic River.

Tighe said he also questions the decision that there is minimal impact to the environment.

"The impact of the gas development that has gone on already is you've got two track roads running hither and yon through the monument," he said.