Central Montana Resources Conservation & Development

Board of Directors meeting

Wednesday, April 26, 2006, 10 a.m.

SMDC Conference Room

In Attendance: Edgar Lewis, chairman; Diane Ahlgren, Larry Lekse, Edward Arnott, Chris King, Dan Stilson, Ken Ronish, Dick Ellestad, Richard Moe, Ron Ahlgren, John Wright, Ken Minnie, Carl Jensen; Monty Sealey, Central Montana RC&D Coordinator; Carrie Mantooth, Central Montana RC&D Assistant Coordinator; and Jim Dullenty, Lewistown News-Argus.

Call to Order: Chairman Edgar Lewis called the meeting to order and introductions were made.

Minutes & Treasurer Report: Ken Ronish made a motion, seconded by Dick Ellestad and unanimously approved to accept the minutes of the Feb. 22, 2006, meeting as mailed. Treasurer Diane Ahlgren reported a balance of $3,323.84 in checking and $11,085.03 in savings.  The checking balance doesn’t include a DNRC reimbursement for Carrie’s time and expense. Ken made a motion, seconded by Larry Lekse to accept the treasurer’s report. Monty presented bills from Montana West Printing for $55 for the newsletter; Beehive Insurance for $750 for directors and officers liability insurance annual premium; $15 to the Montana Secretary of State for on-line registration as a corporation; and $200 to the Western RC&D Association for 2006 dues. Diane said that there was an April 10 check to Beehive Insurance already paid, so the balance is actually $100. Ron Ahlgren made a motion, seconded by Dick and unanimously approved to pay the bills.

Announcements:

-                          Montana RC&D Association: Dick Ellestad reported on the February Montana RC&D Association meeting held in Lewistown. He said they outlined the responsibilities of the state association and hired Greg Larson, retired Northwest Area RC&D Coordinator, as the executive secretary. The Montana RC&D funds will be funneled through the Central Montana RC&D, so our accountant can do withholdings, etc. for the executive secretary. Dick Ellestad was elected secretary/treasurer. Dick said they discussed proposed cuts to the federal budget which would cut RC&D funding in half. A bill from Greg Larson for $745 was presented. This will be reimbursed to Central Montana RC&D by Montana RC&D Association. Dick made a motion to run Montana RC&D Association financials through Central Montana RC&D, seconded by Ken and unanimously approved.

Canada Lynx: Monty told the group about the Canada Lynx Critical Habitat Proposal which includes 18,000 square miles of private and public land including parts of Washington , Idaho , Montana , Minnesota and Maine . This proposal by US Fish and Wildlife Service follows a Ninth Circuit judicial opinion issued due to an environmentalist led lawsuit and is open for public comment only through April 28. Monty explained that the lynx is already on the endangered list, but this proposal could in effect be putting in a roadless initiative under another name.

Mercury Emission: Monty announced that mercury emission standards are the topic of a public hearing in May in front of the Montana Board of Environmental Review. The Board is proposing to amend the air quality rules set forth by EPA which would require 70 percent removal of mercury. Montana Environmental Information Center (MEIC) and other individuals and organizations petitioned the Montana Board of Environmental Review to adopt a rule requiring coal-fired power plants to control 90 percent of their mercury emissions. Montana ’s Department of Environmental Quality (DEQ) presented a proposed mercury rule at the Board of Environmental Review’s February meeting, which said that all plants in Montana must have a DEQ-approved plan for limited emissions to 0.9 pound of mercury per trillion British thermal units (lbs./TBtu) in the coal being burned by 2010. Monty said those who support Montana ’s plants argue that the proposal goes too far, and such strict standards would shut down production in Montana . There is a petition circulating that originated in Circle asking that DEQ adopt the federal EPA standards. Board members took the petition back to their communities and will return comments by May 18. Dick suggested Central Montana RC&D also send a letter asking that the federal standards be adopted in Montana . Discussion followed, with members noting that the last Montana refinery was built in 1975.

Clean Renewable Energy Bonds (CREB): Monty discussed the Clean Renewable Energy Bonds (CREB) program. The CREB program, which is part of the new Energy Policy Act of 2005, provides government entities with the ability to obtain interest-free financing for wind projects by providing investors with a federal tax credit in lieu of interest payments. The CREB program has been authorized for $800 million, with $500 million allocated for government entities. Monty said he has been helping gather information for county governments in the area for inclusion in a grant application being prepared by Matney-Frantz Engineering. The Bozeman firm is preparing CREB applications by the April 26, 2006 deadline for a number of wind energy projects designed to provide power for Montana ’s cities, counties and schools. Ken said 35 counties and cities had signed on to the project. Lewistown and Fergus County both signed on and split the $500 fee to Matney-Frantz. Discussion followed about the possible need for legislation (especially if Northwestern Energy is sold), and helping counties understand and disseminate information if they proceed.

Project Reports:

-                          Homebuyer Education: Carrie reported on the homebuyer education and said the last class was two weeks ago and had seven attendees. The next class is May 22-23.

-                          Judith Basin Hazardous Fuels Reduction:  Carrie said Judith Basin Conservation District has advertised a hazardous fuels reduction project and have had some interested landowners. The Judith Basin Conservation District hopes to begin hazardous fuel reduction projects on private lands this year through a grant with Central Montana Resource Conservation and Development. Central Montana RC&D received funds through Bitterroot RC&D as part of the Wildland Urban Interface grant program, and has earmarked the funds for use in Judith Basin County .

-                          Roundup Mutual Self-Help Housing Project: Ken Minnie said the Roundup Self Help Housing program is in the initial planning stage. Human Resources Development Council District 6 is spearheading the project. Ken said they are trying to get the word out in Roundup and gauging interest and are looking for a  building site for five homes. Lower income families are eligible and help build the homes, committing 30 hours each week in “sweat equity.”

-                          Canadian Ready To Move (RTM) Homes: Monty said this project will either proceed or die out by June in Roundup. The company is now doing a private offering for shares.

-                          Bull Mountain Coal Mine: Larry reported that mining has shut down for awhile because they have too much coal on the ground and need to truck more out before continuing production. Three shifts are processing coal. He said Roundup has a chance of getting a coal gasification plant. They are also hoping to hear an announcement about the railroad spur soon. Rights of way have been purchased and they are waiting for construction to begin. Monty said the rail spur project was held up because there was a wetlands site that they’ll have to build around.

-                          Petrolia Irrigation District: Monty went to a public meeting regarding the Petrolia Irrigation District project that Central Montana RC&D is assisting with. There is a problem with saline seep and leakage on a portion of the Petrolia Irrigation Ditch. They are asking for a $100,000 DNRC Renewable Resources grant for repairs and Central Montana RC&D will assist as needed. The grant deadline is May 15.

-                          Central Montana Regional Water Project: The water right application is in, and Monty said they were told by DNRC that they will notice it for comments soon. DNRC said they need an environmental assessment (EA) for the entire proposed project (not just the well site). The group is questioning this, since it has not been a requirement imposed upon other regional water projects. Monty said the EA will need to be in place, along with water rights, etc., before they request a federal appropriation. He said things are going well, but 2011 would be the soonest the project could be on the ground. CMRWA is seeking funds to drill a second production well. Grant applications will be made for a DNRC Resource Development grant and to the Montana Coal Board Trust Fund. CMRWA is also waiting for its second year of funding from a DNRC Appropriation for the design of the regional water project. A request for a $1 million federal appropriation was also submitted. The water authority is working on providing water samples at a series of public meetings later this year, and will have to take a generator to the test well site to pump the samples.

Other Project Requests:

-                          Carter Ponds: A group of agency people are trying to get funding to repair the upper and lower Carter Ponds north of Lewistown. They already have a chunk of funding in place and are looking for a sponsor for a grant to DNRC’s renewable resource program. Dan Stilson, chairman of the Fergus Conservation District, said they are in favor of the project, and Fergus County Commissioner Ken Ronish said they also support it. The ponds are privately owned, but there has been public access for many years.  They already have some financial and in-kind commitments, and would need $156,000 to repair the Upper Carter Pond and another $169,200 for the lower pond. If Central Montana RC&D acts as sponsor, they would not take administration fees. Dick made a motion that Central Montana RC&D sponsor the bill and help with the grant application, seconded by Dan and unanimously approved.

-                          Plastic/Fiber Composite – Willie Weeks: Monty said Willie Weeks went to the Musselshell County Commissioners and is interested in doing a feasibility study on plastic/fiber composite used for posts, etc. Monty said he is just looking for information about it at this stage. Ken Minnie said strawmut is used as a building material and is made in panels. Diane said she remembers Central Montana RC&D looked into this years ago. Monty said that EDA commissioned a feasibility study back then, but the $3-4 million needed for the project was cost prohibitive.

-                          Area Plan/Website: Monty will send out the area plan outline to board members. The RC&D area plan format has been revised, and won’t follow the CEDS format. Carrie is working on updating the CEDS for SMDC and will also work on the Central Montana RC&D Area Plan. The website is also under revision and will have a new address. Carl Schulz was working on the website.

Other Business:

-                          Roadless Initiative: Diane Ahlgren said there was an article in the last issue of Agri-News about the Roadless and Wilderness Study areas, which said there is a limit on how long these areas would be “studied.” Ed, Edgar, Diane and Dick will meet to write another letter to Governor Schweitzer asking that he recommend to President Bush that the roadless designations in Montana be removed.

Adjournment & Next Meeting Date: With no other business, the meeting was adjourned. The next meeting will be Wed., June 21 at 10 a.m. in the SMDC Conference Room, 613 NE Main St . , Lewistown.  

Minutes prepared and respectfully submitted by

Carrie Mantooth, Central Montana RC&D Assistant Coordinator