While I appreciate and to some extent agree with the concerns expressed by opponents to HB 575, a number of the points they make are based on misleading information and fear tactics that have little to do with this legislation.

The key to understanding this bill is to keep in mind that, under current Montana law, coal-bed methane gas development and associated water discharge is administered by the Montana Board of Oil and Gas and Montana Department of Environmental Quality; not the Department of Natural Resources and Conservation who deal with water-rights issues.

"Within any designated or modified controlled ground water area or subarea wherein oil and/or gas wells produce either fresh, brackish, or saline water associated with oil and gas, the volume of production of which is dependent entirely on the oil and/or gas withdrawals, such production of water shall be under the prior jurisdiction of the board of oil and gas conservation."

HB 575 simply allows water produced in association with already permitted coal-bed methane gas extraction wells to be used beneficially by ranchers and others instead of wasting it. The bill now allows only a temporary water permit, limits the number of permits that can be granted, includes current mitigation and landowner protection language, increases and extends mitigation payments, protects tribal water compacts, conditions the permitting process to expire in two years and creates an interim study commission to work on developing more permanent solutions.

Currently, water that's pumped in conjunction with coal-bed methane gas extraction is considered a byproduct of the gas extraction process and is permitted to be discharged by DEQ, via a water quality permit. This won't change until Montana laws and rules governing coal-bed gas extraction are changed.

Water rights and associated water law and DNRC involvement do not occur "until" the discharged water is used for a "beneficial purpose" such as stock water, irrigation, domestic use, dust suppression, equipment washing etc. As long as the developers continue to only discharge the water into the rivers, creeks or ponds through their MBOG/DEQ water quality discharge permit, and as long as they don't allow it to be used beneficially, they are not subject to water use laws and no water right is required.

Six landowners and two coal mines in the Decker area have been using coal-bed methane water for agricultural, domestic and industrial purposes the past seven years. As a result of Judge Honzel's ruling they can no longer legally use the water for those beneficial purposes without acquiring a permanent water right.

The difficulty is that in order to obtain a permanent water right, the applicants have to show that there is no "adverse or negative effect" to senior water rights holders. Because of the significant amount of water extracted through the coal-bed methane process there is a huge adverse impact to the aquifer and developers will probably never be able to get a water right to use the water beneficially. Herein lies the Catch 22: Until other laws are changed, they still have the right to pump and discharge it into watersheds or ponds through their DEQ discharge permit. Agree or disagree, that's how it is. The water is going to be pumped and discharged regardless.

Establishing a process through HB 575 whereby a temporary water permit is granted will allow those ranchers and mines in the area of the coal-bed methane development to continue using the water for their domestic, agricultural and mining operations until a more permanent solution is arrived at or until the permitting process sunsets in two years.

Rep. Bill McChesney is the primary sponsor of House Bill 575.