MSGA investigates State’s deal making in proposed Spotted Dog property purchase

MSGA investigates State’s deal making in proposed Spotted Dog property purchase

On July 14, 2010 MSGA attended a public hearing in Deer Lodge hosted by representatives of Montana Fish, Wildlife and Parks (MT FWP) to hear details about the apparently already “done deal” Spotted Dog land purchase of 27,616 acres between Avon and Deer Lodge. The MSGA office has received numerous phone calls from ranchers concerned about this proposal and the process to purchase this property. Let us relay the facts as we know them.

On June 29, 2010, MT FWP released a Draft Environmental Assessment (EA) to acquire the 27,616 acre Spotted Dog property. This proposed land acquisition would include 10,261 acres of leased DNRC lands. MT FWP intends to designate the combined nearly 38,000 acres as a Wildlife Management Area.

The proposed purchase price of the property is $15.2 million with an additional 5-year operation and management cost of $1.2 million, and an approximate $150,000 for the state grazing leases.

Currently the Spotted Dog property is owned by Y-T Timber, more commonly known as RY Timber Company. The property is currently being held with an option to be purchased by Rock Creek Cattle Company of Deer Lodge for a reported $9 million. This option to purchase expires in November of 2011.

As explained at the meeting, Rock Creek Cattle Company would buy the land from RY Timber for a reported $9 million and FWP would then purchase the property from Rock Creek Cattle for a reported $15.2 million. Many have expressed that they cannot see the logic in the $6 million difference in purchase prices.

Ranchers have questioned the appropriateness of the source of funding as well as the funding approval process. The purchase price, operating money and state land lease costs of $16.574 million are proposed to come out of the Natural Resource Damage Program (NRDP). NRDP was created in 1990 to prepare the state’s lawsuit against the Atlantic Richfield Co. (ARCO) for injuries to the natural resources in the Upper Clark Fork River Basin (UCFRB). In April 2010, the Natural Resource Damage Program (NRD) received 12 project applications for $21.6 million. In addition to the applications received in April 2010, NRDP received a reported time-critical application from MT FWP in June 2010. This application did meet the normal application deadline.

However, this grant proposal is being considered outside of the regular annual grant cycle process pursuant to a recently requested amendment to the UCFRB Restoration Plan Procedures and Criteria. The program includes an Advisory Council that advises Governor Schweitzer on the restoration process and funding. Although the details are hazy, there has recently been a mysterious shake-up of this council. The program also has oversight by the Trustee Restoration Council, made up of Governor Schweitzer’s Chief of Staff, the Directors of DEQ, MT FWP, DNRC, the Chair of the Upper Clark Fork River Basin Remediation and Restoration Advisory Council and the Attorney General, serving as a non-voting member. Governor Schweitzer makes the final funding decisions on grant projects. This seemingly rushed approach has raised some concerns by former advisory members to this program.

Many ranchers in the area have also expressed concern to us about the lack of future operation and maintenance resources to cover the costs for maintaining the property. Many neighboring ranchers site lack of noxious weed control and upkeep of fences on many FWP properties and with the addition of nearly 38,000 acres, there is a real question if the budget and resources are available to maintain the FWP fee title lands.

In addition to the aforementioned concerns about this proposal, many ranchers have asked questions as to the REAL intentions of this purchase. One of those questions is if a free-roaming bison herd is planned for this area. FWP indicated that there are currently no such plans, but would not discount the possibility.

MSGA appreciates the information provided by MT FWP regarding this matter. However, in a time when the government is cracking down on “back room” and “sweetheart” deals on Wall Street and in the private sector, it seems that a government process such as this land purchase should be more transparent and open to public review.

While many at the meeting sensed a very top down approach on this proposal and one that was going through regardless, it is still worth your comments. The public is being asked to comment on both the MT FWP Environmental Assessment and funding proposal through NRDP. For MT FWP, comments should be directed by email to [email protected]. Comments must be received by MT FWP no later than 5 p.m. on July 30, 2010. For the NRDP, public comment on this proposal runs through August 9, 2010. Comments can be sent to: NRDP, P.O. Box 201425, Helena, MT 59620, Fax (406) 444-0236, Email: [email protected].