New Lawsuit Aims to Halt Expansion of a Montana Coal Mine Blamed for Drying up the Land Above It

Why It Matters

The outcome will shape federal coal permitting, water‑rights litigation, and the fiscal health of a county dependent on mining revenue.

Key Takeaways

• Lawsuit challenges Trump-era “energy emergency” permit.
• Longwall mining causing subsidence and water loss.
• Expansion could add nine years to mine’s lifespan.
• Crow Revenue Act may remove $11.6M royalties from county.
• 96% of coal shipped overseas, mainly Japan, South Korea.

Pulse Analysis

The Bull Mountains Mine lawsuit underscores a growing clash between legacy coal projects and modern environmental oversight. Plaintiffs contend that the Interior Department’s reliance on a fabricated "energy emergency" sidestepped required public comment and ignored a 1990s hydrologic study warning of irreversible water loss. By invoking the National Environmental Policy Act, the case forces regulators to revisit a permit granted under a politically driven framework, raising questions about the transparency of federal mining approvals.

Long‑wall mining’s subterranean cavities have triggered surface subsidence, cracking the terrain and diverting groundwater into the mine. Residents like former rancher Ellen Pfister report dried springs, diminished wildlife, and unsustainable water hauling for cattle. Scientific evidence links these hydrologic disruptions to the mine’s dewatering practices, which have persisted for over a decade, threatening the ecological integrity of the Bull Mountains and the livelihoods of local ranchers.

Beyond environmental stakes, the litigation reverberates through Montana’s fiscal landscape. The proposed Crow Revenue Act would privatize remaining federal coal, eliminating roughly $11.6 million in royalty payments that fund Musselshell County services. While the mine supplies jobs and tax revenue, its reliance on export markets—primarily Japan and South Korea—exposes the region to global demand swings. The legal outcome could set precedent for how coal projects balance federal revenue, local economies, and environmental compliance in an era of shifting energy policy.