The Moreland’s

My wife Abby and I are ranchers in southeastern Montana. We have 3 children, ages 11, 5, 1. This area is home to me – I am a fourth generation Montanan. Little did I know when I took over the family ranch I would also have to turn into an advocate for coalbed natural gas development. The fight for energy and the water produced from development is long and frustrating at times. Environmental Terrorist groups like the NPRC have misinformed and polluted the image of development. These days, obstructionists have turned anti-energy agendas into real paying jobs that work long and hard to stop energy development. I have seen more than my share of half-truths and misinformation about how coalbed natural gas water is going to destroy our crops and deplete our aquifers. Don’t believe what you hear, check the sources and do some research yourself. Coalbed natural gas water is in fact good-quality water than can be used for stock and for irrigation and so much more! I want every drop I can get. The energy development is also vital to Montana’s economy. Montana could gain in so many ways from the production of development, and at the same time, ranches can benefit in ways they could only dream of if they sit down, willing to cooperate with the operator. I stay active by participating in real grassroots organizations like CFRD and the CBNGA, who support energy development. I testify and attend meetings and write letters to the editor, supporting natural gas development ever chance I get. I hope others join me as this is a critical fight we have to win if we want to improve our economy, our state and our livelihood.

Sincerely,

Mark Moreland

Oscar & Camille Rucki

Oscar and Camille Rucki have had coalbed natural gas development for almost a decade on their ranch northwest of Sheridan. Oscar retired from the highway department as a shop supervisor and bought the land for hunting more than anything. “It was a hobby,” he said. Later he and his wife decided to put some cattle on it. “I would like to tell a lot of people who are against it (cbng development) what it is all about. It’s improved our place 150 percent and I don’t know why Montana is fighting about water. If it was not for coalbed natural gas water, we would not have been able to have cows during the drought.” The Rucki’s use stock water tanks and reservoirs and say cows don’t have to travel as far for water and graze better than before, too. “The first three years when they come in, it looks like hell, but you got to start somewhere. It is just like building a highway, it looks awful and all tore up at first, but when it is complete it is 100 percent better.” After the initial construction phase, he said they have improved the roads (which allowed them to hold their cows in the pasture longer) the well sites and they reseeded everything they tore up. Power lines for the ranch were also a huge plus.

Marilyn & Dudley Mackey

Marilyn and Dudley Mackey – Our ranch is located 20 miles north of Gillette on the Wildcat Creek and Middle Prong drainage. We are surface owners only on a mix of private owned, private lease, BLM lease, and state land lease so we deal with the split estate issues that come with this type of land ownership. When companies began negotiating with us for access to develop CBNG, our goal was to improve the ranch with a planned water distribution system. We worked with those companies to identify ways to utilize the water through existing reservoirs, strategic placement of new reservoirs, and stock tanks. Initially, most of these were put into place with little difficulty. We did have one area of the ranch in which the company was not able to use existing reservoirs due to either ground water quality issues or seepage concerns. We began to work with them to develop stock tank placements. Through a series of meetings with company and state permitting officials, we were able to work through the company’s concerns about overflows and regulatory issues, and get the stock tanks installed. The CBNG produced water has improved our ranch through better utilization of pastures and having water available through some very dry years for cattle and wildlife. We continue to work with the companies to address issues as they come up and appreciate their willingness to cooperate with us to help our operations. We do find the current increasing regulatory environment now makes it more difficult for us to be able to put this water to beneficial, common sense use.

Tom & Roz Harriet

Tom and Roz Harriet are ranchers on Pumpkin Creek, near Buffalo Wyoming. Since 2000 they have been active ambassadors, sharing their many positive stories about coalbed natural gas development. Tom Harriet is also one of two landowners representing the Powder River Basin on the Wyoming Department of Environmental Quality’s new working group to address the Agricultural Use Protection Policy/Rule. Tom and Roz believe the water produced from cbng development is a highly-prized beneficial use to ranchers in the arid Powder River Basin. Since development came to their ranch, Harriet’s incorporated a plan to manage the water successfully with the operator(s) on their place. They used center pivots and side-roll sprinklers to practice managed irrigation, where amendments like gypsum and sulfur are scientifically applied on the surface of the land by soil science experts. “We have doubled the amount of production we have. Our productivity has gone through the roof because of CBNG water,” said Tom. Tom said the water is not only good for their ranch, but very good for all the wildlife that previously was in dire straits during the decade-long drought. “In addition to the many benefits we have seen on our ranch, the community also is blessed,” said Roz. “Johnson County has built three new schools as a result of development!” The Harriet’s have two children, Tyler and Marissa, who go to school in Johnson County. “Not only do our ranchers, our children and our communities benefit from the tax revenues cbng development brings, but the nation benefits! We are producing a clean, reliable and domestic product right here at home. We are proud to be able to say this and we believe it has been a huge blessing!

Greg Dougherty

Business owner finds industry benefits good for everyone

The energy industry is always in demand for experienced and innovative contractors. That need has translated into steady stream of work for private business owners like me. Twenty-five years ago, I started Greg’s Welding, Inc. in Gillette, Wyoming to provide general welding services. Like a lot of businesses, I started small and worked hard to make my business a success. I recognized early that the energy industry in our state was in need of specialty work and my business began to expand to meet those needs. A lot of my current work centers on fabricating header systems for the coal bed methane energy industry. I have even patented an innovative and successful header system specifically for coalbed natural gas production. It has been a business arrangement that has benefited everyone.
Greg’s Welding, Inc. has grown to employ more then 50 people. They make good wages and spend their money in the local economy. The positive impact the energy industry – specifically the coalbed natural gas industry – has on me and my employees cannot be overstated. It has brought work through the doors of my shop, which allows all of us to make a good living. We continue to work with the coalbed natural gas industry to develop new equipment and provide new services as the need arises.

Greg Dougherty, President Greg’s Welding, Inc.

Faye Mackey

One thing I’ve learned in years of running a ranch is that it’s tough making the cow pay for everything. Another thing I’ve learned is life’s a whole lot better when she doesn’t have to. Better for us, and better for the cow. My son Paxton and I run the Force Ranch outside Gillette. I’m the third and Paxton’s the fourth-generation on this place, and we realize we’re both blessed and fortunate to live where we want and do what we want for that living. We know others who’ve had the same dream, but had to sell their places.

And I’ll tell you, the coalbed natural gas has saved our bacon. Along with overseeing our cattle operation, Paxton is a lease operator for Devon Energy, and his wife Kristen does permitting work for Williams, the same company that’s the primary natural gas operator on our place. The “extra money,” as we call it, is a godsend for our family. We run Black Angus cattle, and we see real, direct benefits from the coalbed natural gas production. Of course one of the “issues” with coalbed natural gas is that water is produced when the gas is brought to the surface. For us and many ranchers in the arid Powder River Basin, that’s a good thing. Like most of the companies do for their landowners, Williams has built us stock watering tanks in spots that help disperse the animals across our ranch so the cows and calves don’t have to travel as far between the good grass and a place they can water. We can also irrigate some of our ground. All that translates into better range management and additional pounds on the calves at weaning. Those benefits, in turn mean an improved range for the environment and a little more money in the bank for us ranchers. Being able to watch my grand kids fishing in a reservoir built by the company tops it all off for me. The best way to get to a win-win like we have with the company – and like most ranchers in the Basin have with their coalbed natural gas operators – is to communicate. They say that if you go into a meeting with a bowed neck you’ll probably only come out of it with a kink in your neck. So it’s better to be open to communication, and do it early and often. The companies have paid experts who bring knowledge to the table. They’re willing to listen to your ideas and wants, and then incorporate those as best they can into their plans. If you want a watering setup over there, tell them. If you want a good scoria road and it can be worked into the company’s program, have them build it.

It’s really unfortunate that there have been so many misperceptions about the coalbed producers, because those I know and work with around here really do respect the ranchers and the land. While they do get some credit for boosting our economy, less noticed is the fact they’re strong members of the local communities. The employees volunteer, coach kids’ sports teams and so forth, and the companies are big contributors to United Way, Boys and Girls Clubs, Hospice, etc., all the things that keep communities strong. Is everything perfect? Of course not. But working with us ranchers, being a part of the community, doing their part and doing it right, this natural gas play has been a godsend for the Basin. And the old cow is a little more content, not having to pay for everything.

Joanne Tweedy

Joanne Tweedy was raised on a ranch in Campbell County. She left for 7 years to go to college, marry her husband, Chuck, and live in Casper. They returned to Campbell County to help her elderly uncle run the ranch. Joanne’s uncle died in 1976 but they continued ranching and remain on her uncle’s place. The ranch land was put into a trust and the Tweedys continue to run livestock and cultivate dryland farming. For many years, Joanne and her husband had to have additional jobs off the ranch to support their place. When coalbed natural gas was discovered on the ranch in 1999, the revenue from surface damages enabled the family to move back to the ranch and operate it without the support of two outside jobs.

Considering that the Tweedys have worked with 9 companies over the life of the development on their place and some of the companies have been sold during that time, they have had few major challenges. If Joanne was doing it again, her leases would include a particular contact person for each company on the ranch and the operator would have to continue to upgrade that name and telephone and address if the person to contact changed. She would also require that a slow driving speed be enforced to reduce dust, accidents and disturbance to livestock.

Joanne and her husband continue to ranch and love their way of life. They hope they will have the good health to continue for years to come. Thanks to coalbed natural gas, they were able to return to the ranch they love.

Joanne Tweedy and her husband have ranched since 1969 in the Powder River Basin. They raise cattle and some wheat, oats and hay. They have coalbed methane development on the ranch since 1999. When the energy companies started leasing land for development, Joanne and Chuck went to as many informational meetings as they could find. They tried to learn what was going to happen and how to plan for the development on the ranch. There first goal was to continue to ranch like they always had and work alongside the companies and make it profitable to both entities. When the development first began in 1999, the working of drilling wells, putting in pipelines building compressors and etc was hectic. It kept both Joanne and Chuck busy planning with the companies and putting compressors, pipelines and water discharges in the best areas that were possible. The companies tried to accommodate them as much as possible. Of course, not everything always went according to what they wanted. But when something happened that was not supposed to happen, Joanne would call the company people and they would come to the ranch and they would either fix it, change it, repair it, and yes sometimes pay for it. The biggest boon to the ranch during the years since 1999 has been the water. The PRB was going into a drought and they certainly needed the water that was provided by discharge. The discharged water went into reservoirs, water tanks and into some creeks on the ranch. Without this water, the ranch would have been in a very short supply. Due to the abundance of good water in each pasture, the livestock did not have to walk for miles to water, so the pastures were utilized more efficiently and the weights of our calves were more than they had been in past years. We are still using the water from the discharges after 6 years, but the amount is declining. When the methane wells are abandoned, we will make some of them into water wells for our livestock. The advantage to do this is that that there is now electricity close to the wells due to the energy companies needing the power for the methane wells. So the only thing we will have to do is turn it into a livestock well, and hook it to electricity and we should have a good well. Our methane wells were fairly deep and we will plug off the bottom portion of the well and perforate another water sand above to use it for cattle.

The energy development has been a financial boom for Wyoming and has given state and local governments large surpluses of money. The state of Wyoming is saving a good portion of this money for the future. This is a good thing because we are one of the few state that has a surplus and are not in debt. This will protect our children and grandchildren. So we can be thankful that we have all been able to work together to provide energy and financial independence for the good of all the people in Wyoming.

Jerry Geer

Jerry Geer is a third generation landowner on the family ranch. They have had coal bed methane development on their ranch since 2000. Jerry feels some extremist groups tend to insist that CBNG development is a nightmare – not in his experience which has been very positive.

The Geers have a small place in Wyoming terms, but as a small ranching operation it saw the hard times in the 1980’s and 1990’s as most ranches did. Nearly half of their ranch had to be sold off but due to the CBNG development and its benefits, they have been able to hold on to what was left.

After the initial work, which tended to be hectic due to an influx of people and machinery, the CBNG development is nearly unnoticeable. Jerry reseeded their pipelines and road rights-of-way. He feels that the CBNG companies have done tremendous favors for them. For example, they buried old dump sites; rebuilt reservoirs; and put in hydrants to irrigate two ranch yards, all of which the Geers would never have been able to do themselves.

Jerry sees the water as the greatest attribute of the CBNG development. Their reservoirs are full and have open water year round which they think is a godsend in this ongoing seven year drought. The wildlife is more abundant than ever and their cows always have water. The hydrants in the yards irrigate gardens, lawns, and trees which have never looked better.

For the most part, CBNG development has been a positive experience on the Geer place and Jerry sees it benefiting the state of Wyoming and the nation as we tap into our own energy source and rely less on foreign energy. Check out Jerry’s Video:

Carl Dewey

Carl Dewey bought his ranch east of Sheridan, Wyoming in 1989 and had his first contact with coalbed natural gas (CBNG) 10 years later. In the resulting 6 years, Carl has seen huge improvements to his place that would never have taken place without the advent of CBNG. He had developed a plan for his ranch with dreams of ideal improvements but knew deep down that unless cattle and hay prices skyrocketed for years on end, most would remain dreams. Thanks to the work the CBNG companies needed to do to drill for gas, Carl received useable roads, water wells, irrigation systems and power he would never have been able to afford. His philosophy about why he has experienced such success with his dealings with CBNG boils down to one thing – mutual cooperation.

Carl firmly believes that by dealing fairly and honestly on both sides, as well as the process of give and take, have meant positive negotiations for the both the company and his ranch.

Carl decided to be a CBNG Ambassador because he believes in the importance of developing the resource in a responsible way. With his positive experiences, he thought it was necessary to stand up and tell his story. Check out the video footage of Carl discussing the importance of the CBNGA produced water for his ranch.

Betty and Don Rice

Betty and Don Rice lived and worked on their family ranch, which was 22 miles southwest of Gillette, for 32 years. After CBNG development came, the Rice’s were outstanding ambassadors of development. Don Rice has regrettebly passed away and Betty moved to town and continues to help out  as a CBNGA ambassador. Betty doesn’t manage the ranch or have any CBNG operations, but she still remembers the great experiences they had.

“CBNG development was truly a blessing.”

Betty said it was important to be a CBNGA ambassador to her and Don  because they wanted others to know the numerous advantages possible, especially the extra discharged water.  The associated CBNG income allowed for ranch improvements that would otherwise not have been possible like electricity to wells and roads and even outdoor activities for our family!

After the CBNG companies made the reservoirs larger on the Rice’s ranch, they enjoyed fishing with family and friends. The CBNG reservoirs were stocked with fish. Betty Rice laughed and said, “Just ask my grandson, he loved fishing!”

The Rice’s watered three lawns with CBNG water. Betty said they had one of the prettiest yards around. Their evergreen and olive tree lines were thriving once produced water was available.  On average, their cattle were 40 pounds heavier because of the beneficial use of CBNG water.

The Rice’s had an excellent relationship with their operators. “You needed an open mind and you needed to keep connected. Let the companies know your side and you can then work together and move forward.”

Energy development had not only brought prosperity and good luck in the form of added water, great roads and family activities such as fishing; it has allowed their family to stay close to home. Both of the Rice’s sons are employed by energy companies. One works in the coal mines, the other with CBNG.

Robert and Sandy Brug

Robert and Sandy Brug have a ranching and farming operation about four miles north of Recluse. They are in an entirely split-estate situation, meaning someone else owns the minerals. They are not foreign to split estates because they had extensive oil development on the same land in the 70’s.

The Brug’s place is unique because they have development in the midst of steep terrain; moreover, riding changes in elevation. In other areas the land is high, flat country they use for farmland. As part of a water management technique, the Brugs irrigate the farmland with CBNG discharge water .“It has worked quite well.” Bob Brug said.

The Brugs think CBNG discharge water has been extremely helpful because they previously had limited access to water. “We would have been in a world of hurt. I only had old grass before in some of those areas. The CBNG water made it useful country.”

Brug notes that this water is also the most sensitive issue at stake, which calls for site-specific water management plans. “You have got to have a plan. If you do, operators will work with you. I feel the communication lines are good between me and my operators.”

With some creativity, Brug experiments with different water management techniques, making use of the “toolbox water management approach.” In this approach many tools in the toolbox can be used on a site-specific basis. In some situations, other tools work better. In addition to irrigation and lined and unlined reservoirs, the Brugs are using gravity flow trying to place CBNG discharge water into shallow aquifers on his ranch to recharge reservoirs for livestock.

When asked about reclamation, Brug recalls the previous mineral development on his place. He said CBNG development, just as the deep oil development, looks terrible at first (with the trenches and the pipelines and all of the activity) but advises landowners not to worry because everything will look good, possibly even better, with time. He said he can see the previously planted areas now and they are better than the native range. “There are some real benefits if it is seeded and done correctly. You just have to work with the operators.”

Brug’s advice to future surface owners is simple. “Mineral owners have prevalence. Get over it though. If you manage it right the operators will distribute water over your place like you have never seen before. Especially in the dry years. It has definitely helped my ranch. In fact I am looking forward to more production and more development.”

Connie Morris

Connie Morris – I was born and raised in Sheridan, Wyoming. I married John Morris in 1975 and we own and operate a small ranch at Otter, Montana. We have three grown children who were raised on the ranch until “the farm crisis of the ’80s” forced one of us to have to go off the ranch for employment to help make ends meet. I have worked in the Sheridan, Wyoming area as a Registered Nurse for almost two decades, traveling to the ranch on my days off to work on the ranch. By making this choice, we have been able to “keep the ranch in the family” and are one of the few small ranches remaining in our area.

It’s funny how one always has a saying to get through difficult times. During those trying years, when my husband would brainstorm for ideas to make more money, I would always tell him: your fortune is in your backyard. While I was basically just trying to get him to “appreciate what we had”, little did I know that in 1996 we would be approached about leasing our property for coal-bed methane development and that statement may possibly be true. At that time little was known about coal-bed methane except for a few stories, from Wyoming, ranging from “rags to riches” to bad outcomes. In mid-1996, I began to earnestly educate myself in coal-bed methane and have continued to do so ever since. I have been called an “idealist” by industry and “a dedicated methane booster” by its opposition so, I think I fall somewhere in between.

Truth and fact are paramount to me in my research which may be an influence from my medical training. I have always loved math and science, and for me to come to a conclusion on an issue it must come “full circle” and make sense. Sometimes this causes me more work than necessary, but since I demand this of myself, it is self-limiting. I believe that the best outcomes in life are from informed decisions through the systematic processing of information and prioritization with the conclusion being a rational one. “Knee-jerk”, reflexive responses and “blind faith” have their place in life but are much better if made from a foundation of understanding and knowledge (could you imagine if a doctor didn’t have any training to treat a heart attack? That requires reflexive responses and “thinking on your feet” but with a HUGE amount of background knowledge).

Since we have minerals that may be leased someday, it was only natural for me to delve into finding the truth in the coal-bed natural gas (CBNG) controversy. I wanted to be sure we knew what we were getting into and how we could avoid “getting burned”. What I found is that the controversy is fraught with misinformation that is so prevalent that it has reached “urban legend status”. People from all over the country that have never even seen a CBNG well are against development based on isolated incidents, sound bites, quotes and biased journalism. Enough so that they financially support those who are putting it out. Never mind that to maintain a strong country that is secure in its borders, we must be independent in basic resources; food, energy and economics. Never mind that we have the ability to be independent and secure in all of these at our fingertips. Never mind that we have suffered a more devastating attack than Pearl Harbor on American soil in our lifetime with the constant threat of more. These supporters would rather believe that CBNG is a villainous environmental threat than to look at facts and the priorities of national security and economics.

So, it is with this in mind that I have agreed to this BLOG to help protect and pursue our national priorities by sharing information. I will be the first to say that I am NOT an expert. But, if an ordinary person, with an ordinary education can come to the same conclusions that the experts do by looking at the facts in an unbiased way; then it must be so. I am not receiving compensation for my participation in this BLOG, but if anything I share helps anyone, then I consider it worth my while; see, there’s that “idealist” talking again.

Milton Mydland

Milton Mydland – All in all, coal bed methane development on my property has been a very positive experience. When leasing agents approached us about coal bed methane development, we were probably better prepared than most farmers and ranchers because we had leased to oil well drillers over the years and even had a dry well punched on our place. We only became concerned about the consequences of our lease after stories started circulating about the terrible problems with the water being pumped out of the wells.

Well, the water is not causing any damage to our place, the cows and wild animals like it, and four years of experience with coal bed methane wells has shown us the alarmists are simply exaggerating the problems. I hope landowners who are being approached about leasing for the first time will ask their neighbors and others about actual experiences with coal bed methane instead of worrying and fretting over problems that don’t exist except in the imaginations of environmentalists. If you are really worried and can’t sleep, ask for help from an attorney who has experience negotiating methane leases.

I cannot help but be concerned about the spin put on coal bed methane development by the members of certain groups who argue it will be such a bad thing for our environment.

My property will benefit from the methane development in many ways.

First, the county road to my place, is now, an all weather road. I remember having to scramble to my truck and drive quickly to the highway whenever a sudden storm came up while I was checking my livestock. I practically had no choice. I either had to drive quickly to the highway, or walk out and come back to get my truck when the ground dried out. There were times when I had loaded cows into my goose neck trailer just as it started raining. I had to let the cows back out of the trailer, unhook the trailer from the truck, open the corral gate so the cows could get to pasture, then I would cut ruts all the way to the pavement. I could only return when the rain stopped and the ground dried out. I would have to round up the cattle a second time, sort them a second time, load them a second time, and waste a half a day redoing my work simply because of a shower.

The plowing my grandfather and my father did on the property caused more erosion of that washable soil than the coal bed methane sites could ever cause. These little half acre plots located on flat spots in my rather hilly pasture, will quickly disappear as soon as the wells are capped and the little huts are removed.

Meanwhile, I have additional benefits to my property as a result of the coal bed methane wells. They needed roads to the wells, so they upgraded my tracks. I used these same tracks for over forty years so hardly any new ground was disturbed. Since these tracks are now all weather roads, we don’t have to retreat to the highway every time it starts raining.

Moreover, our surface reservoir went dry after several years of drought, and, without stock tanks filled by a coal bed methane well, we could not have used the pastures for grazing these past two years.

The extra money has come in very handy as well. Most of our fences had not been renewed for nearly fifty years and they were getting very ragged and hard to maintain. We used some of the lease money to buy new fencing. The methane producer even installed steel gates that are a lot easier to use than the old barb wire jacket catchers we had before.

Tony and Vickie Line

Tony and Vickie Line manage one unit of several Padlock Ranch units. The area they manage lies 65 percent in Wyoming and 45 percent in Montana. The entire Padlock Ranch is a split-estate, meaning the mineral and surface owners are different.

The Line’s experience with CBNG development began in 2002 when a 22-well pilot project deemed successful. Full field development began two years later.

Now 75 vehicles travel through the Padlock Ranch each day, to and from the hundreds of newly drilled wells.

“Things have forever changed,” Line said.

But, he said, it doesn’t mean they have changed for the worse.

Line thinks it is important for landowners to come forward with their experiences to help others understand what CBNG development is really about. “Most landowners are scared to death initially because of a few horror stories out there.” He believes some of the horror stories are self-inflicted.

“If you want to, you can make it work.”

He said it comes down to approaching CBNG development with the spirit of, “We can do this together.”

Line said development has impacted the Padlock Ranch unit he manages in many positive ways such as access roads, power lines and stock tanks.

He believes the secret to successful cooperation with developers is a series of compromises.

“You give and take until you get want you want, but you need to be willing to compromise.”

Line said having a plan is extremely important.

The Padlock Ranch spent two years preparing a surface use agreement, which helped management focus on ways to make development coexist with the agricultural operation.

The right attitude resulted in a win-win situation for the ranch and the operators.

Line said the same could be true for all landowners.

“It is all about how you can fit energy development into the vision you have for your ranch.”

The Padlock Ranch has unique characteristics that had to be specifically addressed while preparing the surface use agreement. For instance, one cow-calf unit on the ranch is 140,000 acres. There is no live water on the entire unit, only man-made reservoirs and stock tanks.

“Personally, we are starved for water. I wouldn’t let one drop leave,” Line said.

Now CBNG water is beneficially used on this unit in the form of stock water ponds and reservoirs. The Padlock Ranch is also about to embark on center-pivot irrigation.

Line said that aside from allowing access to water, development has been positive because it created relationships between operators and landowners.

He said his relationship with the operators is good 99 percent of the time. “It’s the small things that bother most people.” Line said these issues can disappear by talking and working it out. He said it takes work to build a relationship.

Line supports CBNG development for other reasons.
He believes it can alleviate America’s dependence on foreign oil and improve the tax structure.

Rick Rice

Rick Rice – The infamous Powder River Basin lies in both Montana and Wyoming. In the last ten years, coalbed natural gas development has allowed Wyoming’s economy to flourish. But, the same is not true for Montana.

This has caused immense frustration for some Montanans, like Rick Rice, who has lived in Powder River County his entire life. When Rice had to sell his cows because of the draught in Montana, his frustrations began to grow.

He started a grassroots organization, Citizens For Resource Development, in May of 2004 to combat these frustrations. The organization now has over 300 members, all Powder River County ranchers, farmers, business owners and working people, who believe they should have a voice regarding coalbed natural gas development in Montana.

Rice, who is president of the organization, explained the real situation. The majority of Powder River County residents want to see mineral development take place, but, obstacles are preventing it. The biggest obstacle has been the Northern Plains Resource Council.

“Unlike what they claim, NPRC is not the voice of agriculture,” he said. “NPRC’s needless meddling is making it impossible for industry to come to Montana.”

Rice said CFRD members firmly believe the NPRC is blatantly infringing on their private property rights. They do not like this at all.

He said it is very frustrating that he can’t develop his mineral estate under his ranch.

“I would like to prohibit the Tongue River irrigators for selling cattle or hay for five or six years. Maybe they will understand what it is like then.”

CFRD believes development could help the poor economy and dry ranches in Montana. Ranchers and farmers have found it extremely challenging to survive in Montana due to excessive weather conditions and inadequate access to water. Many of them are forced to have another job, on top of managing the ranch, in order to survive financially.

Rice runs a construction business, but according to him, even these side businesses are facing challenges.

“Needless to say, the construction business in Montana is not good either.”

Rice said he has to do the majority of work in Wyoming. He doesn’t think it is right that he has to work in Wyoming to make a living and pay taxes in Montana.

CFRD believes it is imperative Powder River County has mineral development to keep the county alive.

According to Rice, the Powder River County assessor’s office predicts the county will cease to exist in ten years because there is no tax revenue coming in.

CFRD aims to bring balance to the unstable economic picture in Montana. The organization has many goals for Montana.

They seek to educate the public with concrete science and facts regarding the truth behind mineral development.

Aside from stabilizing the economy, CFRD believes the discharge water could simultaneously provide a greater access to water on what are now unproductive, dry ranches.

He said the CBNG discharge water would be a god sent gift. “It would be better than what we are using now.” He explained that if he lets the water from his domestic well sit in an aluminum cake pan overnight, the water would eat holes in the pan.

Rice said, if the scientific research conducted by the United States Geological Survey was actually used, everyone would realize the irrigators are degrading the river, not CBNG producers.

CFRD also plans to educate the public on the genuine NPRC motives. CFRD believes the organization aims to stop development all together.

“There is no end to their perpetual litigation,” Rice said.

Jack Kendrick

Jack Kendrick – The Kendrick Cattle Company had one of the largest ranches in Wyoming and Montana at the turn of the 19th century. Because they were early settlers, the Kendrick’s were able to keep their mineral rights.

Shortly after, the federal government started separating the minerals from the surface in newly drafted deeds as a result of the Homestead Act. This gave way to the well-known eminence of domain statue, also known as “split estates.” The act led forth a craze that spans the Rocky Mountains today.

The Kendrick Cattle Co. has mineral interests spanning equally in Montana and Wyoming. Because the Kendrick’s lease their surface, they arrive to mineral development from a different angle. Nonetheless, they believe mineral development requires trade-offs and with proper communication, a healthy relationship between the surface owner and the developer can exist.

Jack Kendrick said they have had good experiences with Wyoming’s regulatory system. “It took a few years to sort itself out but the system works. There is a definite oversight to make sure development moves forward responsibly.”

In Wyoming, production began in 2005. Kendrick said the producers have done a beautiful job. He believes the lessees are happy and that they were compensated a fair amount for the surface disturbance. Lined ponds and re-infiltration are the current water management technique practiced.

The Kendrick’s say mineral development is an entirely different ballgame in eastern Montana.

“There is a group of vocal surface owners up there that spread a tremendous amount of misinformation around the state.”

Kendrick said they publicize old techniques like running water down creeks and do not mention the multiple water management techniques that are being used south of the border.

“They continue stalling CBNG development and will never be happy unless development is entirely stopped.”

In reality, Kendrick explains this group does not speak for all of Montana. The Kendrick Cattle Co. belongs to Citizens for Resource Development, a grassroots organization that believes development can proceed responsibly in Montana.

Kendrick said it is clear that CBNG development would be great for all of eastern Montana.
“It is a time warp, (in Montana) nothing is happening , and there is no new growth.” He said CBNG development has the ability to improve the state’s tax base and provide beneficial water, especially during these dry years.

“Fundamentally I am an environmentalist. I don’t want to see anything destroyed . We ranched this land for 100 years. We don’t want to see destruction but we do want to get what is ours.”

Kendrick believes all development has impacts, but this does not mean they are unacceptable impacts.
“I can point to places where there was oil development 40 years ago and you have to look to find it if you don’t know where it is.” Kendrick points out that this was a long time ago and reclamation is also coming along, allowing the oil and gas footprint to be minimized to an even greater degree.

John Hines

John Hines – John Hines has lived on a family ranch, ten miles west of Gillette, for 70 years.

Hines was introduced to CBNG development six years ago. In addition to being a long-time Wyoming rancher, Hines also has experience in the Wyoming State Legislature. He was a member of the House from 1985-2002. In 2003, he was elected to the Senate. His well-rounded experience has allowed him to see a comprehensive picture of CBNG development. He is intimately involved with the logistics of development on his ranch, and simultaneously understands development’s impact at the state level.

“I have seen many benefits from development on my ranch,” Hines said.

He thinks his legislature experience has allowed him to put the benefits he has received into perspective. “Most importantly, I realize that yes, problems do exist, but these problems are not the same everywhere.”

Hines said it is imperative to handle problems as they arise. More specifically, Hines believes, “a state-wide blanket rule will simply not work when it comes to regulating CBNG development.”

He believes that instead, a series of negotiations is the key to making it work.

He began learning about negotiations when working with the operators of conventional, deep-well development operation, on his ranch in the 60’s. As a legislature, he came to know more about negotiations than one could ever imagine. Now, he believes CBNG development is similar- because it’s really, just a series of negotiations.

Negotiations are directly related to CBNG development mainly because the mineral and surface interests are not continuous in most of Wyoming’s ranches. Landowners and operators are dealing with many different situations.

For instance, some parts of Hines’ ranch is split-estate, meaning the mineral and surface owners are different. Some parts are private, meaning Hines owns both the surface and minerals. Some parts are leased, meaning either the government owns the minerals and surface, or again, it could be another split-estate situation.

Hines learned that, “any negotiation is difficult to correct if you get off to a bad start. It is more of a give and take. People need to understand that no one is going to get everything they want.”

Hines said it is all about prioritizing, for both the landowners and companies. Open and continuous communication finalizes negotiations, and ensure a positive outcome for all parties involved.

“I am not bashful, if issues arise, I get a hold of the companies and we start talking about it.”

On top of negotiations, Hines said development is also about adopting to changes.

He believes that of course, good changes go along naturally with not-so-good changes. He said, another part of developing CBNG successfully means learning to adopt and accept changes.

“One of the hardest things in agriculture is to adopt to changes you don’t necessarily want.” He said it gets complex with many different owners and operators, but it is all manageable. “In the end it will be a lot more pleasant if you cooperate, negotiate well, and adapt to the changes. ”

As for Hines’ experience, he said, it has been good, overall. “The operators are very helpful. We work well together.”

Hines said the companies have helped him improve his ranch in many ways such as fixing roads, installing auto gates and culverts, and installing stock tanks for both his cattle and sheep operations.

The extra access to the CBNG water has been particularly beneficial. Hines said that he has been using the same CBNG water for 35 years because his domestic water wells are drilled in the same coal veins that produce natural gas.

He said that because his water is of good quality, most all of the CBNG water is discharged to the surface.

Throughout his ranch, wells are connected through pipelines. The pipelines are controlled by the user and direct CBNG water in, or out, of specific fields. This control allows him to shut off water seasonally in some areas, and simultaneously increase the flow in some pastures, all depending on both his needs and the operator’s needs.

Hines said it takes a little management, but, surface discharge has worked well as a water management tool. “The companies do a good job managing the water and we cooperate very well.”

In addition to surface discharge, Hines utilizes another water management tool on his ranch- treatment.

CBNG water is piped to a treatment facility on his ranch. The water is treated in the facility with gypsum, (an element that has standard fertilizer concentrations), and then flows to reservoirs. The treated water then flows down a creek.

Hines thinks it is working good.

“I have had no signs of damage or sodium buildup,” he said.

He believes his experiences give him reason to speak out about development.

Hines advise to landowners is, “try to be as well-informed as possible of what other landowners did.”

In addition to being informed in general, Hines encourages landowners to be informed specifically on how others have handled unique situations with operators during development. “Don’t be afraid to ask, I am willing to share if it helps others.”

History and Needs of the Porter Ranch

by Dustin Shaw

My great grandparents moved and established homesteads in the Decker Montana and Sheridan, Wyoming area in 1914 and 1917.  Each of them weathered many obstacles such as the drought and the great depression.  Yet all of their hard work paid off for the both of them when they purchased land.  My grandparents bought their own place in 1943. Through out the years grandparents have bought more land and inherited parts of their parent’s place.  My grandmother still lies on their place and manages it.  Growing up I spent the summers out there.  In the mid 1980’s I started working out there in the summers for them.  In 1991 to the present I have been working full time.

About the mid 1980’s is when the drought began and our reservoirs started going dry.  We had no choice but to drill more water wells and deepen some of them because they were also going dry.  Since then we have been searching for water for our livestock and every year it becomes more difficult.  In 1997 we started experiencing continuous problems with our well at the house.  In  2006 we had drilled four wells at the house, with one of them being a dry hole and another going dry after a few years of service. The final well that was drilled in 2006 was 500 feet deep and had not very much water. Just when it was looking hopeless, that same day, an oil and gas company knocked on our door to talk to us about developing our coal bed methane gas minerals.  They put in a cistern in for us and we started to use the water from the methane wells. This water is the same water we have used for years it just comes from deeper coal seems.

Being ranchers who respect every ounce of water we can get our hands on, it doesn’t make much sense to waste it by be pumping down rivers or put into lined ponds to be evaporated back into the atmosphere.  When it could be utilized for watering livestock and for irrigating.  Another oil and gas operator has put in water tanks in some of our pastures for the cattle and wildlife.

Our solution is use the water.  It’s a necessity for survival for ranchers, livestock, and wildlife!  It just makes sense.  Why can’t we put this water into dry reservoirs to water our livestock?  In Wyoming, the ranchers who irrigate what was dry land are getting around three to five tons of hay an acre per cutting.  These hay fields use to produced nothing but sagebrush for prairie dogs to enjoy.  We need to get our priorities straight.

Check out Dustin’s video here. It was taken by a video cam on the pumping unit of the well. Before the cbng development, the field had no water (or wildlife).