Case Summary
Issue:
Whether Montana complied with all State environmental laws and policies when it approved new well drilling permit applications?
Plaintiff:
Montana Wildlife Federation; National Wildlife Federation
Defendant:
Montana Board of Oil & Gas Conservation
Intervenor:
Fidelity Exploration and Production Company; Montana Petroleum Association (represented by MSLF)
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Case History
In 1915, a natural gas field was discovered in the Cedar Creek Anticline in Fallon and Carter Counties of far-eastern Montana. In 1925, gas production began, and, by 1995, the Cedar Creek gas field consisted of 150 wells producing approximately 10 billion cubic-feet of natural gas per year. Since 1995, both the number of wells and the gas produced has expanded significantly. Before 1997, gas well spacing rules limited development to one well per 320 acres. In 1997, well spacing was increased to one well per 160 acres. In 2003, well spacing was again increased to one well per 32 acres. This spacing continues today.
In 1998, a programmatic environmental impact statement was prepared by the Montana Board of Oil and Gas Conservation as to oil and gas drilling in Montana. Pursuant to that study, as of 2008, over 1,100 wells had been drilled, and the Montana Board of Oil and Gas Conservation estimates an average of an additional 71 wells will be added to the field per year.
On August 11 and 12, 2008, the Board issued environmental assessments (“EAs”) for 23 new gas wells proposed by Fidelity Exploration and Production Company in the Cedar Creek gas field. On October 9, 2008, two environmental groups, the Montana Wildlife Federation and the National Wildlife Federation, filed suit in state court challenging the environmental assessments associated with approval of Fidelity’s gas well permits.
On February 26, 2009, MSLF filed a motion to intervene on behalf of the Montana Petroleum Association. On April 4, 2009, the Court granted the Montana Petroleum Association’s motion to intervene. Summary judgment motions were filed and briefing completed.
Oral arguments on the summary judgment motions were held on May 18, 2010. On July 14, 2011, the district court granted summary judgment in favor of the Board, Fidelity, and the Montana Petroleum Association.
On September 9, 2011, the Wildlife Federations filed a notice of appeal.
