Coal Lease Worries Miner

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By Kyle Midura

Story Published: Mar 19, 2010 at 5:20 PM MST

Story Updated: Mar 19, 2010 at 9:18 PM MST

BILLINGS - A day after the state land board voted to approve a bid to mine coal in the Otter Creek Area, some worry that the new lease will affect the state's coal market.

The $86-million dollar plan allows Arch Coal Incorporated to mine a half-billion tons of state-owned coal. A Colstrip miner said he's worried that coal from Otter Creek will only further saturate the Montana market.

He fears a new railway proposed along with the lease could eliminate Montana's freight advantage as well as hundreds of jobs.

"I just am concerned that the coal might end up here in the Colstrip plant," said coal miner Del Dinstel, "one accountant could do what 300 miners are doing, if they have cheap enough coal sitting here in rail cars, they wouldn't need to mine Colstrip coal."

Arch Coal, the country's second largest producer, said the reserves will supply U.S. and Asian energy producers.

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