Viewpoint: Sen. Daines, oil and gas and Montana’s future
Eric Melson
As outdoor recreation grows as an economic driver around the West, rural Montana is poised to benefit. I’ve been working in the recreation and conservation space for the past two decades and have seen outdoor recreation go from a small group of passionate individuals to a major economic force, bringing both visitors and business investment.
Communities from Hamilton, Montana to Bentonville, Arkansas have improved outdoor access right next to schools and neighborhoods and are starting to see the positive returns. Professionals of all types, from healthcare to software, are choosing to live in places with high quality outdoor access. Montana’s outstanding outdoors are a key to creating jobs and keeping our rural communities healthy, and we are uniquely positioned to benefit from this economic trend.
My concern is that Senator Daines doesn’t fully see the power of public lands and the role they play for Montana’s future. A few weeks ago, he introduced a resolution that will eliminate the Bureau of Land Management’s (BLM) new Oil and Gas rule. This rule updates the oil and gas leasing system created by the Mineral Leasing Act of 1920, and it appears that Mr. Daines is determined to roll back the clock.
The fact is, energy markets are changing, and it’s time we start planning for the future of Montana’s rural communities. This is what the new BLM Oil and Gas Rule is all about. The rule raises bonding rates to ensure that the exploration companies that develop wells will be the exact same companies that pay for their eventual clean-up…The rule also increases royalty rates to make sure Montana communities recieve a fair return from energy development on our public lands.
In addition, the new BLM Oil and Gas rule limits speculative leasing. We have been leasing parcels on America’s public lands since 1920. The majority of potentially productive parcels have been leased, and as of 2024, only 50% have actually been drilled. Our public land is not infinite, and the system of leasing, which worked in 1920, is no longer serving us. Instead of leasing marginal and speculative parcels, our Montana BLM offices should be meeting community demands for outdoor recreation amenities that will bring economic and health benefits to rural Montana.
If Senator Daines is serious about supporting small oil and gas businesses, he should be supporting the BLM Oil and Gas rule, not trying to roll it back. When oil production from a well drops below a certain threshold, often big developers sell to smaller local operators. These local operators are the ones that end up having to walk away from a well, because the previous owner didn’t put a large enough bond in place to cover the cost of clean-up.
Communities with lots of orphaned wells won’t have much of a chance to create recreation assets like trails, campgrounds and access points because nobody wants to recreate in an abandoned industrial site. Communities with outdoor recreation assets are natural hubs for small businesses of every type, from restaurants and retailers to accountants and entrepreneurs.
Montanans will benefit from the new BLM Oil and Gas Rule, a long overdue update to an archaic 1920’s law. By limiting speculative leasing and raising bonding and royalty rates, our rural towns will be better prepared for a uniquely Montana future, where the great outdoors is part of everyone’s life, and small businesses across the state are thriving
Eric Melson is a Missoula City Council member representing Ward 1.