BAUCUS: CANADIAN COAL MINE COULD BE DELAYED

Canadian Official Tells Senator Of Plans To Slow Cline Mine Project

March 30, 2007

(Washington, D.C.) - A proposed Canadian coal mine near Glacier National Park will likely be delayed because a high-level environmental review will be conducted by officials in Ottawa, Montana Senator Max Baucus learned today.

Baucus today met with Canada's Ambassador to the United States, Michael Wilson, who confirmed for the senator that the Canadian government plans to initiate a federal-level environmental review of the Cline Mining Company's proposal to mine coal near the headwaters of the North Fork Flathead River, which runs into Flathead Lake in Montana.

Such a review could delay the proposal for up to three years, Baucus said.

"This is a significant development," Baucus said, "because it shows that our concerns are reaching the highest levels in the Canadian government. The fact of the matter is this mine will have devastating consequences to Montana's water quality and our outdoor heritage. I get a strong sense that officials in Canada are starting to get the message."

The Cline Mine Company recently finished a public comment period on its so-called draft terms of reference, which will outline what Cline must do to produce a satisfactory application and environmental review from the B.C. government. But members of the Flathead Basin Commission in Montana have said the document doesn't take into account the cumulative effects of other mines currently being proposed in the Canadian Flathead.

Under Canadian law, the Federal government in Ottawa can also request that a federal level environmental assessment be done. Baucus has learned that the Department of Fisheries in Ottawa will request an assessment by Environment Canada (that country's equivalent of the U.S. EPA) once the provincial assessment is completed.

Both Baucus and Montana Governor Brian Schweitzer have requested the higher-level review.

"We're not out of the woods yet," Baucus said. "But this clearly is a strong indication that the pressure we're bringing to bear is starting to work. Now we'll keep the heat on and continue to fight for the Flathead."

Baucus has been a leading opponent of the Cline Mine proposal, saying there could be devastating consequences to Montana's fish, wildlife, and the recreation industry in the Flathead with "zero economic benefits or jobs for Montanans."

"I've been proud to work with Montana's leaders on fighting this proposal," Baucus said. "I especially commend the work of Gov. Schweitzer and our state officials because the only way we'll win is through teamwork and cooperation."

Baucus has also asked U.S. Secretary of State Condoleezza Rice to call for an investigation by the International Joint Commission, a panel of both American and Canadian experts charged with preventing and resolving international disputes between the U.S. and Canada. The panel was instrumental, at Baucus' urging, in defeating a similar mining proposal in the same area in 1988.

Baucus is Montana's senior U.S. Senator and Chairman of the Senate Finance Committee, which has jurisdiction over international trade policy.

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