OSM mostly rejects Montana's mining bond tweaks.
Published Date: 8/21/2026
Rule
Summary
The Office of Surface Mining Reclamation and Enforcement (OSM) is not approving, with one exception, an amendment to the Montana regulatory program under the Surface Mining Control and Reclamation Act of 1977 (SMCRA or the Act). The Montana legislature, specifically Montana House Bill 328, proposes to add a definition of affected drainage basin to the Montana Code Annotated (MCA). Additionally, House Bill 328 proposes changes to the Montana Code Annotated, pertaining to bond release application requirements.
Analyzed Economic Effects
6 provisions identified: 1 benefits, 5 costs, 0 mixed.
Montana 'Affected Drainage Basin' Rejected
If you operate a coal mine in Montana, the Office of Surface Mining did not approve Montana's new definition of "affected drainage basin" in Mont. Code Ann. 82-4-203(3). That change is explicitly not approved as of the rule published August 21, 2026 and effective September 21, 2026.
Bond-Release Discretion Preserved
Montana's proposal to strike the words "if it is satisfied" from Mont. Code Ann. 82-4-232(6)(k) was not approved. That means the State may retain the discretion to determine whether reclamation covered by a bond has been accomplished before releasing a bond, as reflected in the Federal decision effective September 21, 2026.
Proposed Changes to (k)(ii) and (k)(iii) Not Approved
Montana's proposed revisions to Mont. Code Ann. 82-4-232(6)(k)(ii) and 82-4-232(6)(k)(iii) were not approved by OSMRE in the August 21, 2026 final rule. OSMRE said these changes cannot be approved because they depend on other provisions that OSMRE did not approve.
Subpart C Addition Blocked (No Early Final Release)
Montana's addition of a subpart "C" to Mont. Code Ann. 82-4-232(6)(k)(iv), which could have allowed final bond release during phased release, was not approved. OSMRE explicitly declined to approve that addition in the August 21, 2026 decision.
Operator Responsibility Period Remains
Montana proposed removing the period specified for operator responsibility in Mont. Code Ann. 82-4-232(6)(k)(v), but OSMRE did not approve that change. The Federal-consistent requirement that a specified operator-responsibility period apply remains in effect as of the September 21, 2026 effective date.
Approval of MCA 82-4-232(6)(k)(i)
OSMRE approved Montana's change to Mont. Code Ann. 82-4-232(6)(k)(i) (the Area Mining Required--Bond--Alternative Plan provision) in the final rule published August 21, 2026, effective September 21, 2026. That specific subsection is accepted as meeting Federal standards.
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