Feds Block Montana Mining Fix Over Weird Court Cost Provision
Published Date: 8/25/2026
Rule
Summary
We, the Office of Surface Mining Reclamation and Enforcement (OSM), are denying an amendment to the Montana regulatory program under the Surface Mining Control and Reclamation Act of 1977 (SMCRA). Montana submitted this proposed amendment to OSM on its own initiative in response to a State law passed by the Montana Legislature (Senate Bill (SB) 392). The proposed amendment would have added a provision requiring equal application of court costs to the prevailing party in contested case proceedings by a court or administrative agency that issues a decision. The proposal would have also amended the Montana Code Annotated (MCA) to refer to the proposed equal application of court costs rule. Finally, SB 392 includes contingencies that apply to the proposed amendment but are not codified into the MCA: codification instructions, a severability clause, an effective date clause, and an applicability statement.
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
'Loser Pays' Denied in Montana
If you are in Montana and might bring or join a legal challenge about coal mining, the Office of Surface Mining (OSM) has denied the State's rule that would have forced the losing party to pay court costs. OSM found the State proposal conflicts with the federal Surface Mining Control and Reclamation Act (SMCRA) and the federal rule at 43 CFR 4.1294, so attorney-fee awards remain governed by SMCRA sections 520(d) and 525(e) and the existing federal standards.
Montana's Immediate-Effect Clause Blocked
SB 392 included an "effective on passage" clause and said it would apply to court actions filed on or after that date. OSM found those provisions contrary to SMCRA and 30 CFR 732.17(g), and disapproved the amendment, meaning the State cannot make those changes effective for the State coal program until OSM approves them; the denial is effective September 24, 2026.
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Key Dates
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