The Hard-Rock Mining Impact Act
Working with mineral developers and affected local governments, the 1981 Montana Legislature enacted the Hard-Rock Mining Impact Act. The purpose of the Act is to ensure that local government services and facilities will be available when and where they are needed as a result of new large-scale hard rock mineral developments and that the increased cost of these services will not burden the local taxpayer. In 1983, the Legislature also addressed on-going increased costs in taxing jurisdictions that do not include the hard rock mineral development within their boundaries and the fiscal and economic impacts of major workforce reduction and mine closure.
Under the Impact Act, each new large-scale hard-rock mineral development in Montana is required to prepare a local government fiscal Impact Plan. In the plan the developer is to identify and commit to pay all increased capital and net operating costs to local government units that will result from the mineral development. The Impact Plan is a condition of the operating permit issued to the developer by the Montana Department of Environmental Quality.
The developer prepares the Impact Plan with the cooperation of the affected local governments. The developer then submits the proposed plan to the affected local government units and to the Hard-Rock Mining Impact Board for their formal review. Local governments review the plan for its accuracy and adequacy with respect to anticipated service and facility needs and costs. The Board reviews the plan for its compliance with the Hard-Rock Mining Impact Act and the administrative rules. In the plan, the developer may commit to provide assistance that will prevent increased costs or may commit to pay increased costs through grants, property tax prepayments, or education impact bonds.
