MT-owned coal tracts moving toward possible lease

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The Montana Land Board is holding public hearings this week over whether to lease for development state land near Ashland that contains roughly 600 million tons of coal.

An April appraisal said leasing the Otter Creek coal tracts for mining could bring the state $37 million in upfront payments and $1.4 billion in royalties over 40 years.

Any mine would need a long-stalled railroad along the Tongue River to be built, so the coal could be brought to market.

Southeastern Montana hasn't seen a new mine open in three decades. The Land Board hearings this week in Miles City and Lame Deer are designed to gauge public support for the project.

Supporters say it could bring an economic boon, while opponents say it would industrialize a rural corner of the state.

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