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Diverse coalition challenges Montana’s exempt wells

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Diverse coalition challenges Montana’s exempt wells


Laura Lundquist

(Missoula Current) As Montana’s streams continue to dwindle in the continuing drought, a diverse group of organizations and individuals are once again challenging Montana’s rule on exempt wells, saying the state has repeatedly ignored court rulings.

On Wednesday, six Montana organizations and three individuals filed a complaint in Lewis and Clark County district court alleging that the Montana Department of Natural Resources Conservation has ignored court rulings and the rights of senior water-right owners by continuing to allow subdivision developers to exploit Montana’s exempt well law.

The plaintiffs include the Clark Fork Coalition, Montana League of Cities and Towns, Montana Farm Bureau Federation, Trout Unlimited, Montana Environmental Information Center, Association of Gallatin Agricultural Irrigators and Mark Runkle, a housing developer.

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“From rapid growth to ongoing drought, Montana’s water resources and water users are facing unprecedented challenges,” said Andrew Gorder, Clark Fork Coalition legal director. “The cumulative impact of over 100,000 exempt groundwater wells can no longer be ignored. We’re asking the court to conserve our limited water resources and ensure that the constitutional protections afforded to senior water rights, including instream flow rights, are preserved.”

Over the years, especially since 2006, the Legislature has considered more than a dozen bills, most with the intent of enabling the proliferation of small wells – those that pump less than 35 gallons per minute – that the state has exempted from needing a water right or permit. The few bills proposed to keep exempt wells in check have usually failed in the Legislature while the DNRC has been reluctant to insist on regulation. So the incorporation of exempt wells in new subdivisions has exploded at a time when the state, particularly western Montana, is struggling with dwindling water supplies.

According to the complaint, census data show Montana’s population increased by almost 203,000 residents between 2000 and 2021. Over 87% of that growth occurred in six counties—Gallatin, Yellowstone, Flathead, Missoula, Lewis and Clark, and Ravalli – and those are also the counties where hundreds of new wells are pulling huge amounts of water out of their respective aquifers.

The complaint says Ravalli County is the most extreme example of population influx and exempt well development. Census data show 10,000 people moved to Ravalli County between 2000 and 2021, and 84% of the 6,000 new homes were built outside of incorporated areas. As a result, there are now more than 24,000 wells in the county and only 288 are for municipal or public water supply systems. So it’s not surprising that household wells, such as those south of Lolo, were running dry this summer in the Bitterroot Valley.

So many unregulated, unmetered wells together are using more water than agricultural producers who are required to have water rights before they can use water for irrigation or stockwater. If such water rights holders don’t receive their full amount of water, they are allowed to ask other users junior to them to stop using water. But that system doesn’t work when they try to make a call on a subdivision full of exempt wells. So, as courts have found, exempt wells violate Montana’s first-in-time, first-in-right system of water rights.

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Over the decades, the number of water rights granted in each river basin account for more water than the basin holds, so starting in the 1990s, the state closed several basins to new water rights, including the Upper Clark Fork, Blackfoot and Bitterroot river basins. Eventually, groundwater rights were limited too when the courts ruled groundwater and surface water were linked. But that hasn’t stopped developers from drilling more household wells.

Back in the 1960s and ‘70s when Montana had only a half-million residents, exempt wells weren’t as much of a problem. But as the population surged and subdivisions multiplied in the 1980s, some Montanans could see danger, and a 1982 state conference recognized the threat to water supplies posed by an increasing number of unregulated wells.

In 1987, the DNRC developed a rule prohibiting the combined appropriation or use of exempt wells from a single aquifer without a water right, which should have stopped subdivisions from installing multiple exempt wells. But real estate and contracting lobbies were gaining strength. In 1993, the DNRC changed the definition of “combined appropriation” to require that the wells be physically joined before being required to get a water right, giving developers an out to use individual household wells.

A 2008 DNRC report, written for the newly created Legislative Water Policy Interim Committee, found that “exempt wells had become a major source of unregulated groundwater use in closed basins, areas with high population growth and increasing subdivision development.” The DNRC acknowledged that water rights owners could have their water use curtailed while subdivision exempt-well use continues unabated.

The Water Policy Interim Committee would conduct two additional studies of exempt wells in 2012 and 2018, which would find exempt wells problematic for water supplies and water law, but prompted no action.

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Finally in 2009, a group of water rights holders, including the Clark Fork Coalition and rancher Katrin Chandler, petitioned the DNRC to rewrite the 1993 rule to protect senior water rights. When the DNRC refused, they went to court. In October 2014, a district judge ruled in their favor, saying the 1993 exempt well rule violated Montana’s Water Use Act. The state appealed, and meanwhile, the Legislature tried to pass laws to bolster the 1993 rule even though many legislators say they’re pro-agriculture.

In September 2016, the Montana Supreme Court upheld the district court finding that the 1993 rule on combined appropriation was inconsistent with the Water Use Act. DNRC went back to its 1987 definition of combined appropriation, and that should have put an end to the use of multiple exempt wells in subdivisions. But it didn’t.

In 2022, Upper Missouri Waterkeeper and others filed a court challenge to stop a 442-acre subdivision with exempt wells in Broadwater County that had gotten DNRC approval because it would be developed in four phases that were considered individually. The district court sided with Upper Missouri Waterkeeper, saying the DNRC’s “interpretation here would allow developers to circumvent exempt well limitations easily and unilaterally by simply slicing any project into phases each small enough to fall under the exempt-well ceiling for the aggregate acre-feet.”

District judge Michael F. McMahon said the DNRC ignored the 2016 Montana Supreme Court ruling and he expected that the department might do the same in future situations.

“The economic impetus to develop land is overwhelming and relentless. If there is going to be any check on uncontrolled development of Montana’s limited water resources, it will have to come from DNRC, which is statutorily charged with fulfilling Montanans’ constitutional right to ‘control, and regulation of water rights,’ a duty DNRC has manifestly avoided or undermined for over a decade to the detriment of our waters, environment, and senior water rights holders whose protection is the ‘core purpose’ of the Water Rights Act,” McMahon wrote.

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The 2025 Legislature killed Senate Bill 358, which came out of recommendations from a DNRC working group, which included some of the plaintiffs. SB 358 would have significantly restricted the use of exempt wells in four aquifers where DNRC data and analysis shows that wells are affecting senior water rights owners: the Helena Valley, the Bitterroot Valley, the Missoula Valley, and the Gallatin Valley.

DNRC data show that between 74% and 94% of all groundwater use within these aquifers are from exempt wells, compared to 1% to 5% that are permitted wells, according to the complaint. In the Missoula and Bitterroot Valleys, more than 15,000 exempt wells serve rapidly growing residential areas, making up 74% of all groundwater rights in the Missoula Valley and 89% in the Bitterroot Valley. DNRC has recommended that the Legislature close both the Missoula and Bitterroot aquifers to additional exempt well development.

Because efforts to work with the DNRC and the Legislature have been stymied, the plaintiffs are turning to the courts and asking a judge to find the Exempt Well Law is unconstitutional by violating the property rights of water-right owners and by limiting their right to participate. They also want the DNRC to stop implementing the Exempt Well Law and rewrite it to conform with the water law of prior appropriation.

“Farmers and ranchers have followed the rules and invested generations of work based on secure access to water,” said Scott Kulbeck of the Montana Farm Bureau Federation. “Everyone has to play by the same rules. When some folks skip the permit process and pull from a water source that’s already spoken for, it hurts their neighbors. This case is about protecting the way Montanans have managed water responsibly for generations.”

Contact reporter Laura Lundquist at lundquist@missoulacurrent.com.

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SLIDESHOW: Severe storms moved through western Montana on Thursday

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SLIDESHOW: Severe storms moved through western Montana on Thursday


Severe storms moved through parts of Montana on Thursday, prompting a total of 5 Severe Thunderstorm Warnings. Reports included strong wind gusts and hail in several communities, including Augusta, Choteau, Sunburst, Bigfork, Kalispell and Evergreen.

The strongest reported wind gust was 60 mph near Augusta, while hail up to 1 inch was reported near Evergreen and Kalispell.

STORM REPORTS:

12 SE Grant — 56 mph thunderstorm wind gust
7 NNE Augusta — 60 mph thunderstorm wind gust
5 ENE Choteau — 59 mph thunderstorm wind gust
Sunburst — 54 mph thunderstorm wind gust
Ennis — 59 mph thunderstorm wind gust
3 SSW Ennis — 52 mph thunderstorm wind gust
2 E Helena — 54 mph thunderstorm wind gust
19 E Swan Lake — 56 mph thunderstorm wind gust
2 NNW Yaak — thunderstorm wind damage – Multiple downed trees reported along Highway 2 between MM 3 and 8
3 WSW Blacktail — 53 mph thunderstorm wind gust
1 NNW Troy — 49 mph thunderstorm wind gust
5 ENE Choteau — 56 mph thunderstorm wind gust

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Turah — 0.88″ hail
1 NNW Bigfork — 0.75″ hail
3 SW La Salle — 0.50″ hail
2 N Evergreen — 1.00″ hail
1 W Kalispell — 1.00″ hail
3 WNW Kalispell — 0.75″ hail

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Las Vegas man sentenced after Helena coin shop burglary in Montana

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Las Vegas man sentenced after Helena coin shop burglary in Montana


A man from Las Vegas has been sentenced after stealing coins and precious metals from a Helena shop in Montana.

This comes after Bishop Lott, 47, pleaded guilty in January to one count of interstate transportation of stolen property.

A judge sentenced Lott on Thursday to 27 months in prison, followed by three years of supervised release. He was also ordered to pay $276,153.08 in restitution to the Helena business as well as five other theft victims.

MORE | Southern California man pleads guilty to importing, trafficking 70 pounds of ketamine

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The government alleged in court documents that Lott, along with Ricky Rynell Rose, broke into Wayne Miller Coins in Helena and stole nearly $59,000 in coins and precious metals from a Helena business.

Rose pleaded guilty last year and was sentenced to 39 months in prison.

The Helena Police Department received a call on March 3, 2024, reporting that Wayne Miller Coins had been burglarized earlier that day.

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As part of their investigation, Helena police officers reviewed surveillance footage from multiple businesses. They analyzed email account data, which led them to Lott and Rose, who had taken the stolen material to Nevada.



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A battle over dark money is brewing in Hawaii and Montana

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A battle over dark money is brewing in Hawaii and Montana


Political spending that is funneled into elections from a variety of nonprofits is known as dark money — and unlike campaign spending or the money deployed by PACs and super PACs, these sources are not required to disclose their donors. Following the Supreme Court’s 2010 Citizens United decision, which created the country’s current election spending landscape, this has ramped up dramatically, with the 2024 election seeing a record $1.9 billion in dark money spending, nearly double the $1 billion spent in 2020. Now, some campaign finance reformers think they’ve found a state-level reform that can rein in this spending.

Now, campaign finance reformers think they’ve found a solution, and it’s already in place in Hawaii.

A newly enacted corporate law, SB 2471, changes the powers that corporations, or other artificial persons like nonprofits, are granted by the state of Hawaii. In the United States, states grant artificial persons powers as part of an agreement that allows those artificial persons to operate in the state. SB 2471 works by changing the powers that Hawaii grants these entities to disallow them from spending on politics at all.

Tom Moore, a senior fellow at the Center for American Progress and former chief of staff to  Federal Election Commission commissioner Ellen Weintraub, told Salon that the law operates upstream of Citizens United by dealing with the powers granted to corporations and other artificial persons, rather than trying to regulate what they can and cannot do with those powers.

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“Citizens United said, ‘Hey, if you’re a corporation that is empowered to spend in politics, your right to spend independently in politics can’t be infringed,’” Moore said. “Fine. What this [Hawaiian law] does is say, ‘You know, we’re not going to create that kind of corporation anymore. We’re going to create the kind of corporation that doesn’t have any political spending powers.’ Citizens United and all the other campaign finance cases that the courts have ever decided do not speak to that.”

In his analysis, Moore said this strategy also has a better chance of standing up to scrutiny from the Supreme Court because courts have long upheld a state’s ability to assign powers to corporations operating within their borders, going back hundreds of years.

“They’re gimmicks, and the Supreme Court is not usually impressed by gimmicks.”

“The Supreme Court has said for 200 years that the states can do whatever they want in terms of assigning powers to corporations. They made a fatal assumption in Citizens United that 100 years ago, when states gave away all the powers and said, ‘You can do anything that a human could do,’ they assumed that states would never change their mind on that,” Moore said. “But they never said the states couldn’t change their mind on that, and now they are.”

For example, a recent court ruling in Delaware allowed a change to a town charter that would allow corporations to vote there under some circumstances.

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Moore believes that this Hawaiian law, and others like it in the works in other states, have a good chance of surviving at the Supreme Court. However, some critics disagree, saying this legal maneuver is likely to be struck down.

Brad Smith, the chairman and founder of the Institute for Free Speech, a nonprofit that advocates against limits on political speech, including political spending, called the move an “end run” around Citizens United.

“They’re gimmicks, and the Supreme Court is not usually impressed by gimmicks. If you want to do it, you probably have to change the makeup of the Supreme Court or be willing to pack the court and have the political muscle to do it,” Smith said.

In his opinion, the court is likely to see Hawaii’s law as a violation of the First Amendment and is unlikely to look favorably on the argument that these laws deal with powers rather than with rights and that this has to do with how corporations have changed in the past 200 years.


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Smith explained that in the past, states used to create bespoke statutes for corporations to do something like operate a ferry or a toll bridge. These days, however, the laws governing corporations are more uniform.

“That’s just not how corporations operate in the modern world,” Smith said.

Smith added that he suspects the court will see this law as conditioning the creation of a corporation, or similar artificial person, on forfeiting the right of the people forming a corporation to political speech in the form of spending.

“You could not have the state say we’re going to allow you to register your home, but only if you agree that you won’t spend any money from your home equity line of credit on any kind of political activity,” Smith said. “You can’t deny people the benefits of the law based on a determination that they give up some type of constitutional rights.”

Notably, under Hawaii’s law, the people who form corporations are still allowed to engage in political spending; it’s just that the artificial person in question is disallowed. Still, Smith said, he believes the court will still see the law as unconstitutional.

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What’s clear is that this new law, or one like it, will likely be headed to the Supreme Court and that’s because there are already other states where people are mobilizing to create similar laws.

Jeff Mangan, the founder and president of the Transparent Election Initiative, is already spearheading an effort to get a similar statute on the ballot in Montana in 2026, telling Salon that the group is only about 1,000 signatures away from meeting the petition requirements, with four weeks left.

“It’s an all-volunteer effort in Montana, we don’t have any paid signature gatherers, and it’s something that hasn’t been seen in a couple of decades here,” Mangan said.

While election finance reform is typically seen as a progressive issue, Mangan said that the initiative has been well-received by Montanans of all political leanings and that he’s optimistic that the measure will pass, though he’s expecting a significant political battle once the ballot measure is approved.

“We start with a very simple question: Do you believe there’s too much money in politics?” Mangan said. “Citizens will say ‘Yes,’ and they may not agree exactly what the solution is, but we can all agree that there’s too much money in politics.”

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Mangan acknowledged that the law, if passed in Montana, would be limited in that it only addresses dark money, which is a relatively small portion of political spending. While 2024 saw nearly $2 billion in dark money spent, it saw some $15 billion in outside political spending, according to the election spending watchdog OpenSecrets. Still, Mangan said, he’s already had organizers in all 50 states reach out expressing interest in the project and in starting similar efforts in their home states.

The Montana measure has also already survived a legal challenge at the Montana Supreme Court, which makes organizers optimistic that the law will survive a federal challenge. The court ruled that the law was not an infringement of rights because the law “speaks only to powers, not rights, and it does not expressly revoke any constitutional rights.”

Still, Mangan expects that his group and the supporters of the measure will have to fight tooth and nail to get the bill passed via referendum if and when it appears on the ballot in November.

“It’ll certainly be a David versus Goliath battle. They’ve already started. The Chamber of Commerce and industry groups attempted to stop the initiative right at the beginning of the signature-gathering phase. They sued the state to stop us from gathering signatures. They were unsuccessful,” Mangan said. “We expect litigation at every step of the way through this, not to mention whatever political campaign they choose to throw at us, and I would imagine it’ll be expensive and immense. It almost makes our point. Exactly the reason we need the Montana plan is because of exactly what we’re seeing being thrown against us.”






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