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Montana oil and gas industry welcomes resumed federal lease sales, but economic hurdles still exist

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Montana oil and gas industry welcomes resumed federal lease sales, but economic hurdles still exist


(The Middle Sq.) – Montana’s oil and fuel business welcomes the continuation of lease gross sales on federal lands, however it may nonetheless be powerful economically, business representatives say.

Earlier this month, the U.S. Bureau of Land Administration (BLM) posted notices for resumed lease gross sales after a federal choose halted the Biden administration’s govt order freezing lease gross sales on federal lands.

The BLM, nonetheless, elevated royalty charges to 18.75% and mentioned the onshore lease gross sales would solely be supplied at 20% of eligible acreage. 

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Alan Olson, govt director of the Montana Petroleum Affiliation, informed The Middle Sq. that the indicators coming from the Biden administration aren’t encouraging.

“The business listens to the indicators popping out of the administration and consider me that the Biden administration shouldn’t be sending out very sturdy indicators that they need this business to proceed,” he mentioned.

Whether or not corporations will participate in lease gross sales is determined by the place the land is positioned, in accordance with Olson.

“In the event that they’re positioned in a few of these regional shale performs, they’re going to benefit from it,” he mentioned. “In the event that they’re positioned in an space the place an organization is attempting to place collectively an exploration bundle, it may work out.”

But when it’s close to an exploration website, the leases may gum up the works, he mentioned.

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“It’s essential to have some management over the mineral acreage earlier than you are able to do geophysical exploration,” Olson mentioned.

Federal acreage in the midst of non-public and state mineral holdings may scrub exploration actions.

“It is powerful to function on federal land the way in which it’s, negotiating entry agreements, right-of-way agreements for roads, pipelines, issues like that,” Olson mentioned.

Federal leases should start on the allowing part, with archaeological research, wildlife research, air high quality research and different necessities.

The elevated royalty prices make it more durable economically, in accordance with Olson. He mentioned a federal drilling allow prices $10,950. That doesn’t embody research prices, and a lease would not assure a effectively shall be produced.

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Montana’s drilling permits are primarily based on well-depth, beginning at $25 for a shallow effectively and going as much as $125 for a deep effectively, he mentioned.

Corporations gained’t simply go into federal land lease and drill. They are going to put collectively a venture that could possibly be hundreds of acres. The primary effectively may be a dry gap.

Olson mentioned it should in all probability take a yr to get a drilling allow on federal land. “If the celebs all aligned,” drilling may start in a yr and a half.

These federal onshore land leases additionally gained’t handle rising oil and pure fuel costs, Olson famous.

“President Biden, he is encouraging all people and demanding our business exit and simply open up the faucets on these wells. Effectively, that is not the way in which the business works,” he mentioned.

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Montana’s oil and fuel business was hit laborious in 2020, with many corporations going bankrupt and many roles misplaced.

Manufacturing has stabilized a bit, however it’s been on a gentle decline because the mid-60s, in accordance with Olson. 

Some drilling is going on within the Bakken formation within the Williston Basin and there is curiosity in some outlying areas. Within the Bakken shale play space in Montana, the scattered small parcels of federal land make leases much less of an issue.

A venture that injects CO2 for enhanced oil restoration opened the valve on the CO2 pipeline final week, Olson mentioned.

“But when we’ll exit and do any worthwhile exploration for crude oil or pure fuel, this federal leasing situation could possibly be an issue,” he mentioned.

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Montana City Ranked One Of The Cheapest In The U.S.

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Montana City Ranked One Of The Cheapest In The U.S.


Affordable living in Montana. Now that may sound like something that seems impossible, especially if you are looking to move to certain areas like Bozeman, Kalispell, or Missoula. Thankfully, there are still towns/cities that are making national news for being the most affordable/cheapest to live in, in the United States.

A top name in finance, Kiplinger Personal Finance, has come out with a list of the 25 cheapest cities to live in throughout the U.S. and one Montana city has made the list. This city came in at #16!

It really wasn’t a surprise when reading the list to see this city on it. There are so many things to do in and around this city, it’s no wonder people are starting to flock there.

What city in Montana made the list for one of the one of the cheapest cities to live in, in the U.S.?

Great Falls

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Great Falls has over 60 parks and 52 miles of River’s Edge Trail along the scenic Missouri River. Not only that, but when you are walking the land in Great Falls, you are walking among the history of the Blackfeet Indians and Lewis and Clark.

With a population of a little over 60k, Great Falls is actually the third largest city in Montana. Great Falls is ideal for any outdoor enthusiast that loves hiking, mountain biking, camping, fishing, skiing and more.

GREAT FALLS BAR NAMED BEST ON PLANET EARTH BY GQ

You will find yourself within driving distance to both Glacier National Park and Yellowstone National Park.

Full of local restaurants and cafes, you will have some of the most delicious food all while supporting the community. Do yourself a favor and give Great Falls a visit, you will most likely understand how it made the list of top 25 cheapest cities to live in, in the U.S.

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cc: Kiplinger Personal Finance

Safety Town 2024 Great Falls, Montana

Safety Town 2024 Great Falls, Montana

Gallery Credit: Tammie Toren

Breakfast Restaurants In Great Falls, Montana

Restaurants That Serve Breakfast The Whole Time They’re Open, Great Falls, Montana

Gallery Credit: Tammie Toren

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Winter storm maps show where state could be hit with 7 inches of snow

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Winter storm maps show where state could be hit with 7 inches of snow


Residents of Montana could be hit by unseasonably cold weather and snow starting on Sunday, the National Weather Service (NWS) has reported.

Montanans in some parts of the state can expect chilly temperatures and snow throughout Sunday and into early next week. Winter weather advisories are in place across numerous areas currently, while temperatures are expected to drop close to or below freezing.

Read more: Emergency Funds: How to Build One and Where to Keep It

From 6 p.m. on Sunday, those in Big Belt, Bridger and Castle Mountains, Elkhorn and Boulder Mountains, Little Belt and Highwood Mountains, Gallatin and Madison County Mountains and Centennial Mountains, and Northwest Beaverhead County can expect up to 7 inches of “heavy, wet snow,” particularly at higher elevations above 6,000 feet, according to a winter weather advisory issued by the NWS.

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“Travel could be difficult, especially on backcountry roads. Those in the backcountry should ensure they have appropriate knowledge and gear and may want to consider alternate plans,” the advisory reads. “The heavy, wet nature of snow can bring down tree limbs and power lines.”

Snowfall in Whitefish, Montana, taken on an unknown date. Several inches of snow is expected in Montana in the coming days, particularly at higher elevations.

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Another advisory warns of 6 inches of snow for those in the East Glacier Park Region and along the Southern Rocky Mountain Front, particularly in areas between 6,000 and 8,000 feet. Both advisories are currently in place until Tuesday evening.

Read more: Find the Right Type of Savings Account for Your Needs

Those in Missoula and Bitterroot Valley are also subject to a winter storm watch advisory, with 3 inches of heavy, wet snow expected to fall on Sunday night through to Monday morning. During the same period, 1 to 5 inches of snow is forecast at Georgetown Lake, Macdonald Pass and along Highway 12, with five to 12 inches possible in the highest terrain.

Similar conditions are also expected overnight on Sunday along several roads, including the I-90 East Missoula to Bearmouth, Highway 200 from Bonner to Greenough, and Highway 83 from Seeley Lake to Condon. Motorists are encouraged to “slow down and use caution” while on the road.

Residents of the areas covered by the warnings are warned of the risk of hypothermia if heading out unprepared, with temperatures expected to drop to the low 30s. Overnight, the NWS X, formerly Twitter, account said “temperatures will be dropping into the 30s tonight across valley areas,” which could also have an adverse effect on plants as frost forms.

While Montanans feel the chill, other parts of the U.S. are expecting more predictable warm weather for this time of year. Excessive heat watch warnings are in place in the Midwest, and also Connecticut, Indiana, Maine, Michigan, Ohio, Pennsylvania, and West Virginia. Further south in Texas and New Mexico, heat advisories are also in place.

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Montana Food Bank Network grocery partnership aims to meet fundraising goal

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Montana Food Bank Network grocery partnership aims to meet fundraising goal


The Montana Food Bank Network announced a new partnership with Albertsons and Safeway grocery stores.

The partnership will put advertisements in 40 Albertsons and Safeway grocery stores statewide to assist with fundraising for MFBN, the only statewide food bank.

This comes after MFBN launched its Campaign for Bigger Impact over a month ago, with the goal of raising $15 million. The organization is $3 million short of meeting the goal.

To learn more about the campaign, or to donate, click here.

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The Montana Food Bank Network sent out the following:

Across the state, 1 in 9 Montanans don’t have enough food, including 1 in 6 children, and the need is only getting greater. As Montana’s only statewide food bank, Montana Food Bank Network (MFBN) has a network of 360 partners statewide, including community food banks, pantries, schools, senior centers, shelters, and tribal centers. This summer, MFBN is partnering with Albertsons Companies, which has 40 Albertsons/Safeway grocery stores statewide—a fitting and timely partnership, as MFBN officially announced its Campaign for Bigger Impact just a little over one month ago. Through the campaign, MFBN will build a new facility that will allow it to source, store, and distribute more fresh, nutritious, and locally sourced food to its statewide partners.

“We are grateful for the ongoing partnership from Albertsons/Safeway stores in Montana,” said Bill Mathews, Chief Development Officer at MFBN. “Everyone has a part to play in ending hunger in Montana, and the support of Albertsons and their shoppers will have an impact in our communities across the state.”

Come early June, shoppers will find every Albertsons/Safeway store in the state of Montana supporting and advertising to help spread the word and raise funds towards the $3 million still needed to complete MFBN’s $15 million campaign.

“Hunger relief is the number one priority for Albertsons Companies,” said Kathy Holland, Communications and Public Relations for Albertsons Companies Intermountain Division. “Helping support individuals and families having access to food and helping support the programs at Montana Food Bank Network is just so incredibly important for us.”

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To learn more about MFBN’s Campaign for Bigger Impact, visit www.mfbn.org/campaign-for-bigger-impact.



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