A subsidiary of the Exxon Mobil Corporation has decided not to pursue oil and gas development on more than 21,000 acres of leased land in the North Fork of the Flathead River.
The subsidiary, XTO Energy, notified Montana Sens. Max Baucus and Jon Tester that it is retiring 11 leases, according to a statement released on Sept. 10. With the announcement, 80 percent of leases in the region have been voluntarily retired.
In a statement, Baucus called the announcement “great news for Montana and for all folks who enjoy our outdoor heritage.”
“I’m thrilled that Exxon has become the latest company to step up to the plate and protect the future of this special place, so future generations can camp, hike, hunt and fish there like we do,” the senator said.
In February, Montana Gov. Brian Schweitzer and British Columbia Premier Gordon Campbell signed memorandum of understanding to ban drilling and mining in the Flathead Valley along the U.S.-Canada border. The prospect of gas drilling, gold exploration and coal mining in the million-acre valley, near Glacier National Park, had sparked a long-running transboundary dispute leading up to the agreement.
In March, Baucus and fellow Sen. Jon Tester introduced legislation preventing any new oil and gas lease from being issued in the North Fork. Also in March, the state Land Board passed a resolution restricting mining and drilling in the area.
Then in April, ConocoPhilips announced it was relinquishing 108 gas and oil leases covering almost 170,000 acres in the North Fork region. Chevron and two other companies followed suit in June and July, committing over 85,000 acres combined.
But also over the summer, Schweitzer said the memorandum of understanding was “in doubt” because the federal government hadn’t come up with a reported $17 million needed to compensate mining companies Max Resource Corp. and Cline Mining Corporation.
Whether $17 million is the correct figure has been unclear and the Baucus’ office has argued that any taxpayer money used for compensation must be allocated through a proper legislative process. The discrepancy has yet to be resolved.
But with XTO Energy’s announcement, Baucus and Tester see one more step toward permanent protection in the North Fork.
“As word gets out about Montana’s efforts to keep this region the way it was meant to be, more companies are agreeing to do the right thing – all at no cost to American taxpayers,” Tester said.