Talk covers governor's energy vision

By Ellen Robinson
Published on Saturday, September 23, 2006 12:42 PM MDT

Barrett

Sidney Herald

Eastern Montana's potential energy development is a central focus of Gov. Brian Schweitzer's economic vision to improve economics "Outside the Boot."

The "Outside the Boot" region, including the vast majority of the state encompassing the areas east of Kalispell, Missoula, Helena, Bozeman and Billings, plays a central role in the governor's energy development plans to spur stabilized economic prosperity.

"The governor's vision includes taking advantage of all of the potential resources for energy development," Evan Barrett, chief business development officer for the Governor's Office of Economic Development, said Tuesday.

The potential of further development of oil reserves in the Bakken took an obvious front-stage role in the Sidney presentation.

According to the USGS Study Report 1999, the Bakken in Montana and North Dakota contains up to 400 billion barrels of oil, compared to the Arctic National Wildlife Refuge with a mere 16 billion barrels.

Schweitzer's economic vision includes the energy complex concept for eastern Montana. One of the by-products of a possible coal to liquid facility near Circle has the potential to nearly double the oil production in the Bakken which, with Canadian oil, could then sustain a refinery. The plan includes impact legislation to help communities adjust to the influx of big industry.

With a focus on coal as a clean energy source through the coal to liquid process, Schweitzer plans to develop Montana's prolific coal reserves. Montana holds 10 percent of the world's coal reserves, much of which are located in eastern Montana. Coal can be developed into petroleum products, natural gas, electricity and CO2 to be used in enhanced oil production.

Montana has 18.3 millions acres of crop land best suited as seed crops for use in ethanol and bio-diesel and 19 million acres of non-reserved forest land for ethanol-from-bio-mass industries. The state's commitment to bio-fuels development includes incentives to producers using Montana agricultural products. Once state production reaches 40 million gallons per year, there will be a 10 percent ethanol blending requirement implemented and bio-diesel tax credits on production and fueling facilities.

There are currently two proposed ethanol plants in relatively close proximity to Richland County in Miles City and Glasgow, with a propped bio-diesel plant in Culbertson, among others.

"Shifting the region's agricultural base from being a predominately cash crop economy to one that is boosted by agricultural processing will enable the region to become economically viable and competitive in global markets," Barrett said.

ellenr@sidneyherald.com

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