Montana Coal Country: Communities Facing Change Amid Renewables Rise

Tom Mexicancheyenne recalls his father using coal from a small mine near Lame Deer for home heating in the late 1950s.

“It was run by a non-Indian guy, and I don’t think he owned the land, but the tribe just allowed it,” he said. “Dad probably paid with pocket money. Coal wasn’t valued like today. He’d load some in the pickup, and one big chunk would heat the house all night.”

Now, coal from around Lame Deer serves 400,000 Montana utility customers and communities in Oregon, Washington, and California. The little mine that warmed Mexicancheyenne’s home has gone, its road surfaced with scoria, formed from burning coal seams.

Coal became integral to Montana’s economy with the Northern Pacific Railroad mining for locomotives in 1924. Although coal demand plummets, the future remains uncertain for communities reliant on it.

“Some are very loyal to Colstrip and coal,” Mexicancheyenne stated. “They don’t want solar. Jobs are scarce for younger people.”

The Northern Cheyenne tribe, showing restraint, chose not to exploit its vast 444,000-acre coal reserves, surveyed in the 1970s and estimated at 23 billion tons. Tribal-led referendums blocked mine development offers.

Many Northern Cheyenne pursued work at the Rosebud mines and power station in Colstrip, whereas Mexicancheyenne chose tribal forestry and health department jobs instead.

Meanwhile, the Crow Tribe collaborated with Westmorland Resources to open the Absaloka mine in 1977, producing six million tons annually at its height, funding the tribal government.

After cutting back Westmoreland operations, “the Tribe laid off 1,000 of its 1,300 employees in 2017,” according to a 2021 Plenty Doors Community Development Corp report.

April saw the last Absaloka coal shipment, leaving 100 workers, mainly Crow, jobless, but Westmoreland hasn’t declared it closed.

Colstrip’s Rosebud mine continues uncovering coal, and Generating Units 3 and 4 provide 1.4 gigawatts to the regional grid, sustaining over 600 jobs. However, Units 1 and 2 shut down in 2020 due to unprofitability. Most customers will conclude contracts by 2025, moving to cleaner energy.

“Many think coal is still the future,” said Little Big Horn College professor and state legislator Sharon Stewart-Peregoy. “Solar battery life is problematic, there’s no smart grid for wind. I haven’t seen federal job training here.”

Stewart-Peregoy referenced the Inflation Reduction Act, offering billions for energy initiatives on tribal lands. Cultural and economic challenges remain as different communities have unique goals and values.

PICK UP THE PHONE

Anne Hedges from the Montana Environmental Information Center said, “The question is how the state, feds, and Westmoreland help the Crow access billions for tribal communities.” The Energy Infrastructure Reinvestment Act includes $11.7 billion for loan financing and $75 million for tribal energy loan guarantees. “It’s hard to know where to start, but all need to be used soon.”

This spending aligns with the Biden administration’s Justice 40 Initiative, ensuring 40% of federal benefits flow to marginalized communities. All seven Indian reservations in Montana and surrounding counties are included. Nationwide, the Energy Infrastructure Reinvestment Program has $250 billion in loan guarantees.

A study by Headwaters Economics indicates many regions lack capacity to participate in federal projects. Billings ranks high in staffing, resources, and broadband access, while Crow and Northern Cheyenne tribes trail behind in planning offices and broadband access.

“Knowing that mundane stuff is crucial,” said Stewart-Peregoy. “It would be nice if you could just stick a shovel in the ground and a building pops up.”

KICK-START THE ENGINE

Colstrip’s population expanded rapidly as Montana Power Co. built new power plants in 1981, but renewable energy investment hasn’t prompted similar growth. A proposed wind farm near Yellowtail Dam could add 150-250 megawatts, aiding in energy storage when paired with the dam.

Attorney John Meyer, who represents Crow families working on the project, notes, “There’s a ton of money, but tribes lack applicants for grants. People should engage with the Crow for potential cheaper energy.”

However, the current electricity transmission grid is nearly full, limiting new projects. REC Silicon’s Butte facility had to close a line due to electricity costs. NorthWestern Energy warns its grid “is being pushed to limits” without expansion.

Increased demand from renewable energy and AI services stresses existing infrastructure. The Inflation Reduction Act requires 10,000 miles of new power lines annually, and artificial intelligence services need significantly more electricity than traditional services.

INERTIA

Colstrip Mayor John Williams operates from a modern City Hall funded by power plant taxes, managing a town of 2,300 residents.

“People think energy is lights and stoves, but water and sewer use more electricity,” Williams said. “I aim to keep those costs low.”

Having coal edge over renewables means continued reliance on mine and plant tax revenue to fund public services. Williams also notes future prospects with talk of modular nuclear energy and rare-earth element capture.

Data centers driving AI demand may keep coal plants like Colstrip’s operational, despite costlier raw materials. The town’s workforce faces a shift as demand escalates.

“It used to be the transition from coal to nuclear,” said Southeastern Montana Development Corporation Director Jim Atchison. “Now it’s coal and nuclear due to AI demand.”

Outside Colstrip City Hall, high schoolers have painted horseshoes, also resembling Omega, symbolizing the end of an era. Williams is keen to attract retirees with the town’s amenities, envisioning a new future.

Colstrip’s median age is 42, older than the national average. The workforce will approach retirement before nuclear power facilities emerge. Crow and Cheyenne reservations have younger populations, needing training for renewable energy jobs.

Jobs in welding, equipment operation, and engineering are in demand, with highway billboards advertising for skilled workers. Transporting wind turbine components is increasingly common.

The Inflation Reduction Act includes $250 million for tribal colleges to expand job training and renewable energy resources, potentially making Little Big Horn College and Chief Dull Knife College energy hubs.

But at Little Big Horn College, space constraints limit carpentry and electricity programs to 10 students each.

While renewable energy jobs pay well, they don’t offer the stability of coal jobs. Workers will move where renewable infrastructure needs arise, unlike coal plants that provide steady community employment.

Mexicancheyenne highlights broader perspectives: “We don’t own the land; it takes care of us. When you die, you don’t take it with you. We had territories we roamed, with battles at borders.”

Editor’s note: John Meyer represents families working on Yellowtail wind project and is married to reporter Amanda Eggert, who did not contribute to this report.

This investigation is supported by Kozik Environmental Justice Reporting grant funded by National Press Foundation and National Press Club Journalism Institute.