By Rob Natelson

Preliminary note: Public discussion within Montana about the merits of that state’s 1972 constitution is dominated almost entirely by those who benefit from its terms. Many of their depictions of the constitution are imprecise or sanitized. Neither the local media nor public programs typically offer dissenting views.

When Montana state lawmakers recently suggested some amendments, a  former governor likened their suggestions to an attack on democracy and representative government. A former state supreme court justice came near to threatening violence. 

Rob Natelson served as a professor of law at the University of Montana (1987-2010), where he published scholarly and popular articles on the state constitution and created the first web collection of ratification-era documents. In 2018, after a lengthy investigation, he wrote the only peer-reviewed article ever published on the 1972 adoption process.

(In 2020, Justice Samuel Alito formally relied on some of Natelson’s state constitutional research in Espinoza v. Montana Dep’t of Revenue, 591 U.S. ___ (2020)). 

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For some time now I’ve watched the popular efforts of Montanans to improve their state constitution, and the anguished opposition by figures in Montana’s former political establishment. The response amounts to a sanctimonious “How dare they?”

One example: Former Governor Marc Racicot’s Feb. 1 capitol speech, in which he equated reform efforts with attacks on democracy, republicanism, and the separation of powers.

Let’s get real: It is always the prerogative of the people to fix flaws in their government. And the Montana constitution, like any human creation, has its flaws.

As a law professor at the University of Montana (1987-2010) and as chairman of Montanans for Better Government (1993-1997), I became intimately familiar with those flaws.

Moreover, in 2017-18, I extensively researched the constitution’s adoption, reviewing old newspaper articles, letters, flyers, transcripts, court cases, and other documents. I also conducted personal interviews, including with on-the-scene reporters, one of whom was the late Chuck Johnson. My findings were peer-reviewed and published in the British Journal of American Legal Studies.

From that experience and research, I learned some facts every Montanan should know:

Montana’s original constitution, adopted in 1889, contained important safeguards against cronyism and excessive taxes, spending, and debt. Those safeguards were the product of hard lessons from the entire country.

In the 1960s, liberal special interest groups—such as the National Municipal League—began a national campaign to create new state constitutions that removed restrictions on government. Montana was one of their targets. (Among the others were Illinois, where they were successful, and Texas, where they were not.)

Montana liberal activists joined this campaign. One of their goals was to give government more power to tax, spend, and borrow. Another was to reduce the number of elected offices and increase the number of appointed ones. Still another was to give local governments more power to tax and regulate. There was no secret about any of this.

Although many fine people participated in the 1972 convention, the process was manipulated to achieve some pre-determined results. For example:

* A National Municipal League lobbyist was given extraordinary access to the delegates. Much of the information provided to the delegates came from League sources.

* Other background information and sample constitutions provided to the delegates was selected to promote the preferred conclusions.

* Outside speakers were invited. All were left of center and preached much the same message.

* The famous decision to sit delegates alphabetically impeded the ability of the conservative or skeptical minority to confer with each other.

The overall bias was blatant enough to elicit comment at the time from some newspaper reporters.

Most of the delegates were not equipped to deal with this. None had any real experience in constitution-writing. Few knew that the information they were receiving was unreliable or biased. Sitting lawmakers—who might have been more practical or skeptical—were barred from serving as delegates.

After the convention came the voter referendum. This was carefully structured —in timing, ballot form, etc.—to skew the vote toward approval. Taxpayer money was used to promote ratification. For example, Montana State University used public funds to publish a biased newspaper supplement distributed to tens of thousands of households.

What of the vote itself? In his capitol speech, Mr. Racicot claimed the voters approved the constitution.

But that is doubtful.

My research found that under the approval rules then in effect, the constitution probably failed. Prior to the election, the voters uniformly were told (accurately) that under existing rules, if they cast ballots on other issues but abstained from the constitutional question, their abstention would be counted as a “no.” And, in fact, the number of “nos” and “abstentions” easily outnumbered the “yeses.”

What happened next was astonishing: In defiance of the rules—and over the objection of the Democratic secretary of state—the Democratic governor purported to “certify” a victory for the constitution. Without lower court review, the issue then went to the Montana Supreme Court. The justices upheld the constitution—but only by a bare 3-2 majority. This apparently reversed an earlier in-chambers tally of 2-3. Some have reason to believe there was improper political pressure on the swing justice.

Of course, that defective referendum is not reversible at this late date. Still, it is altogether appropriate for Montanans to address some of the constitution’s defects.

Among the defects are:

* lack of sufficient control on taxes and spending,

* language that is overly protective of favored portions of the bureaucracy; and

* vague, contradictory, and meaningless language that encourages judicial lawmaking.

In my view, the last represents a real crisis: Some state court decisions are entirely inappropriate and endanger democratic self-governance.

In his capitol speech, Mr. Racicot emphasized the need for civil discourse. I agree. But a prerequisite to civil discourse is for the constitution’s celebrants to drop the sanctimony—and recognize that there is more than one side to this important debate.

More on Montana Constitution

https:// www.umt.edu/ law/library/ montanaconstitution/ default.php

Why is Yellowstone County not participating in the plan to develop passenger rail service through southern Montana? The question was posed to Yellowstone County Commissioners by Keith Lavacheck during a recent discussion meeting.

A group has organized and several counties have joined an effort to “resurrect the Hiawatha Passenger Line”. The Big Sky Passenger Rail Authority is urging a federal study of the feasibility of re-establishing the defunct Amtrak line that once carried passengers between Chicago and Seattle via Billings, Butte and Missoula. It was abandoned in 1979.

Lavachek asked the commissioners to be “forward looking,” and at least support the study to explore the feasibility and cost-benefit possibilities. “I think it is a good deal,” he said, “Shouldn’t we learn more about it“? The Big Sky Passenger Rail Authority is hopeful that federal funding for a study will come from Congress’ infrastructure funding bill passed over a year ago. Democratic Montana Sen. Jon Tester worked to include language in the infrastructure bill that set aside $15 million for a nationwide study.

Actually, re-establishing passenger rail service is not just a focus in Montana. Federal government websites states that “over the next 15 years, Amtrak’s vision for expansion will connect up to 160 communities throughout the United States by building new or improved rail corridors in over 25 states.”

Besides nostalgia for a by-gone era, there is hope that a southern rail passenger service would be a boon to the economy by encouraging greater tourism. It is also pointed out that in Montana’s far-flung open spaces there is a need for public transportation services that a passenger rail service would meet.

Although asked several times over the years, Yellowstone County has refused to join other Montana counties in support of the vision. Commissioner John Ostlund told Lavachek that their refusal has to do with being fiscally responsible with tax dollars. When they first considered the idea 13 years ago, said Ostlund, the estimated cost was a billion dollars. Since then, he suspects the cost would be at least $2 billion. “Passenger rail service doesn’t make money,” said Ostlund.

Lavachek said that signing on as a supporter of investigating the possibilities wouldn’t mean Yellowstone County would be committed beyond the feasibility study. Ostlund seemed to think it might.

Ostlund also pointed out that there would be other negative impacts of adding a passenger line such as slowing down freight lines.

Commissioner Mark Morse said, “We have finite resources and a lot of places to spend it.”

Lavachek suggested in an email sent to Yellowstone County Commissioners and the Billings Mayor that “We should not assume that this is going to cost $2, 3 or 10 billions until we see the study.”

Ostlund pointed out the Amtrak route has never made a profit and is hugely subsidized by federal dollars, and Montana’s Northern route is among the worst. Montana’s Amtrak route, called the Empire Builder, passes through Havre and the Flathead between Seattle and Chicago.

Initial research in a feasibility study reports that restoration of the route across Montana and six other states would generate more than $270 million in economic benefits and carry an estimated 420,000 passengers each year.

Nationally, Amtrak carried 22.9 million passengers in 2022, concentrated primarily in Eastern states. Montana’s portion of the route carried 433,000 passengers in 2022.

During COVID, even though Montana’s Amtrak was provided $1 billion in additional federal subsidy, Amtrak rail service through the Hi-line was dropped to three days a week.

Despite much reporting on proposals regarding the resurrection of passenger rail service throughout the country, there is scant mention of how much rail service is subsidize in the US. Prior to COVID, information from the Department of Transportation states that Amtrak received appropriations of about $1.5 billion in 2017 and $1.9 billion in 2018 to subsidize “intercity passenger rail services,” which of course does not include the cost in Montana. Amtrak’s capital spending in 2017 was $1.6 billion and its operating expenses totaled $4.2 billion.

Another report analyzed in 2018 a savings to the federal government of $20 billion should it eliminate funding for Amtrak.

Ostlund’s concerns about shifting the cost to local governments may not be unfounded. The same report about savings, noted that Amtrak subsidies were first authorized in the 1970s, as a temporary measure. Subsidies “were intended to help Amtrak become self-supporting.” It went on to suggest that “…states or localities that highly value the subsidized rail or air services should provide the subsidies.”

The Montana Department of Transportation website reports that in 2008 Amtrak estimated the capital and up-front costs “…to exceed $1 billion, annual operating cost would exceed $74 million, resulting in a $31 million annual operating loss.”

Commercial
Best Box Billings Mt 29th LLC/ Ke Construction LLC, 991 S 29th St W, Com New Office/Bank, $135,000
Best Box Billings Mt 29th LLC/ Ke Construction LLC, 991 S 29th St W, Com New Other, $495,000
Best Box Billings Mt 29th LLC/ Ke Construction LLC, 991 S 29th St W, Com New Other, $495,000
City Of Billings/ Morgan Contractors Inc., 2251 Belknap Ave, Com Remodel, $1,000,000
Silver Fox Properties LLC/ Triple R Construction, 2331 Lewis Ave, Com Remodel, $77,000
Craig Barthel/ 4th Avenue Inn LLC, 2601 4th Ave N, Com Remodel, $9,730
Pine Co LLC/ Wagenhals Enterprises Inc, 1345 Discovery Dr, Com Remodel, $8,500
Rehberg Car Wash LLC/ Askin Construction LLC, 1509 Rehberg Ln, Demolition Permit, $33,758

Residential
Lorenz Construction/ Lorenz Construction, 3563 Rachelle Circle, Res New Single Family, $300,000
Ridgewood Development LLP/ King’s Mountain Builders Inc, 3305 Castle Pines Dr, Res New Single Family, $500,891
Cox, Shaun D & Andrea M/ Devcon LLC, 2113 S Stone Creek Trl, Res New Single Family, $650,000
Capp, Jerry Capp/ Jerry Construction, 856 Garnet Ave, Res New Single Family, $264,241
Infinity Homes/ Infinity Home LLC, 979 Anacapa Ln, Res New Single Family, $174,158
Levi Wanner/ Infinity Home LLC, 967 Anacapa Ln, Res New Single Family, $174,158
Levi Wanner/ Infinity Home LLC, 973 Anacapa Ln, Res New Single Family, $175,720
McCall Homes/ McCall Development,1754 St George Blvd, Res New Single Family, $132,159
Magnus Land Development LLC/ Brown Builders Inc., 6397 Signal Peak Ave, Res New Two Family, $360,322

By Evelyn Pyburn

A Utah-based company has discovered rare earth minerals in southwestern Montana so vast, as to “far exceed any other domestic rare earth resource.”

US Critical Materials Corp reports that the find in Ravalli County, near Darby, has “the highest reported total rare-earth oxide grades of any rare earth deposit in the United States.”  US Critical Materials Corp is a privately held company that focuses on rare-earth exploration and development.

Rare earth minerals have become essential to almost all future technology in almost every segment of modern business, industry and military.  The minerals are not only vital to the future, but the need to be able to source them in the US is just as critical. Despite the extensive need for them, the US depends upon China to provide almost 90 percent of the rare earth minerals it needs – a perilous situation for the military, which requires rare earths metals in the production of most of its weapons and equipment.

Ed Cowle and Harvey Kaye, both of whom are directors of US Critical Materials Corp, spoke to the Big Sky Business Journal about the status of the project and its importance. The USGS has confirmed that they will be mapping, sampling, and exploring the property this summer and will conduct fly overs as part of the earth MRI program.

According to Cowle and Kaye, there is in fact much collaboration going on with numerous entities, including the U.S. Geological Survey, the Montana Bureau of Mines and Geology, and the Idaho Geologic Survey. They are assisting US Critical Minerals in a comprehensive investigation of the Sheep Creek mineralogy, geochronology, and trace element geochemistry. The U.S. Government agencies are also undertaking detailed mapping of the Sheep Creek district and conducting stream sediment surveys.

The deposits seem to bear thirteen of the most essential critical minerals that are in demand for making such things as rechargeable batteries, electric vehicles, wind turbines, mobile phones, permanent magnets, electric motors, lasers, computer chips, semiconductors and microchips.

And, most remarkable, the underground data shows a low thorium level, which is quite rare. Thorium is usually a “waste” that must be removed during the mining process. Not having it present means the company will not have to go through the permitting process required by the Nuclear Regulatory Commission, and it will make “extraction and processing easier, faster, and less damaging to the environment.”

“We have confirmed that Sheep Creek is the highest-grade rare-earth deposit in the United States, with a multibillion-dollar resource

value. Over the course of my career

independently evaluating rare earth properties within the US, I have never encountered a property with the grades being generated by Sheep Creek “ stated Jim Hedrick, US Critical Materials President, and former rare-earth Commodity Specialist at the U.S. Geological Survey (USGS).

Kaye said Sheep Creek “is quite superior to any other discovered in the US,” And, further given the quality and the economics of the discovery and its ultimate profitability, “It will be more environmentally friendly because you don’t have to dig up huge quantities of rock to make the economics work.”

The site was that of a previous mining project 30 or 40 years ago, but had never been explored for rare earth minerals. The explorers were looking for niobium.  Previously, they drilled horizontal adits  (tunnels) into “the side of the mountain about 400 feet long.” Since US Critical Materials, Corp. held the mining rights at Sheep Creek on what is mostly land administered by the US Forest Service, in October 2022, they opened up the tunnels and took a geologist into them.

What they saw in terms of rare earth metals “was actually jaw dropping,” said Kaye. We found rare earth mineralization 125 feet below the surface in those tunnels. The underground rare earths came out with very high percentages. This gave us a “window” into the deposit.

The Sheep Creek site could very well be “the most valuable rare earth property ever discovered,” exclaimed Kaye. On the website, Mining.com, President Hedrick , is quoted as saying that as a pre-resource-stage deposit the inferred value of the discovery  is a “conservative” $43 billion.

The company has only explored 35% of its property. Within the 800 acres explored, there are 50 surface carbonatites, which is quite rare. Kaye explained that because of the number of carbonatites they strongly believe the dikes originate from a deeper, larger source – sort of like “the mother lode”.

Sheep Creek spans 223 lode claims representing approximately 4,500 acres of total land package. Historical grab and chip sampling of carbonatites indicate the potential for high-grade mineralization with up to 18.0% total rare earth elements, including 2.4% (23,810ppm) combined neodymium and praseodymium, plus credits in niobium and other strategic metals.

“Sheep Creek samples collected so far are higher grade than most global rare earth deposits, which tend to run from 0.1% to 4% TREO.”

Rare earth samples have been taken from 125 feet underground, according to a press release, and they confirm the presence of over 10% (100,000 ppm) of total rare earth oxides, (TREO) including high levels of neodymium and praseodymium. The results included previously mentioned channel samples from two underground tunnels that were unsealed in October 2022 and sampled in November 2022. These tunnels were dug up to 400 feet horizontally and are 125 feet below the surface.

There remains considerable uncertainty as to how soon US Critical Materials Corp can begin mining – it won’t be for a matter of years – maybe as many as ten years, even though the company has high hopes of accelerating that time line. This year the company will be doing more research and exploration, sampling and mapping, said Cowle. Only about 35 percent of the Sheep Creek area has been examined.

The company will hopefully do some drilling this summer in attempt to find out if the underground drilling samples match the surface samples. The drilling will only occur if US Critical Materials is approved to drill.

US Critical Materials does not do mining and will engage a company to do it. They expect to process the ore in Darby, which Kaye said has all the infrastructure that will be needed.  The cost of developing the project to the mining stage will require at least $100 million.

Finding the investors to continue exploration and mining is part of the challenge before them, but Cowle and Kaye say there is a great deal of interest among potential investors.

The development will be significant for Darby, which has a population of 783, as it will be for the state of Montana. “We believe it will be extremely positive for the economy of the entire area,” said Kaye, “It will provide  high paying, quality jobs.” In addition, Kaye said, “We want everyone to know we have the same concerns as they do — how to do it with the latest technology and best environmental protections.“

 While there are three or four other areas in the US where it’s been announced that rare earth minerals have been found in great enough quantity to be mined profitably, there is only one operational mine in the US, MP Materials in Mountain Pass, California, and its ore is processed in China.

(It is interesting to note that rare earth minerals are not all that rare—what is rare is to find them in deposits large enough to be economically mined.)