Judge rejects challenge to Montana coal lease

BILLINGS — A judge has rejected a lawsuit challenging the state Land Board's lease of 587 million tons of publicly-owned coal in southeastern Montana.

Conservation groups had argued that further environmental studies were needed and that the lease sale would make mining inevitable if allowed to stand.

But District Judge Joe Hegel says the state did not give up its discretion to halt mining at a later date when it leased the coal to St. Louis-based Arch Coal Inc. for $86 million in 2010.

Hegel said in his Feb. 3 ruling that the state still must ensure the environment is protected if the coal is...