E-Malt.com News article: 2789

USA, Montana, Helena: The state Fish, Wildlife and Parks Commission has approved an agreement allowing International Malting Co. to use water from Giant Springs for its malt plant near Great Falls, Associated Press posted on June 12. The deal approved June 10 drew objections from some, however, that the state should get more money in the deal. Under an easement and 10-year water lease, International Malting agreed to pay the state $280,000 a year to use state infrastructure at Giant Springs and for up to 1,200 gallons per minute of water.

The spring produces 338 million gallons of water a day. The agreement is slated to begin next year, when the $60 million plant opens. Martz administration officials, grain interests and the Great Falls Development Authority praised the deal as a catalyst to reaping economic benefits for the state, grain growers and north-central Montana. "This is no doubt the largest project to come along for Montana producers in a long time," said Richard Owen, executive director of the Montana Grain Growers Association.

Organized labor representatives said the company is getting the water for almost nothing, and questioned whether use of the water would damage the springs. "We have a national treasure here. It's very fragile and unique," said David Brown, president of the company that bottles Giant Springs water. "The drilling underneath the riverbed is insane. I think it's asking for a problem."

Brown suggested demanding a $50 million bond from International Malting to protect his business, the state fish hatchery at Giant Springs and local tourism from damage. Commissioners said they were satisfied that state officials had reviewed the proposal and any likelihood of ill effects. "We're putting essentially a little needle through the sandstone under the river," said Marv Miller, a hydrogeologist from the Montana Bureau of Mines and Geology in Butte. "I really don't think there will be any impact."

And while the easement requires no bonding from International Malting, it does ask the company and its contractors to buy at least $1 million in insurance for damage to Giant Springs, said Chris Hunter, head of the state Fisheries Division. Brown called the $1 million in insurance inadequate. "That would be a pittance compared to what we've invested in (our) company," he said.

The plant is slated to open by mid-2005 and will use 11 million bushels of barley per year. It is expected to pump $10 million to $30 million into Montana's agriculture community annually.


18 June, 2004