Public Comment. Volume III - Montana Legislature

Impact Analysis Studies and Proposed Mitigation Approach Page 2 .
1.2 Site Description
MCFH occupies a 242.25 acre site located west of Miles City, Montana. The land is used
for hatchery facilities, related residential units, and un-grazed rangelands (MDSL et al.
1989). The land is composed of two parcels obtained from the U.S. Fish and Wildlife
Service (USFWS) and the National Park Service via the Land and Water Conservation
Fund (LWCF). MT DFWP made an initial investment of $5 million to upgrade the
hatchery for warm-water culture from 1987 to 1989 (MDSL et al. 1989). Since 1989
FWP has made an additional investment of $1,500,000 to expand the number of rearing
ponds at the site and other hatchery facilities. These improvements increased production
capacity appreciably, but also brought the production area much closer to the proposed
railway centerline. Four more one-acre ponds and a new boiler were added in 1999 at a
. cost of $900,000 to enhance bass production to meet current requests (G. Bertellotti, MT
DFWP personal communication, 1999). Two supply pipelines provide primary and
secondary water sources for the 46 earthen ponds, 8 raceways, 320 incubation jars, 62
early rearing tanks, and other facilities at the MCFH.
1.3 Annual Budget and Revenues
In fiscal year (FY) 1999, MCFH had an annual budget of $207,086.60 for all direct costs,
a 28% decrease from the previous year (MT DFWP 1999). Approximately 70% of
annual funding comes from Federal Dingell-Johnson Restoration Grant funds, with the
remaining 30% of funding coming from state license revenues. In February of 1989, Jeny
Blackard, Deputy Assistant Regional Director for Federal Aid for the USFWS, expressed
concerns regarding any TRR-related damages to hatchery structures built with Federal
Aid funds. According to Mr. Blackard, there is real potential for MT DFWP to lose
Federal Aid hnding if MT DFWP loses control of these facilities including the water
supply pipeline. This was confirmed by the Assistant Regional Director for Federal Aid
(Mary Gessner) in a letter to MT DFWP on June 3, 1998 (See attached letters). Although
it is not clear whether TRR operational impacts would constitute a "loss of control", if
construction or operation compromised adequate maintenance, caused declines in
production, or prevented MT DFWP from making timely repairs to facilities built with
Federal Aid monies, including Dingell-Johnson funds, the MT DFWP could lose the
source of a substantial portion of their annual funds. Without appropriate mitigation
measures in place to ensure such impacts do not occur and funding is not jeopardized,
MT DFWP cannot grant an easement.
Fishing in Montana is a common recreational activity with 45% of residents participating
in a fishing activity at least once during the year, 27 % of that participation attributable to
non-fly fishing activities, and 5% attributable to ice-fishing (Ellard et al. 1999).
Montana's reservoirs attract many out of state visitors as well, and surrounding
communities benefit from revenues generated by fishing.
EQC Eminent Domain Study -223-