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Montana Court limits groundwater use for new homes

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A Montana judge has ruled that state officials have failed to impose adequate restrictions on the construction of new homes that rely on groundwater, a decision that could significantly limit construction in areas of the state where water supplies are disappearing.

The decision comes as Montana, like much of the country, struggles with long-term degradation of its aquifers, the result of both overuse and a changing climate, as a New York Times investigation found last year. In the state, that pressure on groundwater has increased due to rising demand for housing.

The case started when Errol Galt, a developer and member of a prominent Montana political family, proposed building a subdivision in a pristine valley about an hour east of Helena. The state and county allowed him to build 39 homes that would draw their water from wells, despite evidence indicating that the area's groundwater was deteriorating.

Local residents sued both the county and state to halt the development, arguing that officials failed to consider the effect of new construction on their existing water supply.

District Court Judge Michael F. McMahon ruled in favor of the residents, writing that the decision to approve the development was based on an environmental assessment that was “abjectly inadequate” and “astounding.”

Carole Plymale, one of the plaintiffs, has a nearby farm with about 400 Red Angus cattle and grows alfalfa to feed them. She said the decline in groundwater in the valley was making irrigation difficult and new construction would only worsen the shortage.

The judge went further than just blocking the new development. He found that Montana's policy for approving new developments violates state law.

The Department of Natural Resources and Conservation, he wrote, has “allowed the (continued) appropriation of millions, if not billions, of gallons of water that should have been left in aquifers under our laws.”

A department spokeswoman, Cassie Wandersee, did not respond to a request for comment. The chairman of the county commissioner of Broadwater County, where the project would be built, referred a request for comment to the county attorney, who also did not respond.

Vuko J. Voyich, the lawyer for Mr. Galt's development company, said in a statement that he and his client were reviewing the judge's decision. He would not say whether they will appeal.

If the ruling stands, it would significantly limit new development in rural Montana, said Guy Alsentzer, executive director of Upper Missouri Waterkeeper, an environmental group that represents residents who want to block development.

“The pendulum has swung back and forth in support of development at any cost for the longest time,” Mr. Alsentzer said in an interview. The ruling “is a big moment for land use policy in Montana,” he added.

Eugene Graf, president of the Montana Building Industry Association, which represents homebuilders, agreed, saying the ruling could halt residential construction outside of cities, at least in the short term. He said he hoped lawmakers would revise the law.

By limiting the supply of new homes, the ruling would also make housing less affordable, Mr. Graf said. Median home prices in Montana have doubled since 2015, driven in part by the flood of people moving to the state during the Covid pandemic.

“Where are we going to house the people of Montana?” said Mr. Graf.

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