The Crow Tribe, historically known for its resilience and deep connection to the land, is currently exploring a venture that could significantly alter its economic landscape: the exploitation of its vast coal reserves. This endeavor represents a potential turning point for the tribe, offering a pathway to prosperity and self-determination while simultaneously raising complex questions about environmental stewardship and long-term sustainability. Having seen other ventures falter, the Crow Nation now looks to the earth beneath their feet for a more stable economic future.
For generations, the Crow people have inhabited the expansive territory of southeastern Montana. Their reservation, a sprawling expanse of over two million acres, is rich in natural resources. This land, however, has not always translated into economic well-being for its inhabitants. Attempts at economic diversification, such as the ill-fated "Res-a-Vegas" casino project, have met with limited success, underscoring the urgent need for a sustainable economic engine. Now, the Crow Tribe wants to exploit coal, seeing it as a viable path forward.
The Allure of Untapped Riches: A Deep Dive into Coal Reserves
Beneath the surface of the Crow Reservation lies a treasure trove of bituminous coal, estimated at a staggering nine billion tons. This immense reserve represents a significant energy resource, potentially capable of meeting the nation’s coal demands for nearly a decade. The sheer scale of this deposit has ignited a spark of hope within the tribe, offering the promise of economic self-sufficiency and a brighter future for generations to come.
Joanie Rowland, a key figure in the tribe’s burgeoning energy program, articulates this vision with clarity and passion. "We’re not just trying to help ourselves today," she explains, "We want to set up the reservation so that it will prosper and help the future generations." This forward-looking perspective underscores the tribe’s commitment to responsible resource management and sustainable development.
Navigating the Labyrinth: Obstacles and Opportunities in Resource Development
The path to resource development, however, is rarely smooth. Numerous challenges, including federal regulations, complex tribal politics, and environmental concerns, have historically hindered the ability of Western tribes to fully capitalize on their natural resources. Red tape, political instability, and the ever-present shadow of environmental impact have often served as formidable barriers to progress.
Despite these hurdles, a confluence of factors is creating a more favorable environment for tribal resource development. Rising energy demand, coupled with new federal laws that grant tribes greater autonomy over their mineral resources, are opening doors for the Crow Tribe and other indigenous communities. This shift in the regulatory landscape empowers tribes to assert greater control over their economic destinies.
Tribal Chairman Carl Venne emphasizes the importance of this opportunity. "There’s a misconception about Indian tribes that they all have big gaming revenues. We don’t have that," he states, highlighting the unique economic realities faced by the Crow Tribe. "But we do have vast resources. The window of opportunity is open."
The Powder River Basin: A Hub of Energy Production
The Crow Reservation is strategically located on the northern edge of the Powder River Basin, a region renowned for its prolific energy production. This basin is responsible for nearly half of the nation’s coal supply and a significant portion of its natural gas production. This geographical advantage positions the Crow Tribe at the heart of the nation’s energy landscape, creating both opportunities and responsibilities.
The Powder River Basin’s vast coal seams lie relatively close to the surface, making them accessible through surface mining techniques. While this ease of extraction can contribute to lower production costs, it also raises concerns about environmental impact, including land disturbance, water pollution, and air quality degradation.
A Stark Reality: Poverty and Unemployment on the Reservation
Despite its rich natural resources, the Crow Reservation faces significant economic challenges. The stark realities of poverty and unemployment cast a long shadow over the community. The unemployment rate hovers around 47 percent, a figure that underscores the lack of economic opportunity available to tribal members. Per capita income is a mere $7,400, significantly lower than the national average, highlighting the economic disparities that persist within the reservation. Federal healthcare subsidies, crucial for providing essential medical services, often run dry within the first six months of the year, further exacerbating the challenges faced by the community.
The majority of the land on the reservation is dedicated to agriculture, with wheat, sugar beets, and cattle ranching serving as the primary economic activities. While these activities provide some level of sustenance, they are insufficient to address the widespread poverty and unemployment that plague the reservation.
A Vision for the Future: Coal-to-Liquids and Infrastructure Development
To address these challenges, the Crow Tribe is exploring ambitious plans to extract its coal reserves and construct a multi-billion-dollar coal-to-liquids plant. This facility would process the coal into diesel and other fuels, creating a valuable product and generating significant revenue for the tribe.
Tribal leaders envision a future where the revenues generated from resource development would be used to expand the tribal clinic, upgrade the reservation’s aging roads, and improve the water system. These investments would address critical infrastructure needs and enhance the quality of life for tribal members.
Beyond Royalties: Seeking Partnership and Control
While an outside company has been extracting coal from a mine just off the reservation since 1974, generating royalties for the tribe, tribal leaders believe that this is not enough. While the annual royalties, which reached approximately $10 million, have provided some financial relief, they have not been sufficient to alleviate the widespread poverty on the reservation.
The Crow Tribe wants to exploit coal and move beyond the role of a passive landowner receiving royalties and instead become an active partner in resource development projects. This shift in approach would grant the tribe greater control over the extraction process, ensuring that it is conducted in a responsible and sustainable manner.
Diversification and Beyond: Natural Gas and Oil Potential
In addition to its vast coal reserves, the Crow Reservation also possesses significant deposits of natural gas and oil. While the tribe is actively working to exploit these resources as well, the potential of the coal deposits is considered to be far greater.
The diversification of energy resources is a key element of the tribe’s long-term economic strategy. By developing a portfolio of energy projects, the Crow Tribe can reduce its reliance on any single resource and create a more resilient and sustainable economy.
A National Trend: Tribal Energy Development on the Rise
The Crow Tribe is not alone in its pursuit of energy development. Across the country, numerous other Native American tribes are actively seeking agreements with the federal government to exploit their oil, gas, and coal resources.
Robert Middleton, director of the Interior Department’s Office of Indian Energy and Economic Development, confirms this trend. He notes that at least a dozen tribes are currently pushing for agreements that would facilitate the development of their energy resources.
The Economic Impact: Royalties and Untapped Potential
Nationwide, energy royalties paid to tribes have doubled over the past five years, reaching $475 million in 2007. This increase is largely attributed to rising oil and gas prices, rather than a significant increase in production.
According to government estimates, approximately two million acres of tribal land have already been developed for oil, gas, and coal production. However, an additional 15 million acres are believed to possess similar potential, representing a vast untapped resource that could generate significant economic benefits for tribes across the country. As the Crow Tribe wants to exploit coal, they are joining a larger movement of indigenous nations seeking to control their economic destinies through resource development. This path, however, demands careful consideration of environmental impacts and the long-term well-being of the community.