EPA Approves Permit for Montana Biorefinery to Dispose of Wastewater at In-State Wells
Why It Matters
A federal environmental permit granted earlier this month will allow a Great Falls biorefinery to inject up to 232,000 gallons of wastewater per day into underground disposal wells in neighboring Pondera County — a decision that has drawn sharp opposition from local officials, tribal representatives, and conservation groups. The outcome has direct implications for groundwater protection in a rural county of roughly 6,000 residents.
What Happened
The U.S. Environmental Protection Agency approved a permit application allowing Montana Renewables, operator of the Great Falls biorefinery, to send its wastewater to two capped oil wells in Pondera County owned by Cut Bank-based Montalban Oil and Gas. The wells sit more than 3,400 feet underground in the Madison Aquifer.
Montalban Oil and Gas specifically sought the permits for Montana Renewables’ wastewater disposal. Previously, the company had transported that wastewater to disposal facilities in Idaho and other out-of-state locations. The newly permitted wells are less than two hours from the Great Falls facility, significantly shortening the disposal haul.
The EPA had been reviewing the permit applications for nearly three years before issuing its approval. Opposition surfaced at a public hearing held last fall at Conrad High School, where county commissioners, Conrad’s mayor, local residents, and tribal officials spoke against the project.
Local Officials Weigh Appeal
Pondera County Commissioner Zane Drishinski said the county is actively exploring its legal options following the EPA’s decision. “We’re highly disappointed in their decision, of course,” Drishinski said. The county has a 30-day window, beginning May 1, to file a formal appeal.
The conservation group Golden Triangle Resource Council, affiliated with the Northern Plains Resource Council, said its members are “deeply disappointed” in the ruling. The group also criticized Montana Renewables for failing to begin construction on a planned on-site wastewater treatment facility, noting the company publicly committed to building it in July 2025 but has yet to break ground.
Montana Renewables’ Response
A company spokesperson declined to say specifically how or when the newly permitted disposal sites would be used. In a written statement, spokesperson Lanni Klasner said the company is “committed to responsible management of our wastewater” and has reduced its wastewater volume over the past two years.
On the status of the planned on-site treatment facility, Klasner said the company has been acquiring equipment and working with engineering consultants but stopped short of providing a construction timeline. Patrick Montalban, head of Montalban Oil and Gas, did not respond to requests for comment.
By the Numbers
- Up to 232,000 gallons per day of wastewater could be injected at the Pondera County sites
- Disposal wells are located more than 3,400 feet underground in the Madison Aquifer
- EPA review of the permit applications spanned nearly three years
- Pondera County has a population of approximately 6,000 people
- Montana Renewables is backed by a $1.6 billion federal loan from the U.S. Department of Energy to expand the Great Falls facility
Zoom Out
Montana Renewables is in the midst of a major expansion of its Great Falls biorefinery, which primarily produces sustainable aviation fuel made from agricultural feedstocks such as seed oils. The expansion is financed largely through federal incentives, including the $1.6 billion DOE loan, as the federal government has sought to encourage domestic SAF production as a complement to conventional jet fuel.
The wastewater dispute reflects a broader tension between large-scale energy and biofuel projects receiving substantial government backing and the rural communities that bear the environmental risks of hosting associated infrastructure. Similar tensions have emerged in Montana’s timber sector, where federal land management decisions have ripple effects on local counties with little say in the outcome.
The EPA determined that the targeted zone of the Madison Aquifer where the disposal wells are located is not a viable drinking water source now or in the foreseeable future, citing poor water quality in that region — a determination critics have disputed.
What’s Next
Pondera County officials have until early June to file an appeal of the EPA’s permit decision. Meanwhile, scrutiny is expected to intensify on Montana Renewables to follow through on its commitment to construct an on-site wastewater treatment facility at the Great Falls site. Conservation groups have signaled they will continue monitoring the company’s actions closely.
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