Judge rejects challenge to Montana coal lease

 BILLINGS, Mont. (AP) -- A judge has rejected a lawsuit challenging the state
Land Board's lease of 587 million tons of publicly-owned coal in southeastern
Montana.
   District Judge Joe Hegel says the state did not give up its discretion to
halt mining at a later date when it leased the coal to St. Louis-based Arch Coal,
Inc. for $86 million in 2010.
   Conservation groups had argued that further environmental studies were needed
 and that the lease sale would make mining inevitable if allowed to stand.
   Hegel said in his Feb. 3 ruling that the state still must ensure the environment
is protected if the coal is mined from the leases near Ashland.
   The state-owned tracts are part of a coal reserve in an area known as Otter C
reek that holds more fuel than the United States consumes annually.
   AP-WF-02-08-12 2043GMT