A federal court has found the U.S. Bureau of Land Managementdid not act arbitrarily or capriciously in forgoing an environmental impact for Signal Peak Energy LLC's Bull Mountains mine.

The U.S. District Court for the District of Montana found mostlyin favor of Signal Peak and the BLM in regard to the adequacy of an environmentalassessment challengedby Northern Plains Resource Council. The court did however, remand the case backto the Interior Board of Land Appeals claiming it erred by not addressing the argumentsmade in the administrative process related to discussions around alternatives tothe mine.

A report Jan. 11 said Signal Peak reached a deal with environmentalists and state regulatorsintended to prevent the mine's production shutdown.