A Flathead County District Court judge earlier this month found that the first phase of Lakeside’s wastewater expansion project was reviewed in accordance with state environmental laws.  

The Aug. 10 decision came after the watchdog group Citizens for a Better Flathead sued the Montana Department of Environmental Quality in May 2025 over the issuance of a groundwater discharge permit for the project.  

The permit allowed the Lakeside County Water and Sewer District to proceed with Phase I of its effort to expand and upgrade its decades-old wastewater system. The watchdog group, joined by the Confederated Salish and Kootenai Tribes, argued the state agency’s failure to conduct a deeper environmental analysis violated the Montana Water Quality Act and Montana Environmental Policy Act. 

But Judge Danni Coffman rejected these claims, finding that the state agency’s review of Phase I was legally sound. She said state officials “took a hard look at the direct, secondary and cumulative impacts of the permit” and reasonably determined “there was no significant impact” on the environment or Lakeside residents, according to court documents.  

Evidence showed that the discharged treated wastewater would have significantly low levels of pollution, Coffman wrote in her decision. Any contamination in nearby surface water, such as Flathead Lake or lower Ashley Creek, would “be non-detectable.” 

“Plaintiffs do not question whether direct impacts were evaluated,” Coffman wrote. “In fact, at least some of their argument rests on the position that [the state Department of Environmental Quality] only evaluated the direct impacts.” 

The permit issued for Phase I allows the discharge of treated wastewater into state groundwater via rapid infiltration basins, an earthen basin designed for wastewater discharge. Lakeside County Water and Sewer District can discharge up to 200,000 gallons per day into the Delta Aquifer with the permit, according to court documents. Coffman concluded, based on presented evidence, that only the aquifer would be affected. 

Another claim made by the project’s critics was that the environmental assessment failed to consider potential harm to aquatic life and threatened species. Coffman rejected the assertion.  

“It is abundantly clear that [the state Department of Environmental Quality] explained that aquatic life will not be harmed,” Coffman wrote.  

She also denied the groups’ request to merge concerns about Phase II of the wastewater expansion project in the lawsuit. The two entities filed the request on July 17 after the state agency approved Phase II in June. They argued the state’s piecemeal approval of the project violated the Montana Environmental Policy Act, since agency officials were aware of future plans to build a wastewater treatment facility during the first phase.  

But Coffman rejected that argument. 

“Phase II contains an entirely different administrative record that must be considered on its own merits separate from Phase I,” she wrote.   

CITIZENS FOR a Better Flathead and the Confederated Salish and Kootenai Tribes are deciding whether to appeal Coffman’s decision to the Montana Supreme Court.  

The groups criticized the judge for forming conclusions based on data provided by the Lakeside County Water and Sewer District. They argued that Coffman dismissed “rigorous, peer-reviewed science presented by expert witnesses” for the watchdog group and the tribe.  

“A ‘good enough’ standard directly contradicts the Montana Constitution,” said Citizens for a Better Flathead Co-Executive Director Mayre Flowers. “The world-class waters of Flathead Lake and the Flathead Basin deserve comprehensive, high-bar scientific review, not piecemeal analysis based on minimal compliance.” 

Coffman noted in her decision that reports from experts contracted by the groups “do not actually contradict any of the data or modeling within the fact sheet of the Environmental Assessment.” There was a “difference of opinion behind the data collection,” but nothing that conflicted with Water Environmental Technologies’ data, the contractor hired by Lakeside County Water and Sewer District.  

“We care just as much about Flathead Lake and keeping our water clean as anyone else in this community,” said Lakeside County Water and Sewer District General Manager Rodney Olson in a statement. 

MEANWHILE, THE groups filed a separate lawsuit on Aug. 14 focused on Phase II of the project. Flathead Lakers, a Polson-based advocacy group, joined the litigation that once again targets the state Department of Environmental Quality in Flathead County District Court.  

The groups argue the state violated the Montana Environmental Policy Act through its piecemeal review of the wastewater project and failure to conduct a rigorous environmental impact statement.  

They’ve asked the court to pause the project while the case is litigated and ultimately overturn the state agency’s approval of Phase II. 

“We fully recognize that our growing region needs modern, effective wastewater infrastructure,” Flowers said in a statement. “However, the science is clear the placing a massive discharge facility over this vulnerable floodplain aquifer is a grave risk.” 

Judge Heidi Ulbricht is presiding over the case. 

Report for America Reporter Hannah Shields can be reached at 406-758-4439 or [email protected]. If you value local journalism, pledge your support at dailyinterlake.com/support.