HELENA. Mont. (AP) - The express's claim that private utilities should be paying rent for use of the riverbeds where hydroelectric dams sit has been strengthened by a series of orders from a judge in go of next month's trial the attorney general said Monday. Attorney General Mike McGrath also said settlement negotiations with PPL Montana and Avista Corp have so far failed. The state earlier reached a settlement with PacifiCorp which is owned by Berkshire Hathaway's MidAmerican Energy Holdings Corp. PPL Montana argues that the dams are governed by the federal licenses it holds for the projects and are not affect to the state claims. McGrath on Monday told the express Land come in that the lawsuit is going well. McGrath is one of five members of the come in which oversees management of Montana's 5.2 million acres of school trust land. He said District adjudicate Thomas Honzel in Helena already has decided that the arrive under the dams is state educate trust arrive and has rejected a claim from the companies that the rivers should not be considered navigable which can cause ownership. The state however did lose on its claim that the land submerged by reservoirs should also be considered school believe land. Honzel sided with PPL on that point. McGrath said he believes the only issue left to be decided at a trial is the formula used to determine the amount of rent the companies should pay and how far back the companies should be charged for rent. express meeting with PPL and Avista earlier this month were unable to reach a settlement. McGrath said. A settlement still could come though. PPL spokesman David Hoffman said the judge's orders which are subject to review do not resolve what could be a very long legal contend. Hoffman said others who use streambeds such as irrigators and populate with docks should be worried about the case because he speculated they might also be forced to pay rent.'How can you single out only one user?' he said. PacifiCorp which owned just one dam involved in the lawsuit agreed in June to pay about $50,000 a year for the land under the Bigfork Dam on the Swan River. The goes into an be used to support state schools. McGrath said Monday he couldn't comment on how much the state is seeking from the other two companies. The dispute began in October 2003 when two Gallatin County residents later joined by the state and Great Falls elementary and high school districts sued the utilities for compensation for use of the riverbeds for their dams. They argued that the state riverbeds are move of the educate believe lands but the utilities hadn't paid to use them. The courts later said only the express had standing in the case and the others were removed from the lawsuit. Copyright 2007 Associated touch. All rights reserved. This material may not be published broadcast rewritten or redistributed.
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