London-based BP plc has decided to withdraw its proposal to extract coal-bed methane gas from the Flathead Valley in southeastern B.C.
Montana Senator Max Baucus made the announcement at a town hall meeting Thursday.
The decision will have an impact an estimated $3 billion in BP capital investment to develop coal-bed projects in the Crowsnest coalfield along the B.C.-Alberta border.
The project had raised controversy among environmentalists in Canada and various Montana communities along the Flathead River who feared environmental and health problems from potential coal-bed methane runoff.
The river flows through Glacier National Park and into Montana's Flathead Lake, two major tourist destinations for the state.
British Petroleum's BP Canada Energy Company subsidiary withdrew its proposal for an B.C. environmental assessment, but it's still pursuing development of coal-bed methane projects in the Elk Valley and other areas of the Crowsnest coalfield.