Attorneys for the state of Montana are defending the Land Board's decision to lease 587 million tonnes of state owned coal to a St Louis based company.

On Thursday, representatives of Arch Coal Inc and the Montana attorney general's office asked a judge in Broadus to dismiss a lawsuit challenging the sale.

Arch bought the lease on the undeveloped Otter Creek coal reserves in March for USD 86 million and future royalties. Four environmental groups later sued, claiming the sale should have been reviewed under the Montana Environmental Policy Act.

Attorneys for Arch and the state say that review must be done before mining, not at the leasing stage.

(Sourced from Associated Press)