Save Holland Lake questions approval of old holding tank for waste at lodge

A watchdog group is raising questions about plans to deal with wastewater at Holland Lake — both a proposal from the U.S. Forest Service to upgrade the treatment system as well as Holland Lake Lodge’s temporary workaround.

Holland Lake Lodge is a private resort operating on public land with a special use permit in the Flathead National Forest.

Earlier problems with wastewater mean the lodge hasn’t been running.

Before the resort can fully reopen, the wastewater system at Holland Lake needs to be fixed. The system serves the lodge, part of the Holland Lake Campground and an associated RV dump station.

The Forest Service proposal to redo the wastewater treatment system is out for public comment, and the lodge’s plan to handle waste this summer, while the systemwide fix likely takes place, is under fire.

This week, Save Holland Lake again asked the Missoula City-County Board of Health to rescind a variance it granted to allow the lodge to operate an old wastewater holding tank, citing risks to public health.

Save Holland Lake is made up of citizens who banded together to protect the lake after an earlier lodge expansion proposal raised controversy.

Eric Jacobsen, the new owner of the lodge, had asked for an exception to be able to use the tank, which the board granted, albeit with conditions.

The idea is that while the larger wastewater treatment system is being fixed, waste from the lodge’s tank can be pumped out instead of being routed to the system.

The board approved the tank’s use through 2028. But Save Holland Lake said the plan is risky, and the board should reconsider its actions because the information it received about the tank doesn’t meet criteria for the variance.

In a letter urging the board to rescind the variance, Save Holland Lake said uncertainty exists regarding the tank’s capacity, structural integrity and watertightness, along with the actual wastewater usage of the lodge.

The letter was sent from Forster Law in Billings on behalf of Save Holland Lake.

The letter said the director of environmental health herself noted the concrete tank is “starting to crumble,” it’s possible water is “intruding” into the tank, and the record doesn’t show that it isn’t leaking.

“As expressed by one of the Board members during the hearing, granting a variance in the face of such uncertainty is allowing Holland Lake Lodge to ‘gamble’ on whether the existing tank will work or not,” the letter said.

In an email Friday, director of environmental health Shannon Therriault said the Health Department plans to respond to Save Holland Lake soon.

She said department officials read the information from the group but did not see anything that raised concerns the decision made by the Health Board would not protect public health.

“The conditions are in place to ensure that the tank is watertight and of sufficient size to serve the operation,” Therriault said.

She noted appeals can be submitted through the justice system. In the meantime, she said, the board set conditions for the variance, and variances typically can be voided if conditions aren’t met.

“We acknowledged in the variance hearing that we need to know more about the wastewater system, which, again, is captured by the conditions,” Therriault said.

Jacobsen could not be reached for comment Friday, but Therriault said the new owner is working through his options and the requirements of the variance.

David Roberts, an engineer and member of Save Holland Lake, said the group isn’t opposed to the reopening of the lodge. However, he said it does have concerns the variance was granted without all the facts — and with conditions that don’t fit the situation.

For example, Roberts said the board mandated the tank be tested, but the test being used is designed for a brand new tank, not one decades old that multiple engineers have found to be leaky.

“This system has had a history of failures,” Roberts said. “It failed multiple times. This tank was documented in writing as leaking in the past twice.”

A subsequent letter March 19 from the Save group estimated the tank capacity to be roughly 2,353 gallons total with a “working capacity” of 670 gallons — “far lower than the multiple estimates of daily use contained in Holland Lake Lodge’s various submissions.” Save Holland Lake estimated typical flow for the lodge at 3,650 gallons a day, citing data from the lodge and the DEQ.

“These figures further establish that reliance on the existing tank is infeasible, and MPH (Missoula Public Health) must consider alternatives,” the letter said.

Earlier this year, Jacobsen, who bought the lodge after a controversial period for the resort and area residents, said he was committed to restoration and a focus on community and nature.

After the project was announced in 2022, the public learned the U.S. Forest Service had been quietly working with POWDR, an “adventure life” company based in Utah, on an expansion of the lodge, and following public pressure, the federal agency rejected the proposal.

But Jacobsen said he was ready to steward the lodge in the Swan Valley “into a new era.”

“Holland Lake is a special place, and we intend to protect it, honor it, and welcome people back in a way that reflects its spirit,” Jacobsen said in a public letter.

On its website, the lodge touts “a new chapter,” with plans to book weddings and group events for 2026, open the bar and restaurant later, and possibly offer nightly lodging in 2027.

Jacobsen isn’t alone in dealing with wastewater challenges.

In 2023, the Montana Department of Environmental Quality found the Forest Service’s wastewater system at Holland Lake was leaking — the one serving the lodge, campground and RV sites.

This month, the Forest Service’s proposal to reconstruct a portion of the wastewater treatment system is out for public comment, and a March 2 memo says comments are “most helpful” within 30 days.

Kira Powell, public affairs officer for the Flathead National Forest, said Friday she did not have an estimate of the number of comments that had come in so far.

However, the project is slated to be completed this summer, and Powell said Flathead Forest Supervisor Anthony Botello will take public comment on the proposal until the point he makes a decision.

She said he believes “it is important to get that recreational opportunity (the lodge) back open to the public.”

“We’d like to see the project completed as soon as possible,” Powell said.

The Forest Service’s proposal has raised concerns as well. Roberts, with Save Holland Lake, said the proposal would allow for a significantly larger operation.

Save Holland Lake said the proposed system would allow five times more volume than the existing one, be designed for 30% more volume in winter than POWDR’s controversial plan, and be built on the taxpayer dime.

“We are not opposed to the lodge reopening, but do not support the proposal based on its size, cost, and potential environmental risk and impact,” Roberts said. “ … It appears taxpayer (dollars) are highly subsidizing not just the operation, but the growth and value of a private business.”

Friday, Powell said the Forest Service did not have an estimated cost for the project yet, but it will go out to bid.

A memo from the Forest Service explained the reason for the project.

It said wastewater from tanks serving the campground — expected to remain open — and lodge eventually gets pumped or discharged into sewage lagoons above Holland Lake, but the system isn’t working because of a “compromised lagoon liner.”

“The need for this project is to replace/modernize the wastewater treatment system which would restore a valued resource for the community, a driver for the local economy, and improvement of visitor access to the surrounding National Forest System lands — all desired conditions identified in the Flathead National Forest Plan,” said the memo from Botello.

“System replacement is necessary to allow the Holland Lake Lodge to continue providing lodging and food services as well as providing a wastewater treatment system for the campground loop, host sites and RVs.”