Planning staff is recommending approval of the zone change request and adoption of the findings of the 11 review criteria.

OWNER: Par Montana LLC
AGENT: Michael Braulick
LEGAL DESCRIPTION: S19, T01 N, R27 E, C.O.S. 1069, Parcel 2, CORR; S18, T01 N, R27 E, C.O.S. 1069, Parcel 1, CORR; S19, T01 N, R27 E, FRAC LTS 3 & 4 & NESW4 N of RY
ADDRESS: 1232 Johnson Ln, Billings, MT 59101
CURRENT ZONING: Agricultural (A)
EXISTING LAND USE: Agricultural field, grassland
PROPOSED USE: Rail yard and construction borrow site
SIZE OF PARCEL: 48.9 acres, 116.0 acres, and 64.8 acres, for a total of 229.7 acres

STAKEHOLDERS
The applicant held a pre-application neighborhood meeting on February 23, 2026, at 607 Par Montana Rd. Seven members of the public attended the neighborhood meeting, including neighbors Mark Mauritzson, Dianna Ferguson, representing Absarokee Investment LLC, and Travis Yuzik and Melissa Townsend, representing Atomic Industries, as well as Rob Ferguson and Sam Buchanan. 

Planning staff provided public notice of the application in accordance with zoning regulations, including notification of surrounding property owners, publication of a legal advertisement, and posting of the subject property. As of the date of this report, no written correspondence has been received from surrounding property owners regarding the proposed zone change.

ALTERNATIVES
The Consolidated Yellowstone County Zoning Commission may:

• Recommend approval and adoption of the findings of the eleven review criteria for Zone Change 735; or,
• Recommend denial and adopt different findings of the eleven review criteria for Zone Change 735; or,
• Delay action on the zone change request for up to 30 days; or,
• Allow the applicant to withdraw the zone change request.

The applicant has not requested the Commission consider withdrawal of the application as of the writing of this report. 

FISCAL EFFECTS
Approval or denial of the proposed zone change will have no financial impact on the Planning Division budget.

None.

See attached chart.

NORTH:	Zoning: Agricultural (A) Land Use: Agricultural and residential
SOUTH:	Zoning: Light Industrial (I1) Land Use: Rail Yard
EAST:	Zoning: Heavy Industrial (I2) Land Use: Asphalt Plant, Miscellaneous Industrial
WEST:	Zoning: Heavy Industrial (I2) Land Use: Oil Refinery

The request before the Commission is a zone change from Agriculture, 10+ acre minimum, (A) to Heavy Industrial (I2). The purpose of this zone change is to allow development of the site into a new rail yard facility for the neighboring Par Montana Oil Refinery. The intended design includes storage capacity for approximately 600 rail cars and feedstock unloading facilities, whilst allowing for continued use of the existing BNSF rail connection through the East Billings Yard.  

The surrounding area is characterized by industrial uses, and a single agricultural property directly to the north of the subject property. Surrounding industrial uses include the Par Montana Oil Refinery, a rail yard, an asphalt plant, and miscellaneous other industrial uses. Multiple of the surrounding parcels have been rezoned from previous designation of Agriculture (A) zoning to their current industrial zoning. 

The existing Agriculture (A) zoning would not allow for the construction of the proposed rail yard, necessitating this zone change application. The Heavy Industrial (I2) zone district is intended to accommodate intensive industrial activities, such as the storage of chemical products and raw materials, as is proposed. Rezoning the subject properties to Heavy Industrial (I2) would provide an appropriate regulatory framework to allow the proposed development to occur in a manner that is consistent with county zoning standards, whilst also ensuring that future development is subject to site-specific review and applicable development regulations. 

The proposed use is compatible with the surrounding zoning and land uses as it is located in an already established industrial area, and would align with the existing character and function of the surrounding area. The property to the west is similarly zoned Heavy Industrial (I2) and is currently used as part of the Par Montana Oil Refinery. This represents a more intensive use than what is proposed with the subject property, as an oil refinery is a Special Review Use under the Yellowstone County Zoning Code. Heavy Industrial (I2) zoning is necessary over the more restrictive Light Industrial (I1) zoning as I1 zoning would not permit the outdoor storage of refinery products as is currently proposed. 

Overall, the proposed Heavy Industrial (I2) zoning is consistent with the existing zoning pattern and industrial character of the surrounding area. The rezoning would allow for the improvement of Par Montana’s rail logistics and storage flexibility whilst maintaining compatibility with surrounding land uses.  
 

Prior to making a recommendation to the Board of County Commissioners, the Consolidated Yellowstone County Zoning Commission shall consider the findings of the 11 review criteria:

1. Whether the new zoning designed in accordance with the Growth Policy

• Predictable land use decisions that are consistent with neighborhood character and preferred land use patterns identified in neighborhood plans.
• Coordinated economic development efforts that target business recruitment, retention, and expansion. 

The requested Heavy Industrial zoning is consistent with the objectives of the Lockwood Growth Policy, which promotes orderly development and directs industrial uses to appropriate areas with compatible surrounding land uses and supporting infrastructure. The Lockwood Growth Policy also designates the property as an Industrial use. The subject property is located within an established industrial area, making the proposed zoning consistent with long-term planning goals. The purpose of the zone change is to facilitate development of the site as a new rail yard facility serving the neighboring Par Montana Oil Refinery. The proposed design includes storage capacity for approximately 600 rail cars and feedstock unloading facilities, while allowing for continued use of the existing BNSF rail connection through the East Billings Yard.

2. Whether the new zoning is designed to secure from fire and other dangers
The proposed zone change prioritizes public safety by reducing risks associated with fire and other hazards through the application of appropriate land use controls, setbacks, and development standards, particularly in proximity to rail corridors. These measures are intended to protect adjacent properties and the surrounding community while supporting long-term transportation efficiency and economic development. The existing Agriculture (A) zoning district does not allow for construction of the proposed rail yard, necessitating this zone change request. The Heavy Industrial (I2) zoning district is specifically intended to accommodate intensive industrial activities, including the storage of chemical products and raw materials, as proposed. Rezoning the subject property to I2 would establish an appropriate regulatory framework to allow the development to proceed in a manner consistent with county zoning standards, while ensuring that future development remains subject to site-specific review and applicable regulations. The proposed rezoning would enhance Par Montana’s rail logistics and storage flexibility while maintaining compatibility with surrounding land uses.

3. Whether the new zoning will promote public health, public safety, and general welfare.
Transportation: The property is accessed via existing public roadways, and no additional transportation infrastructure is required.
Water and Sewer: If the rezoning is approved, water and sewer accommodations will be reviewed when development begins.  Department of Environmental Quality (DEQ) will review any new well and/or septic systems proposed.
Schools and Parks: As no new residential construction is proposed, the request is not anticipated to impact local schools or parks.  The surrounding area is predominantly characterized by industrial development, with a single agricultural property located directly north of the subject site. 
Fire and Police: ExxonMobil Fire District is directly responsible for service to the location, and fire protection services will continue to be provided accordingly. Law enforcement services are provided by the Yellowstone County Sheriff’s Office. The proposed zone change will not require any additional public safety infrastructure. The proposed zone change will establish appropriate land use standards, buffering requirements, and operational controls. These measures are intended to reduce potential impacts related to fire, hazardous materials, noise, and other industrial activities, while ensuring compatibility between the proposed facility and surrounding uses.
 
4. Whether the new zoning will facilitate the adequate provision of transportation, water, sewerage, schools, parks, and other public requirements.
The property is located in an area served by infrastructure appropriate for industrial development, including road access, utilities, and emergency services. The zone change is not anticipated to create an undue burden on public facilities. The proposed zone change area is surrounded by heavy industrial areas, so there will not be impacts on schools, parks and other public requirements.  

5. Whether the new zoning will provide adequate light and air.
The development within the proposed zone change will provide adequate light and air by establishing appropriate yard setbacks, height controls, spacing, and site-design standards. These requirements help maintain safe working conditions, reduce impacts on adjacent properties, and ensure compatibility with surrounding land uses. Par will work with the proper governing authority to ensure all the proper permits are obtained. 

6. Whether the new zoning will affect motorized and non-motorized transportation.
The property is located in an area designed to accommodate industrial traffic. The current planned development under Heavy Industrial (I2) zoning will utilize existing transportation infrastructure and will be subject to Yellowstone County Public Works access standards. Due to the industrial use of the property non-motorized transportation should not be affected by the use. 

7. Whether the new zoning will be compatible with urban growth in the vicinity of cities or towns.
The surrounding area is predominantly characterized by industrial uses, with a single agricultural property located directly north of the subject property. Nearby industrial uses include the Par Montana Oil Refinery, an existing rail yard, an asphalt plant, and other miscellaneous industrial operations. Several surrounding parcels have been rezoned from previous Agriculture (A) designations to their current industrial zoning, reflecting an established pattern of industrial development in the area. The existing Agriculture (A) zoning district does not allow for construction of the proposed rail yard, necessitating this zone change request. The Heavy Industrial (I2) zoning district is intended to accommodate intensive industrial activities, including the storage of chemical products and raw materials, as proposed. Rezoning the subject property to Heavy Industrial (I2) would establish an appropriate regulatory framework to allow the development to proceed in a manner consistent with county zoning standards, while ensuring that future development remains subject to site-specific review and applicable development regulations. As established within the Lockwood Growth Policy the property is within the appropriate area for industrial growth.  

8. Whether the new zoning considers the character of the district and the peculiar suitability of the property for particular uses.
The proposed zoning recognizes the site’s existing rail infrastructure, location, and operational context, and ensures that any expansion remains compatible with surrounding land uses while reinforcing the intended industrial and transportation function of the district. Overall, the proposed Heavy Industrial (I2) zoning is consistent with the established zoning pattern and industrial character of the surrounding area. The rezoning would allow for improvements to Par Montana’s rail logistics and storage flexibility while maintaining compatibility with adjacent land uses.

9. Whether the new zoning will conserve the value of buildings.
The proposed zoning designation itself is not anticipated to have a direct impact on the value of buildings or land. However, the zone change is expected to support the conservation and potential enhancement of property values over time by promoting consistency in zoning across the industrial district. Establishing a cohesive zoning pattern reduces the likelihood of incompatible land uses and helps ensure that development occurs in a predictable and orderly manner. By aligning the subject property’s zoning with that of surrounding industrial properties, the proposed change reinforces the established development pattern and provides greater certainty for property owners, investors, and future development. This consistency can contribute to long-term market stability, support continued industrial investment in the area, and help maintain the overall integrity and functionality of the district.

10. Whether the new zoning will encourage the most appropriate use of land throughout Yellowstone County.
The proposed Heavy Industrial (I2) zoning is fully compatible with surrounding properties, which are already zoned Heavy Industrial.  The parcel currently has Heavy Industrial zoning on both the east and west sides.  The change provides for consistent use of the land that is appropriate for the area. 

11. Whether the new zoning will, as nearly as possible, be compatible with the zoning of nearby cities and towns.
The character of the surrounding district is predominantly heavy industrial uses, as evidenced by the concentration of existing industrial operations and infrastructure in the area. The subject property is well suited for Heavy Industrial (I2) zoning given its location within this established industrial setting, where similar uses are already present and supported. Rezoning the property to Heavy Industrial (I2) will reinforce the existing land use pattern, minimize the potential for land use conflicts, and ensure that future development is consistent with the established character and function of the area.