The leases - owned by ConocoPhillips and other companies, were suspended 25 years ago after a federal court ruled they had been sold without enough environmental study.

Gov. Brian Schweitzer said Monday the leases should be negated so the state can live up to an agreement signed last month with British Columbia to halt development along the North Fork of the Flathead River.

Dave Galt with the Montana Petroleum Association says the land should remain open to drilling. He says the area has a high probability of holding fossil fuels and that at the very least the lease owners should be compensated for cancellations.