Holland Lake Lodge
Holland Lake Lodge sits on the shores of Holland Lake in Condon, Montana. About a century ago, the United States Forest Service issued a special use authorization under the authority of the Term Permit Act of 1915 permitting the building of a privately-owned lodge and cabins on National Forest System lands that would be open to the public. The original lodge was built in 1925 and opened to the public on July 4, 1925. The original Holland Lake Lodge burned and was replaced in 1946. The rebuilt lodge, with some upgrades such as electricity, retains its historic character, reminiscent of the 1940s.
In addition to the lodge, visitors to Holland Lake have a choice of amenities such as a 42-site fee campground, day use area, primitive boat launch, 16-site non-fee Owl Creek Packer Camp, two Forest Service corrals, six Outfitter and Guide corrals, a Forest Service Rental Cabin, and the popular Holland-Gordon Trailhead (Trail #35). 16 Recreation Residences also hold special use authorization along the Holland Lake shoreline.
This webpage provides the most current information on Holland Lake Lodge Lodge. For or more information about the application, please visit our project page or for public inquires please contact: sm.fs.fnfcontactus@usda.gov
Holland Lake Lodge Status Update
The Flathead National Forest announced today that the decision has been made to issue a special use authorization for Holland Lake Lodge, authorizing Eric Jacobsen and Thomas Knowles of Holland Peak, LLC to operate the lodge within the existing footprint and facilities.
Eric Jacobsen and Thomas Knowles entered into a purchase agreement for Holland Lake Lodge and submitted an application in October 2024 for a special use authorization; the application is for continuing the existing use within the existing footprint with no proposed expansion.
The Forest Service completed the review of the special use authorization application for the prospective future owners of Holland Lake Lodge and accepted the application to continue the operations at Holland Lake Lodge. The thorough review determined that the applicant met screening criteria, including possessing the needed technical knowledge and financial capability to operate the lodge.
Acceptance of the application initiated environmental analysis of the requested special use, including an opportunity for interested parties to review and comment on the application.
Based on review of public comments and analysis of potential environmental effects, the decision was made to issue a new special use authorization, approving Holland Peak, LLC to hold a 20-year special use authorization for the operation of Holland Lake Lodge, within the existing footprint. This approval does not include any new or expanded activities, nor any expansion of Holland Lake Lodge facilities. Within this authorization, Holland Peak, LLC would be held to terms and conditions within the associated special use permit to ensure that operations are conducted safely for visitors and resources are protected.
To view the decision, please visit our project page.
We have received a report from a private engineering firm regarding the wastewater treatment system. Our forest and regional engineering group are reviewing the report and determining next steps.
For background information on the wastewater treatment system that services Holland Lake Lodge and Holland Lake Lodge Campground, please navigate down to the Wastewater Treatment System section below.
A special use authorization (SUA) remains the authorizing document until a new SUA is issued to a new controlling interest. In order for a new SUA to be issued, the new controlling interest must first submit an application for a SUA. The application is then reviewed, the screening criteria is applied, and a determination is made by the Forest Service whether or not to issue a new authorization.
Special Use Authorization Process
What is a SUA and why are privately owned buildings on National Forest?
Special use authorizations (also known as special use permits) approve specific use of National Forest System lands for a specific period of time, through a legal document such as a permit. When the Forest Service issues a special use authorization, the Forest Service maintains authority to regulate use of National Forest System lands, in accordance with applicable federal laws and regulations. The holder of the authorization is likewise held to all applicable federal laws and regulations, as well as the terms within their authorization.
Occupancy is a special use, including building and maintaining privately owned improvements on National Forest Lands, and requires a special use authorization. While the Forest Service maintains ownership of the land, it does not own the private improvements.
Why are SUA issued?
Special use authorizations include commercial services like outfitting and guiding services, ski resorts, lodging, events, and non-commercial services like education programs. Special use authorizations provide opportunities for public use on National Forest that would otherwise be unavailable. SUAs also contribute to local economies. Special use authorization terms and conditions frequently include education to increase awareness of National Forests and natural resources, like bear safety and leave no trace.
How does the FS maintain regulatory authority once a SUA is issued?
The person or entity holding a special use authorization is held to terms and conditions as described in their SUA. SUA holders must comply with these terms to maintain facilities, improvements, and services for public health, welfare, and safety. The Forest Service administers special use authorizations to ensure compliance through established terms and conditions. If the terms within the SUA as authorized are not adhered to, corrective action is taken, including and up to suspension, revocation or termination of the authorization.
How and to whom are SUAs issued?
A person or entity seeking a special use authorization is called a proponent and would submit an application for an authorization. The application would be evaluated through a set of criteria, called screening criteria, to ensure the proposed activities are consistent with applicable federal, state, and local laws and regulations, consistent with the Forest Plan, and maintain public health and safety, etc. The proposal must be consistent with the purposes for which National Forest lands are managed, and must be in the public interest. The proponent is evaluated for financial and technical capability to undertake the proposed activities. The application is either accepted or rejected, based on whether the screening criteria is met. If an application is formally accepted, the application becomes a proposed action subject to the NEPA environmental analysis process, which includes public involvement.
Screening criteria can be found here.
How is environmental analysis and public involvement incorporated in the SUA process?
The environmental analysis process evaluates and discloses potential effects on National Forest System lands and resources connected with the proposed special use activities, in accordance with requirements of the National Environmental Policy Act of 1969 (NEPA). NEPA analysis determines whether or not the proposed action will be authorized and under what conditions.
The focus of the environmental analysis is not to issue the authorization but to analyze the effects of the proposed special use. The level of environmental analysis is commensurate with the complexity of the proposed action. The NEPA process includes public involvement.
What happens when a business with a SUA changes ownership?
Any change in ownership of the improvements covered by a special use authorization, or a change in controlling interest, triggers termination of the SUA. However, the original SUA remains the authorizing document until a new SUA is issued to a new controlling interest to ensure the Forest Service maintains regulatory authority with the controlling interest and can administer the operation of activities on National Forest System lands.
The acquiring party or entity must submit an application for a new authorization. If the application meets the screening criteria and is accepted, an environmental analysis will begin. Before a decision is made to issue a special use authorization, there will be an opportunity for public involvement.
SUA Issuance Process
- Proposal and application
- Screening criteria
a. Business plan and proposed operating plan submitted - If application is accepted, it becomes Proposed Action
- Proposed Action undergoes NEPA environmental analysis
a. Public involvement - If environmental analysis results in a decision that authorizes activities, the SUA is issued, with terms and conditions as informed by NEPA analysis
- Permit is populated with map, financial and operational terms and conditions, etc.
- Master Development Plan is submitted within the first five years of the issuance of the SUA and, if accepted, contains a long-range flexible plan designed to ensure alignment between SUA holder and Forest Service, and compliance with Forest Plan.
- Any changes to ownership/controlling interest, any changes to the activities as described in the issued SUA, and any plans to pursue actions in the Master Development Plan would initiate some level of environmental analysis and associated public involvement.
For more information on SUAs, please visit our Special Use Permits page.
Special Use Authorization FAQs
What happens when a business that holds a special use authorization changes ownership?
The Forest Service does not regulate or otherwise control privately owned improvements. A business or entity that holds a SUA can chose to sell any privately owned improvements. However, the Forest Service authorizes and regulates use of National Forest System lands. Because of this, the new controlling interest must submit an application for a new SUA.
The application is reviewed, the screening criteria is applied, and a determination is made by the Forest Service whether or not to issue a new authorization.
Any transfer of title of the privately owned improvements, or a change in controlling interest in a business, initiates termination of the SUA. However, the existing SUA remains the authorizing document until a new SUA is issued to a new controlling interest to ensure the Forest Service maintains regulatory authority with the controlling interest and can administer the operation of activities on National Forest System lands.
How can I check on the status of a special use authorization?
“Holland Lake Lodge Status Update” on this website will be updated with the most current information on the SUA process. Interested parties can also subscribe for project updates on the NEPA analysis process.
When is public involvement?
- Proposal and application submitted. There is no public involvement on this document.
- Screening criteria applied
a. A business plan and proposed operating plan are submitted for evaluation of technical ability to provide the services within the application. There is no public involvement on this document. - If application and the proponents pass the screening criteria and the application is formally accepted, it becomes a Proposed Action, subject to environmental analysis.
- Proposed Action undergoes NEPA environmental analysis.
a. Public involvement occurs at this step. - If environmental analysis results in a decision that authorizes activities, the SUA is issued, with terms and conditions as informed by NEPA analysis.
- Permit is populated with map, financial and operational terms and conditions, etc.
- Master Development Plan is submitted within the first five years of the SUA and, if accepted, contains a long-range flexible plan designed to ensure alignment between SUA holder and Forest Service, and compliance with Forest Plan. There is no public involvement on this document.
- Any changes to ownership/controlling interest, any changes to the activities as described in the issued SUA, and any plans to pursue actions in the Master Development Plan would need to be submitted as a proposal and would initiate some level of environmental analysis and associated public involvement.
What is a Master Development Plan?
A master development plan (MDP) is a conceptual guide encompassing the current and future operation as envisioned by the SUA holder, including potential long-term development in connection with use authorized by the SUA. It is a flexible document subject to change and does not authorize any actions.
The SUA holder creates and submits a MDP to the Forest Service within the first five years of the SUA. The Forest Service reviews the document and provides feedback to align with Forest Plan, with the intent of ensuring the long-range plan for the resort/business is aligned with natural and social resource values.
What’s the process for submitting and acceptance of an MDP?
A master development plan is submitted after the SUA is issued, as a part of the special use authorization process but the MDP is not a part of the application process. Upon acceptance, the master development plan becomes a part of the SUA.
Acceptance of the MDP does not constitute approval of its contents or provide any assurance that any item in the MDP will be authorized by the Forest Service or constructed by the holder. There is no public process for the review and acceptance of a master development plan because it is a conceptual plan only and does not authorize any action.
Any proposals for changes to the existing authorized use, including development or construction of improvements, must be within the MDP and require environmental analysis under the National Environmental Policy Act (NEPA). No proposal for changes to existing authorized are authorized without the requisite environmental analysis. The NEPA process includes public involvement.
What is the process if a new expansion proposal is submitted?
If an entity holding a SUA would like to pursue activities outside what is currently authorized in their current SUA, the holder would need to submit a proposal for new activities that is consistent with its Master Development Plan.
The proposal is then reviewed under the screening process criteria (Title 36, Code of Federal Regulations, section 251.54). If the proposal meets the screening criteria and is accepted, the proposal is processed and analyzed through the NEPA process as a proposed action and would include public involvement. If the proposal is approved through environmental analysis the new activities or improvements would be added to the existing SUA through an amendment.
2023 withdrawn SUA application - E3 Destinations/POWDR
On February 6, 2024, the Flathead National Forest received an application for a new permit for existing use at the Holland Lake Lodge due to a change in control of the business. The Forest Service requires all permit holders to follow laws and regulations and will continue to work with all appropriate parties to provide ensure compliance with all applicable laws and regulations. Background information on the return of the first application and associated documents, including the full Public Scoping Report, is available through our Project page.
February 23, 2024 Update
In fall of 2023, the Flathead National Forest received notice that E3 Destinations/POWDR intended to withdraw their application for a special use permit for the operations of Holland Lake Lodge. Over the course of the winter, Flathead National Forest leadership met with Holland Lake Lodge Inc. ownership and requested formal documentation to confirm controlling interest, so that the application could be properly withdrawn.
On January 31, 2024, the Flathead National Forest was notified that E3 Destinations/POWDR provided needed documentation of controlling interest of Holland Lake Lodge, Inc. The Forest Service has accepted the withdrawal of the E3 Destinations/POWDR application.
Based on the documentation that was submitted, the existing special use permit, as issued in 2017, remains valid. Holland Lake Lodge, Inc. has submitted an Operating Plan for 2024 season and once the Forest Service has evaluated that Operating Plan, Holland Lake Lodge would be authorized to continue to operate under this permit.
October 13, 2023 Update
Holland Lake Lodge Inc. recently informed the Flathead National Forest that they will no longer continue a partnership with POWDR Corp. and will be withdrawing all pending applications with the Forest Service. The Forest Service will continue to work with Holland Lake Lodge Inc. and administer the current permit until there is a change in ownership or control. If sold, the purchaser of the business must apply for, and be issued, a special use permit to operate.
While the Forest Service does not regulate or otherwise control privately owned improvements, it authorizes and regulates use of National Forest System lands in accordance with applicable federal laws and regulations.
When private improvements change ownership or a change in the controlling business entity takes place, it is Forest Service policy to issue a new special use authorization to the new owner/controlling business entity. If Holland Lake Lodge, Inc. undergoes a change of ownership and/or control, the new controlling interest must submit an application for a new special use permit for the existing authorized uses/improvements (not expanded uses/improvements).
Holland Lake Lodge, Inc. is the current holder of, and is operating under, the existing special use permit, issued in 2017. The existing permit will remain in effect until an application for a new permit is submitted, is reviewed, and a determination to authorize/not authorize is made. Holland Lake Lodge is currently closed for the winter season.
Relevant FAQs
The FAQs listed below were last updated September 18, 2023 and will no longer be updated. The most current information can be found above.
Q1. Has the existing permit been terminated due to change in control?
A1. The existing permit is currently valid as issued to Holland Lake Lodge, INC. The Forest Service was formally informed of the change of control and an application for a new permit was submitted. Acquisition of a controlling interest in Holland Lake Lodge, INC. triggered termination of the existing permit; however, termination is not effective until/unless a new permit is issued.
To clarify, the existing permit, as issued in 2017, is still in effect until the application for a new permit is submitted, can be reviewed, and a determination to authorize/not authorize is made. Refer to Q2 below for status of the new permit application.
Q2. What is the status of the application for a new special use permit?
A2. The application for a new special use permit is still under consideration. The application under consideration does not include any expansion, it is merely an application for a new special use permit for existing authorized operations. It reflects a change in management of Holland Lake Lodge Inc.
Q3. Will the Forest Service notify the public if a new permit is issued for existing uses at Holland Lake Lodge?
A3. Interested persons will be informed through this webpage if a new permit is issued for the existing use.
Q4. Who is the owner of the authorized facilities and improvements?
A4. Holland Lake Lodge, INC is the owner of the facilities and improvements.
Q5. Who is responsible for the building maintenance?
A5. The permit holder is required to maintain the authorized improvements and permit area to standards of repair, orderliness, neatness, sanitation, and safety acceptable to the authorized officer and consistent with other provisions of this permit. The permit holder shall comply with all present and future federal laws and regulations and all present and future state, county, and municipal laws, regulations, and other legal requirements that apply to the permit area.
Q6. Is there a signed operating plan?
A6. An operating plan for the existing permit for Holland Lake Lodge, Inc was signed on June 13, 2023. A concession agreement and related agreements were approved and appended to the plan on June 15.
Q7. Is Holland Lake Lodge open for business?
A7. Holland Lake Lodge, Inc is operating under the existing special use permit as issued to Holland Lake Lodge, Inc in 2017.
Q8. What is the Forest Service's authority when a business changes control or ownership?
A8. While the Forest Service does not regulate or otherwise control privately owned improvements, it authorizes and regulates use of National Forest System lands in accordance with applicable federal laws and regulations.
Any transfer of title to the improvements covered by a Special Use Permit or a change in controlling interest triggers termination of the permit. When private improvements change ownership or a change in the controlling business entity takes place, it is Forest Service policy to issue a new special use authorization to the new owner/controlling business entity. The acquiring party or entity must submit an application for a new permit.
Q9. What is the process for accepting a new master development plan?
A9. A master development plan (MDP) is a conceptual guide encompassing the entire operation presently envisioned for potential long-term development in connection with use authorized by the permit. Upon acceptance by the authorized officer, the master development plan shall become a part of the permit. There is no public process for acceptance of the master development plan because this is a conceptual plan only and does not authorize any action. No proposal for changes to existing authorized use at the resort, including development or construction of improvements, will be authorized without the requisite environmental analysis and documentation needed to support that additional construction or development under the National Environmental Policy Act (NEPA).
Acceptance of the MDP does not constitute approval of its contents or provide any assurance that any item in the MDP will be authorized by the Forest Service or constructed by the holder. No rights or obligations of the holder or the Forest Service are determined by the authorized officer's acceptance of the original or revised MDP, including the legal requirement to conduct environmental analysis under NEPA. Screening criteria are applied and if accepted as an application, subsequent NEPA analysis will occur when a proposal is brought forward for consideration.
Q10. How will the public be notified that a new master development plan has been submitted?
A10.There is no public process for the review and acceptance of a master development plan. The public will be notified when a proposal from the Master Development Plan has been reviewed through the screening criteria and formally accepted for processing as an application. After the proposal has been accepted as an application then it is brought forward for consideration through the NEPA process as a proposed action. Please see below for response on the process of accepting a new proposal.
Q11. What is the process if a new expansion proposal is submitted?
A11. The permit holder must submit a proposal from the accepted MDP. The proposal will be reviewed under the screening process criteria (Title 36, Code of Federal Regulations, section 251.54). If formally accepted, the proposal will be processed as an application and analyzed through the NEPA process as a proposed action. If rejected the proposal will be returned to the proponent.
Q12. What is the Flathead National Forest's response regarding the wastewater lagoon inspection by Montana DEQ?
A12. The MT DEQ Engineering Bureau WPCSRF Section Supervisor conducted an inspection of wastewater treatment lagoons and the leakage assessment was inconclusive. DEQ's Enforcement Program sent a separate letter related to complaint response and citing the applicable regulations . The Flathead National Forest responded to DEQ’s comments and committed to accomplishing DEQ recommended actions, including leakage assessment following DEQ's recommended method.
Holland Lake Wastewater Treatment System
July 3, 2024 Update
The Forest Service contracted a geotechnical investigation for the Holland Lake Wastewater Treatment System. The investigation is part of a larger study intended to inform the feasibility of potential options for repair and/or improvement. This will involve digging 16 small test pits for soil investigations and percolation testing, installation of a temporary piezometer wells, and lagoon samples. The work is estimated to take approximately two weeks. A report is expected during September or October of this year, which will inform the Forest Service on options for moving forward.
May 21, 2024 Update
The Forest Service visually monitored the lagoons throughout the 2024 spring season for an opportunity to conduct a second groundwater assessment of the three monitoring wells installed in November 2023.
The lagoons were reported to be completely thawed the week of April 15, and samples were taken on April 23. The results of the latest groundwater assessment indicated no groundwater contamination. The results have been shared with Montana Department of Environmental Quality (DEQ).
December 15, 2023 Update
Following direction from Montana Department of Environmental Quality (DEQ), the Forest Service completed the installation of groundwater monitoring wells to test for contamination from the wastewater treatment lagoons that serve the Holland Lake campground and Holland Lake Lodge. Sample results showed no evidence of groundwater contamination.
The Forest Service consulted with DEQ to conduct a groundwater assessment and identify locations for upgradient and downgradient monitoring wells between the lagoon and the lake to determine impacts to groundwater. Samples were taken from the north shore of Holland Lake and from the three monitoring wells. The results indicated no groundwater contamination.
October 19, 2023 Update
For the past several months, the Forest Service has been actively engaged in correspondence with Montana Department of Environmental Quality (DEQ) and has met with DEQ leaders and staff regarding the Holland Lake Wastewater Treatment System.
The wastewater system is in place to serve the 42-site Holland Lake Campground and associated dump station, as well as Holland Lake Lodge. As per DEQ’s request, the Forest Service investigated the holding ponds and conducted a leakage study, following DEQ’s procedures.
A site visit late last week, conducted in conjunction with the DEQ and Missoula County, indicated a leak in the wastewater system. Both sites are now closed, and no additional effluent will enter the wastewater system. The Forest Service began taking remedial steps and making plans to replace the liner due to the results of the test, working with DEQ to take an appropriate and timely course of action. The Forest Service appreciates the involvement of DEQ and Missoula County and will continue to actively cooperate with our partners.