The Montana Department of Natural Resources and Conservation (DNRC) has applied for an incidental take permit (Permit) authorizing the take of terrestrial and aquatic species under Section 10 of the Endangered Species Act, relative to forest management activities on forested state trust lands. In compliance with both the National Environmental Policy Act and Montana Environmental Policy Act, this Draft Environmental Impact Statement (Draft EIS) has been prepared to evaluate the environmental effects of the proposed action and three alternatives. The No-action Alternative is evaluated based on potential effects from not issuing the Permit and continuing under the state's current forest management program. The Draft EIS also evaluates three action alternatives, which represent conservation strategies for the Habitat Conservation Plan (HCP) species with varying levels of conservation commitments and management flexibility under which the USFWS would issue a Permit for incidental take. The Draft EIS is available for review at http://dnrc.mt.gov/HCP. Following a 90-day public comment period on the Draft EIS, the USFWS and DNRC will review and respond to comments in writing and/or as changes in the Final EIS. Based on the comments received, DNRC may make, and/or the USFWS may suggest to DNRC, changes to the proposed HCP. The resulting Final EIS will be published for an additional public review period, after which DNRC will prepare a Record of Decision formally documenting the conservation strategies it will implement for covered species, while the USFWS will prepare a Record of Decision formally documenting its decision on whether to issue a Permit.