DEQ halts Hecla operations

The State of Montana has put a halt on any further Hecla mining operations claiming they are not in compliance with environmental laws. In return, Hecla has filed a lawsuit against the State claiming they have no legal grounds.

Originally, Montana Department of Environmental Quality (DEQ) awarded Hecla permits allowing them to move forward with their mining claims in western Montana. According to Jenifer Garcin, Public Information Specialist for DEQ, “Hecla permitees met the requirements of the Metal Mine Reclamation Act and MEPA/NEPA, though at the time DEQ did not have a formal process for applying the ‘bad actor’ provision to initial permit actions.”

The bad actor provision is a legal section in the Montana Metal Mines Reclamation Act.

“Basically it says that someone who fails to adequately reclaim mine sites is prevented from new mining or exploration in Montana until they meet their old cleanup obligations and rectify conditions at former sites,” DEQ Director Tom Livers said in a statement.

This is something that did not occur when Hecla’s current CEO Phillips Baker, Jr., was an executive for Pegasus Gold Corp. In 1998 Pegasus went bankrupt and forfeited all bonds and responsibilities to remediate environmental effects related to Pegasus mine operations.

DEQ is holding Baker accountable for leaving government agencies with clean-up expenses from three mining sites in Montana that directly polluted adjacent waters with arsenic, cyanide and other contaminants.

“Pegasus left behind several mine sites in need of full reclamation to include surface disturbance, regulated contaminants and water treatment,” Garcin said.

Hecla’s spokesman Bruce Vincent said that they feel DEQ has misread the statute and applied it in error, as Hecla is the applicant for the mining permits (Montanore, Libby; Troy Mine, Troy; Rock Creek, Noxon), not Baker. Hecla feels they should not be held liable for Pegasus’ negligence when Baker served as Chief Operating Officer for the corporation.

“DEQ indicated that Hecla is not in compliance with Montana law because 16 years ago Phil Baker was hired as CEO (for Hecla) and in his past, he was an employee of Pegasus who went bankrupt and forfeited on all bonds,” Vincent said, acknowledging default of Pegasus’ reclamation efforts.

Hecla filed a lawsuit against the State of Montana. “They have 30 days to correct the situation and hopefully a decision will be made soon, the deadline is April 20,” Vincent said. “Our hope is that the judge will find in Hecla’s favor, so we can keep Hecla as our local operator.”

According to Garcin, “DEQ is reviewing the Complaint for Declaratory Judgement and Injunctive Relief filed by Montanore Minerals Corp., Troy Mine Inc., and RC Resources Inc.”

“Abandoning Zortman-Landusky, Fort Belknap, has resulted in $32 million in state costs for site reclamation and water treatment to date, and an annual bill of over $2 million for water treatment expected to be required in perpetuity,” stated Garcin of reclamation efforts. “Additional federal expenditures in the tens of millions have been made as well.”

Garcin commented on abandoned Basin Creek Mine in Jefferson County as resulting in $3,589,592.66 in state costs to date. “An additional $2 million is needed to complete cleanup and $1 million for operations and maintenance.”

The last of the three Montana Pegasus mines is the Beal Mountain Mine, Anaconda. Garcin said this reclamation effort has “resulted in $3,006,853.98 in state costs to date, with an additional $1 million to complete cleanup.”

Vincent reiterated that Hecla has a good reputation for being environmentally conscious. He said that Hecla is being accused of environmental law non-compliance because they employ Baker as CEO. “But Hecla is applying for the permitting, not Baker,” he said, restating Hecla’s argument.