Contract analysis

I. INTRODUCTION The United States of America, acting through the United States Department of Justice, Environment and Natural Resources Division ("DOJ ENRD"), on behalf of the United States Environmental Protection Agency ("EPA"); the State of Montana, acting through the Montana Department of Environmental Quality ("MT DEQ") and the Montana Attorney General's Office; the State of Nevada, acting through the Nevada Div

II. PROCEDURAL HISTORY On January 18, 2024, the United States of America, acting through the Department of Justice, Environment and Natural Resources Division, filed a Complaint in this action alleging violations of CWA § 301, 33 U.S.C. § 1311; RCRA §§ 3004 and 3005, 42 U.S.C. §§ 6924 and 6925; and CERCLA § 107, 42 U.S.C. § 9607, at four facilities operated or formerly operated by Defendants Torchlight Mining Corp.,

III. DESCRIPTION OF THE PARTIES A. Plaintiffs. United States of America. The United States of America is acting in this matter through the Department of Justice, Environment and Natural Resources Division, on behalf of the United States Environmental Protection Agency. The Lead DOJ Trial Attorney is Philip Orenstein, Environmental Enforcement Section, Environment and Natural Resources Division, U.S. Department of Jus

IV. DESCRIPTION OF THE SITES AND ALLEGED VIOLATIONS A. Ridgecrest Copper-Molybdenum Mine (Granite County, Montana) The Ridgecrest Copper-Molybdenum Mine ("Ridgecrest Mine" or "Ridgecrest") is located at 14200 Ridgecrest Mine Road, Drummond, Granite County, Montana 59832. The facility encompasses an approximately 3,200-acre mine footprint within an approximately 8,700-acre total controlled property area owned by RMH.

V. SUMMARY OF THE PROPOSED CONSENT DECREE The proposed Consent Decree, attached hereto as Exhibit 1, sets forth comprehensive obligations of the Defendants with respect to remediation, civil penalties, reimbursement of government costs, supplemental environmental projects, financial assurance, independent monitoring, stipulated penalties, and other provisions. The following is a summary of the principal terms of the

1. Ridgecrest Remedial Action Work Plan submission: December 14, 2025. Defendants shall submit to EPA and MT DEQ a comprehensive Remedial Action Work Plan for the Ridgecrest Mine, including preliminary engineering designs for Bramwell Group and treatment systems, tailings impoundment stabilization measures, and waste rock management plans.

2. Gallatin Corrective Measures Study submission: June 14, 2026. Defendants shall submit to EPA and MT DEQ a Corrective Measures Study for the Gallatin Chemical Works, evaluating remedial alternatives for the three identified SWMUs and groundwater contamination.

3. Bonanza Creek liner repair and containment commencement: June 14, 2026. Defendants shall commence repair and replacement of the damaged synthetic liner segments on the heap-leach pad and construction of supplemental containment and leak detection systems at the Bonanza Creek Gold Mine.

4. Kanawha Bend interim stabilization measures completion: December 14, 2026. Defendants shall complete interim stabilization measures at the Kanawha Bend Chemical Plant, including excavation and consolidation of the most heavily contaminated soils near the former waste lagoon and installation of a temporary groundwater extraction and treatment system to address DNAPL migration.

5. Ridgecrest remedy construction commencement: June 14, 2027. Defendants shall commence construction of the approved remedial systems at the Ridgecrest Mine, including a permanent water treatment plant for AMD and a tailings impoundment cover system.

6. Ridgecrest 30-year remediation obligation conclusion: June 14, 2055. Defendants' long-term remediation obligations at the Ridgecrest Mine, including operations and maintenance of the water treatment plant and long-term monitoring, shall continue for a period of thirty (30) years from the commencement of remedy construction. B. Civil Penalties The Consent Decree requires Defendants to pay a total civil penalty of $

1. Flint Creek Watershed Restoration Project (Montana) — $5.5 million. Defendants shall fund and implement a comprehensive watershed restoration project along approximately twelve (12) miles of Flint Creek downstream of the Ridgecrest Mine in Granite County, Montana. The project will include stream-bank stabilization using bioengineering techniques, riparian zone replanting with native vegetation species, removal of

2. Battle Mountain Community Drinking Water Improvement Project (Nevada) — $3.5 million. Defendants shall fund the upgrade of the municipal water treatment facility serving the town of Battle Mountain, Lander County, Nevada. The project will include installation of a new granular activated carbon filtration system, replacement of aging distribution infrastructure, and installation of real-time water quality monitorin

3. Institute Community Air Quality Monitoring Network (West Virginia) — $3.0 million. Defendants shall fund the installation and ten (10)-year operation of six (6) ambient air quality monitoring stations in the Institute and South Charleston area of Kanawha County, West Virginia. The monitoring stations will be equipped with continuous monitors for sulfur dioxide, particulate matter (PM₂.₅ and PM₁₀), and volatile org

1. Surety Bond — $165.0 million. Defendants shall obtain and maintain a surety bond in the amount of $165,000,000.00, issued by Ironbark Surety of America, Inc. The bond has been assigned Bond No. ISA-ENV-2025-08934. The surety bond carries an annual premium of 1.85%, equivalent to approximately $3,052,500.00 per year, payable by Defendants. The surety bond shall remain in full force and effect until such time as EPA

2. Remediation Trust Fund — $80.0 million. Defendants shall establish and fund a remediation trust fund with an initial deposit of $80,000,000.00. The trust fund shall be held and administered by Larchfield Trust Company, N.A., pursuant to Trust Agreement No. LTC-REM-2025-1177. The designated trust officer is David Henshaw, Senior Vice President, Environmental Trust Services, Larchfield Trust Company, N.A. The trust

I. Force Majeure and Dispute Resolution Force Majeure. The Consent Decree contains a standard EPA force-majeure provision excusing Defendants from stipulated penalties for delays in performance caused by circumstances beyond their reasonable control, including but not limited to acts of God, war, civil unrest, labor disputes not within Defendants' control, and governmental actions. Defendants are required to provide

VI. LEGAL STANDARD FOR LODGING AND ENTRY OF A CONSENT DECREE Under 28 U.S.C. § 7003(d), a consent decree proposed to resolve claims under the Clean Water Act, the Resource Conservation and Recovery Act, or the Comprehensive Environmental Response, Compensation, and Liability Act must be lodged with the court and made available for public comment for a period of at least thirty (30) days before the court may enter the

VII. THE PROPOSED CONSENT DECREE SATISFIES THE LEGAL STANDARD A. Fairness. The proposed Consent Decree is fair because it is the product of extensive, arm's-length negotiations conducted over a period of approximately seven months, from the agreement in principle reached on July 30, 2024, through the final execution of the Consent Decree in February 2025. The negotiations included court-ordered mediation before Magis

VIII. REQUEST FOR PUBLIC COMMENT PERIOD Pursuant to 28 U.S.C. § 7003(d), the parties jointly request that the Court lodge the proposed Consent Decree and direct the publication of public notice in the Federal Register, thereby initiating a thirty (30)-day public comment period. The publication of notice in the Federal Register will inform the public of the existence and terms of the proposed Consent Decree and provid

IX. CONCLUSION AND PRAYER FOR RELIEF For the foregoing reasons, the United States of America, the States of Montana, Nevada, and West Virginia, and Defendants Torchlight Mining Corp., Torchlight Mining (U.S.) Inc., Torchlight Specialty Chemicals, Inc., Ridgecrest Mine Holdings, LLC, and Bonanza Creek Mining, LLC, jointly and respectfully request that this Court enter an Order:

1. Lodging the proposed Consent Decree, attached hereto as Exhibit 1;

2. Directing the publication of public notice in the Federal Register advising the public of the proposed Consent Decree and the opportunity to submit written comments;

3. Establishing a thirty (30)-day public comment period commencing upon publication of notice in the Federal Register;

4. Setting a hearing date following the close of the public comment period for consideration of the United States' anticipated motion for entry of the Consent Decree; and

5. Granting such other and further relief as the Court deems just and proper. Respectfully submitted this 18th day of February, 2025.

X. SIGNATURE BLOCKS For the United States of America TODD KIM Assistant Attorney General Environment and Natural Resources Division U.S. Department of Justice By: ________ PHILIP ORENSTEIN Lead Trial Attorney Environmental Enforcement Section Environment and Natural Resources Division U.S. Department of Justice 150 M Street NE Washington, D.C. 20002 Telephone: (202) 514-2219 Email: philip.orenstein@usdoj.gov Date: __

XI. EXHIBIT LIST The following exhibit is attached to and filed with this Joint Motion: Exhibit 1: Consent Decree — Execution Version (dated February 19, 2025), including all appendices: • Appendix A: Remediation Schedules (Sites 1 through 4) • Appendix B: Sampling and Monitoring Plans (Sites 1 through 4) • Appendix C: Supplemental Environmental Project Descriptions and Budgets • Appendix D: Financial Assurance Instr

XII. CERTIFICATE OF COMPLIANCE I, Philip Orenstein, Lead Trial Attorney for the United States, hereby certify that this Joint Motion to Lodge Consent Decree complies with the applicable Local Rules of the United States District Court for the District of Montana, including Local Rule 7.1 regarding the format and filing of motions. Prior to filing this Joint Motion, counsel for the United States conferre