Contract analysis

I. INTRODUCTION The United States of America, joined by the States of Montana, Nevada, and West Virginia as co-plaintiffs, respectfully moves this Court pursuant to 28 U.S.C. § 7003(d) and the inherent authority of this Court to enter the Consent Decree ("Decree") lodged with this Court on February 19, 2025. The Decree resolves all claims asserted by Plaintiffs and Co-Plaintiffs in this action under Section 301 of th

1. Plaintiffs and Co-Plaintiffs Plaintiff the United States of America acts in this matter through the U.S. Environmental Protection Agency ("EPA"), Office of Enforcement and Compliance Assurance ("OECA"), with lead EPA case attorney Margaret Coulson, and through the U.S. Department of Justice ("DOJ"), Environment and Natural Resources Division ("ENRD"), Environmental Enforcement Section, with lead trial attorney Phi

2. Defendants. Defendant Torchlight Mining Corp. ("TMC") is a corporation incorporated under the Canada Business Corporations Act, R.S.C. 1985, c. C-44, and is dual-listed on the Toronto Stock Exchange ("TSX") and the New York Stock Exchange ("NYSE") under the ticker symbol TRC. TMC maintains its corporate headquarters at 1800 Bayfield Tower, 401 Bay Street, Toronto, Ontario M5H 2Y4, Canada, and its U.S. headquarters

1. Ridgecrest Copper-Molybdenum Mine (Ridgecrest Site) The Ridgecrest Copper-Molybdenum Mine ("Ridgecrest" or "Ridgecrest Site") is located at 14200 Ridgecrest Mine Road, Drummond, Granite County, Montana 59832, in the Flint Creek Valley of western Montana. The mine encompasses an approximately 3,200-acre mine footprint, with approximately 8,700 acres of total controlled property, including the open pit, waste rock d

2. Gallatin Chemical Works (Gallatin Site) The Gallatin Chemical Works ("Gallatin" or "Gallatin Site") is located at 8800 Industrial Park Lane, Belgrade, Gallatin County, Montana 59714, approximately eight miles west of Bozeman, Montana. The facility occupies approximately 145 acres within an industrial park zone and has been operational since 1993. The Gallatin Site is operated by TSC and manufactures specialty chem

3. Bonanza Creek Gold Mine (Bonanza Creek Site) The Bonanza Creek Gold Mine ("Bonanza Creek" or "Bonanza Creek Site") is located on County Road 447, Mile Marker 12, Lander County, Nevada 89820, approximately 28 miles south of the town of Battle Mountain, Nevada, in the northern Nevada Basin and Range province. The mine encompasses approximately 5,600 acres of mine footprint, with approximately 12,400 acres of total c

4. Kanawha Bend Chemical Plant (Kanawha Bend Site) The Kanawha Bend Chemical Plant ("Kanawha Bend" or "Kanawha Bend Site") is located at 2200 Chemical Valley Road, Institute, Kanawha County, West Virginia 25112, in the Kanawha River valley region of central West Virginia commonly known as "Chemical Valley." The facility occupies approximately 78 acres and has been operational since 1985. The Kanawha Bend Site is oper

III. LEGAL STANDARD FOR ENTRY OF A CONSENT DECREE It is well established that a consent decree resolving claims under the federal environmental statutes should be entered by the court when the decree is "fair, reasonable, and consistent with the objectives" of the relevant statutes. United States v. Cannons Eng'g Corp., 899 F.2d 79, 85 (1st Cir. 1990); see also United States v. Montrose Chem. Corp. of Cal., 50 F.3d 7

IV. THE CONSENT DECREE IS FAIR, REASONABLE, AND CONSISTENT WITH THE OBJECTIVES OF THE CWA, RCRA, AND CERCLA The Consent Decree represents a comprehensive resolution of serious environmental violations at four major industrial facilities across three states. Through its combination of mandatory remediation, substantial financial penalties, past-costs reimbursement, supplemental environmental projects, robust financial

1. Flint Creek Watershed Restoration Project (Montana): $5.5 million. This project will fund stream-bank stabilization, riparian replanting using native vegetation species, and fish-passage improvements along approximately 12 miles of Flint Creek downstream of the Ridgecrest Mine. The project is designed to restore aquatic habitat degraded by historic and ongoing acid mine drainage and to benefit native westslope cut

2. Battle Mountain Community Drinking Water Improvement Project (Nevada): $3.5 million. This project will fund the upgrade of the municipal water treatment facility serving the town of Battle Mountain, Lander County, Nevada (population approximately 3,300), the community nearest to the Bonanza Creek Mine. The upgrade will include the installation of advanced filtration and disinfection equipment, replacement of aging

3. Institute Community Air Quality Monitoring Network (West Virginia): $3.0 million. This project will fund the installation and 10-year operation of six ambient air quality monitoring stations in the Institute and South Charleston area of Kanawha County, West Virginia, communities that have historically been disproportionately affected by industrial emissions from Chemical Valley. The monitoring stations will contin

I. State Co-Plaintiffs' Concurrence The States of Montana, Nevada, and West Virginia, each acting as co-plaintiffs in this action, have each executed the Consent Decree and concur in this Motion for Entry. The state co-plaintiffs' concurrence reflects their judgment, as the sovereign authorities most directly responsible for the protection of their residents and natural resources, that the Decree is fair, reasonable,

V. RESPONSE TO PUBLIC COMMENTS A. Summary of Public Comment Process As required by 28 U.S.C. § 7003(d), the Consent Decree was lodged with this Court on February 19, 2025, and notice of the lodging was published in the Federal Register on that same date. See 90 Fed. Reg. 12,387 (Feb. 19, 2025). The notice specified a 30-day public comment period, which closed on March 21, 2025. The notice also identified the location

1. Comments Regarding Adequacy of Remediation at Ridgecrest Summary of Comments. Several commenters asserted that the $198.6 million remediation commitment at the Ridgecrest Site is insufficient to address the full extent of acid mine drainage contamination and tailings seepage. Commenters expressed concern that the negotiated cost was closer to TMC's lower estimate ($187.5 million) than to EPA's higher estimate ($22

2. Comments Regarding Civil Penalty Amount Summary of Comments. Multiple commenters suggested that the $31.5 million total civil penalty is too low given the severity and duration of the violations at all four sites, and that a higher penalty would serve as a more effective deterrent. One commenter, a national environmental advocacy organization, compared the penalty to TMC's FY2023 revenue of approximately C$4.82 bi