Contract analysis

I. INTRODUCTION The United States of America, by and through the undersigned attorneys acting on behalf of the United States Department of Justice, Environment and Natural Resources Division ("ENRD"), and the United States Environmental Protection Agency ("EPA"), hereby files this Response to Public Comments on the Proposed Consent Decree ("Response") in the above-captioned action. The proposed Consent Decree (the "D

II. BACKGROUND OF THE ENFORCEMENT ACTION AND CONSENT DECREE A. The Enforcement Action On January 18, 2024, the United States filed its Complaint in this Court, initiating Civil Action No. 9:24-cv-00087-DWM, and alleging violations of the Clean Water Act § 301, 33 U.S.C. § 1311; the Resource Conservation and Recovery Act §§ 3004 and 3005, 42 U.S.C. §§ 6924, 6925; and the Comprehensive Environmental Response, Compensat

1. Ridgecrest Copper-Molybdenum Mine (Drummond, Montana) The Ridgecrest Copper-Molybdenum Mine ("Ridgecrest" or "Ridgecrest Mine") is located at 14200 Ridgecrest Mine Road, Drummond, Granite County, Montana 59832. The mine occupies an approximately 3,200-acre mine footprint within a total controlled property area of approximately 8,700 acres. The Ridgecrest Mine is an open-pit copper-molybdenum mine that has been ope

2. Gallatin Chemical Works (Belgrade, Montana) The Gallatin Chemical Works ("Gallatin" or "GCW") is located at 8800 Industrial Park Lane, Belgrade, Gallatin County, Montana 59714, and occupies approximately 145 acres. The facility manufactures specialty chemicals used in mineral processing, including flotation reagents, sodium xanthate, and dithiophosphate collectors. The facility has been operational since 1993 and

3. Bonanza Creek Gold Mine (Lander County, Nevada) The Bonanza Creek Gold Mine ("Bonanza Creek") is located along County Road 447 at Mile Marker 12, Lander County, Nevada 89820. The mine occupies an approximately 5,600-acre mine footprint within a total controlled property area of approximately 12,400 acres. Bonanza Creek is an open-pit heap-leach gold mine that has been operational since 2001 and continues active mi

4. Kanawha Bend Chemical Plant (Institute, West Virginia) The Kanawha Bend Chemical Plant ("Kanawha Bend") is located at 2200 Chemical Valley Road, Institute, Kanawha County, West Virginia 25112, and occupies approximately 78 acres. The facility manufactures leaching agents and operates a sulfuric acid regeneration process. The facility has been operational since 1985 and is currently active, operated by Torchlight S

III. SUMMARY OF PUBLIC COMMENTS RECEIVED Pursuant to 28 U.S.C. § 7003(d), notice of the proposed Consent Decree was published in the Federal Register on February 19, 2025. The public comment period remained open for thirty (30) days and closed on March 21, 2025. The United States received a total of twenty-three (23) written comments during the comment period. Each comment has been reviewed and considered in its enti

1. Adequacy of the civil penalty ($31.5 million);

2. Sufficiency of the remediation obligations and timelines;

3. Financial assurance and Torchlight's ability to pay;

4. Supplemental Environmental Projects — scope and community benefit;

5. Independent monitoring and public transparency;

6. Migratory Bird Treaty Act and wildlife protection at Bonanza Creek;

7. Water quality and community health concerns; and

8. Termination provisions and long-term stewardship. Each of these thematic categories is addressed in turn in Section IV below. The United States notes that several individual comments addressed multiple topics; such comments are addressed under each relevant thematic heading.

IV. RESPONSE TO PUBLIC COMMENTS A. Comments Regarding the Adequacy of the Civil Penalty ($31.5 Million) Summary of Comments. Several commenters argued that the $31.5 million civil penalty is inadequate given the severity and duration of the environmental violations at four sites across three states and given the substantial financial resources of Torchlight Mining Corp. Multiple commenters noted TMC's fiscal year 202