1039-00003 · Torchlight Mining Corp · Court Filings & Lodging

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DEPARTMENT OF JUSTICE

Notice of Lodging of Consent Decree Under the Clean Water Act, the Resource Conservation and Recovery Act, and the Comprehensive Environmental Response, Compensation, and Liability Act

AGENCY: Department of Justice, Environment and Natural Resources Division.

ACTION: Notice of lodging of consent decree.

SUMMARY: On February 19, 2025, a proposed consent decree ("Consent Decree") was lodged with the United States District Court for the District of Montana, Missoula Division, in the case captioned United States of America and State of Montana v. Torchlight Mining Corp., Torchlight Mining (U.S.) Inc., Torchlight Specialty Chemicals, Inc., Ridgecrest Mine Holdings, LLC, and Bonanza Creek Mining, LLC, Civil Action No. 9:24-cv-00087-DWM, consolidated with the State of Nevada and State of West Virginia as co-plaintiffs. The Consent Decree resolves claims of the United States, acting on behalf of the Administrator of the United States Environmental Protection Agency ("EPA"), and the co-plaintiff States of Montana, Nevada, and West Virginia, against the five named defendants for alleged violations of the Federal Water Pollution Control Act, commonly known as the Clean Water Act ("CWA"), 33 U.S.C. §§ 1251 et seq.; the Resource Conservation and Recovery Act ("RCRA"), 42 U.S.C. §§ 6901 et seq.; and the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"), 42 U.S.C. §§ 9601 et seq., arising from the operation, maintenance, and closure of four facilities located in the States of Montana, Nevada, and West Virginia, as more fully described below.

DATES: The Department of Justice will accept public comments relating to the proposed Consent Decree for a period of thirty (30) days from the date of publication of this notice in the Federal Register. Comments must be received no later than March 21, 2025.

ADDRESSES: Written comments should be addressed to the Assistant Attorney General, Environment and Natural Resources Division, Department of Justice, and should reference United States of America and State of Montana v. Torchlight Mining Corp., Torchlight Mining (U.S.) Inc., Torchlight Specialty Chemicals, Inc., Ridgecrest Mine Holdings, LLC, and Bonanza Creek Mining, LLC, Civil Action No. 9:24-cv-00087-DWM, DOJ Reference No. 90-5-2-1-12487. Comments may be submitted by any of the following methods:

(1) By mail: Assistant Attorney General, U.S. DOJ — ENRD, P.O. Box 7611, Washington, DC 20044-7611.

(2) By email: pubcomment-ees.enrd@usdoj.gov.

(3) By hand delivery or courier: Assistant Attorney General, Environment and Natural Resources Division, U.S. Department of Justice, 950 Pennsylvania Avenue NW, Room 2143, Washington, DC 20530.

During the public comment period, the proposed Consent Decree may be examined and downloaded at no cost from the Department of Justice's Consent Decree Library, accessible at https://www.justice.gov/enrd/consent-decrees. A copy of the Consent Decree is also available for inspection at the Office of the Clerk of the Court, United States District Court for the District of Montana, Missoula Division, Russell Smith Federal Courthouse, 201 East Broadway Street, Missoula, Montana 59802, during regular business hours. In requesting a copy from the Department of Justice, please enclose a check in the amount of $22.75 (25 cents per page reproduction cost) payable to the United States Treasury, or, alternatively, submit an electronic request to the contacts identified below.

FOR FURTHER INFORMATION CONTACT:

Philip Orenstein, Trial Attorney, Environmental Enforcement Section, Environment and Natural Resources Division, U.S. Department of Justice, P.O. Box 7611, Washington, DC 20044-7611; telephone: (202) 514-2718; email: philip.orenstein@usdoj.gov.

Katherine Rowe-Halpern, Senior Counsel, Environmental Enforcement Section, Environment and Natural Resources Division, U.S. Department of Justice, P.O. Box 7611, Washington, DC 20044-7611; telephone: (202) 514-3904; email: katherine.rowe-halpern@usdoj.gov.

SUPPLEMENTARY INFORMATION

I. Background and Description of the Litigation

On January 18, 2024, the United States of America, on behalf of the Administrator of the EPA, filed a complaint against Torchlight Mining Corp. ("Torchlight Parent"), a corporation incorporated under the Canada Business Corporations Act, R.S.C. 1985, c. C-44, and dual-listed on the Toronto Stock Exchange and the New York Stock Exchange under the ticker symbol "TRC"; Torchlight Mining (U.S.) Inc. ("Torchlight U.S."), a corporation organized and existing under the laws of the State of Delaware; Torchlight Specialty Chemicals, Inc. ("TSC"), a corporation organized and existing under the laws of the State of Delaware; Ridgecrest Mine Holdings, LLC ("Ridgecrest Holdings"), a limited liability company organized under the laws of the State of Montana; and Bonanza Creek Mining, LLC ("Bonanza Creek"), a limited liability company organized under the laws of the State of Nevada (collectively, "Defendants"). The complaint was filed as Civil Action No. 9:24-cv-00087-DWM in the United States District Court for the District of Montana, Missoula Division, and assigned to the Honorable Donald W. Molloy, Senior United States District Judge.

Torchlight Parent is a publicly traded Canadian mining and chemicals company headquartered in Toronto, Ontario, Canada, with United States headquarters in Helena, Montana. Through its wholly owned subsidiaries, Torchlight Parent operates diversified mining operations — principally copper, molybdenum, and gold extraction — and specialty chemicals manufacturing facilities throughout the United States. Torchlight U.S. serves as the primary domestic operating subsidiary for mining activities. TSC serves as the operating subsidiary for chemical manufacturing. Ridgecrest Holdings holds the real property and mineral rights associated with the Ridgecrest site in Montana, and Bonanza Creek holds the real property, mineral rights, and water rights associated with the Bonanza Creek site in Nevada. Each Defendant is jointly and severally liable for the violations and obligations described herein.

The State of Montana, acting through its Department of Environmental Quality ("MT DEQ"), intervened as co-plaintiff with respect to the facilities located within the State of Montana. The State of Nevada, acting through its Division of Environmental Protection ("NV DEP"), intervened as co-plaintiff with respect to the facility located within the State of Nevada. The State of West Virginia, acting through its Department of Environmental Protection ("WV DEP"), intervened as co-plaintiff with respect to the facility located within the State of West Virginia. The Court granted all state intervention motions and consolidated the state claims with the federal action by Order dated April 12, 2024.

II. Description of the Four Facilities

The complaint identifies four facilities at which the alleged violations occurred. Each facility is described in turn.

A. Ridgecrest Copper-Molybdenum Mine (Drummond, Montana). The Ridgecrest Copper-Molybdenum Mine ("Ridgecrest Site") is located at 14200 Ridgecrest Mine Road, Drummond, Granite County, Montana 59832. The site encompasses approximately 3,200 acres comprising the mine footprint, including the open pit, waste-rock dumps, a 425-acre tailings storage facility, a solvent-extraction/electrowinning ("SX/EW") circuit, ore stockpiles, haul roads, and associated infrastructure. The Ridgecrest Site commenced operations as an open-pit copper-molybdenum mine in 1978. Active mining operations ceased in December 2019, and the site is currently in the closure and reclamation phase. The mine was operated by Torchlight U.S., and the underlying real property and mineral rights are held by Ridgecrest Holdings.

The Ridgecrest Site has been proposed for listing on the National Priorities List ("NPL") under CERCLA and is currently being addressed pursuant to an Administrative Order on Consent ("AOC"), Docket No. CERCLA-08-2022-0039, executed on September 15, 2022, between EPA Region 8 and Torchlight U.S. EPA Region 8, headquartered in Denver, Colorado, serves as the lead regulatory office for the Ridgecrest Site.

B. Gallatin Chemical Works (Belgrade, Montana). The Gallatin Chemical Works ("Gallatin Site") is located at 8800 Industrial Park Lane, Belgrade, Gallatin County, Montana 59714. The facility encompasses approximately 145 acres and is engaged in the manufacture of specialty chemicals used in mineral-processing applications, including flotation reagents, sodium xanthate, and dithiophosphate collectors. The Gallatin Site has been operational since 1993 and is currently an active, operating facility. The Gallatin Site is operated by TSC.

The Gallatin Site is subject to RCRA corrective-action obligations under RCRA Permit No. MTD098712456. Three solid waste management units ("SWMUs") have been identified at the facility requiring investigation and corrective action. EPA Region 8 serves as the lead regulatory office for the Gallatin Site.

C. Bonanza Creek Gold Mine (Lander County, Nevada). The Bonanza Creek Gold Mine ("Bonanza Creek Site") is located at County Road 447, Mile Marker 12, Lander County, Nevada 89820, approximately 28 miles south of Battle Mountain. The site encompasses approximately 5,600 acres comprising the mine footprint, including the open pit, heap-leach pads, solution ponds, processing facilities, waste-rock storage areas, and ancillary infrastructure. The Bonanza Creek Site is an open-pit, heap-leach gold mine that has been operational since 2001 and is currently engaged in active mining and gold recovery. The mine is operated by Torchlight U.S., and the underlying real property, mineral rights, and water rights are held by Bonanza Creek Mining, LLC.

EPA Region 9, headquartered in San Francisco, California, serves as the lead regulatory office for the Bonanza Creek Site.

D. Kanawha Bend Chemical Plant (Institute, West Virginia). The Kanawha Bend Chemical Plant ("Kanawha Bend Site") is located at 2200 Chemical Valley Road, Institute, Kanawha County, West Virginia 25112. The facility encompasses approximately 78 acres and is engaged in chemical manufacturing, including the production of leaching agents for mining applications and sulfuric acid regeneration. The Kanawha Bend Site has been operational since 1985 and is currently an active, operating facility. The Kanawha Bend Site is operated by TSC.

The Kanawha Bend Site is subject to RCRA corrective-action obligations under RCRA Permit No. WVD048823915. EPA Region 3, headquartered in Philadelphia, Pennsylvania, serves as the lead regulatory office for the Kanawha Bend Site.

III. Alleged Violations

A. Ridgecrest Site. The complaint alleges the following violations at or related to the Ridgecrest Site:

Clean Water Act Section 301 (33 U.S.C. § 1311). The complaint alleges that Defendants discharged pollutants from point sources at the Ridgecrest Site to waters of the United States without authorization under a National Pollutant Discharge Elimination System ("NPDES") permit issued pursuant to CWA Section 402, 33 U.S.C. § 1342, or a permit issued under CWA Section 404, 33 U.S.C. § 1344. Specifically, the complaint alleges that acid mine drainage containing elevated concentrations of dissolved copper (averaging 47 mg/L, greatly exceeding the Montana surface-water quality standard of 0.0087 mg/L for chronic aquatic life), molybdenum (averaging 1.2 mg/L), selenium (averaging 0.082 mg/L), and sulfate (averaging 3,400 mg/L) was discharged from the 425-acre tailings impoundment and from seepage points along the toe of the tailings dam to Flint Creek, a water of the United States. These discharges were documented over multiple sampling events conducted by EPA and MT DEQ between 2020 and 2023.

RCRA Section 3004 (42 U.S.C. § 6924). The complaint alleges that Defendants failed to manage hazardous waste generated from the solvent-extraction/electrowinning circuit in accordance with the requirements of RCRA Subtitle C and implementing regulations at 40 C.F.R. Parts 262 through 268. The hazardous wastes at issue include spent organic extractants and aqueous raffinate exhibiting the characteristic of toxicity for copper and selenium.

CERCLA Section 107 (42 U.S.C. § 9607). The complaint seeks recovery of response costs incurred by the United States in the amount of $14.3 million for removal actions conducted by EPA at the Ridgecrest Site between January 2021 and May 2023. These removal actions included emergency stabilization of the tailings impoundment, installation of groundwater intercept trenches, and construction of a temporary water-treatment system to address acid mine drainage entering Flint Creek.

B. Gallatin Site. The complaint alleges the following violations at or related to the Gallatin Site:

RCRA Sections 3004 and 3005 (42 U.S.C. §§ 6924, 6925). The complaint alleges that Defendants operated an unpermitted hazardous-waste storage unit at the Gallatin Site, consisting of approximately forty-six 55-gallon drums of spent xanthate process residues stored in an outdoor area without secondary containment, labeling, or manifesting in violation of 40 C.F.R. Part 262. The complaint further alleges that Defendants failed to perform required RCRA corrective action at three identified SWMUs designated as SWMU-1 (former waste solvent pit), SWMU-2 (process wastewater lagoon), and SWMU-3 (drum storage area). Contamination at the Gallatin Site includes carbon disulfide ("CS₂") in groundwater at a maximum detected concentration of 890 µg/L, substantially exceeding the federal Maximum Contaminant Level ("MCL") of 10 µg/L, as well as xanthate decomposition products and volatile organic compounds ("VOCs"), specifically toluene and xylene, in subsurface soils.

Clean Water Act Section 301 (33 U.S.C. § 1311). The complaint alleges fourteen separate exceedances of Montana Pollutant Discharge Elimination System ("MPDES") permit effluent limitations for CS₂ and total suspended solids ("TSS") at the Gallatin Site outfall between January 2021 and June 2024.

C. Bonanza Creek Site. The complaint alleges the following violations at or related to the Bonanza Creek Site:

Clean Water Act Section 301 (33 U.S.C. § 1311). The complaint alleges three unpermitted discharges of process solution from the heap-leach pad to an ephemeral tributary of the Reese River via a torn high-density polyethylene ("HDPE") liner, occurring on March 17, 2022; August 9, 2022; and January 22, 2023. The discharged process solution contained weak acid dissociable ("WAD") cyanide at a concentration of 0.62 mg/L, substantially exceeding the applicable discharge limit of 0.022 mg/L, and mercury at an average concentration of 12.4 µg/L, substantially exceeding the applicable water-quality criterion of 0.77 µg/L. Each discharge constituted an unauthorized addition of pollutants from a point source to waters of the United States in violation of CWA Section 301.

RCRA Section 3004 (42 U.S.C. § 6924). The complaint alleges that Defendants managed spent heap-leach ore at the Bonanza Creek Site as a solid waste without determining whether the material exhibited a characteristic of hazardous waste, and that, upon testing, the spent ore exhibited the toxicity characteristic for cyanide and mercury under 40 C.F.R. § 261.24, thereby constituting hazardous waste subject to the requirements of RCRA Subtitle C.

Migratory Bird Treaty Act (16 U.S.C. §§ 703–712). The complaint alleges that Defendants failed to take adequate measures to prevent avian contact with cyanide-bearing process solution ponds at the Bonanza Creek Site, resulting in seventeen documented avian mortalities in solution ponds between 2021 and 2023, in violation of the Migratory Bird Treaty Act.

D. Kanawha Bend Site. The complaint alleges the following violations at or related to the Kanawha Bend Site:

RCRA Sections 3004 and 3005 (42 U.S.C. §§ 6924, 6925). The complaint alleges that Defendants failed to properly close a former surface impoundment at the Kanawha Bend Site in accordance with the closure requirements of 40 C.F.R. Part 265, Subpart G. The complaint further alleges that Defendants engaged in unpermitted treatment of listed hazardous wastes K062 (spent pickle liquor from steel-finishing operations used in sulfuric acid regeneration) and D002 (corrosive wastes) without the requisite RCRA permit or interim-status authorization. Contamination documented at the Kanawha Bend Site includes sulfuric acid residuals in soils at concentrations yielding soil pH as low as 1.8; heavy metals in soils, including lead at concentrations up to 4,200 mg/kg and arsenic at concentrations up to 890 mg/kg; and dense non-aqueous phase liquid ("DNAPL") consisting of chlorinated solvents present in a fractured bedrock aquifer underlying the facility.

CERCLA Section 107 (42 U.S.C. § 9607). The complaint seeks recovery of $3.8 million in response costs incurred by the United States for an EPA emergency response conducted in 2020 following a catastrophic release of sulfuric acid to a tributary of the Kanawha River on June 14, 2020. The emergency response included containment of the acid plume, neutralization, excavation and disposal of contaminated soils, and downstream water-quality monitoring.

IV. Terms of the Proposed Consent Decree

The proposed Consent Decree addresses each of the foregoing alleged violations through a combination of civil penalties, reimbursement of past response costs, comprehensive remediation requirements, supplemental environmental projects, financial-assurance obligations, and compliance-assurance provisions. The principal terms are summarized below.

A. Civil Penalties. The proposed Consent Decree requires Defendants to pay a total civil penalty of $31,500,000 (thirty-one million five hundred thousand dollars), allocated among the four facilities as follows:

The civil penalties are payable in four equal installments according to the following schedule:

(1) Twenty-five percent ($7,875,000) within thirty (30) days of the Effective Date of the Consent Decree;

(2) Twenty-five percent ($7,875,000) twelve (12) months after entry of the Consent Decree by the Court;

(3) Twenty-five percent ($7,875,000) twenty-four (24) months after entry of the Consent Decree by the Court; and

(4) Twenty-five percent ($7,875,000) thirty-six (36) months after entry of the Consent Decree by the Court.

Interest shall accrue on any unpaid balance at the rate established pursuant to 28 U.S.C. § 1961 from the date payment is due. Payments shall be made by Electronic Funds Transfer ("EFT") to the United States Department of Justice in accordance with written instructions to be provided to Defendants following entry of the Consent Decree. The portions of the civil penalties attributable to state-law claims will be transmitted to the respective co-plaintiff States in accordance with separate allocation agreements between the United States and each co-plaintiff State.

B. Reimbursement of EPA Past Response Costs. The proposed Consent Decree requires Defendants to reimburse EPA a total of $18,100,000 (eighteen million one hundred thousand dollars) for past response costs, allocated as follows:

(1) $14,300,000 for removal actions conducted by EPA at the Ridgecrest Site between January 2021 and May 2023, including emergency stabilization of the tailings impoundment, installation of groundwater intercept trenches, and construction and operation of a temporary water-treatment system; and

(2) $3,800,000 for the EPA emergency response at the Kanawha Bend Site in 2020 following the June 14, 2020 sulfuric acid release.

Reimbursement of past response costs shall be made in a single lump-sum payment within sixty (60) days of the Effective Date of the Consent Decree. In addition, Defendants shall pay interest on the unreimbursed balance of past response costs from the date of lodging until the date of payment, at the rate established pursuant to 28 U.S.C. § 1961. The United States reserves its right to seek recovery of future response costs incurred at the Ridgecrest and Kanawha Bend Sites that are not addressed by the Consent Decree.

C. Remediation Requirements. The proposed Consent Decree requires Defendants to perform comprehensive remediation at all four facilities, at a total estimated cost of $343,500,000 (three hundred forty-three million five hundred thousand dollars) in nominal terms. The remediation obligations for each facility are summarized below.

Ridgecrest Copper-Molybdenum Mine. The negotiated remediation cost for the Ridgecrest Site is $198,600,000 over a thirty-year remediation period. Defendants must submit a Remedial Action Work Plan ("RAWP") to EPA Region 8 for review and approval no later than December 14, 2025. The RAWP shall address, at a minimum: (i) source control measures for the tailings impoundment, including construction of a multi-layer engineered cover system and installation of a permanent seepage-collection and treatment system; (ii) acid mine drainage management through construction of a passive water-treatment system with a design flow capacity adequate to treat all identified discharges; (iii) excavation and consolidation of contaminated waste rock; (iv) long-term groundwater monitoring; and (v) ecological restoration of impacted riparian areas along Flint Creek. Defendants must commence remedy construction no later than June 14, 2027. The remediation obligation at the Ridgecrest Site extends through June 14, 2055.

Gallatin Chemical Works. The estimated remediation cost for the Gallatin Site is $42,800,000 over a fifteen-year period. Defendants must submit a Corrective Measures Study ("CMS") to EPA Region 8 for review and approval no later than June 14, 2026. The CMS shall evaluate remedial alternatives for the three identified SWMUs, including source removal, in-situ treatment, monitored natural attenuation, and containment. Defendants shall implement the EPA-selected corrective measures in accordance with a schedule to be established in the approved Corrective Measures Implementation ("CMI") plan.

Bonanza Creek Gold Mine. The estimated remediation cost for the Bonanza Creek Site is $63,200,000 over a twenty-year period. Defendants must commence liner repair and containment measures at the heap-leach pad no later than June 14, 2026. The remediation obligations include: (i) repair and replacement of the HDPE liner system underlying the active heap-leach pad; (ii) installation of a leak-detection system meeting or exceeding the requirements of 40 C.F.R. Part 264, Subpart K; (iii) closure and capping of inactive heap-leach cells; (iv) enhancement of the solution-pond bird-deterrent systems; and (v) long-term monitoring of surface water and groundwater quality.

Kanawha Bend Chemical Plant. The estimated remediation cost for the Kanawha Bend Site is $38,900,000 over a twenty-year period. Defendants must complete interim stabilization measures no later than December 14, 2026. Interim stabilization measures shall include: (i) installation of a temporary cap over the former surface impoundment; (ii) removal and off-site disposal of DNAPL-contaminated soils and bedrock; (iii) installation of a groundwater extraction and treatment system for the fractured bedrock aquifer; and (iv) long-term monitoring of the Kanawha River tributary for potential downstream impacts. Defendants shall thereafter submit a Final Corrective Measures Plan for EPA Region 3 review and approval.

D. Supplemental Environmental Projects. In addition to the civil penalties, cost reimbursement, and remediation obligations described above, the proposed Consent Decree requires Defendants to fund and implement three Supplemental Environmental Projects ("SEPs") with a combined value of $12,000,000 (twelve million dollars). The SEPs are designed to secure significant environmental or public-health benefits in the communities most affected by the alleged violations. The SEPs are as follows:

Flint Creek Watershed Restoration Project (Montana) — $5,500,000. Defendants shall fund and implement a watershed-restoration project along approximately 12 miles of Flint Creek downstream of the Ridgecrest Site in Granite County, Montana. The project shall include stream-bank stabilization, riparian replanting using native species, removal of fish-passage barriers, and installation of fish-passage structures at three identified locations. The project shall be implemented in consultation with MT DEQ, the Montana Department of Fish, Wildlife & Parks, and the U.S. Fish and Wildlife Service, and shall be completed within seven years of the Effective Date.

Battle Mountain Community Drinking Water Improvement Project (Nevada) — $3,500,000. Defendants shall fund the upgrade of the municipal water treatment facility serving the community of Battle Mountain, Lander County, Nevada. The project shall include installation of advanced filtration and disinfection systems, replacement of aging distribution infrastructure, and construction of an additional treated-water storage reservoir. The project shall be implemented in coordination with NV DEP and the Lander County Public Works Department, and shall be completed within five years of the Effective Date.

Institute Community Air Quality Monitoring Network (West Virginia) — $3,000,000. Defendants shall fund the installation and ten-year operation and maintenance of six ambient air quality monitoring stations in the Institute and South Charleston area of Kanawha County, West Virginia. The monitoring stations shall be equipped to measure sulfur dioxide (SO₂), particulate matter (PM₂.₅ and PM₁₀), volatile organic compounds, and hydrogen sulfide (H₂S). Monitoring data shall be made publicly available in real time through an online platform. The project shall be implemented in coordination with WV DEP and shall commence within eighteen months of the Effective Date.

E. Financial Assurance. The proposed Consent Decree requires Defendants to establish and maintain financial assurance in a total amount of $245,000,000 (two hundred forty-five million dollars) to guarantee the performance of Defendants' remediation obligations under the Consent Decree. Financial assurance shall consist of a combination of: (i) a surety bond issued by a surety company among those listed as acceptable sureties on federal bonds as published in the Department of the Treasury's Circular 570; and (ii) a remediation trust fund established at a qualified financial institution in the United States, funded in accordance with a schedule set forth in the Consent Decree. Defendants must post the required financial assurance no later than September 12, 2025. The financial-assurance instruments shall be subject to annual review and adjustment to account for changes in estimated remediation costs, and shall remain in effect until EPA issues a written determination that Defendants have satisfactorily completed all remediation obligations at all four facilities.

F. Independent Environmental Monitor. The proposed Consent Decree provides for the appointment of an independent environmental auditor and monitor ("Independent Monitor") selected by EPA in consultation with the co-plaintiff States and with input from Defendants. The Independent Monitor shall perform quarterly compliance audits at each of the four facilities to assess Defendants' compliance with the terms and schedules set forth in the Consent Decree. The Independent Monitor shall prepare and publish annual public reports summarizing audit findings, compliance status, and any recommended corrective measures. The term of the Independent Monitor shall be no fewer than five years from the Effective Date, subject to extension by EPA if warranted by compliance performance. Defendants shall bear all costs associated with the Independent Monitor.

G. Stipulated Penalties. The proposed Consent Decree establishes stipulated penalties for failure to comply with its terms, as follows:

(1) $1,500 per day per violation for each day of noncompliance during the first thirty (30) days following the applicable deadline or requirement;

(2) $3,000 per day per violation for each day of noncompliance from the thirty-first (31st) day through the sixtieth (60th) day following the applicable deadline or requirement; and

(3) $5,500 per day per violation for each day of noncompliance beyond the sixtieth (60th) day following the applicable deadline or requirement.

Stipulated penalties shall accrue regardless of whether EPA has notified Defendants of the noncompliance, and shall be in addition to any other remedies or sanctions available to the United States or the co-plaintiff States under federal or state law.

H. Dispute Resolution. The proposed Consent Decree establishes a three-tier dispute-resolution process for any disputes arising under the Consent Decree:

(1) Informal Negotiation. The parties shall first attempt to resolve any dispute through informal negotiation for a period of thirty (30) days following written notice of the dispute.

(2) Formal EPA Decision. If the dispute is not resolved through informal negotiation, EPA shall issue a formal written decision within thirty (30) days of the conclusion of the informal negotiation period. EPA's decision shall set forth the factual and legal basis for the Agency's position.

(3) Judicial Review. Any party aggrieved by EPA's formal decision may petition the Court for judicial review within thirty (30) days of receipt of EPA's decision. The standard of review shall be arbitrary and capricious for matters within EPA's discretion and de novo for legal questions.

I. Force Majeure. The proposed Consent Decree includes a standard EPA force-majeure provision. If any event beyond the reasonable control of Defendants, including but not limited to acts of God, war, civil disturbance, labor disputes not involving Defendants' employees, or unanticipated regulatory actions by third parties, prevents or delays Defendants' compliance with any obligation under the Consent Decree, Defendants shall provide written notice to EPA and the co-plaintiff States within fifteen (15) calendar days of the date on which Defendants first knew or should have known that the event would cause a delay. The notice shall describe the anticipated duration of the delay, the cause of the delay, and the measures taken or to be taken to prevent or minimize the delay. Defendants shall bear the burden of demonstrating by a preponderance of the evidence that the conditions for invoking force majeure have been met.

J. Termination. The proposed Consent Decree provides for site-by-site termination. Defendants may request termination of the Consent Decree's obligations with respect to an individual facility upon certification by EPA and the Independent Monitor that all remedial construction, remedial action, and long-term monitoring obligations at that facility have been satisfactorily completed. No termination shall be effective sooner than five (5) years after completion of all remedial construction at the relevant facility. Termination with respect to all four facilities shall result in dismissal of the action with prejudice as to the claims resolved by the Consent Decree.

K. Effective Date. The Consent Decree shall become effective thirty (30) days after entry of the Consent Decree by the Court, as set forth in Section IV of the Consent Decree. The target date for entry of the Consent Decree by the Court is May 15, 2025, and the anticipated Effective Date is accordingly June 14, 2025. The United States reserves the right to withdraw its consent to the proposed Consent Decree if public comments received during the comment period disclose facts or considerations indicating that the Consent Decree is inappropriate, improper, or inadequate.

V. Invitation for Public Comment

The Department of Justice will accept written comments relating to the proposed Consent Decree for a period of thirty (30) days from the date of publication of this notice in the Federal Register. Comments should be addressed to the Assistant Attorney General, Environment and Natural Resources Division, Department of Justice, and should reference United States of America and State of Montana v. Torchlight Mining Corp., Torchlight Mining (U.S.) Inc., Torchlight Specialty Chemicals, Inc., Ridgecrest Mine Holdings, LLC, and Bonanza Creek Mining, LLC, Civil Action No. 9:24-cv-00087-DWM, and DOJ Reference No. 90-5-2-1-12487.

The proposed Consent Decree may be examined at the Office of the Clerk of the Court, United States District Court for the District of Montana, Missoula Division, Russell Smith Federal Courthouse, 201 East Broadway Street, Missoula, Montana 59802, and on the Department of Justice's Consent Decree Library at https://www.justice.gov/enrd/consent-decrees. Copies of the proposed Consent Decree may also be obtained by mail or by electronic request directed to the contacts identified above. We will provide a copy of the Consent Decree upon receipt of a request and a check in the amount of $22.75 (25 cents per page reproduction cost) payable to the United States Treasury. Please allow 15 days for delivery.

Philip Orenstein, Trial Attorney, Environmental Enforcement Section, Environment and Natural Resources Division, U.S. Department of Justice.

Date: February 19, 2025

[FR Doc. 2025-03XXX Filed 2-18-25; 8:45 am]

BILLING CODE 4410-15-P

Facility	Civil Penalty
Ridgecrest Copper-Molybdenum Mine	$14,200,000
Gallatin Chemical Works	$5,800,000
Bonanza Creek Gold Mine	$7,900,000
Kanawha Bend Chemical Plant	$3,600,000
Total	$31,500,000

DEPARTMENT OF JUSTICE
Notice of Lodging of Consent Decree Under the Clean Water Act, the Resource Conservation and Recovery Act, and the Comprehensive Environmental Response, Compensation, and Liability Act
AGENCY: Department of Justice, Environment and Natural Resources Division.
ACTION: Notice of lodging of consent decree.
SUMMARY: On February 19, 2025, a proposed consent decree ("Consent Decree") was lodged with the United States District Court for the District of Montana, Missoula Division, in the case captioned United States of America and State of Montana v. Torchlight Mining Corp., Torchlight Mining (U.S.) Inc., Torchlight Specialty Chemicals, Inc., Ridgecrest Mine Holdings, LLC, and Bonanza Creek Mining, LLC, Civil Action No. 9:24-cv-00087-DWM, consolidated with the State of Nevada and State of West Virginia as co-plaintiffs. The Consent Decree resolves claims of the United States, acting on behalf of the Administrator of the United States Environmental Protection Agency ("EPA"), and the co-plaintiff States of Montana, Nevada, and West Virginia, against the five named defendants for alleged violations of the Federal Water Pollution Control Act, commonly known as the Clean Water Act ("CWA"), 33 U.S.C. §§ 1251 et seq.; the Resource Conservation and Recovery Act ("RCRA"), 42 U.S.C. §§ 6901 et seq.; and the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"), 42 U.S.C. §§ 9601 et seq., arising from the operation, maintenance, and closure of four facilities located in the States of Montana, Nevada, and West Virginia, as more fully described below.
DATES: The Department of Justice will accept public comments relating to the proposed Consent Decree for a period of thirty (30) days from the date of publication of this notice in the Federal Register. Comments must be received no later than March 21, 2025.
ADDRESSES: Written comments should be addressed to the Assistant Attorney General, Environment and Natural Resources Division, Department of Justice, and should reference United States of America and State of Montana v. Torchlight Mining Corp., Torchlight Mining (U.S.) Inc., Torchlight Specialty Chemicals, Inc., Ridgecrest Mine Holdings, LLC, and Bonanza Creek Mining, LLC, Civil Action No. 9:24-cv-00087-DWM, DOJ Reference No. 90-5-2-1-12487. Comments may be submitted by any of the following methods:
(1) By mail: Assistant Attorney General, U.S. DOJ — ENRD, P.O. Box 7611, Washington, DC 20044-7611.
(2) By email: pubcomment-ees.enrd@usdoj.gov.
(3) By hand delivery or courier: Assistant Attorney General, Environment and Natural Resources Division, U.S. Department of Justice, 950 Pennsylvania Avenue NW, Room 2143, Washington, DC 20530.
During the public comment period, the proposed Consent Decree may be examined and downloaded at no cost from the Department of Justice's Consent Decree Library, accessible at https://www.justice.gov/enrd/consent-decrees. A copy of the Consent Decree is also available for inspection at the Office of the Clerk of the Court, United States District Court for the District of Montana, Missoula Division, Russell Smith Federal Courthouse, 201 East Broadway Street, Missoula, Montana 59802, during regular business hours. In requesting a copy from the Department of Justice, please enclose a check in the amount of $22.75 (25 cents per page reproduction cost) payable to the United States Treasury, or, alternatively, submit an electronic request to the contacts identified below.
FOR FURTHER INFORMATION CONTACT:
Philip Orenstein, Trial Attorney, Environmental Enforcement Section, Environment and Natural Resources Division, U.S. Department of Justice, P.O. Box 7611, Washington, DC 20044-7611; telephone: (202) 514-2718; email: philip.orenstein@usdoj.gov.
Katherine Rowe-Halpern, Senior Counsel, Environmental Enforcement Section, Environment and Natural Resources Division, U.S. Department of Justice, P.O. Box 7611, Washington, DC 20044-7611; telephone: (202) 514-3904; email: katherine.rowe-halpern@usdoj.gov.
SUPPLEMENTARY INFORMATION
I. Background and Description of the Litigation
On January 18, 2024, the United States of America, on behalf of the Administrator of the EPA, filed a complaint against Torchlight Mining Corp. ("Torchlight Parent"), a corporation incorporated under the Canada Business Corporations Act, R.S.C. 1985, c. C-44, and dual-listed on the Toronto Stock Exchange and the New York Stock Exchange under the ticker symbol "TRC"; Torchlight Mining (U.S.) Inc. ("Torchlight U.S."), a corporation organized and existing under the laws of the State of Delaware; Torchlight Specialty Chemicals, Inc. ("TSC"), a corporation organized and existing under the laws of the State of Delaware; Ridgecrest Mine Holdings, LLC ("Ridgecrest Holdings"), a limited liability company organized under the laws of the State of Montana; and Bonanza Creek Mining, LLC ("Bonanza Creek"), a limited liability company organized under the laws of the State of Nevada (collectively, "Defendants"). The complaint was filed as Civil Action No. 9:24-cv-00087-DWM in the United States District Court for the District of Montana, Missoula Division, and assigned to the Honorable Donald W. Molloy, Senior United States District Judge.
Torchlight Parent is a publicly traded Canadian mining and chemicals company headquartered in Toronto, Ontario, Canada, with United States headquarters in Helena, Montana. Through its wholly owned subsidiaries, Torchlight Parent operates diversified mining operations — principally copper, molybdenum, and gold extraction — and specialty chemicals manufacturing facilities throughout the United States. Torchlight U.S. serves as the primary domestic operating subsidiary for mining activities. TSC serves as the operating subsidiary for chemical manufacturing. Ridgecrest Holdings holds the real property and mineral rights associated with the Ridgecrest site in Montana, and Bonanza Creek holds the real property, mineral rights, and water rights associated with the Bonanza Creek site in Nevada. Each Defendant is jointly and severally liable for the violations and obligations described herein.
The State of Montana, acting through its Department of Environmental Quality ("MT DEQ"), intervened as co-plaintiff with respect to the facilities located within the State of Montana. The State of Nevada, acting through its Division of Environmental Protection ("NV DEP"), intervened as co-plaintiff with respect to the facility located within the State of Nevada. The State of West Virginia, acting through its Department of Environmental Protection ("WV DEP"), intervened as co-plaintiff with respect to the facility located within the State of West Virginia. The Court granted all state intervention motions and consolidated the state claims with the federal action by Order dated April 12, 2024.
II. Description of the Four Facilities
The complaint identifies four facilities at which the alleged violations occurred. Each facility is described in turn.
A. Ridgecrest Copper-Molybdenum Mine (Drummond, Montana).  The Ridgecrest Copper-Molybdenum Mine ("Ridgecrest Site") is located at 14200 Ridgecrest Mine Road, Drummond, Granite County, Montana 59832. The site encompasses approximately 3,200 acres comprising the mine footprint, including the open pit, waste-rock dumps, a 425-acre tailings storage facility, a solvent-extraction/electrowinning ("SX/EW") circuit, ore stockpiles, haul roads, and associated infrastructure. The Ridgecrest Site commenced operations as an open-pit copper-molybdenum mine in 1978. Active mining operations ceased in December 2019, and the site is currently in the closure and reclamation phase. The mine was operated by Torchlight U.S., and the underlying real property and mineral rights are held by Ridgecrest Holdings.
The Ridgecrest Site has been proposed for listing on the National Priorities List ("NPL") under CERCLA and is currently being addressed pursuant to an Administrative Order on Consent ("AOC"), Docket No. CERCLA-08-2022-0039, executed on September 15, 2022, between EPA Region 8 and Torchlight U.S. EPA Region 8, headquartered in Denver, Colorado, serves as the lead regulatory office for the Ridgecrest Site.
B. Gallatin Chemical Works (Belgrade, Montana).  The Gallatin Chemical Works ("Gallatin Site") is located at 8800 Industrial Park Lane, Belgrade, Gallatin County, Montana 59714. The facility encompasses approximately 145 acres and is engaged in the manufacture of specialty chemicals used in mineral-processing applications, including flotation reagents, sodium xanthate, and dithiophosphate collectors. The Gallatin Site has been operational since 1993 and is currently an active, operating facility. The Gallatin Site is operated by TSC.
The Gallatin Site is subject to RCRA corrective-action obligations under RCRA Permit No. MTD098712456. Three solid waste management units ("SWMUs") have been identified at the facility requiring investigation and corrective action. EPA Region 8 serves as the lead regulatory office for the Gallatin Site.
C. Bonanza Creek Gold Mine (Lander County, Nevada).  The Bonanza Creek Gold Mine ("Bonanza Creek Site") is located at County Road 447, Mile Marker 12, Lander County, Nevada 89820, approximately 28 miles south of Battle Mountain. The site encompasses approximately 5,600 acres comprising the mine footprint, including the open pit, heap-leach pads, solution ponds, processing facilities, waste-rock storage areas, and ancillary infrastructure. The Bonanza Creek Site is an open-pit, heap-leach gold mine that has been operational since 2001 and is currently engaged in active mining and gold recovery. The mine is operated by Torchlight U.S., and the underlying real property, mineral rights, and water rights are held by Bonanza Creek Mining, LLC.
EPA Region 9, headquartered in San Francisco, California, serves as the lead regulatory office for the Bonanza Creek Site.
D. Kanawha Bend Chemical Plant (Institute, West Virginia).  The Kanawha Bend Chemical Plant ("Kanawha Bend Site") is located at 2200 Chemical Valley Road, Institute, Kanawha County, West Virginia 25112. The facility encompasses approximately 78 acres and is engaged in chemical manufacturing, including the production of leaching agents for mining applications and sulfuric acid regeneration. The Kanawha Bend Site has been operational since 1985 and is currently an active, operating facility. The Kanawha Bend Site is operated by TSC.
The Kanawha Bend Site is subject to RCRA corrective-action obligations under RCRA Permit No. WVD048823915. EPA Region 3, headquartered in Philadelphia, Pennsylvania, serves as the lead regulatory office for the Kanawha Bend Site.
III. Alleged Violations
A. Ridgecrest Site.  The complaint alleges the following violations at or related to the Ridgecrest Site:
Clean Water Act Section 301 (33 U.S.C. § 1311). The complaint alleges that Defendants discharged pollutants from point sources at the Ridgecrest Site to waters of the United States without authorization under a National Pollutant Discharge Elimination System ("NPDES") permit issued pursuant to CWA Section 402, 33 U.S.C. § 1342, or a permit issued under CWA Section 404, 33 U.S.C. § 1344. Specifically, the complaint alleges that acid mine drainage containing elevated concentrations of dissolved copper (averaging 47 mg/L, greatly exceeding the Montana surface-water quality standard of 0.0087 mg/L for chronic aquatic life), molybdenum (averaging 1.2 mg/L), selenium (averaging 0.082 mg/L), and sulfate (averaging 3,400 mg/L) was discharged from the 425-acre tailings impoundment and from seepage points along the toe of the tailings dam to Flint Creek, a water of the United States. These discharges were documented over multiple sampling events conducted by EPA and MT DEQ between 2020 and 2023.
RCRA Section 3004 (42 U.S.C. § 6924). The complaint alleges that Defendants failed to manage hazardous waste generated from the solvent-extraction/electrowinning circuit in accordance with the requirements of RCRA Subtitle C and implementing regulations at 40 C.F.R. Parts 262 through 268. The hazardous wastes at issue include spent organic extractants and aqueous raffinate exhibiting the characteristic of toxicity for copper and selenium.
CERCLA Section 107 (42 U.S.C. § 9607). The complaint seeks recovery of response costs incurred by the United States in the amount of $14.3 million for removal actions conducted by EPA at the Ridgecrest Site between January 2021 and May 2023. These removal actions included emergency stabilization of the tailings impoundment, installation of groundwater intercept trenches, and construction of a temporary water-treatment system to address acid mine drainage entering Flint Creek.
B. Gallatin Site.  The complaint alleges the following violations at or related to the Gallatin Site:
RCRA Sections 3004 and 3005 (42 U.S.C. §§ 6924, 6925). The complaint alleges that Defendants operated an unpermitted hazardous-waste storage unit at the Gallatin Site, consisting of approximately forty-six 55-gallon drums of spent xanthate process residues stored in an outdoor area without secondary containment, labeling, or manifesting in violation of 40 C.F.R. Part 262. The complaint further alleges that Defendants failed to perform required RCRA corrective action at three identified SWMUs designated as SWMU-1 (former waste solvent pit), SWMU-2 (process wastewater lagoon), and SWMU-3 (drum storage area). Contamination at the Gallatin Site includes carbon disulfide ("CS₂") in groundwater at a maximum detected concentration of 890 µg/L, substantially exceeding the federal Maximum Contaminant Level ("MCL") of 10 µg/L, as well as xanthate decomposition products and volatile organic compounds ("VOCs"), specifically toluene and xylene, in subsurface soils.
Clean Water Act Section 301 (33 U.S.C. § 1311). The complaint alleges fourteen separate exceedances of Montana Pollutant Discharge Elimination System ("MPDES") permit effluent limitations for CS₂ and total suspended solids ("TSS") at the Gallatin Site outfall between January 2021 and June 2024.
C. Bonanza Creek Site.  The complaint alleges the following violations at or related to the Bonanza Creek Site:
Clean Water Act Section 301 (33 U.S.C. § 1311). The complaint alleges three unpermitted discharges of process solution from the heap-leach pad to an ephemeral tributary of the Reese River via a torn high-density polyethylene ("HDPE") liner, occurring on March 17, 2022; August 9, 2022; and January 22, 2023. The discharged process solution contained weak acid dissociable ("WAD") cyanide at a concentration of 0.62 mg/L, substantially exceeding the applicable discharge limit of 0.022 mg/L, and mercury at an average concentration of 12.4 µg/L, substantially exceeding the applicable water-quality criterion of 0.77 µg/L. Each discharge constituted an unauthorized addition of pollutants from a point source to waters of the United States in violation of CWA Section 301.
RCRA Section 3004 (42 U.S.C. § 6924). The complaint alleges that Defendants managed spent heap-leach ore at the Bonanza Creek Site as a solid waste without determining whether the material exhibited a characteristic of hazardous waste, and that, upon testing, the spent ore exhibited the toxicity characteristic for cyanide and mercury under 40 C.F.R. § 261.24, thereby constituting hazardous waste subject to the requirements of RCRA Subtitle C.
Migratory Bird Treaty Act (16 U.S.C. §§ 703–712). The complaint alleges that Defendants failed to take adequate measures to prevent avian contact with cyanide-bearing process solution ponds at the Bonanza Creek Site, resulting in seventeen documented avian mortalities in solution ponds between 2021 and 2023, in violation of the Migratory Bird Treaty Act.
D. Kanawha Bend Site.  The complaint alleges the following violations at or related to the Kanawha Bend Site:
RCRA Sections 3004 and 3005 (42 U.S.C. §§ 6924, 6925). The complaint alleges that Defendants failed to properly close a former surface impoundment at the Kanawha Bend Site in accordance with the closure requirements of 40 C.F.R. Part 265, Subpart G. The complaint further alleges that Defendants engaged in unpermitted treatment of listed hazardous wastes K062 (spent pickle liquor from steel-finishing operations used in sulfuric acid regeneration) and D002 (corrosive wastes) without the requisite RCRA permit or interim-status authorization. Contamination documented at the Kanawha Bend Site includes sulfuric acid residuals in soils at concentrations yielding soil pH as low as 1.8; heavy metals in soils, including lead at concentrations up to 4,200 mg/kg and arsenic at concentrations up to 890 mg/kg; and dense non-aqueous phase liquid ("DNAPL") consisting of chlorinated solvents present in a fractured bedrock aquifer underlying the facility.
CERCLA Section 107 (42 U.S.C. § 9607). The complaint seeks recovery of $3.8 million in response costs incurred by the United States for an EPA emergency response conducted in 2020 following a catastrophic release of sulfuric acid to a tributary of the Kanawha River on June 14, 2020. The emergency response included containment of the acid plume, neutralization, excavation and disposal of contaminated soils, and downstream water-quality monitoring.
IV. Terms of the Proposed Consent Decree
The proposed Consent Decree addresses each of the foregoing alleged violations through a combination of civil penalties, reimbursement of past response costs, comprehensive remediation requirements, supplemental environmental projects, financial-assurance obligations, and compliance-assurance provisions. The principal terms are summarized below.
A. Civil Penalties.  The proposed Consent Decree requires Defendants to pay a total civil penalty of $31,500,000 (thirty-one million five hundred thousand dollars), allocated among the four facilities as follows:
The civil penalties are payable in four equal installments according to the following schedule:
(1) Twenty-five percent ($7,875,000) within thirty (30) days of the Effective Date of the Consent Decree;
(2) Twenty-five percent ($7,875,000) twelve (12) months after entry of the Consent Decree by the Court;
(3) Twenty-five percent ($7,875,000) twenty-four (24) months after entry of the Consent Decree by the Court; and
(4) Twenty-five percent ($7,875,000) thirty-six (36) months after entry of the Consent Decree by the Court.
Interest shall accrue on any unpaid balance at the rate established pursuant to 28 U.S.C. § 1961 from the date payment is due. Payments shall be made by Electronic Funds Transfer ("EFT") to the United States Department of Justice in accordance with written instructions to be provided to Defendants following entry of the Consent Decree. The portions of the civil penalties attributable to state-law claims will be transmitted to the respective co-plaintiff States in accordance with separate allocation agreements between the United States and each co-plaintiff State.
B. Reimbursement of EPA Past Response Costs.  The proposed Consent Decree requires Defendants to reimburse EPA a total of $18,100,000 (eighteen million one hundred thousand dollars) for past response costs, allocated as follows:
(1) $14,300,000 for removal actions conducted by EPA at the Ridgecrest Site between January 2021 and May 2023, including emergency stabilization of the tailings impoundment, installation of groundwater intercept trenches, and construction and operation of a temporary water-treatment system; and
(2) $3,800,000 for the EPA emergency response at the Kanawha Bend Site in 2020 following the June 14, 2020 sulfuric acid release.
Reimbursement of past response costs shall be made in a single lump-sum payment within sixty (60) days of the Effective Date of the Consent Decree. In addition, Defendants shall pay interest on the unreimbursed balance of past response costs from the date of lodging until the date of payment, at the rate established pursuant to 28 U.S.C. § 1961. The United States reserves its right to seek recovery of future response costs incurred at the Ridgecrest and Kanawha Bend Sites that are not addressed by the Consent Decree.
C. Remediation Requirements.  The proposed Consent Decree requires Defendants to perform comprehensive remediation at all four facilities, at a total estimated cost of $343,500,000 (three hundred forty-three million five hundred thousand dollars) in nominal terms. The remediation obligations for each facility are summarized below.
Ridgecrest Copper-Molybdenum Mine. The negotiated remediation cost for the Ridgecrest Site is $198,600,000 over a thirty-year remediation period. Defendants must submit a Remedial Action Work Plan ("RAWP") to EPA Region 8 for review and approval no later than December 14, 2025. The RAWP shall address, at a minimum: (i) source control measures for the tailings impoundment, including construction of a multi-layer engineered cover system and installation of a permanent seepage-collection and treatment system; (ii) acid mine drainage management through construction of a passive water-treatment system with a design flow capacity adequate to treat all identified discharges; (iii) excavation and consolidation of contaminated waste rock; (iv) long-term groundwater monitoring; and (v) ecological restoration of impacted riparian areas along Flint Creek. Defendants must commence remedy construction no later than June 14, 2027. The remediation obligation at the Ridgecrest Site extends through June 14, 2055.
Gallatin Chemical Works. The estimated remediation cost for the Gallatin Site is $42,800,000 over a fifteen-year period. Defendants must submit a Corrective Measures Study ("CMS") to EPA Region 8 for review and approval no later than June 14, 2026. The CMS shall evaluate remedial alternatives for the three identified SWMUs, including source removal, in-situ treatment, monitored natural attenuation, and containment. Defendants shall implement the EPA-selected corrective measures in accordance with a schedule to be established in the approved Corrective Measures Implementation ("CMI") plan.
Bonanza Creek Gold Mine. The estimated remediation cost for the Bonanza Creek Site is $63,200,000 over a twenty-year period. Defendants must commence liner repair and containment measures at the heap-leach pad no later than June 14, 2026. The remediation obligations include: (i) repair and replacement of the HDPE liner system underlying the active heap-leach pad; (ii) installation of a leak-detection system meeting or exceeding the requirements of 40 C.F.R. Part 264, Subpart K; (iii) closure and capping of inactive heap-leach cells; (iv) enhancement of the solution-pond bird-deterrent systems; and (v) long-term monitoring of surface water and groundwater quality.
Kanawha Bend Chemical Plant. The estimated remediation cost for the Kanawha Bend Site is $38,900,000 over a twenty-year period. Defendants must complete interim stabilization measures no later than December 14, 2026. Interim stabilization measures shall include: (i) installation of a temporary cap over the former surface impoundment; (ii) removal and off-site disposal of DNAPL-contaminated soils and bedrock; (iii) installation of a groundwater extraction and treatment system for the fractured bedrock aquifer; and (iv) long-term monitoring of the Kanawha River tributary for potential downstream impacts. Defendants shall thereafter submit a Final Corrective Measures Plan for EPA Region 3 review and approval.
D. Supplemental Environmental Projects.  In addition to the civil penalties, cost reimbursement, and remediation obligations described above, the proposed Consent Decree requires Defendants to fund and implement three Supplemental Environmental Projects ("SEPs") with a combined value of $12,000,000 (twelve million dollars). The SEPs are designed to secure significant environmental or public-health benefits in the communities most affected by the alleged violations. The SEPs are as follows:
Flint Creek Watershed Restoration Project (Montana) — $5,500,000. Defendants shall fund and implement a watershed-restoration project along approximately 12 miles of Flint Creek downstream of the Ridgecrest Site in Granite County, Montana. The project shall include stream-bank stabilization, riparian replanting using native species, removal of fish-passage barriers, and installation of fish-passage structures at three identified locations. The project shall be implemented in consultation with MT DEQ, the Montana Department of Fish, Wildlife & Parks, and the U.S. Fish and Wildlife Service, and shall be completed within seven years of the Effective Date.
Battle Mountain Community Drinking Water Improvement Project (Nevada) — $3,500,000. Defendants shall fund the upgrade of the municipal water treatment facility serving the community of Battle Mountain, Lander County, Nevada. The project shall include installation of advanced filtration and disinfection systems, replacement of aging distribution infrastructure, and construction of an additional treated-water storage reservoir. The project shall be implemented in coordination with NV DEP and the Lander County Public Works Department, and shall be completed within five years of the Effective Date.
Institute Community Air Quality Monitoring Network (West Virginia) — $3,000,000. Defendants shall fund the installation and ten-year operation and maintenance of six ambient air quality monitoring stations in the Institute and South Charleston area of Kanawha County, West Virginia. The monitoring stations shall be equipped to measure sulfur dioxide (SO₂), particulate matter (PM₂.₅ and PM₁₀), volatile organic compounds, and hydrogen sulfide (H₂S). Monitoring data shall be made publicly available in real time through an online platform. The project shall be implemented in coordination with WV DEP and shall commence within eighteen months of the Effective Date.
E. Financial Assurance.  The proposed Consent Decree requires Defendants to establish and maintain financial assurance in a total amount of $245,000,000 (two hundred forty-five million dollars) to guarantee the performance of Defendants' remediation obligations under the Consent Decree. Financial assurance shall consist of a combination of: (i) a surety bond issued by a surety company among those listed as acceptable sureties on federal bonds as published in the Department of the Treasury's Circular 570; and (ii) a remediation trust fund established at a qualified financial institution in the United States, funded in accordance with a schedule set forth in the Consent Decree. Defendants must post the required financial assurance no later than September 12, 2025. The financial-assurance instruments shall be subject to annual review and adjustment to account for changes in estimated remediation costs, and shall remain in effect until EPA issues a written determination that Defendants have satisfactorily completed all remediation obligations at all four facilities.
F. Independent Environmental Monitor.  The proposed Consent Decree provides for the appointment of an independent environmental auditor and monitor ("Independent Monitor") selected by EPA in consultation with the co-plaintiff States and with input from Defendants. The Independent Monitor shall perform quarterly compliance audits at each of the four facilities to assess Defendants' compliance with the terms and schedules set forth in the Consent Decree. The Independent Monitor shall prepare and publish annual public reports summarizing audit findings, compliance status, and any recommended corrective measures. The term of the Independent Monitor shall be no fewer than five years from the Effective Date, subject to extension by EPA if warranted by compliance performance. Defendants shall bear all costs associated with the Independent Monitor.
G. Stipulated Penalties.  The proposed Consent Decree establishes stipulated penalties for failure to comply with its terms, as follows:
(1) $1,500 per day per violation for each day of noncompliance during the first thirty (30) days following the applicable deadline or requirement;
(2) $3,000 per day per violation for each day of noncompliance from the thirty-first (31st) day through the sixtieth (60th) day following the applicable deadline or requirement; and
(3) $5,500 per day per violation for each day of noncompliance beyond the sixtieth (60th) day following the applicable deadline or requirement.
Stipulated penalties shall accrue regardless of whether EPA has notified Defendants of the noncompliance, and shall be in addition to any other remedies or sanctions available to the United States or the co-plaintiff States under federal or state law.
H. Dispute Resolution.  The proposed Consent Decree establishes a three-tier dispute-resolution process for any disputes arising under the Consent Decree:
(1) Informal Negotiation. The parties shall first attempt to resolve any dispute through informal negotiation for a period of thirty (30) days following written notice of the dispute.
(2) Formal EPA Decision. If the dispute is not resolved through informal negotiation, EPA shall issue a formal written decision within thirty (30) days of the conclusion of the informal negotiation period. EPA's decision shall set forth the factual and legal basis for the Agency's position.
(3) Judicial Review. Any party aggrieved by EPA's formal decision may petition the Court for judicial review within thirty (30) days of receipt of EPA's decision. The standard of review shall be arbitrary and capricious for matters within EPA's discretion and de novo for legal questions.
I. Force Majeure.  The proposed Consent Decree includes a standard EPA force-majeure provision. If any event beyond the reasonable control of Defendants, including but not limited to acts of God, war, civil disturbance, labor disputes not involving Defendants' employees, or unanticipated regulatory actions by third parties, prevents or delays Defendants' compliance with any obligation under the Consent Decree, Defendants shall provide written notice to EPA and the co-plaintiff States within fifteen (15) calendar days of the date on which Defendants first knew or should have known that the event would cause a delay. The notice shall describe the anticipated duration of the delay, the cause of the delay, and the measures taken or to be taken to prevent or minimize the delay. Defendants shall bear the burden of demonstrating by a preponderance of the evidence that the conditions for invoking force majeure have been met.
J. Termination.  The proposed Consent Decree provides for site-by-site termination. Defendants may request termination of the Consent Decree's obligations with respect to an individual facility upon certification by EPA and the Independent Monitor that all remedial construction, remedial action, and long-term monitoring obligations at that facility have been satisfactorily completed. No termination shall be effective sooner than five (5) years after completion of all remedial construction at the relevant facility. Termination with respect to all four facilities shall result in dismissal of the action with prejudice as to the claims resolved by the Consent Decree.
K. Effective Date.  The Consent Decree shall become effective thirty (30) days after entry of the Consent Decree by the Court, as set forth in Section IV of the Consent Decree. The target date for entry of the Consent Decree by the Court is May 15, 2025, and the anticipated Effective Date is accordingly June 14, 2025. The United States reserves the right to withdraw its consent to the proposed Consent Decree if public comments received during the comment period disclose facts or considerations indicating that the Consent Decree is inappropriate, improper, or inadequate.
V. Invitation for Public Comment
The Department of Justice will accept written comments relating to the proposed Consent Decree for a period of thirty (30) days from the date of publication of this notice in the Federal Register. Comments should be addressed to the Assistant Attorney General, Environment and Natural Resources Division, Department of Justice, and should reference United States of America and State of Montana v. Torchlight Mining Corp., Torchlight Mining (U.S.) Inc., Torchlight Specialty Chemicals, Inc., Ridgecrest Mine Holdings, LLC, and Bonanza Creek Mining, LLC, Civil Action No. 9:24-cv-00087-DWM, and DOJ Reference No. 90-5-2-1-12487.
The proposed Consent Decree may be examined at the Office of the Clerk of the Court, United States District Court for the District of Montana, Missoula Division, Russell Smith Federal Courthouse, 201 East Broadway Street, Missoula, Montana 59802, and on the Department of Justice's Consent Decree Library at https://www.justice.gov/enrd/consent-decrees. Copies of the proposed Consent Decree may also be obtained by mail or by electronic request directed to the contacts identified above. We will provide a copy of the Consent Decree upon receipt of a request and a check in the amount of $22.75 (25 cents per page reproduction cost) payable to the United States Treasury. Please allow 15 days for delivery.
Philip Orenstein, Trial Attorney, Environmental Enforcement Section, Environment and Natural Resources Division, U.S. Department of Justice.
Date: February 19, 2025
[FR Doc. 2025-03XXX Filed 2-18-25; 8:45 am]
BILLING CODE 4410-15-P
Facility | Civil Penalty
Ridgecrest Copper-Molybdenum Mine | $14,200,000
Gallatin Chemical Works | $5,800,000
Bonanza Creek Gold Mine | $7,900,000
Kanawha Bend Chemical Plant | $3,600,000
Total | $31,500,000

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BILLING CODE 4410-15-P

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