SUPPLEMENTAL ENVIRONMENTAL PROJECT DESCRIPTION AND BUDGET

SUPPLEMENTAL ENVIRONMENTAL PROJECT DESCRIPTION AND BUDGET
Institute Community Air Quality Monitoring Network
Consent Decree, Civil Action No. 9:24-cv-00087-DWM
United States of America and State of Montana v. Torchlight Mining Corp. et al.
United States District Court for the District of Montana, Missoula Division
Date: January 28, 2025
C&H Matter No.: 1039-00003
Prepared by:
Calderwood & Harkness LLP 1700 K Street NW, Suite 1200 Washington, DC 20006
On behalf of Torchlight Mining Corp. and Torchlight Specialty Chemicals, Inc.
Submitted for review to:
Philip Orenstein, Lead DOJ Trial Attorney, Environmental Enforcement Section, Environment and Natural Resources Division, U.S. Department of Justice
Margaret Coulson, Lead EPA Case Attorney, Office of Enforcement and Compliance Assurance, U.S. Environmental Protection Agency
Loretta May Hatcher, Assistant Attorney General, Office of the Attorney General of the State of West Virginia
Distribution:
Harrison Wexford, Partner, Calderwood & Harkness LLP Elliot Nguyen, Counsel, Calderwood & Harkness LLP Grace Nakamura, Associate, Calderwood & Harkness LLP Miriam Soo-Hwan Park, General Counsel, Torchlight Mining Corp. Gareth Linford, Vice President, Environmental Health & Safety, Torchlight Mining Corp. Nathan Tully, Partner, Baxter, Tully & Crane PLLC
CONFIDENTIAL — SUBJECT TO CONSENT DECREE NEGOTIATIONS — ATTORNEY WORK PRODUCT
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I. EXECUTIVE SUMMARY
This document describes the Institute Community Air Quality Monitoring Network Supplemental Environmental Project (the "SEP" or the "Project") to be undertaken by Torchlight Mining Corp. ("TMC") and its wholly owned subsidiary Torchlight Specialty Chemicals, Inc. ("TSC") (collectively, the "Settling Defendants") as a component of the comprehensive consent decree resolving alleged violations of 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., at four TMC-operated or formerly operated facilities located in the states of Montana, West Virginia, and Nevada. The consent decree is pending in United States of America and State of Montana v. Torchlight Mining Corp. et al., Civil Action No. 9:24-cv-00087-DWM, in the United States District Court for the District of Montana, Missoula Division.
The SEP involves the installation and ten (10)-year continuous operation of six (6) ambient air quality monitoring stations strategically positioned throughout the Institute and South Charleston area of Kanawha County, West Virginia. The monitoring stations will collect real-time data on criteria pollutants, volatile organic compounds ("VOCs"), and selected hazardous air pollutants ("HAPs") relevant to chemical manufacturing operations at and around the Kanawha Bend Chemical Plant located at 2200 Chemical Valley Road, Institute, Kanawha County, West Virginia 25112. All monitoring data will be made publicly accessible through a dedicated online portal, community-accessible display boards, and quarterly and annual reporting to the U.S. Environmental Protection Agency ("EPA") Region 3 and the West Virginia Department of Environmental Protection ("WV DEP").
The total budget commitment for the Project is $3,000,000.00 (Three Million Dollars). This amount constitutes a firm financial commitment by TMC and TSC, as specified in the consent decree, and shall not be reduced regardless of actual expenditures. In the event that actual costs are less than the committed amount, surplus funds shall be applied to extended monitoring operations or the installation of additional monitoring stations, subject to approval by EPA Region 3 and WV DEP. Conversely, in the event that actual costs exceed the committed budget, TMC and TSC bear full responsibility for any and all cost overruns necessary to complete the Project as described herein.
The Institute Community Air Quality Monitoring Network SEP is one of three supplemental environmental projects mandated under the consent decree. The three SEPs, in the aggregate, represent a total commitment of $12,000,000.00 (Twelve Million Dollars), as follows:
These SEPs are in addition to, and do not substitute for, the Settling Defendants' obligations under the consent decree to pay a total civil penalty of $31,500,000.00, to reimburse $18,100,000.00 in EPA past costs, and to perform remediation work at all four subject facilities with an aggregate estimated cost of approximately $147,000,000.00 (in net present value terms).
The Project specifically addresses longstanding community environmental health concerns in the Institute and South Charleston area, an area situated within the historically industrialized "Chemical Valley" corridor along the Kanawha River. The Kanawha Bend Chemical Plant, operated by TSC, has been the subject of enforcement actions under RCRA §§ 3004 and 3005 and CERCLA § 107, and the June 14, 2020 sulfuric acid release incident — which prompted a $3.8 million EPA emergency response — has significantly heightened community anxiety regarding air quality and public health in the surrounding neighborhoods. This Project directly addresses those concerns by providing the community with continuous, transparent, and scientifically rigorous air quality monitoring data for a period of ten years.
II. BACKGROUND AND NEXUS TO VIOLATIONS
A. The Kanawha Bend Chemical Plant
1. Facility Description and Ownership
The Kanawha Bend Chemical Plant (the "Facility" or "Kanawha Bend") is a seventy-eight (78)-acre chemical manufacturing facility located at 2200 Chemical Valley Road, Institute, Kanawha County, West Virginia 25112. The Facility has been in continuous operation since 1985 and is currently active. Principal operations at the Facility include the manufacture of leaching agents used in mining and mineral processing operations, as well as the regeneration of sulfuric acid from spent acid streams generated by TMC's domestic mining operations and third-party customers. The Facility also maintains on-site sulfuric acid storage capacity and serves as a regional distribution hub for various industrial chemicals used in the mining and chemical manufacturing sectors.
The Facility is owned and operated by Torchlight Specialty Chemicals, Inc. ("TSC"), a Delaware corporation (Employer Identification Number: 47-3819204). TSC is a wholly owned subsidiary of Torchlight Mining (U.S.) Inc., also a Delaware corporation (Employer Identification Number: 83-2047156), which in turn is a wholly owned subsidiary of Torchlight Mining Corp. ("TMC"), the ultimate parent company and a publicly traded corporation. The corporate chain of ownership is relevant to the consent decree, under which both TMC and TSC are jointly and severally liable as Settling Defendants for all obligations relating to the Kanawha Bend facility, including the SEP described herein.
2. Regulatory Status
The Kanawha Bend Chemical Plant operates under RCRA Permit No. WVD048823915, issued by the West Virginia Department of Environmental Protection and administered by EPA Region 3 in coordination with WV DEP pursuant to West Virginia's authorized RCRA program. The Facility is classified as a Treatment, Storage, and Disposal Facility ("TSDF") under RCRA, and its operations are subject to the full suite of regulatory requirements applicable to hazardous waste generators and TSDFs under both federal and state law. In addition, the Facility holds various state permits for air emissions and wastewater discharge, and is subject to the reporting requirements of the Emergency Planning and Community Right-to-Know Act ("EPCRA"), 42 U.S.C. §§ 11001 et seq., including Toxics Release Inventory ("TRI") reporting.
3. Environmental Conditions and Principal Contaminants
Investigations conducted by EPA, WV DEP, and environmental consultants retained by TMC/TSC have identified significant environmental contamination at the Kanawha Bend facility, including the following principal contaminants and conditions:
(a) Sulfuric Acid Residuals in Soils. Soil sampling across multiple areas of the Facility has documented severe acidification, with pH levels measured as low as 1.8 in surface and shallow subsurface soils in the vicinity of active and former acid storage and handling areas. These acidic soil conditions have contributed to the mobilization of heavy metals and have impaired soil and groundwater quality across portions of the site.
(b) Heavy Metals Contamination. Elevated concentrations of heavy metals, particularly lead and arsenic, have been detected in subsurface soils proximate to the former waste lagoon in the southwestern quadrant of the Facility. Maximum detected concentrations include lead at 4,200 mg/kg and arsenic at 890 mg/kg, both substantially exceeding applicable EPA Regional Screening Levels for industrial soils. Additional metals of concern, including chromium, cadmium, and mercury, have been detected at concentrations requiring further investigation and potential remediation.
(c) Dense Non-Aqueous Phase Liquid (DNAPL) in Groundwater. Subsurface investigations have confirmed the presence of dense non-aqueous phase liquid ("DNAPL") — consisting primarily of chlorinated solvents, including trichloroethylene ("TCE") and tetrachloroethylene ("PCE") — in the fractured bedrock aquifer underlying the Facility. The DNAPL plume has migrated through fracture networks in the limestone bedrock and poses a continuing threat to groundwater quality in the area. Characterization of the DNAPL source zone and dissolved-phase plume is ongoing as part of the RCRA corrective action program.
4. Alleged Violations
The enforcement action underlying the consent decree alleges violations at the Kanawha Bend Chemical Plant under both RCRA and CERCLA, as summarized below:
(a) RCRA § 3004 and § 3005 Violations. The United States and the State of West Virginia allege that TMC/TSC failed to properly close a former surface impoundment (the "South Lagoon") at the Facility in accordance with the requirements of RCRA § 3004, 42 U.S.C. § 6924, and the implementing regulations at 40 C.F.R. Part 265, Subpart G. The South Lagoon was used for the management of hazardous waste, including listed hazardous wastes K062 (spent pickle liquor generated by steel finishing operations of an acid regeneration customer) and D002 (corrosive waste — spent sulfuric acid). The government further alleges that TMC/TSC engaged in the unpermitted treatment of these listed hazardous wastes at the South Lagoon in violation of RCRA § 3005, 42 U.S.C. § 6925, which requires a RCRA permit for the treatment, storage, or disposal of hazardous waste.
(b) CERCLA § 107 Cost Recovery. The United States seeks recovery under CERCLA § 107, 42 U.S.C. § 9607, of $3,800,000 in response costs incurred by EPA in connection with an emergency response action undertaken following the June 14, 2020 sulfuric acid release incident. On that date, a catastrophic failure of a sulfuric acid transfer line at the Facility resulted in the release of approximately 15,000 gallons of concentrated sulfuric acid into an unnamed tributary of the Kanawha River. EPA mobilized an emergency response team to contain and remediate the release, and the $3,800,000 in response costs forms part of the $18,100,000 total EPA past-costs reimbursement obligation under the consent decree.
5. Financial Parameters
The consent decree allocates the following financial obligations to the Kanawha Bend Chemical Plant:
•  Civil penalty attributable to Kanawha Bend: $3,600,000 (representing a portion of the total $31,500,000 civil penalty assessed across all four subject facilities)
•  EPA past-costs reimbursement attributable to the June 14, 2020 emergency response: $3,800,000 (included within the total $18,100,000 EPA past-costs obligation)
•  Estimated remediation cost for Kanawha Bend facility: $38,900,000 over a twenty (20)-year remediation period (net present value at a 3% discount rate: $29,000,000)
6. Regulatory Offices and Counsel
The Kanawha Bend Chemical Plant falls within the jurisdiction of EPA Region 3 (Philadelphia), which oversees environmental regulatory matters in West Virginia. The State of West Virginia, through the West Virginia Department of Environmental Protection ("WV DEP"), is a co-plaintiff in the enforcement action, and the state's interests are represented by Loretta May Hatcher, Assistant Attorney General, Office of the Attorney General of the State of West Virginia.
Local counsel for TMC/TSC in West Virginia is the firm of Baxter, Tully & Crane PLLC, located at 500 Lee Street East, Suite 1100, Charleston, West Virginia 25301. The lead partner for TMC/TSC matters at that firm is Nathan Tully. Baxter, Tully & Crane has been engaged to provide local legal support for the SEP, including coordination with state and local authorities on site access, permitting, and zoning matters related to the monitoring station installations.
B. Nexus to the Enforcement Action
1. Geographic and Operational Nexus
The Kanawha Bend Chemical Plant is situated in the "Chemical Valley" corridor along the Kanawha River, a region of Kanawha County, West Virginia, that has been home to a concentration of chemical manufacturing, petrochemical, and industrial facilities for over a century. The Institute and South Charleston communities, which are in close proximity to the Kanawha Bend facility, have a well-documented history of exposure to industrial emissions and have long expressed concerns about the air quality and environmental health implications of living and working in an area surrounded by active industrial operations. The communities in this area include a significant proportion of minority and low-income residents, and the area has been identified by EPA as an environmental justice community of concern.
2. Connection to Alleged Violations
The June 14, 2020 sulfuric acid release to a tributary of the Kanawha River — which triggered the $3.8 million EPA emergency response action that forms a component of the CERCLA § 107 cost recovery claim in this case — significantly heightened community concerns about air quality in the Institute and South Charleston area. During the release event, sulfuric acid mist and fumes were reported by residents in the surrounding neighborhoods, and several community members sought medical attention for respiratory symptoms. Although the primary enforcement violations at the Kanawha Bend facility relate to soil and groundwater contamination under RCRA and CERCLA, the Facility's ongoing operations involve the management of volatile and semi-volatile organic compounds, sulfuric acid, and heavy metals whose potential airborne releases — whether through routine emissions, fugitive releases, or accidental events — are of direct and continuing concern to the surrounding community.
The Facility's RCRA-regulated hazardous waste management operations involve materials that have the potential to generate airborne emissions. Specifically, the listed hazardous wastes K062 (spent pickle liquor) and D002 (corrosive waste) identified in the enforcement action are associated with acid mist generation and the volatilization of metal-bearing particulates. Moreover, the chlorinated solvents (TCE and PCE) that constitute the DNAPL contamination in the fractured bedrock aquifer are volatile organic compounds that can migrate to the atmosphere through vapor intrusion and volatilization from contaminated soil and groundwater. The ongoing RCRA corrective action at the site, while focused on subsurface remediation, does not comprehensively address the community's need for ambient air quality monitoring data.
3. Compliance with EPA SEP Policy
The Project satisfies the requirements of EPA's Supplemental Environmental Projects Policy, as updated in 2015, in the following respects:
(a) Nexus to Violations. The SEP bears a sufficient nexus to the RCRA and CERCLA violations alleged at the Kanawha Bend facility. The monitoring network will provide data directly relevant to the types of contaminants associated with the Facility's operations and the waste streams that are the subject of the enforcement action. The Project addresses the same geographic community affected by the Facility's operations and the June 2020 release incident.
(b) Environmental and Public Health Benefits. The SEP will provide significant environmental and public health benefits to the Institute and South Charleston community by establishing a comprehensive, long-term air quality monitoring capability that does not currently exist in the area. The Project will enable early detection of potential air quality exceedances, support timely public health responses, and empower community residents with transparent, scientifically rigorous information about local air quality conditions.
(c) Benefits Beyond Consent Decree Obligations. The air quality monitoring network is not required by the consent decree's remediation obligations for the Kanawha Bend facility, which are focused on the investigation and cleanup of soil and groundwater contamination. The SEP goes beyond these remediation requirements to address the community's broader environmental health concerns related to ambient air quality.
(d) Not Otherwise Required by Law. The installation and operation of the ambient air quality monitoring network described herein is not otherwise required by any federal, state, or local law, regulation, or permit applicable to TMC, TSC, or the Kanawha Bend Chemical Plant. The Facility's existing air emission permits do not require the type of community-based ambient monitoring contemplated by this Project.
III. PROJECT DESCRIPTION
A. Overview
The Institute Community Air Quality Monitoring Network consists of the installation and ten (10)-year continuous operation of six (6) ambient air quality monitoring stations strategically located throughout the Institute and South Charleston area of Kanawha County, West Virginia. The monitoring network is designed to provide a comprehensive, scientifically rigorous, and community-accessible picture of ambient air quality conditions in the areas surrounding the Kanawha Bend Chemical Plant and the broader Chemical Valley corridor.
Each of the six monitoring stations will be equipped with analyzers and samplers capable of measuring criteria pollutants, volatile organic compounds, and selected hazardous air pollutants relevant to the types of chemical manufacturing operations conducted at the Kanawha Bend facility and neighboring industrial facilities. In addition, each station will include a suite of meteorological sensors to enable the correlation of air quality data with local weather conditions, including wind speed and direction, which are critical for identifying potential emission sources and transport pathways.
All monitoring data will be transmitted in real-time (or near-real-time) to a centralized data management system and made publicly available through a dedicated online portal. Community-accessible display boards will be installed at two publicly accessible locations in the Institute and South Charleston area to ensure that residents without internet access can also benefit from the monitoring data. TMC/TSC will prepare and submit quarterly summary reports to EPA Region 3 and WV DEP, as well as annual comprehensive reports, for the duration of the Project.
The Project also includes a robust community engagement and education component, consisting of annual community meetings, the development and distribution of plain-language annual summary reports, coordination with local community organizations and environmental justice groups, and the establishment of a voluntary community advisory committee to provide input on monitoring priorities and station siting.
B. Monitoring Station Locations
Six monitoring stations will be sited across the Institute and South Charleston area. Station locations will be selected in consultation with EPA Region 3, WV DEP, and local community stakeholders to ensure optimal coverage of residential, commercial, and institutional areas of concern, as well as to capture relevant atmospheric transport pathways. The proposed general siting criteria for each station are as follows:
Station 1 — Downwind Perimeter Station. This station will be located immediately downwind (based on prevailing wind direction) of the Kanawha Bend Chemical Plant, within 0.5 miles of the facility perimeter at 2200 Chemical Valley Road. This station is designed to serve as the primary near-source monitor and will provide the most direct indication of potential air quality impacts from Facility operations. Prevailing wind data from the nearest National Weather Service station and historical meteorological records for the Kanawha Valley will be used to determine the optimal downwind placement.
Station 2 — Institute Community Center/Residential Area Station. This station will be located in the core residential and community area of Institute, approximately one (1) to two (2) miles from the Kanawha Bend facility. The siting of this station will prioritize proximity to areas of highest population density within the Institute community, and the station will serve as the primary indicator of ambient air quality conditions experienced by Institute residents on a day-to-day basis.
Station 3 — South Charleston Residential/Commercial District Station. This station will be positioned in the South Charleston residential and commercial district, approximately three (3) to four (4) miles from the Kanawha Bend facility. This station extends the monitoring network's geographic coverage to the broader community and provides data on potential longer-range transport of emissions from the Chemical Valley corridor.
Station 4 — School/Daycare Proximity Station. This station will be located near a local school or daycare facility in the Institute area to specifically address concerns about air quality exposures among children and sensitive populations. The identification of the specific school or daycare facility will be made in consultation with the Kanawha County Board of Education, local school administrators, and community stakeholders, with input from EPA Region 3 and WV DEP.
Station 5 — Upwind Reference Station. This station will be positioned upwind of the Kanawha Bend Chemical Plant, relative to prevailing wind patterns, to establish background ambient air quality levels. The upwind reference station is essential for distinguishing between pollutant concentrations attributable to the Facility and the broader Chemical Valley corridor versus background or regional contributions. This station will be sited in an area with minimal influence from local industrial sources, to the extent practicable given the industrial character of the Kanawha Valley.
Station 6 — Kanawha River Corridor Station. This station will be positioned along the Kanawha River corridor at a location selected to capture potential fugitive emissions transport pathways. River valleys can serve as channels for the transport of airborne pollutants, and the Kanawha River corridor is a recognized pathway for emissions dispersion in the area. This station will help characterize air quality conditions along the river, which is also a recreational and residential resource for the community.
Final station locations are subject to formal approval by EPA Region 3 and WV DEP. Such approval shall be sought and obtained within ninety (90) days of the Effective Date of the consent decree. The Effective Date is anticipated to be June 14, 2025, which is thirty (30) days after the expected entry of the consent decree by the Court on May 15, 2025. Following approval of station locations, TSC/TMC shall obtain all necessary site access agreements, permits (including any applicable local zoning or land use permits), and utility connections within one hundred and twenty (120) days of site approval. TMC/TSC, through local counsel at Baxter, Tully & Crane PLLC, shall be responsible for all legal and administrative requirements associated with securing monitoring station sites.
C. Monitoring Parameters
The monitoring stations will be equipped to measure the following categories of parameters, encompassing criteria pollutants, volatile organic compounds, hazardous air pollutants, and meteorological conditions:
1. Criteria Pollutants
Each station will include continuous analyzers for the following criteria pollutants regulated under the National Ambient Air Quality Standards ("NAAQS"):
•  PM2.5 — Particulate matter with an aerodynamic diameter of 2.5 micrometers or less
•  PM10 — Particulate matter with an aerodynamic diameter of 10 micrometers or less
•  SO₂ — Sulfur dioxide
•  NO₂ — Nitrogen dioxide
•  O₃ — Ozone
•  CO — Carbon monoxide
2. Volatile Organic Compounds (VOCs)
Each station will be equipped with auto-GC (automated gas chromatograph) or equivalent continuous monitoring systems for the following volatile organic compounds, selected based on their relevance to the chemical manufacturing operations at the Kanawha Bend facility and the broader Chemical Valley corridor:
•  Benzene
•  Toluene
•  Ethylbenzene
•  Xylenes (ortho-, meta-, and para-xylene) (collectively with benzene, toluene, and ethylbenzene, "BTEX")
•  Carbon disulfide (CS₂)
•  Chloroform
•  Methylene chloride (dichloromethane)
•  Trichloroethylene (TCE)
•  Tetrachloroethylene (PCE)
3. Hazardous Air Pollutants (HAPs)
The monitoring network will measure the following hazardous air pollutants, which are of particular concern given the Facility's operations and the contaminants identified in the enforcement action:
•  Hydrogen sulfide (H₂S) — Monitored continuously using electrochemical or UV fluorescence analyzers
•  Sulfuric acid mist — Monitored via 24-hour integrated sampling and analysis
•  Selected heavy metals in particulate matter fraction — Arsenic, lead, and chromium, monitored via 24-hour integrated filter sampling with laboratory analysis by inductively coupled plasma mass spectrometry (ICP-MS) or equivalent analytical methodology
4. Meteorological Parameters
Each station will include a comprehensive meteorological sensor suite to support the interpretation of air quality data and the identification of potential emission sources:
•  Wind speed (cup or sonic anemometer)
•  Wind direction (wind vane or sonic anemometer)
•  Ambient temperature
•  Relative humidity
•  Barometric pressure
•  Precipitation (tipping bucket rain gauge)
5. Monitoring Methodology
All monitoring shall be conducted using EPA reference methods and/or equivalent methods as approved by EPA Region 3. Continuous monitors shall be used for all parameters where commercially available continuous monitoring technology exists and is approved by EPA. For parameters where continuous monitoring is not technically feasible or cost-effective (e.g., metals in particulate matter, sulfuric acid mist), twenty-four (24)-hour integrated sampling shall be conducted on a schedule to be determined in consultation with EPA Region 3 and WV DEP, but in no event less frequently than every sixth day (consistent with EPA ambient air monitoring scheduling conventions).
A detailed Quality Assurance Project Plan ("QAPP") will be developed and submitted for EPA Region 3 approval as part of Phase 1 activities. The QAPP will address all aspects of data quality, including precision, accuracy, representativeness, completeness, and comparability ("PARCC") objectives, as well as calibration protocols, routine maintenance schedules, data validation procedures, and corrective actions for out-of-specification conditions. An outline of the QAPP is provided in Appendix C (to be developed separately).
D. Data Management and Public Access
1. Data Transmission and Centralized Management
All monitoring data from the six stations will be transmitted in real-time or near-real-time to a centralized data management system. Data transmission will be accomplished via cellular data links or, where cellular coverage is insufficient, satellite communication systems. The centralized data management system will be designed to receive, store, validate, and disseminate monitoring data in a secure and reliable manner. The system will include automated data quality screening algorithms to flag potential data quality issues (e.g., calibration drift, equipment malfunctions, data gaps) for review by the project quality assurance team.
2. Public Web Portal
A publicly accessible web portal will be developed and launched during Phase 2 of the Project (commissioning and validation phase). The web portal will be designed with the following features:
•  Real-time display of current air quality conditions at each monitoring station, presented in both technical units (e.g., µg/m³, ppb) and in a simplified Air Quality Index ("AQI")-style format accessible to non-technical users
•  Historical data query and download capabilities, allowing users to view and download monitoring data for any period during the Project
•  Graphical displays, including time-series plots, wind roses, and pollutant concentration maps
•  Plain-language explanations of monitored pollutants, health effects, and applicable standards
•  Contact information for questions and feedback
3. Community Display Boards
Community display boards will be installed at two (2) publicly accessible locations in the Institute and South Charleston area to ensure that residents without reliable internet access can view current air quality information. Proposed locations include the Institute public library and the South Charleston municipal building, subject to the agreement of the respective facility operators. The display boards will present near-real-time air quality data in a simplified, easy-to-understand graphical format, updated at regular intervals.
4. Data Quality Assurance/Quality Control (QA/QC)
A comprehensive QA/QC program will be implemented consistent with EPA ambient air monitoring guidelines, including the requirements of 40 C.F.R. Part 58 and applicable EPA guidance documents. The QA/QC program will include, at a minimum:
•  Routine calibration and performance checks of all continuous analyzers
•  Periodic independent audits (flow audits, zero/span checks, multi-point calibrations)
•  Data validation procedures, including both automated and manual review
•  Documentation of all QA/QC activities in quarterly reports
•  Annual performance evaluations of the monitoring network
5. Data Archiving and Availability
All raw and validated monitoring data will be archived in the centralized data management system for the duration of the Project and for a minimum of five (5) years following Project completion. Quarterly data deliverables, including both raw and validated data sets, will be made available to EPA Region 3, WV DEP, and the general public within thirty (30) days after the end of each calendar quarter. Data will be provided in standard electronic formats (e.g., CSV, Excel) compatible with EPA's Air Quality System ("AQS") database and other commonly used data analysis platforms.
E. Community Engagement
1. Annual Community Meetings
TMC/TSC shall host a minimum of one (1) community meeting per calendar year for the duration of the Project. The annual community meetings will be open to all members of the public and will serve as the primary forum for presenting monitoring results to the community, discussing any air quality trends or concerns identified through the monitoring data, and addressing questions from community residents. The meetings will be held at publicly accessible venues in the Institute or South Charleston area, at times and locations designed to maximize community participation. Meeting notices will be published in local newspapers, posted at community gathering points, and distributed through local community organizations at least thirty (30) days in advance of each meeting.
2. Plain-Language Annual Summary Reports
TMC/TSC shall develop and distribute plain-language annual summary reports that present the monitoring results from each calendar year in a format accessible to a general, non-technical audience. The annual summary reports will include descriptions of monitored pollutants, summary statistics, comparisons to applicable air quality standards, and explanations of any significant findings or trends. The reports will be distributed in print and electronic format, with print copies available at community libraries and municipal offices.
3. Coordination with Community Organizations
TMC/TSC shall make good-faith efforts to coordinate with local community organizations, neighborhood associations, and environmental justice groups active in the Institute and South Charleston area. This coordination will include outreach to solicit input on monitoring priorities, station siting, and data presentation, as well as partnerships for the dissemination of monitoring information to community residents.
4. Community Advisory Committee
TMC/TSC shall establish a voluntary community advisory committee (the "Advisory Committee") to provide ongoing input on monitoring priorities, station locations, data presentation, and other aspects of the Project. Membership on the Advisory Committee will be open to interested community residents, representatives of local organizations, and other stakeholders. TMC/TSC shall provide administrative and logistical support for Advisory Committee meetings, which shall be held at least semi-annually. The Advisory Committee shall have an advisory role only; final decisions on all technical and operational aspects of the Project shall remain with TMC/TSC, subject to the oversight and approval authority of EPA Region 3 and WV DEP as provided in the consent decree.
IV. PROJECT IMPLEMENTATION TIMELINE
A. Phase 1: Planning and Permitting (Months 1–9 from Effective Date)
The Effective Date of the consent decree is anticipated to be June 14, 2025, being thirty (30) days after the expected entry of the consent decree by the Court on May 15, 2025. Phase 1 of the Project encompasses all planning, permitting, procurement, and installation activities necessary to prepare the six monitoring stations for commissioning.
Months 1–3 (June–September 2025)
•  Finalization of monitoring station site selection in coordination with EPA Region 3, WV DEP, and community stakeholders, including consultation with the voluntary community advisory committee (to the extent established during this period)
•  Engagement of a qualified air quality monitoring contractor with demonstrated experience in the design, installation, and operation of ambient air quality monitoring networks
•  Issuance of request for proposals ("RFP") for monitoring equipment procurement and installation services
•  Initiation of baseline meteorological data collection and review of historical wind data to inform optimal station siting
•  Initial community outreach and notification regarding the Project
Months 4–6 (October–December 2025)
•  Execution of site access agreements with property owners for all six monitoring station locations
•  Acquisition of all necessary permits, including environmental permits, local zoning and land use approvals, and building permits for monitoring station structures
•  Procurement of monitoring equipment, including air quality analyzers, samplers, meteorological sensors, station shelters, and data communication hardware
•  Procurement and configuration of centralized data management system components
•  Development of the Quality Assurance Project Plan ("QAPP") and submission to EPA Region 3 for review and approval
Months 7–9 (January–March 2026)
•  Physical installation of all six monitoring stations, including construction of concrete pads, installation of equipment shelters, erection of fencing or security enclosures, and establishment of electrical power connections
•  Installation of communication and telemetry infrastructure (cellular and/or satellite data links) at each station
•  Installation of all monitoring analyzers, samplers, and meteorological sensors
•  Performance of multi-point calibrations using certified calibration standards
•  Shake-down testing of all monitoring systems, including verification of data transmission to the centralized data management system
•  Development and finalization of QA/QC protocols and standard operating procedures
B. Phase 2: Initial Operations and Validation (Months 10–12 from Effective Date)
Months 10–12 (April–June 2026)
•  Formal commissioning of all six monitoring stations, including confirmation that all analyzers, samplers, and meteorological sensors are operating within specified performance parameters
•  Initiation of continuous data collection at all stations
•  Conduct of initial QA/QC data validation, including comparison of data from co-located instruments (if applicable), flow audits, and independent performance checks
•  Development and launch of the publicly accessible web portal, including real-time data display, historical data query, and community information features
•  Installation of community display boards at two publicly accessible locations (e.g., Institute public library, South Charleston municipal building)
•  Preparation and submission of the first quarterly summary report within thirty (30) days after the end of the first full calendar quarter of monitoring operations (anticipated to be due on or about October 30, 2026, for the quarter ending September 30, 2026)
C. Phase 3: Continuous Operations (Years 2–10)
The ten (10)-year operational period of the monitoring network will commence upon successful commissioning of all six stations, anticipated to occur in approximately mid-2026. The operational period will extend through approximately mid-2036, for a total continuous monitoring period of ten calendar years.
During Phase 3, the following activities will be conducted on an ongoing basis:
•  Continuous operation and monitoring at all six stations, twenty-four (24) hours per day, seven (7) days per week
•  Routine station maintenance, including calibration checks, filter changes, consumables replenishment, and equipment inspections, in accordance with the QAPP and standard operating procedures
•  Data management, validation, and reporting, including automated quality screening and periodic manual data review
•  Preparation and submission of quarterly summary reports to EPA Region 3 and WV DEP within thirty (30) days after the end of each calendar quarter
•  Preparation and distribution of annual comprehensive reports within ninety (90) days after the end of each calendar year
•  Hosting of annual community meetings and distribution of plain-language annual summary reports
•  Convening of semi-annual meetings of the community advisory committee
•  Equipment repair and replacement as necessary to maintain continuous monitoring capability
A formal mid-term review of the monitoring network will be conducted at the five (5)-year mark (approximately mid-2031). The mid-term review will assess:
•  The adequacy of the current monitoring parameters in light of any changes in Facility operations, community concerns, or regulatory requirements
•  The appropriateness of monitoring station locations, considering any changes in land use, population, or emissions patterns in the area
•  The performance of the monitoring equipment and data management system
•  The effectiveness of the community engagement program
Based on the results of the mid-term review, adjustments to monitoring parameters, station locations, or other aspects of the Project may be proposed by TMC/TSC, subject to the prior written approval of EPA Region 3 and WV DEP. No adjustment shall reduce the overall scope, rigor, or public benefit of the monitoring network.
D. Phase 4: Project Completion and Transition (End of Year 10)
Upon completion of the ten (10)-year operational period, the following activities will be undertaken:
•  Preparation and submission of a final comprehensive summary report covering the entire ten-year monitoring period, including long-term trend analyses, cumulative data summaries, and an assessment of the Project's overall contribution to community air quality awareness and environmental health
•  Consultation with WV DEP and EPA Region 3 regarding the potential transfer of the monitoring stations and the complete data archive to WV DEP, another government entity, or a qualified non-profit organization for continued operation. If transfer is requested and agreed upon, TMC/TSC shall execute the transfer in good order, including the provision of all necessary documentation, equipment manuals, and calibration records. If no transfer is requested or agreed upon, TMC/TSC shall decommission the monitoring stations in accordance with applicable regulations and restore the station sites to their pre-installation condition, to the extent practicable
•  Submission of the final completion report within one hundred and eighty (180) days after the end of the ten-year operational period
•  Certification of completion by the independent monitor, Verdant Analytics, Inc. (Dr. Kamal Osei, Senior Managing Director)
•  Filing of a certification of completion with the United States District Court for the District of Montana in Civil Action No. 9:24-cv-00087-DWM
V. PROJECT BUDGET
A. Summary Budget Table
The total budget for the Institute Community Air Quality Monitoring Network SEP is $3,000,000.00 (Three Million Dollars). The budget is allocated across the following categories:
Each budget category is described in detail in the following subsections.
B. Detailed Budget — Phase 1: Planning, Permitting & Installation ($1,050,000)
Phase 1 encompasses all activities from initial site selection through the completion of monitoring station installation and shake-down testing, covering Months 1 through 9 of the Project (June 2025 through March 2026). The detailed budget for Phase 1 is as follows:
The procurement of the six monitoring stations represents the single largest capital expenditure in the Project budget, at $700,000 or approximately $116,667 per station. Each station package includes a prefabricated environmental monitoring shelter (climate-controlled), continuous air quality analyzers for criteria pollutants, an automated gas chromatograph (auto-GC) system for VOC monitoring, integrated samplers for particulate metals and sulfuric acid mist, a complete meteorological sensor suite, and all associated data acquisition and communication hardware. This per-station cost is consistent with industry pricing for similarly equipped ambient air quality monitoring stations.
The site access, permitting, and legal cost allocation of $50,000 covers the negotiation and execution of site access or lease agreements with property owners for the six station locations, as well as any applicable local zoning applications, building permits, and associated legal fees incurred by Baxter, Tully & Crane PLLC in connection with site acquisition activities.
Installation labor and materials, budgeted at $125,000, includes the construction of reinforced concrete pads at each station site, the erection of security fencing or enclosures, the installation of electrical service connections (including any required utility extension work), and the physical installation and alignment of all monitoring equipment and shelters.
C. Detailed Budget — Phase 2: Commissioning & Validation ($150,000)
Phase 2 covers the commissioning of all six monitoring stations, initial data validation, and the launch of public data access platforms during Months 10 through 12 of the Project (April through June 2026). The detailed budget for Phase 2 is as follows:
Commissioning costs of $50,000 include the personnel time and travel expenses for engineering and technical staff to conduct final system checks, verify instrument performance against acceptance criteria, confirm data telemetry to the centralized data management system, and formally activate each station for continuous monitoring operations. The initial QA/QC data validation and audit allocation of $40,000 covers the costs of independent performance audits (e.g., flow audits, zero/span gas challenges, and multi-point calibration verifications) conducted during the initial validation period, as well as the first round of manual data review and validation.
Web portal development, budgeted at $35,000, covers the design, programming, and deployment of the public-facing web portal, including real-time data display features, historical data query tools, graphical visualization capabilities, and informational content pages. Community display board installation at two locations is budgeted at $15,000, which includes the procurement and installation of durable, weather-appropriate electronic or semi-electronic display units and associated data communication hardware.
D. Detailed Budget — Phase 3: 10-Year Operations & Maintenance ($1,500,000)
Phase 3 represents the core ongoing operational period of the monitoring network, extending over ten (10) years from approximately mid-2026 through mid-2036. The total Phase 3 budget is $1,500,000, representing an average annual operations and maintenance budget of approximately $150,000 per year. The annualized budget breakdown is as follows:
Station maintenance, calibration, and consumables costs include the procurement of calibration gases, filter media, spare parts, and other consumable materials required for continuous monitoring operations, as well as the costs of routine preventive maintenance activities. The part-time field technician allocation covers the salary, benefits, and expenses of a qualified field technician responsible for routine site visits, maintenance, calibration checks, and sample collection activities at all six stations. The technician position may be filled through the environmental monitoring contractor or by a TMC/TSC employee, at TMC/TSC's discretion.
The equipment replacement and repair reserve of $15,000 per year ($150,000 over ten years) is intended to fund the replacement of analyzers, sensors, or other monitoring equipment that reaches the end of its useful life or fails during the operational period. Major analyzer components typically have useful lives of five to seven years, and the reserve allocation is sized to cover anticipated replacement costs over the ten-year period.
E. Detailed Budget — Community Engagement & Outreach ($150,000 over 10 years)
The community engagement and outreach budget covers all costs associated with the annual community meetings, plain-language annual summary reports, and community advisory committee support over the ten-year operational period of the Project.
The annual community meeting budget of $7,500 per year includes venue rental, audiovisual equipment, printed presentation materials, refreshments, professional facilitation services, and translation or interpretation services if needed. The annual summary report budget covers professional graphic design, printing, and distribution of printed reports, as well as electronic distribution. Community advisory committee support covers administrative costs for scheduling and organizing semi-annual committee meetings, providing meeting materials, and maintaining committee records.
F. Detailed Budget — Data Management System ($100,000)
The data management system budget covers the ongoing hosting, maintenance, and periodic updates of the publicly accessible web portal and the underlying centralized data management system over the ten-year operational period. The initial development and launch cost of the web portal is included in the Phase 2 budget (Section V.C above). The annual recurring cost for web portal hosting, maintenance, security updates, and periodic functionality enhancements is estimated at $10,000 per year for ten years, totaling $100,000.
G. Detailed Budget — Project Management & Administration ($50,000)
The project management and administration budget covers the costs of overall project coordination, contractor oversight, regulatory liaison activities, and administrative functions over the ten-year operational period, at an annual cost of $5,000 per year.
This allocation covers the administrative overhead associated with TMC/TSC's internal project management responsibilities, including coordination among TMC/TSC personnel, the environmental monitoring contractor, Pinnacle Creek Environmental LLC (the environmental consultant), Baxter, Tully & Crane PLLC (local counsel), and the regulatory agencies. It does not include the costs of regulatory compliance auditing, which are performed by the independent monitor, Verdant Analytics, Inc., and are funded separately under the consent decree.
H. Budget Notes and Contingency
The following notes and conditions apply to the Project budget:
1. The total Project budget of $3,000,000.00 (Three Million Dollars) is a firm commitment by TMC and TSC under the terms of the consent decree. TMC and TSC shall not seek to reduce this amount, regardless of actual costs incurred.
2. In the event that actual Project costs are less than $3,000,000.00, any surplus funds shall be applied to extended monitoring operations (i.e., continuation of monitoring beyond the ten-year period), the installation of additional monitoring stations, or other enhancements to the monitoring network, as determined in consultation with and subject to the prior written approval of EPA Region 3 and WV DEP.
3. In the event that actual Project costs exceed $3,000,000.00, TMC and TSC shall bear all excess costs. The consent decree obligation is to complete the Project as described in this SEP Description and Budget regardless of cost overruns. TMC and TSC acknowledge that cost overruns do not relieve them of any obligation under the consent decree.
4. All Project expenditures are subject to audit by the independent monitor, Verdant Analytics, Inc. (Dr. Kamal Osei, Senior Managing Director), as part of the quarterly compliance audits conducted under the consent decree. TMC and TSC shall maintain complete and accurate financial records of all Project expenditures and shall make such records available to the independent monitor upon request.
5. Budget line items represent planning estimates based on current market conditions and engineering judgment. Transfers between budget categories may be made by TMC/TSC to accommodate actual costs, provided that such transfers do not materially reduce the scope or quality of any Project component and that the total budget commitment of $3,000,000.00 is maintained.
VI. PROJECT OVERSIGHT AND REPORTING
A. Responsible Parties
Torchlight Mining Corp. and Torchlight Specialty Chemicals, Inc., as Settling Defendants under the consent decree in Civil Action No. 9:24-cv-00087-DWM, are jointly and severally responsible for the implementation, funding, and timely completion of the Institute Community Air Quality Monitoring Network Supplemental Environmental Project. This responsibility encompasses all aspects of the Project, including planning, permitting, installation, operation, maintenance, data management, community engagement, and reporting, as described in this document.
Day-to-day project management will be conducted by Gareth Linford, Vice President, Environmental Health & Safety, Torchlight Mining Corp., or his designee. Mr. Linford will serve as the primary point of contact for all communications with regulatory agencies, the independent monitor, the environmental monitoring contractor, and the community advisory committee regarding the Project. TMC/TSC shall promptly notify EPA Region 3, WV DEP, and the independent monitor of any change in the designated project manager.
TMC/TSC has engaged Pinnacle Creek Environmental, LLC as its environmental consultant for the design, implementation support, and technical oversight of the monitoring network. The Pinnacle Creek engagement is led by Dr. Astrid Bergmann, P.E., Senior Principal, located at the firm's office at 320 Willowbrook Drive, Suite 100, Bozeman, Montana 59715. Pinnacle Creek's role includes the development of the site selection study, the Quality Assurance Project Plan, equipment specifications, and ongoing technical support throughout the ten-year operational period. Pinnacle Creek's fees and expenses are included within the Project budget.
As noted above, local legal support for the Project in West Virginia is provided by Baxter, Tully & Crane PLLC, led by partner Nathan Tully. Calderwood & Harkness LLP continues to serve as national lead counsel for TMC/TSC in the enforcement matter and provides overall legal oversight for all three SEPs under the consent decree.
B. Regulatory Oversight
The following regulatory entities and representatives have oversight roles with respect to the Project:
EPA Region 3 (West Virginia). EPA Region 3 is the primary federal regulatory authority for the Project. EPA Region 3's responsibilities include the review and approval of monitoring station site selections, monitoring parameters, the Quality Assurance Project Plan, and any proposed modifications to the monitoring network during the operational period. EPA Region 3 is also a recipient of all quarterly and annual monitoring reports.
West Virginia Department of Environmental Protection (WV DEP). WV DEP serves as the state co-regulatory authority and co-plaintiff representative. WV DEP will coordinate with EPA Region 3 on the approval of station siting and monitoring parameters, and will receive all monitoring data and reports. WV DEP is also the anticipated recipient of the monitoring stations and data archive upon Project completion, if a transfer is mutually agreed upon.
Loretta May Hatcher, Assistant Attorney General, Office of the Attorney General of the State of West Virginia. Ms. Hatcher serves as the lead state counsel and the state co-plaintiff representative in the enforcement action. She is a recipient of this SEP Description and Budget and will receive notification of material Project developments.
Verdant Analytics, Inc. — Independent Monitor. Verdant Analytics, Inc., under the direction of Dr. Kamal Osei, Senior Managing Director, has been appointed as the independent monitor for the consent decree. Verdant Analytics will conduct quarterly compliance audits of SEP progress and expenditures, and will issue annual public reports on the status of all SEPs, including the Institute Community Air Quality Monitoring Network. The independent monitor's audits will encompass verification of milestone completion, review of financial expenditures against the approved budget, assessment of data quality and reporting timeliness, and evaluation of community engagement activities.
C. Reporting Requirements
The following reporting obligations apply to the Project:
1. Quarterly Summary Reports. TMC/TSC shall prepare and submit quarterly summary reports to EPA Region 3 and WV DEP within thirty (30) days after the end of each calendar quarter (i.e., by April 30, July 31, October 31, and January 31 of each year). The first quarterly report shall be submitted within thirty (30) days after the end of the first full calendar quarter of monitoring operations. Each quarterly report shall include:
(a) Summary of monitoring data for each station and each measured parameter, including period averages, maximum concentrations, and the number of hours or days of valid data collection;
(b) QA/QC audit results, including documentation of calibration checks, performance audits, and any corrective actions taken;
(c) Station maintenance logs, including documentation of equipment malfunctions, repairs, and replacements;
(d) Summary of community engagement activities conducted during the quarter;
(e) Financial expenditure summary for the quarter, with year-to-date and cumulative totals compared to the approved budget.
2. Annual Comprehensive Reports. TMC/TSC shall prepare and submit annual comprehensive reports within ninety (90) days after the end of each calendar year. Annual reports shall include all information contained in the quarterly reports, consolidated for the full calendar year, together with annual trend analyses, year-over-year comparisons, and an assessment of monitoring network performance.
3. Simultaneous Distribution. All quarterly and annual reports shall be simultaneously provided to the independent monitor, Verdant Analytics, Inc.
4. Final Completion Report. TMC/TSC shall prepare and submit a final comprehensive completion report within one hundred and eighty (180) days after the end of the ten-year operational period. The final report shall cover the entire ten-year monitoring period and shall include long-term trend analyses, cumulative data summaries, a description of all community engagement activities conducted over the life of the Project, and a comprehensive accounting of all Project expenditures compared to the approved budget. The final report shall be submitted to EPA Region 3, WV DEP, the independent monitor, and the Court.
VII. SEP COMPLETION CRITERIA AND CERTIFICATION
The Institute Community Air Quality Monitoring Network Supplemental Environmental Project shall be deemed complete upon the satisfaction of all of the following criteria:
(a) Successful operation of all six (6) ambient air quality monitoring stations for the full ten (10)-year operational period, as documented by the quarterly and annual reports submitted to EPA Region 3 and WV DEP throughout the life of the Project.
(b) Preparation, submission, and acceptance by EPA of the final comprehensive completion report described in Section VI.C.4 of this document, which shall cover the entire ten-year monitoring period and provide a complete accounting of all Project activities and expenditures.
(c) Certification by the independent monitor, Verdant Analytics, Inc. (Dr. Kamal Osei, Senior Managing Director), that all Project requirements set forth in this SEP Description and Budget and in the applicable provisions of the consent decree have been met, including compliance with all reporting deadlines, data quality objectives, community engagement commitments, and financial expenditure requirements.
(d) Filing of a formal certification of completion with the United States District Court for the District of Montana in Civil Action No. 9:24-cv-00087-DWM, signed by an authorized representative of TMC and TSC and attested to by the independent monitor.
In the event that TMC or TSC fails to meet any Project milestone or obligation set forth in this SEP Description and Budget or in the consent decree, stipulated penalties shall be assessed as follows, consistent with the stipulated penalty provisions of the consent decree:
•  Days 1–30 of violation: $1,500 per day per violation
•  Days 31–60 of violation: $3,000 per day per violation
•  Day 61 and thereafter: $5,500 per day per violation
Stipulated penalties shall accrue from the date of the missed milestone or the date on which the obligation was due, and shall continue to accrue until the violation is cured. Stipulated penalties are in addition to, and not in lieu of, any other remedies available to the United States or the State of West Virginia under the consent decree or applicable law. The demand for and payment of stipulated penalties shall not relieve TMC or TSC of the obligation to complete the Project as described herein.
VIII. ENVIRONMENTAL AND PUBLIC HEALTH BENEFITS
The Institute Community Air Quality Monitoring Network Supplemental Environmental Project will provide significant and enduring environmental and public health benefits to the Institute and South Charleston community in Kanawha County, West Virginia. These benefits include, but are not limited to, the following:
Continuous, Real-Time Air Quality Data. The Project will provide the Institute and South Charleston community with continuous, real-time air quality monitori