EPA v. Bunker Hill (Hopper/New Bunker Hill Mining Co.)

Case summary

On March 6, 2018, the U.S. Environmental Protection Agency (EPA) and Department of Justice (DOJ) entered into an administrative settlement agreement and order on consent with Bunker Hill Mining Corp. (BHMC), which is currently leasing and operating the Bunker Hill Mine in Idaho. Concurrent with this administrative settlement agreement, on March 12, 2018, EPA and DOJ lodged a consent decree with the current owner of the mine, Placer Mining Corporation (PMC). This settlement package presents an opportunity for the potential reuse of the mine that had been dormant for many years. EPA regularly incurs costs in operating a wastewater treatment plant that treats the approximately 1,300 to 1,400 gallons-per-minute of acid mine drainage released from the mine on an ongoing daily basis. If not collected and treated at the wastewater treatment plant, acid mine drainage from the mine would flow through the mine yard, across properties where public and environmental exposures would occur, and into Bunker Creek and the South Fork of the Coeur d�Alene River where it would have significant detrimental effects on water quality and the ecosystem. Under this settlement package, BHMC will pay almost $1 million annually for water treatment costs incurred by EPA, starting on December 1, 2017. Under the administrative settlement agreement, BHMC will also perform cleanup work at the mine that was previously being done pursuant to two unilateral administrative orders issued by EPA to the current owner, PMC. These are actions that BHMC is not otherwise responsible or liable for because BHMC had not caused or contributed to the existing contamination at the site. BHMC will continue to pay EPA for the wastewater treatment costs for so long as BHMC leases, owns, or occupies the Mine and until BHMC finds alternative means to treat the wastewater discharged from the mine. In addition to carrying out the cleanup actions and paying wastewater treatment costs, BHMC will pay EPA up to $20 million in satisfaction of EPA�s past costs claim against PMC. This amount is being paid by BHMC, on behalf of PMC, as a portion of the lease/purchase price between the two companies. Currently, EPA has approximately $24 million in outstanding, recoverable past costs at the site. BHMC, formerly Liberty Silver Corp., is a publicly held mining corporation headquartered in Ontario, Canada. On August 17, 2017, BHMC and the current owner of the Bunker Hill Mine, PMC, entered into a two-year Mining Lease with Option to Purchase. The lease became effective on December 1, 2017. The lease provides that BHMC will operate the Bunker Hill Mine and make certain improvements on the Mine along with making payments to PMC over the term of the lease. Pursuant to the lease, BHMC has the exclusive right to purchase the Bunker Hill Mine during the lease term upon notice to PMC and the United States. Through this lease, BHMC is seeking to redevelop one of the largest zinc-lead-silver deposits in the Americas not in production, located in the Silver Valley of Idaho. Placer Mining Co. and the United States filed a joint stipulation of dismissal with prejudice in the Court of Federal Claims on July 17, 2018. Placer Mining Co. brought a takings case against the United States for remedial activities undertaken by EPA Region 10 at the Bunker Hill Mine, specifically the Reed Landing Project. The parties agreed to file the joint stipulation of dismissal with prejudice in accordance with the June 18, 2018 Consent Decree between the United States and Placer Mining Co./Bob Hopper, Jr. On July 18, 2018, the Court of Federal Claims entered an order of dismissal with prejudice for the takings case.

Defendants (3)

• Placer Mining Corp.Named in complaintNamed in settlement
• Robert HopperNamed in complaintNamed in settlement
• New Bunker Hill Mining Co.Named in complaint

Facilities (1)

• BUNKER HILL MINING CO INC

  834 MCKINLEY AVE, KELLOGG, ID, 83837

  Registry ID: 110005782643

Statutes cited

• CERCLA 107A — Cost Recovery
• CERCLA 106 — Imminent & Substantial Endangerment Order
• CERCLA 109A5 — Violation of 109(a)(5) Subpoena
• CERCLA 104E3 — Entry Access

Enforcement conclusions (1)

• Bunker Hill (Placer Mining CD)entered 2018-06-19

  Primary law: CERCLA

Timeline (6 milestones)

• 2002-08-14Referred To Dept Of Justice
• 2002-10-29Enforcement Action Data Entered
• 2004-03-19Complaint Filed With Court
• 2018-03-12Final Order Lodged
• 2018-06-19Concluded
• 2018-06-19Final Order Entered