DEQ Officially Considers Montana Tunnels Mine Abandoned or Complete, Urges Reclamation

• July 08 2021

HELENA—The Montana Department of Environmental Quality (DEQ) issued a violation letter notifying the Montana Tunnels Mine near Jefferson City in Jefferson County, Mont. that it considers the mine abandoned or complete. The violation letter outlines a path for corrective actions at the mine and provides a period of 15 days for Montana Tunnels to respond.

The once active gold, silver, zinc and lead mine has not operated since 2008. In 2018, the mine’s permit was suspended by operation of law over its failure to post adequate bond. Since the 1970s, the state has made improvements in bond calculations to ensure that mines are adequately bonded and can be reclaimed by the state in instances where the operator is unable to do so. The Montana Tunnels site is one of two hard rock mines in the state that remains under-bonded as determined by current law. The other site is the Diamond Hill Mine, another Montana Tunnels Mine near Townsend, Mont. For the Montana Tunnels Mine near Jefferson City, DEQ currently holds approximately $19.7 million in bond. DEQ last evaluated the bond in September 2020 and calculated the total bond amount necessary for reclamation to be approximately $36.5 million. Montana Tunnels has not posted the additional $16.8 million bond required for the Jefferson City site.

Under Montana’s Metal Mine Reclamation Act, DEQ has the discretion, based on certain factors, to conclude whether a site is considered abandoned or complete. Once a site is considered abandoned or complete, reclamation of the site is required to occur within two years. A new reclamation plan was initiated and approved by DEQ last year, however, reclamation has not begun at the mine. The latest reclamation plan provides a long-term reclamation strategy for Clancy Creek, which is currently routed past the pit wall through a temporary pipe. While DEQ has determined the mine does not currently pose a significant environmental problem, as defined in the Metal Mine Reclamation Act, reclamation is needed throughout the site. Those in the area may notice the pit is filling with water—this is part of the approved reclamation plan that includes a pit lake. The water has been tested and meets water quality standards.

“DEQ works closely with mine operators across Montana to ensure laws and regulations are met. When agreed-upon actions are not taken, DEQ must take the necessary steps to protect Montana’s environment and the integrity of the requirements of the Metal Mine Reclamation Act,” said DEQ Director Chris Dorrington. “DEQ staff have met with the mine operator and communicated regularly. Unfortunately, these efforts have not resulted in a fully bonded or reclaimed site.”

DEQ is issuing a violation letter to begin the corrective action process. The corrective action process may include reclamation, posting of the full bond by Montana Tunnels, or transfer of the permit to a fully bonded operator. The company has 15 days to respond, after which DEQ will assess all the facts surrounding the violation and make a final decision about next steps.