Legal Notice
Comprehensive Five-Year Bond Review for EGI (Hard Rock Mining Operating
Permit No. 00173)
The Department of Environmental Quality (DEQ) is conducting a comprehensive bond review for Operating Permit No. 00173 issued to Elkhorn Goldfields Inc. (EGI). EGI’s facility and associated disturbances are located in Jefferson County, approximately 0.8 miles northwest of Elkhorn (8.5 miles northeast of Boulder), in Sections 10, 11, 14 and 15 of T6N, R3W.
DEQ has determined that the current bonding level does not represent the present costs of compliance with the Metal Mine Reclamation Act, administrative rules adopted thereunder, and the operating permit. DEQ has authorized incremental bonding for this project, requiring EGI to maintain sufficient bond to ensure reclamation on existing mining disturbances and infrastructure (interim bond), while deferring posting of additional bond required before operation of the mine can begin (operational bond increment). DEQ is proposing a bond increase of $97,017 (from $615,978 to $712,995) for the interim bond, and a bond increase of $759,453 (from $621,565 to $1,381,018) for the operational bond increment. The interim bond increase is largely due to changes in fuel price and equipment rates and updated indirect costs such as mobilization, contingency, and administration, etc., while the operational bond increment increase includes these factors as well as costs associated with reclamation of additional site features recently proposed by EGI for operations. The total bond required in order for the mine to begin operation would be the sum of the interim bond and the operational bond increment, $2,094,013. As of February 26, 2024, EGI Operating Permit No. 00173 was suspended pursuant to Sections 82-4-360 and 82-4-362(1) of the Montana Code Annotated. The current suspension of the operating permit does not remove EGI’s responsibility to post the interim bond increment of the required reclamation bond.
The procedure for adjusting bonds as a result of a comprehensive bond review is set forth in Section 82-4-338(3), MCA. The company and the public will have until January 21, 2025, to comment on the proposed bond increase. DEQ will issue a final bond determination after the comment period has expired. The company, or any person with an interest that may be adversely affected by DEQ’s final bond determination, may obtain a contested case hearing before the Board of Environmental Review. A written request for a hearing must be filed with DEQ within 30 days of the issuance of the final bond determination, stating the reason for the request.
Requests for copies of the bond calculation associated with the comprehensive bond review, comments on the bond, or any related questions should be directed to Millie Olsen, Supervisor, Hard Rock Mining Section, Mining Bureau, Department of Environmental Quality, PO Box 200901, Helena, MT 59620-0901, by telephone at (406) 444-2461 or by e-mail at DEQHardRock@mt.gov.
Legal 24-135 Published in the Boulder Monitor December 18, 2024 MNAXLP
