Legal Notice
Partial Bond Release and Comprehensive Five-Year Bond Review for MTMI (Hard Rock Mining Operating Permit No. 00113)
The Department of Environmental Quality (DEQ) has received a request for partial bond release from Montana Tunnels Mining Inc. (MTMI). MTMI is authorized to operate an open pit mine, floatation mill, and tailings storage facility in accordance with Operating Permit No. 00113 (suspended for failure to post required reclamation bond). The site is located on a combination of private lands owned by MTMI and federal lands administrated by the US Bureau of Land Management in T7N, R4W, Sections 4, 5, and 8; approximately five miles West from Jefferson City, MT, in Jefferson County.
DEQ currently holds a reclamation bond in the amount of $21,564,854.67 with a required bond amount $36,579,298. DEQ is proposing to reduce the amount of bond required by $401,861 account for completed reclamation tasks on portions of waste rock dumps and stockpiles.
In addition to the request for bond release, DEQ is conducting a comprehensive bond review for Operating Permit No. 00113. 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. After reducing the bond required for completed reclamation, DEQ is proposing to increase the required bond by $4,781,884. The bond increase is largely due to due to changes in fuel price, equipment rates, removal of nonmobile site equipment and updated indirect costs such as mobilization, contingency, and administration.
DEQ has determined the net effect on the bond from the release request ($401,861.00) and increase as a result of the five‐year comprehensive review ($4,781,884) is an increase in the amount of required bond to $40,959,321.
The procedure for adjusting bonds as a result of a comprehensive bond review is set forth in Section 82-4-338(3), MCA. Pursuant to Section 82-4-338(5), Montana Code Annotated (MCA), DEQ may not release or decrease a reclamation bond until the public has been provided an opportunity for a hearing and a hearing has been held if requested. The company and the public will have until October 17, 2023, to comment on these proposed changes to the bond amount. 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, and any related questions should be directed to Eric Dahlgren, Hard Rock Mining Section Supervisor, Mining Bureau, Department of Environmental Quality, PO Box 200901, Helena, MT 59620-0901, by telephone at (406) 444-5245 or by e-mail at DEQHardRock@mt.gov
Legal 23-110 Published in the Boulder Monitor September 20, 2023
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