EPA to require mine firms to offer cleanup guarantees

BILLINGS, Mont. — The Environmental Protection Agency plans to require mining companies to show they have the financial wherewithal to clean up their pollution so taxpayers aren’t stuck footing the bill.

The proposal released Friday follows a 2016 agreement reached under court order for the government to enforce a long-ignored provision in the 1980 federal Superfund law.

The requirement would apply to hard rock mining, which includes mines for precious metals, copper, iron, lead and other ores. It would cover mines and processing facilities in 38 states, requiring their owners to set aside sufficient money to pay for future clean ups.

The EPA is considering similar requirements for chemical manufacturers, power generation companies and the petroleum refining and coal manufacturing industries.

From 2010 to 2014, the EPA spent $1.1 billion on cleanup work at abandoned hard rock mining and processing sites across the U.S.

The new rule “would move the financial burden from taxpayers and ensure that industry assumes responsibility for these cleanups,” EPA Assistant Administrator Mathy Stanislaus said.

Companies would face a combined $7.1 billion financial obligation under the new rule, the EPA estimated. The agency said the amount could be covered through third parties such as surety bonds or self-insured, corporate guarantees.

Contaminated water from mine sites can flow into rivers and other waterways, harming aquatic life and threatening drinking water supplies. Companies in the past avoided cleanup costs in many cases by declaring bankruptcy.

Last year, an EPA cleanup team accidentally triggered a 3-million gallon spill of contaminated water from Colorado’s inactive Gold King mine, tainting rivers in three states with heavy metals including arsenic and lead.

Representatives of Earthworks, an advocacy group that has pushed for mining companies to be held accountable, said the EPA proposal would give the industry an incentive to reduce its pollution. But key to its success, said Earthworks’ Bonnie Gestring, will be making companies post cleanup bonds rather than offer corporate guarantees that they might not fulfill.

The National Mining Association blasted the rule as “unnecessary, redundant and poorly constructed,” because existing programs prevent mines from becoming Superfund sites.

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