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Federal government, Colorado and mining company reach $90 million settlement in Gold King mine spill

The proposed settlement announced Friday would direct $90 million to cleanup at the Bonita Peak Mining District Superfund site in southwest Colorado

In this Thursday, Aug. 6, 2015 file photo, people kayak in the Animas River near Durango, Colo., in water colored yellow from a mine-waste spill. A crew supervised by the U.S. Environmental Protection Agency has been blamed for causing the spill while attempting to clean up the area near the abandoned Gold King Mine. (Jerry McBride/The Durango Herald via AP, FILE)

By James Anderson, The Associated Press

Colorado, the U.S. government and a gold mining company have agreed to resolve a longstanding dispute over who’s responsible for continuing cleanup at a Superfund site that was established after a massive 2015 spill of hazardous mine waste that fouled rivers with a sickly yellow sheen in three states.

The proposed settlement announced Friday would direct $90 million to cleanup at the Bonita Peak Mining District Superfund site in southwest Colorado, according to the U.S. Environmental Protection Agency and Denver-based Sunnyside Gold Corp.

The agreement must be approved by the U.S. District Court in the District of New Mexico after a 30-day public comment period.

Sunnyside, which owns property in the district, and the EPA have been in a long-running battle over the cleanup. The EPA has targeted Sunnyside to help pay for the cleanup, and the company has resisted, launching multiple challenges to the size and management of the project.

An EPA-led contractor crew was doing excavation work at the entrance to the Gold King Mine, another site in the district not owned by Sunnyside, in August 2015 when it inadvertently breached a debris pile that was holding back wastewater inside the mine.

An estimated 3 million gallons of wastewater poured out, carrying nearly 540 U.S. tons of metals, mostly iron and aluminum. Rivers in Colorado, New Mexico and Utah were polluted.

The spill resulted in lawsuits against the EPA and prompted the agency to create the Bonita Peak Superfund district.

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Sunnyside operated a mine next to Gold King that closed in 1991. A federal investigation found that bulkheads to plug that closed mine led to a buildup of water inside Gold King containing heavy metals. The EPA contractor triggered the spill while attempting to mitigate the buildup.

Under the agreement, Sunnyside and its parent, Canada-based Kinross Gold Corp., will pay $45 million to the U.S. government and Colorado for future cleanup. The U.S. will contribute another $45 million to cleanup in the district, which includes the Gold King Mine and abandoned mines near Silverton.

Monies will be used for water and soil sampling and to build more waste repositories. The EPA said in a statement Friday it has spent more than $75 million on cleanup work “and expects to continue significant work at the site in the coming years.”

The proposed consent decree follows Sunnyside settlements with New Mexico and the Navajo Nation earlier this year. Sunnyside admits no fault in the agreement.


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