FOR IMMEDIATE RELEASE

ENR

MONDAY, NOVEMBER 16, 1998

EPA (406) 441-1123

DOJ (202) 514-2008

TDD (202) 514-1888

BUTTE, MT - The Atlantic Richfield Company (ARCO) will spend $260 million -- including a $1.8 million penalty -- to settle allegations of liability for cleanup costs and natural resource damages caused by mine waste contamination in the Clark Fork River Basin, announced the U.S. Department of Justice, the U.S. Environmental Protection Agency and the U.S. Department of the Interior today, in conjunction with the State of Montana and the Confederated Salish and Kootenai Tribes of the Flathead Nation.

"Today's settlement is more good news for the people of Montana and of the nation. Everyone who enjoys the Clark Fork River Basin has had to live with mine waste contamination," said Lois J. Schiffer, Assistant Attorney General for Environment and Natural Resources at the Justice Department. "By cleaning up the contamination, we are helping to create safe, livable communities and are protecting recreational opportunities in the Basin. This settlement, which required the cooperation of the State, the Tribes and the United States, is an important step toward those goals."

U.S. Attorney Sherry Matteucci, EPA Regional Administrator Bill Yellowtail, and U.S. Fish and Wildlife Montana Office Director Kemper McMaster discussed this settlement, which resolves a portion of the United States v. ARCO suit, at a news conference in the Butte-Silver Bow Courthouse rotunda. Filed today in U.S. District Court in Montana, the settlement is signed by the U.S. Department of Justice, U.S. EPA, the State of Montana, the Confederated Salish and Kootenai Tribes of the Flathead Nation, and ARCO.

EPA Regional Administrator Bill Yellowtail expressed pleasure at the successful settlement. "EPA is eager to begin cleanup on Silver Bow Creek, and the Consent Decree moves us closer to that goal. The State and EPA will start construction activities during the summer of 1999. Resolving the natural resource damage issues associated with this site was a necessary step toward overall site cleanup. EPA looks forward to a successful coordination effort with the State Department of Environmental Quality to remedy the metals contamination issues along the creek, as well as working with the communities of Butte-Silver Bow and Anaconda-Deer Lodge counties to achieve their desired end land use."

"EPA is pleased to be concluding this aspect of the US v. ARCO lawsuit so successfully," according to John Wardell, Montana Office Director for EPA. "The penalty ARCO will pay for violating the EPA order to design and construct a remedy for the creek should serve as an important reminder that the United States takes very seriously failure to comply with environmental laws and will pursue penalties as necessary." Steve Herman, Assistant Administrator for Enforcement at EPA added, "Extensive cooperation among the federal, state, and Tribal governments enabled us to reach this important milestone in cleaning up the Clark Fork River Basin. We will continue to work with ARCO to reach a final settlement to clean up the remaining contaminated areas in the Basin."

With the consent decree filed today, ARCO's total responsibility for clean-up of the Silver Bow Creek and portions of the natural resource damage lawsuits for the Clark Fork River Basin will be just under $260 million. This amount represents two settlements reached this year.

In the first settlement, announced in June of this year, Montana receives $215 million from ARCO, including $80 million for the cleanup of the Silver Bow Creek under the supervision of the State and EPA, with contingencies for additional funding if necessary.

The first settlement was contingent on the agreement announced today. In today's settlement, the company will pay $20 million in natural resource damages to the U.S. Department of Interior's Fish and Wildlife Service and the Confederated Salish and Kootenai Tribes. This money will be used to restore wetlands, bull trout habitat, and other natural resources.

Today's agreement further requires ARCO to pay $3.9 million in past cleanup costs to the United States, and a $1.8 million penalty for violating the Streamside Tailings unilateral administrative order in 1997. ARCO has committed to perform additional restoration to create, restore, or enhance 400 acres of wetlands, primarily in the Anaconda area, which is estimated to cost $3.4 million. ARCO has also committed to reserve $15 million to reimburse the United States for a portion of past costs at other operable units of the Clark Fork River Basin.

The State and the Tribes have committed to work with the U.S. Fish and Wildlife Service on restoration of wetlands, other riparian areas, and bull trout habitat as part of the settlement. Ralph Morgenweck, Regional Director of the Fish and Wildlife Service, applauded the settlement, saying, "The Service appreciates the hard work and cooperation of all parties in reaching resolution. This settlement is another step towards restoring the health of the Clark Fork River Basin ecosystem for the benefit of wildlife and the people of Montana. We look forward to working with the other parties and the public in accomplishing this goal."

This agreement resolves only a part of the federal action and federal claims against ARCO for Clark Fork Basin mine waste contamination. It commits the U.S. and ARCO to continue negotiations for final cleanup and settlement of all the areas contaminated by mining waste in the Upper Clark Fork River Basin outside of the Streamside Tailings area, including the Anaconda area, the Milltown Reservoir area, the Clark Fork River area, and the Butte Priority Soils area, and to resolve the remainder of the U.S. v. ARCO lawsuit.

The agreement must be approved by U.S. District Court Judge Paul Hatfield. Copies of the Consent Decree are available immediately for review, and can be obtained in the EPA Butte office in the basement of the Silver Bow County Courthouse, or by contacting Pam Hillery at EPA, 406-441-1150, extension 246. The United States will publish a Federal Register notice to begin a formal 30-day public notice and comment period. EPA and the State of Montana also will announce the dates of the comment period in advertisements published in newspapers throughout the area.

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