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The mines were granted a series of permit amendments that expanded the size of the 

 operations until Pegasus applied for a major permit expansion in 1992, which was 

 eventually not implemented. Discovery of significant acid rock drainage problems at 

 both mines resulted in a need for a major revision of the existing mine reclamation 

 plans and a review of existing bond amounts. It was determined that the proposed 

 1992 mine expansion would require a detailed analysis through the preparation of an 

 environmental impact statement 

 (EIS). 



Between 1993 and 1995, 



litigation under the Water 



Quality Act was initiated in state 



and federal courts alleging 



unpermitted mine discharges to 



state waters. Settlement 



discussions resulted in the signing 



of a Consent Decree between 



Pegasus, the DEQ, the 



Environmental Protection Agency 



(EPA), a citizen's group, and the 



Fort Belknap Tribes effective in 



September 1996.'' The Consent 



Decree obligated Pegasus to construct water collection systems and water treatment 



plants, bond for the immediate operation of the water treatment plants, and establish 



a trust reserve for their long-term operation and maintenance. It also provided for a 



penalty and required the company to perform ground water, aquatic, and health 



studies, implement monitoring programs, and provide improvements to drinking water 



systems on the reservation. The Consent Decree established temporary water quality 



standards and obligated the company to obtain Montana Pollution Discharge 



Elimination System (MPDES) permits for each discharge to state waters based on more 



stringent water quality standards once the water treatment plants and water 



discharge capture systems were in place and operational. The Consent Decree did not 



address surface reclamation of the mines because the decree was a settlement of 



alleged violations of the Water Quality Act, which did not include jurisdiction over 



surface reclamation requirements. 



Landusky Mine, 1993. BLM Photo. 



