A	Edge Mine Superfund Site

Settlements with Site Property Owners

United States Environmental Protection Agency Region 8 February 2011

Background

The Gilt Edge Mine Site is located approximately
4.5 miles southeast of the town of Lead in the north-
ern Black Hills in Lawrence County, South Dakota.
The Site is located at the headwaters of three tribu-
taries draining into Bear Butte Creek: Strawberry
Creek, Terrible Gulch, and Ruby Gulch.

Mining began at the site in 1876 when the Gilt Edge
and Dakota Maid mining claims were located. Spo-
radic mining by numerous operators were conducted
at the Site until 1941. Early gold miners developed
extensive underground workings that wind through
the central portion of the site and engaged in some
surface mining as well. In addition, the early min-
ers deposited mill tailings in Strawberry Creek and
Bear Butte Creek.

Beginning in 1975, an extensive mine development
program at the site was initiated to investigate poten-
tial production of gold and other metals and several
companies engaged in both surface and underground
mining as well as other mining related activities.

In 1986, Brohm Mining Company (BMC) com-
menced development of a large scale open pit, cya-
nide heap leach gold mine operation. In 1999, BMC
abandoned the site. At the request of the State, EPA
listed the site on the National Priorities List in 2000
and assumed responsibility for cleanup.

The site is contaminated as a result of historic min-
ing activities. Contaminates at the site include haz-
ardous substances as arsenic, aluminum, cadmium,
copper, iron, lead, manganese and zinc. A signifi-
cant environmental problem at the site is acid rock
drainage (ARD). Commonly associated with mining
sites, ARD is created when water comes into contact
with highly mineralized rocks and soils that have
been unearthed and exposed to air. This water be-
comes acidic, and the acid draws heavy metals from
the rocks and soils through which it drains. The re-
sult is ARD: highly acidic water carrying high levels
of heavy metals. EPA's cleanup actions at the site
include the collection and treatment of ADR to pre-
vent off-site releases.

Settlements With Property Owners

The Superfund law imposes liability for the cost of
clean up at contaminated sites on certain parties as-
sociated with such sites, referred to as potentially
responsible parties (PRPs). Over the past two years,
EPA entered into settlements with seven PRPs that
own the property comprising the Gilt Edge Mine
site. To satisfy their liabilities, each property owner
confessed to entry of a judgment in negotiated
amounts, that combined, totals $13,460,000.

Rather than making cash payments to EPA, each
party will satisfy their respective judgment in full by
transferring all of their land within the site bounda-
ries to the State of South Dakota and by assigning to
EPA all potential rights to any insurance claim pro-
ceeds. In addition, one of the settling parties will
sell other land outside the site and use a portion of
the sales proceeds to pay EPA in cash.

For More Information

More information about the Gilt Edge Mine Site is
available on EPA's web page at
www.epa.gov/region8/superfund/sd/giltedge.

In addition, you may contact:

Chris Wardell

Community Involvement Coordinator
U.S. Environmental Protection Agency
1-800 227-8917, ext. 312-6062
E-mail: wardell.christopher@epa.gov


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