Representative Matters

Negotiations of CERCLA Bona Fide Prospective Purchaser Agreement at Gilt Edge Superfund Site in South Dakota

Represented Agnico Eagle Mining (AEM) in successful negotiations of a CERCLA Bona Fide Prospective Purchaser (BFPP) administrative settlement agreement and order on consent (AOC) with the United States Environmental Protection Agency (EPA) and the State of South Dakota at the former Gilt Edge gold mine operation in South Dakota, which is currently listed as a Superfund site on the National Priorities List.  The AOC requires AEM to investigate and characterize the subsurface site geology, mineralization, geochemistry and hydrological characteristics beneath existing pits to help understand the location, specific subsurface rock type sources, and pathways of migration of acid rock drainage (ARD) derived metals that may be migrating along underground structural corridors into the Strawberry Creek drainage.  As part of the investigation, AEM will perform confirmation and exploration drilling to determine the quality and quantity of the gold reserve, conduct mining feasibility studies, and metallurgical, engineering and preliminary permitting activities to evaluate the economic feasibility of mine development.  The AOC protects AEM from CERCLA liability for existing historical site contamination, estimated by EPA at $280 million, through covenants not to sue and contribution protection provisions in the AOC.