DEQ looks at fining Little Rocky mining exploration

Editor’s note: This clarifies that a fine has been calculated but not imposed.

Montana Department of Environmental Quality has calculated a potential fine, more than $500,000, for a group requesting permission to do mining exploration at a site that already has cost millions in restoration.

The fine has been proposed for alleged mining exploration without a permit.

A consent order drafted by Montana Department of Environmental Quality states that Blue Arc LLC, Luke Ployhar, Legacy Mining LLC and Owen Voigt will pay the fine, $516.567, for conducting exploration without a permit in the Little Rocky Mountains at the Zortman Mine just south of Fort Belknap Indian Reservation, as part of the consent order.

VDEQ spokesperson Moira Davis said no fine has been officially imposed on any of the entities who have been notified of violations of the Metal Mines Reclamation Act.

Davis said, its statutory discretion, DEQ calculated a penalty that was commensurate with observed violations. The dates referenced are dates the penalties were calculated from.

DEQ has the discretion to issue an administrative order or to offer the parties involved the opportunity to negotiate an administrative order on consent, Davis said, and the department has elected to offer the latter and sent the initial draft of the administrative order on consent and the penalty calculation to the parties on July 1 to initiate those discussions. The discussions are ongoing.

The draft of the consent order also requires Ployhar and Voigt to cease any exploration and mining activities at the properties until proper licenses and permits have been issued and a performance bond has been filed and to submit a plan for reclamation at the eight sites DEQ identifies as where exploration has occurred.

In the discussions leading up to the fine and consent order being drafted, Blue Arc sent a letter to DEQ April 15, 2022, in response to its violation letter sent to the company, the consent document said. The letter said Blue Arc was not exploring the properties for mining or extracting material for mining, but rather was developing several campground sites that will contain cabin, recreation vehicle, and tent sites.

The consent document says Ployhar sent a letter to Gov. Greg Gianforte June 2 where he also said he is trying to develop his property as a potential recreation site.

The consent document states that DEQ has determined that mining exploration has occurred on eight sites owned by Ployhar and details the sites and what activity DEQ found.

Watch for more in Thursday's edition of Havre Daily News.