Nearly four years after the Montana Department of Environmental Quality levied a $516,567 fine against the current owner of a now-shuttered gold mine, the state’s environmental regulator has come to an agreement with the Bozeman man on the receiving end of the illegal mining penalty.
On May 23, DEQ entered into a consent decree with Luke Ployhar, who purchased the Zortman mine in northcentral Montana in the early 2000s to further his interest in geology and mining. A self-described rockhound who enjoys panning for gold but makes a living as a film producer and special effects creator, Ployhar had hoped to recover valuable minerals from the site. He also hoped to turn it into a profit-generating recreational resource.
Both sets of plans were complicated by a legacy of contamination that has sent acid mine drainage into the Little Rocky Mountains watershed for decades. Acid mine drainage is an unfortunate byproduct of the cyanide heap-leach operation that Pegasus Gold Corporation used in the 1980s and 1990s to pull 2.5 million ounces of gold from the Little Rocky Mountains.
As of 2022, the effort to clean the Zortman and Landusky open-pit mines had cost an estimated $80 to $85 million, most of which has come from government coffers following Pegasus’ bankruptcy in 1998. Environmental regulators don’t see an end to the expensive treatments required to clean the waterways that come into contact with the open-pit mines.
The Fort Belknap Indian Community, which intervened in the lawsuit tied to the fine DEQ levied, opposes the settlement agreement. Tribal representatives argue that the agreement, which calls for Ployhar to pay $200,000 over five years, doesn’t match the seriousness of the violations or the site’s ongoing environmental concerns. FBIC also argues that many of the long-term impacts of the former mines and Ployhar’s actions are borne by tribal residents. The Fort Belknap Reservation borders the mine on three sides.
“This area lies within our ancestral homelands, and we have a responsibility to protect our lands, waters, cultural resources, and future generations,” FBIC President Randall Werk Sr. said in a statement. “Significant environmental concerns remain unresolved, water treatment continues indefinitely, and important questions regarding the full scope of environmental damages have not yet been fully evaluated.”
Ployhar told Montana Free Press last week that he’s pleased with the resolution of the lawsuit. He said he was taken aback at how long and costly the litigation was and maintains that the soil disturbance on his land was not ill-intentioned. Per the terms of the agreement with the government, Ployhar and his company, Blue Arc, do not admit to any wrongdoing or to violating any laws.
“Throughout the litigation, and continuing to today, we firmly believe that our conduct — in all respects — complied with applicable law,” Ployhar and Blue Arc said in a statement.
DEQ declined to comment on the agreement.
Ployhar said the recreational plans he once had for the site — ATV trails, campgrounds, cabin rentals, hunting, tours of the old mine infrastructure, etc. — are on pause. He added that he visited the site over Memorial Day weekend with his family and some friends and described it as a beautiful, underappreciated area.
The 1,062-acre site is listed for sale for $52.5 million.
“Although significant amounts of gold and silver were mined during the tenure of previous mining companies, lead geologists estimate that only 20% of the gold and silver [was] harvested, leaving plenty of reserves for investors or operators,” according to the listing, which highlights the property’s reclaimed pits, timbered ridges and clearcuts. “Zortman Landusky Gold Resource Property not only offers a huge opportunity for operators and investors but is also a unique recreational property.”
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