The Custodial Trust - Montana Environmental Trust Group

The Montana Environmental Custodial Trust (Custodial Trust) performs its responsibilities in compliance withthe Settlement Agreement (ASARCO, 2009) and Consent Decree Regarding Montana Sites and consistent with the Custodial Trust’s fiduciary obligations to the United States and the State of Montana—the sole Beneficiaries of the Custodial Trust. Additionally, the Custodial Trust must fulfill ASARCO’s cleanup obligations set forth in a 1998 Consent Decree, as modified, between the United States and ASARCO LLC, et al (Civil Action No. CV-98-3-H-CCL-US federal District Court, District of Montana) as a result of claims brought against ASARCO by the United States pursuant to the Resource Conservation and Recovery Act (RCRA).

Lead Agencies

The Montana Settlement Agreement designates a “Lead Agency” to oversee Custodial Trust’s cleanup activities for each of the Montana Sites. In consultation with the non-Lead Agencies, each Lead Agency has final approval authority over cleanup activities, funding, expenditures, and the contractors, consultants, and other professionals retained by the Montana Custodial Trust to work at the Montana Sites. The Lead Agency can either oversee the Custodial Trust’s cleanup or can itself perform the cleanup using trust funds.

The designated Lead Agencies for the four Montana Sites are:

U.S. Environmental Protection Agency (U.S. EPA) for East Helena Site cleanup
U.S. Department of the Interior (U.S. DOI) for East Helena Site natural resource restoration
Montana Department of Environmental Quality (Montana DEQ) for UBMC/Mike Horse Site cleanup
Montana DEQ for Black Pine mine cleanup
U.S. DOI for Black Pine mine natural resource restoration
Montana DEQ for Iron Mountain Site cleanup
U.S. DOI for Iron Mountain Site natural resource restoration.

Montana Cleanup Sites

East Helena

U.S. EPA is overseeing the Custodial Trust’s cleanup of the East Helena Site under federal hazardous waste laws, including the Resource Conservation and Recovery Act (RCRA) and the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA or Superfund). EPA consults with the U.S. Department of Justice (U.S. DOJ), U.S. Fish and Wildlife Service (U.S. FWS), Montana DEQ, and Montana Department of Justice (MTDOJ) on Montana Custodial Trust environmental actions, which are focused on soil and groundwater contamination caused by a century of smelting ores at the East Helena facility. U.S. DOI and the U.S. FWS will undertake natural resource restoration to be paid from funds held in trust for U.S. DOI by the Montana Custodial Trust. The State also plans significant restoration activities at the East Helena Site utilizing funds paid directly to MDOJ as part of the ASARCO bankruptcy settlement. Under Superfund, U.S. EPA is completing the cleanup of lead-contaminated soils in private residential yards and other private properties in East Helena not owned by the Custodial Trust. U.S. EPA’s residential cleanup activities are funded by a separate trust established prior to the ASARCO bankruptcy settlement.

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Mike Horse

Upper Blackfoot Mining Complex (UBMC)/Mike Horse

Under the direction of MDEQ, the Custodial Trust is operating the UBMC/Mike Horse water treatment plant, designed and built by ASARCO to treat water contaminating the Blackfoot River because of historic mining activities at the UBMC. MDEQ consults with the U.S. Forest Service (U.S. FS) and MTDOJ on the Custodial Trust’s activities. Separately, in collaboration with the U.S. FS and MTDOJ, Montana DEQ is carrying out remediation and restoration of the UBMC, including the Mike Horse Dam, on property situated at the headwaters of the Blackfoot River and owned largely by the U.S. FS. Cleanup and restoration are paid with funds received directly by the State as part of the ASARCO bankruptcy settlement and other sources.

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Black Pine

Black Pine Mine Complex

In consultation with the U.S. FS, the Hard Rock Division of Montana DEQ is remediating contamination from silver and lead mining at the Black Pine Mine site. U.S. DOI will address the natural resource damages with trust funds. The Custodial Trust’s role at Black Pine is limited to managing the Black Pine cleanup and natural resource damage funds and providing contract and administrative support to Montana DEQ.

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Iron Mountain

The Iron Mountain Site is part of the larger Flat Creek/Iron Mountain & Mill (IMM) federal Superfund Site that was added to EPA’s National Priorities List (NPL) in 2009. Under the Montana Settlement Agreement, in consultation with U.S. Forest Service, MDEQ is the Lead Agency for the Iron Mountain Site. Cleanup of the property owned by the Custodial Trust will be coordinated with the EPA-led Superfund cleanup process at the Flat Creek/IMM NPL Site. USDOI will address natural resource damages utilizing trust funds.

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Land Development and Sale

Under the Montana Settlement Agreement, the Custodial Trust must secure the prior approval of the Lead and non-Lead Agencies who are Beneficiaries of the Custodial Trust before it can lease, sell, or transfer land that is part of a Montana Site.

East Helena Redevelopment

EPA and the State of Montana must approve sale, lease, or conveyance of any real property interest in the East Helena Site to a public or private third party. The Custodial Trust must also secure U.S. DOI approval for properties in East Helena where it has performed natural resource restoration. Sale proceeds are used to fund further cleanup activities at East Helena.

Montana Mining Sites Redevelopment

Sale or lease of any Custodial Trust property at the UBMC/Mike Horse, Black Pine, and Iron Mountain sites must be approved by the State of Montana and the U.S. FS. Proceeds from any lease or sale are deposited in the cleanup accounts for each of the three mining sites and will be used to pay for further cleanup of the sites.