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FOR IMMEDIATE RELEASE
Tuesday, May 12, 2009
Alaska Mine Operators to Pay $883,628 to Resolve Environmental Violations

Alaska Gold Co. (Alaska Gold), and NovaGold Resources Inc. (NovaGold), the owners and operators of the Rock Creek Mine near Nome, Alaska, have agreed to pay a $883,628 civil penalty to resolve violations of a storm water discharge permit.

According to the court documents, in 2006, Alaska Gold, an Alaskan corporation and its parent company, NovaGold, a Canadian corporation, applied for and received a permit for the construction of a mine near Nome. Construction began in October 2006.

Subsequently, from April 2007 until September 2008, Alaska Gold and NovaGold violated their permit on multiple occasions by discharging stormwater into Rock Creek, Lindblom Creek and Glacier Creek in violation of state water quality standards. The companies also failed to adequately prepare and update a storm water pollution prevention plan and failed to implement and maintain best management practices to control the discharges.

"Today’s settlement shows that the government will hold accountable any company that does not fully comply with stormwater requirements," said John C. Cruden, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. "We expect all companies to take the necessary steps to control stormwater discharge from their operations."

"Whether it’s in a far corner of Alaska or in a crowded urban area, stormwater rules protect our waterways from polluted runoff," said Michelle Pirzadeh, EPA’s Acting Regional Administrator in Seattle. "The construction at Rock Creek Mine resulted in virtually unchecked runoff of silt and sediment to important fish habitat. Companies taking on construction projects of this scale need to do so responsibly and in accordance with the law."

As of fall 2008, the mine was in compliance. EPA will be monitoring the site for future violations beginning in spring 2009.

The stipulation of settlement and judgment, lodged today in the U.S. District Court for the District of Alaska in Anchorage, is subject to a 30-day public comment period and approval by the federal court. A copy is available on the Department of Justice Web site at http://www.usdoj.gov/enrd/Consent_Decrees.html.

09-464
Environment and Natural Resources Division
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