FOR IMMEDIATE RELEASE                                         ENR
TUESDAY, JUNE 6, 1995                   JIM SWEENEY  DOJ (202)514-2008
                                 ELIZABETH BOHANNON  EPA (303)294-1053
                               MELANIE PALLMAN  EPA (303)293-1626
                                                                 

  DEPARTMENT OF JUSTICE, EPA CHARGE MINERS FOR CLEAN WATER VIOLATIONS


WASHINGTON, D.C. -- The Department of Justice and the U.S.
Environmental Protection Agency announced today the filing of a
civil suit to stop two gold mines from illegally discharging
polluted wastewater into drainages of the Little Rocky Mountains
flowing into the Missouri and Milk Rivers in north central
Montana.  

     The government said the mining wastewaters contained acid
mine and acid rock drainage, an acid solution containing various
heavy metals, and cyanide process waters.  

     Named in the suit was the Nevada-based Pegasus Gold
Corporation and its subsidiary, Zortman Mining, Inc., which owns
and operated two gold mines in Zortman and Landusky, adjacent to
the Fort Belknap Indian Reservation.  The complaint alleged that
Zortman Mining violated the federal Clean Water Act by
discharging wastewater without the proper permits over the last
five years.

     "We want to make it clear -- you can't just go digging for
gold while ignoring our national treasures,"  said Lois Schiffer,
the Department's Assistant Attorney General in charge of the
Environment and Natural Resources Division.  "We will continue to
enforce the law to keep our waters clean."

     On August 30, 1993, the State of Montana sued Pegasus and
Zortman in state court alleging violations of the Montana Water
Quality Act.  Just last month, they wrote EPA welcoming a
coordinated federal filing in federal district court.  The State
will seek to join EPA in federal district court as a co-plaintiff.  The Tribal government for the Gros Ventre and
Assiniboine Tribes is expected to file its own suit.  The United
States anticipates seeking consolidation of the two suits.




                                 
     The Clean Water Act mandates that dischargers of wastewater
must obtain permits under the National Pollutant Discharge
Elimination System (NPDES).  NPDES regulates the discharge of
pollutants from point sources into water.  NPDES permits
establish limits on the discharged pollutants to protect human
health and the environment. 

     The complaint seeks civil penalties of up to $25,000 per day
against Pegasus and Zortman for each violation of the Clean Water
Act and requires Pegasus and Zortman to cease or treat discharge
of mining wastewaters not in compliance with all water quality
standards.  EPA believes penalties are necessary to recover the
economic benefit the mining companies gained by violating the law
and to deter future violations.


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