Montana DEQ Settles with Zortman Mine Owner Amid Environmental Concerns

Nearly four years after a $516,567 fine, Montana's DEQ has reached an agreement with the Zortman mine's current owner.
Zortman-Landusky Montana

Nearly four years since Montana’s Department of Environmental Quality fined the owner of a closed gold mine $516,567, an agreement has been reached with the Bozeman recipient of the penalty. On May 23, DEQ and Luke Ployhar, owner of the Zortman mine, finalized a consent decree. Ployhar, known for his geology passion and film production career, initially aimed to extract minerals and develop the site into a recreational asset.

The Zortman mine’s legacy includes contamination issues, notably acid mine drainage impacting the Little Rocky Mountains watershed, a remnant of Pegasus Gold Corporation’s cyanide heap-leach operations from the 1980s-1990s. Cleanup costs for the Zortman and Landusky mines have reached $80-$85 million, largely funded by the government after Pegasus went bankrupt in 1998. Continued water treatment expenses remain substantial.

The Fort Belknap Indian Community, intervening in related litigation, opposes the settlement, citing the $200,000 payment over five years as insufficient given the ongoing environmental concerns. The reservation borders the mine on three sides, and tribal representatives emphasize the environmental and cultural impact on their lands. “This area lies within our ancestral homelands,” FBIC President Randall Werk Sr. stated, expressing the community’s responsibility to protect their resources and future generations.

Ployhar, surprised by the litigation’s duration and cost, is satisfied with the lawsuit’s resolution, asserting his actions complied with laws. DEQ chose not to comment on the agreement, while Ployhar’s recreational development plans for the site, including ATV trails and campgrounds, are paused. The 1,062-acre site is for sale at $52.5 million, described as offering significant investment and recreational opportunities with untapped gold and silver reserves.


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