All News Releases By Date

PA COLORADO MINING CO. PLEADS GUILTY TO 40 COUNTS OF VIO. CWA

Release Date: 5/10/96
Contact Information:

PA COLORADO MINING CO. PLEADS GUILTY TO 40 COUNTS OF VIO. CWA

FOR RELEASE: FRIDAY, MAY 9, 1996

COLORADO MINING COMPANY PLEADS GUILTY TO 40 COUNTS OF VIOLATING THE CLEAN WATER ACT AND OTHER FEDERAL STATUTES

The Summitville Consolidated Mining Co. Inc. pleaded guilty on May 2 to 40 counts of violating the Clean Water Act and other federal statutes with respect to its operation of the Summitville Gold Mine in Southwestern Colorado from 1984 to 1992. The violations include one count of conspiracy, four counts of making false statements, five counts of failing to report under the Water Pollution Control Act (also known as the Clean Water Act), and 30 counts of knowingly violating the Clean Water Act by making unauthorized discharges to waters of the United States. As part of the plea agreement Summitville has agreed to the maximum criminal fine of $500,000 on each count, for a total fine of $20 million. Summitville has been in bankruptcy since 1992, and the plea agreement was entered by its trustee on its behalf. Because of the company's bankruptcy and the fact that the majority of the company's remaining assets will go toward the costs of cleaning up the Summitville Mine, it is likely that Summitville will only be able to pay part of the fine. The guilty pleas are, nonetheless, an important part of the ongoing investigation and prosecution. Also named in prior indictments and charged with multiple felony counts are Samye N. Buckner, Summitville's general manager from April 1988 to January 1991, and Tom S. Chisholm, the company's environmental manager from August 1988 to September 1991. No trial date is scheduled at this time. The plea agreement does not limit the government's options with respect to taking administrative or civil actions. The case is being investigated by the EPA's Criminal Investigation Division and the FBI.

R-64 # # #