
Victory for the Environment
Much of the work done by the Attorney General's Office involves important litigation on behalf of the citizens of Arizona that produces successful outcomes but receives little media attention. A complicated, four-year case against the copper mining company ASARCO, which was finally settled this month, is one such case.
The settlement will provide more than $23 million to address environmental damage from mines in Arizona previously wned or operated by ASARCO. My Office argued in favor of the settlements in an intensive, three-day hearing before the U.S. Bankruptcy Court in Corpus Christi, Texas. The settlements were opposed by several parties to the bankruptcy, including the company's parent corporation, Grupo Mexico. The court, however, approved the settlements in full.
Most of the money will be deposited into a trust specifically created
for remediation and mitigation of environmental contamination stemming
from former mining operations. The largest affected Arizona site is the
open pit mine near Sacaton just west of Casa Grande. ASARCO mined at
Sacaton between 1974 and 1984, and numerous environmental problems
continue at the site. They include acid rock drainage, mine tailings
erosion that carries contaminants into nearby washes and blows on to
neighboring properties, and an acid lake at the bottom of the pit that
endangers groundwater. Most of the settlement money -- $20 million --
will be spent to clean up the Sacaton site.
The other Arizona sites -- Trench Camp, Salero Ranch and Helvetia -- are former underground mine excavations in southern Arizona. The Trench Camp and Salero Ranch sites will be funded with $2.8 million. A settlement of $880,000 was negotiated to remediate the Helvetia site.
The ASARCO bankruptcy represents the largest environmental bankruptcy in U.S. history. Arizona originally filed claims in the bankruptcy court in 2005 to force ASARCO to remediate the sites. Contamination at closed mine sites presents risks to the state's waters, public health and wildlife. Without the settlements, costs for remediation of the sites would have fallen to the state.
In his decision, Bankruptcy Judge Richard S. Schmidt stated, “The settlement agreements represent a significant milestone in the nearly four-year history of this enormously complex bankruptcy case and in the history of governmental efforts to remedy environmental injuries." The settlements now must be incorporated as a part of any reorganization plan approved by the Bankruptcy Court.
Compliance with Arizona's hazardous waste laws is crucial for the protection of our environment and the safety of our citizens. This successful settlement will prevent future pollution from these former mining operations. At the same time, ASARCO is a step closer to emerging from bankruptcy and continuing operations as a responsible corporate citizen.

Terry Goddard