DWQ-2024-008889

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UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY
DIVISION OF WATER QUALITY
IN THE MATTER OF:
Kennecott Utah Copper LLC
STIPULATION AND CONSENT ORDER
Docket Nos. I21-08, I22-06, & GW23-01
This Stipulation and Consent Order (“Order”) is entered into voluntarily by and between the
Director (“Director”) of the Utah Division of Water Quality (“Division”) and Kennecott Utah
Copper LLC (“Kennecott”), jointly referred to hereafter as “the Parties.”
By entering into this Order, the parties wish, without further administrative or judicial
proceedings, to stipulate to civil penalties arising out of alleged violations of the Utah Water
Quality Act, Utah Code §§ 19-5-101 et seq. (the “Act”), and corresponding regulations in the
Utah Admin. Code R317-1-1 et seq. (“Water Quality Rules”).
I. STATUTORY AND REGULATORY AUTHORITY
1. The Director has authority to administer the Act pursuant to Utah Code § 19-1-
105(1)(e), and to enforce the Water Quality Rules in Utah Admin. Code R317 through
the issuance of orders, as specified in Utah Code §§ 19-5-106(2)(d) and -111. The
Director also has authority to settle any civil action initiated to compel compliance with
the Act and implementing regulations pursuant to Utah Code § 19-5-106(2)(k).
II. FINDINGS OF FACT AND CONCLUSIONS OF LAW
The Director relies upon the following Findings of Fact and Conclusions of Law from the for
purposes of this Order:
1. Kennecott is a domestic company doing business in Salt Lake County, Utah.
2. Kennecott is a “person” as that term is defined in Utah Code § 19-1-103(4).
3. Kennecott operates the Copperton Concentrator and associated facilities (“Copperton
Concentrator”) as well as the Bingham Canyon Mine and Water Collection System
(“Bingham Mine”).
4. On December 7, 2021, the Division issued Notice of Violation and Compliance Order
(“NOV/CO”) Docket No. I21-08 for violations related to a process water release that
occurred at the Copperton Concentrator on February 6, 2021.
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5. On April 17, 2023, the Division issued NOV/CO Docket No. I22-06 for violations
related to: 1) a tailings release that occurred at the Copperton Concentrator on June 3,
2022; and 2) a process water release that occurred at the Copperton Concentrator on
January 11, 2023.
6. Subsequent to the issuance of NOV/COs with Docket Nos. I21-08 and I22-06,
additional releases occurred at the Copperton Concentrator. Specifically, additional
releases were reported to the Utah Department of Environmental Quality
Environmental Incidents Database and assigned the following Environmental Incident
Report (“EIR”) Numbers, respectively – including but not limited to following:
a. June 11, 2023: process water release, EIR #16381;
b. June 13, 2023: process water release, included in EIR #16381;
c. July 15, 2023: copper slurry release, EIR #16466; and
d. August 16, 2023: tailings slurry release, EIR #16580.
7. On November 9, 2023, the Division issued NOV/CO Docket No. GW23-01 for
violations related to: 1) a mine contact water release that occurred at the Bingham Mine
on November 17, 2022; and 2) a mine contact water release that occurred at the
Bingham Mine on March 14, 2023.
8. The Parties intend that this Order will settle these additional releases in addition to the
violations identified in NOV/CO Docket Nos. I21-08, I22-06, and GW23-01.
III. STIPULATION AND CONSENT ORDER
Based upon the foregoing Findings of Fact and Conclusions of Law, the Parties have negotiated
this Order in good faith and now wish to fully resolve NOV/CO Docket Nos. I21-08, I22-06, and
GW23-01 and the additional releases described above without additional administrative or
judicial proceedings.
1. Based on the application of the Division’s penalty policy, contained in Utah Admin.
Code R317-1-8, to the violations specified in the NOV/COs and this Order, Kennecott
agrees to pay a total of $64,600.00.
2. Payment is to be made within thirty (30) calendar days of the effective date of this
Order, using one of the following options:
a. CHECK – Payable to the Division of Water Quality. The payment shall be sent
to:
Division of Water Quality
PO Box 144870
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Salt Lake City, Utah 84114-4870
b. OTHER – For other available payment options, please contact the Division of
Water Quality Finance staff at [e-mail].
3. If, for any reason, Kennecott fails to pay the penalty within thirty (30) calendar days
and thereby defaults, the Director reserves the right to request the Water Quality Board
(“Board”) rescind its approval of this Order under Utah Code § 19-5-104(4)(a).
a. Prior to requesting that the Board rescind its approval of this Order, the Director
shall provide written notice to Kennecott of its default and will provide fourteen
(14) calendar days to cure the default by remitting payment. If payment is not
received within the fourteen (14) calendar day cure period and, following Board
action, the Director is authorized, without providing further written notice to
Kennecott, to begin a civil action for all appropriate relief provided under the
Act, including seeking the full penalty amount of $10,000 per violation per day,
as authorized under the Act.
IV. GENERAL PROVISIONS
1. The Parties recognize that this Order has been negotiated in good faith and nothing
herein constitutes an admission of any liability. Kennecott does not admit, and retains
the right to controvert in any subsequent proceedings other than proceedings to
implement or enforce this Order, the validity of the facts and violations alleged in the
NOV/COs. Kennecott further agrees it will not contest the basis or validity of this
Order or its terms.
2. The violations described herein will constitute part of Kennecott’s compliance history
where such history is relevant, including any subsequent violations. Kennecott
understands and agrees that this Order is not and cannot be raised as a defense to any
other action to enforce any federal, state or local law.
3. Kennecott agrees to the terms, conditions and requirements of this Order. By signing
this Order, Kennecott understands, acknowledges and agrees that it waives: (1) the
opportunity for an administrative hearing pursuant to Utah Code § 19-1-301; (2) the
right to contest the findings in the NOV/CO; and (3) the opportunity for judicial review.
4. This Order is subject to a thirty (30) day notice and comment period. The Parties each
reserve the right to withdraw from this Order if comments received during the notice
period result in a modification to the terms and conditions.
5. The “Effective Date” shall be the date this Order is executed by the Director. The
Director will not sign the Order until after the Division has provided public notice of
the proposed Order and has solicited and reviewed any public comments received.
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6. This Order includes a civil penalty in excess of $25,000 and therefore must be
presented to, reviewed by, and approved or disapproved by the Board. (Utah Code §
19-5-104(3)(h)). Final approval by the Director of this Order shall not occur until it is
approved by the Board. The Order will be presented to the Board for final action after
the Division has provided public notice of the proposed Order and has solicited and
reviewed any public comments received. All public comments, and the Director’s
responses, shall be provided to the Board in connection with the Director’s request for
final action.
7. The dates set forth in the Order section of this Order may be extended in writing by the
Director, in the Director’s sole discretion, based on the Kennecott’s showing of good
cause. Good cause for an extension generally means events outside of the reasonable
control of the Kennecott, such as force majeure, inclement weather, contractor or
supplier delays, and similar circumstances. However, the Director expects the
Kennecott to employ reasonable means to limit foreseeable causes of delay. The
timeliness of the Kennecott’s request for an extension shall constitute an important
factor in the Director’s evaluation.
8. Nothing in this Order shall preclude the Director from taking actions to include
additional penalties against the Kennecott for future violations of State or Federal law.
9. The Parties acknowledge that neither the Director nor the Board has jurisdiction
regarding natural resource damage claims, causes of action, or demands. Therefore,
such matters are outside the scope of this Order.
10. The person signing this Order on behalf of the Kennecott represents to the Director that
they have the full legal authorization to do so and agrees that the Director may rely on
that representation.
11. This Order is binding upon each of the Parties and their respective heirs, successors,
and assigns. Any change in ownership or corporate or legal status, including but not
limited to, any transfer of assets or real or personal property, shall in no way alter the
status or responsibilities of the parties under this Order.
12. This Order may be amended in writing if signed by both Parties.
V. COMPLIANCE AND PENALTY NOTICE
As of the Effective Date, this Order shall constitute a final administrative order. Compliance with
the provisions of this Order is mandatory. All violations of the Act, the Water Quality Rules, and
this Order will be strictly enforced during the time that this Order remains in effect. The Act,
Utah Code § 19-5-115, provides that any person who violates a rule or order made or issued
pursuant to the Act may be subject, in a civil proceeding, to a state district judge imposing a civil
penalty per day of violation.
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VI. SIGNATORY
The undersigned, signing this Order on behalf of Kennecott Utah Copper LLC, represents and
warrants that it is duly authorized and has legal capacity to legally bind Kennecott Utah Copper
LLC and agrees that the Director may rely on that representation.
Pursuant to the Utah Water Quality Act, Utah Code § 19-5-101 et seq., and Utah Admin. Code
R317, the Parties hereto mutually agree and consent to this Stipulation and Consent Order, as
evidenced below:
[SIGNATURE PAGE FOLLOWS]
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IT IS SO AGREED AND ORDERED:
FOR THE UTAH DIVISION OF WATER QUALITY
By: ______________________________
John K. Mackey, P.E.
Director
Date: ______________________________ (Effective Date)
FOR KENNECOTT UTAH COPPER LLC
By: ______________________________
Title: ______________________________
Date: ______________________________
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19-Dec-24
General Manager - Minerals