Overview of Caselton Mine Area and Mill Site
Site Background and History
The Caselton Mine Area and Mill Site (Site) is located in Pioche, Nevada, along Highway 93. The ±3,200-acre Site has a long history of silver, gold, lead, zinc, and copper mining and production. Active mining began in the 1860s, after ore was discovered in the Pioche Mining District. More than $5 million in metals had been mined by 1872.
The Combined Metals Reduction Company (CMR) operated at the Site from 1924 to 1976. In 1941, the Caselton Mill was constructed, and after 1953 it was used largely to process ore. Milling operations ceased in 1957 and by the early 1970s CMR filed for bankruptcy.
In connection with the CMR bankruptcy proceedings, Kerr-McGee Corp. (Kerr-McGee) purchased the unpatented mining claims (exclusive rights to explore, develop, and extract the minerals) and patented mining claims (exclusive title to surface and locatable minerals) from CMR, but no mining or milling occurred during its ownership.
Starting in the mid-2000s, Tronox Inc. and its affiliates (Tronox) owned or were liable for the Caselton Site and many other sites contaminated by Kerr-McGee and its affiliates over decades of operations.
Although operations ceased in 1957, aging structures remain throughout the Site, along with legacy mining and milling waste products. The main contaminants of concern at the Site are metals, including lead and arsenic.
Panoramic view of the Pioche and Ely Mountains - Pioche, Nevada 1872
Pioche and surrounding mountains - Pioche, Nevada 1925
The Multistate Trust’s Involvement
In 2009, Tronox, largely unable to pay for investigating or cleaning up the Kerr-McGee sites, filed for bankruptcy. In 2011, as part of the Tronox bankruptcy settlement, the Multistate Environmental Response Trust (Multistate Trust) was created to own, investigate, and clean up the Site, and facilitate safe, beneficial reuse of the Site, along with hundreds of other former Kerr-McGee/Tronox sites in 31 states.
Kerr-McGee’s and Tronox’s patented mining claims that encompassed the Site were transferred to the Multistate Trust in 2011. Since then, the Multistate Trust has worked with Nevada Division of Environmental Protection (NDEP) to determine, among other things:
if historic mining and milling materials and waste pose environmental and human health risks to the surrounding
Caselton area and Pioche community; andwhether remedial measures can be implemented to protect
human health, given limited Site funding.
Timeline
“Ore was discovered in Pioche and mining began. The smelter was erected in 1868.”
“The Combined Metals Reduction Company (CMR) began operating at the Site.”
“The Caselton Mill was constructed.”
“CMR ceased mining and milling operations.”
“Kerr-McGee acquired the Site and purchased patented and unpatented mining claims from CMR. Kerr-McGee conducted mining exploration, but Kerr-McGee never conducted mining nor operated the mill.”
“The milling operation (run by other entities over the years) ended for good.”
“Kerr-McGee’s unpatented mining claims lapsed and were reverted to the Bureau of Land Management (BLM).”
“Tronox assumed responsibility for the Site and hundreds of other former Kerr-McGee properties.”
“Tronox filed for bankruptcy, mostly due to financial issues from Kerr-McGee’s past environmental liabilities.”
“As part of the Tronox bankruptcy settlement, the Multistate Trust was established by a federal bankruptcy court to take ownership of the Site and hundreds of other former Kerr-McGee properties. However, the Multistate Trust did not assume ownership of the Caselton Mill’s buildings.”
“The Multistate Trust began environmental investigations after receiving some proceeds from a fraud-related settlement involving Kerr-McGee and related subsidiaries of Anadarko Petroleum Corporation. Remedial Investigations for Treasure Hill (OU1) (waste rock only) and Caselton Heights Residential Yard Soils (OU2) were completed.”
“Between 2016 and 2017, the Multistate Trust investigated the Caselton Mill Site and Adjacent Tailings (OU4). In 2017, the Multistate Trust sampled soil in residential yards in Treasure Hill (OU1), finding elevated concentrations of lead and arsenic.”
“The Multistate Trust began collaborating with the University of Nevada, Reno, which is supporting the Caselton Wash Tailings (OU5) remedial investigation and analyzing contaminant migration pathways through the tailings.”
“The Multistate Trust transferred its land beneath homes in Caselton Heights to respective homeowners. The Multistate Trust also investigated an 8-mile reach of the Caselton Wash located on BLM-managed lands, downstream of the tailings ponds.”
“The Multistate Trust, through its third-party contractor, received construction bids to implement the Treasure Hill (OU1) Yard Soil Removal Interim Action.”
“The Multistate Trust mobilized to Pioche in March to implement the Yard Soil Removal Interim Action but demobilized two weeks later due to the COVID-19 pandemic.
In a state court action initiated by Altair Mining Inc. (Altair), the court found that Altair’s rights to use the surface at the Caselton Mill had expired. ”
“The Treasure Hill Yard Soil Removal Interim Action work began, with the Multistate Trust excavating contaminated soil from 15 residential parcels. ”
“The Multistate Trust completed the Yard Soil Removal Interim Action work, with a total of 18 residential parcels excavated. In addition, the Multistate Trust investigated a parcel on Tank Road with tailings (Tank Road Parcel) and facilitated Lincoln County’s acquisition of the parcel.”
“The Multistate Trust continues to support environmental site assessment efforts by the NDEP, EPA, BLM, Lincoln County, Lincoln County Power District No. 1 (LCPD), and The Nature Conservancy (TNC) at the Caselton Mill Site and Adjacent Tailings (OU4). Cleanup options and associated costs for the Tank Road Parcel in OU1 are also being evaluated.”
Funds for the Caselton Site
Cleanup funds were provided by the companies responsible for the contamination—not by the U.S. government or by tax dollars. Funding came from the Tronox bankruptcy settlement and included proceeds from a settlement of fraud claims against Kerr-McGee and related subsidiaries of Anadarko Petroleum Corporation.
The Multistate Trust can use Site-specific cleanup funds only for environmental actions, such as investigations, studies, designs, cleanup actions, operations, and maintenance. Funds cannot be used for other purposes, including the actual redevelopment of the Site or compensating people for associated health effects or property damage.
The Site received limited funding for investigations and cleanup activities, despite its complexity and the extent of mining and milling waste. The Multistate Trust has been working with the NDEP, BLM, and other partners to leverage other sources of funding.
Tronox Tort Claims Trust
As part of the Tronox bankruptcy proceedings, the Multistate Trust was created to perform investigation, cleanup, and redevelopment planning activities at the Caselton Site and many other former Kerr-McGee/Tronox properties.
A separate Trust – the Tronox Tort Claims Trust – was established to address personal injury claims (medical or health) and property damage claims associated with Kerr-McGee’s prior operations.
The Multistate Trust cannot pay personal injury or property damage claims. The Multistate Trust and the NDEP have no involvement in the Tronox Tort Claims Trust.
Visit the Tronox Tort Claims Trust website or contact the Tronox Tort Claims Trust at tronoxtorttrust@epiqglobal.com or (800) 753-2480.