17 Nevada mines fail to comply with 1989 bonding law

Monday, May 18, 1998 | 9:53 a.m.

The bonding requirement was designed to ensure that taxpayers don't get stuck with the costs of reclaiming abandoned mine sites.

Reclamation bonds are a high priority because of low gold and metal prices, Leo Drozdoff of the state Bureau of Mining Regulations and Reclamation said.

But the vast majority of Nevada mines are bonded and most of the 17 unbonded mines are smaller operations, he said.

"You start with the biggest and most significant companies," he said. "Now we have just a few that are not in compliance with state laws. They are behind and they should have gotten it done sooner.

"Low gold and metal prices mean that you have to keep a closer look out there," he said. "Maybe the smaller operations could have (financial) problems."

The state began enforcing the law last fall by sending letters to 20 unbonded mines. Three of the mines have since secured bonds.

Drozdoff said the state has chosen not to resort to fines because most miners are aware of the laws and have followed them.

The majority of bonds are processed by the state and Bureau of Land Management. Unlike the state, the BLM has no authority to fine violators of bonding laws.

Bond values for the 17 unbonded mines range from $6,000 to $945,000. The bond amount must be enough to cover reclamation costs for the site.

Environmentalists say the bonds are crucial because abandoned mines can leak hazardous materials into water and soil, and pose dangers to the public.

"We believe all mining operations should have some sort of a bond," said Carlos Da Rosa of the Washington, D.C.-based Mineral Policy Center.

"There is a risk that at any time a mine could close, either because of market conditions or because of unexpected contamination that the company cannot clean up."

Taxpayers must help pay for fencing around an estimated 50,000 abandoned Nevada mines, state regulators said.