ROWLEY, Utah — The state of Utah is now engaged in settlement talks with U.S. Magnesium, one of the state’s largest mineral extraction companies operating on the Great Salt Lake.
Utah’s Division of Forestry, Fire & State Lands confirmed to FOX 13 News on Tuesday it has begun negotiating a resolution after it filed a lawsuit accusing U.S. Magnesium of putting the public and environment at risk from an acid pond that officials fear is not being maintained — keeping a number of hazardous chemicals from spilling into the Great Salt Lake.
“...the judge instructed the parties to get together and determine if a stipulation could be entered into to avoid a hearing, which was scheduled for Jan. 3,” Utah Division of Forestry, Fire & State Lands Director Jamie Barnes said in a statement. “The parties met and agreed that the Receiver will remain in place, as ordered by the court, and the parties are currently working through the issues to determine if a global settlement can be reached.”
An attorney representing U.S. Magnesium declined to comment on any settlement discussions when contacted by FOX 13 News on Tuesday.
U.S. Magnesium recently went through layoffs and is no longer pursuing some mineral extraction operations on the Great Salt Lake. The Utah Division of Forestry, Fire & State Lands, which oversees the lake and the lands around it, filed a lawsuit alleging that U.S. Magnesium also failed to abide by agreements it made with the Environmental Protection Agency to maintain a waste pond.
“Finally, based on information and belief, in order to sequester contaminants, pollutants and/or other harmful substances, US Mag was required to construct lined berms to prevent further displacement of these materials into Great Salt Lake,” the lawsuit states. “However, US Mag has not completed, and perhaps will not complete, the construction necessary to construct the ‘Retrofitted Waste Pond’ negotiated and agreed to under the Consent Decree.”
The division asked for a receiver to be appointed to oversee U.S. Magnesium’s operations. Third District Court Judge Charles Stormont agreed. But in a hearing on Dec. 20, U.S. Magnesium’s lawyers argued that the company’s due process rights had been violated and there was no proof any hazardous chemicals from the waste pond had reached the Great Salt Lake.
“For the state to simply waltz in and take over on an ex-parte basis, they have provided no evidence whatsoever, not one iota of evidence to this Court that there is actual hazardous waste going into the Great Salt Lake,” U.S. Magnesium attorney Steven Waterman told the judge, adding that no monitoring devices had triggered any alerts with the Utah Department of Environmental Quality.
But the division’s attorney countered that U.S. Magnesium's lack of actions are cause for alarm, referring to the site as an "acid pond."
“U.S. Magnesium is the party charged with and responsible for performing work to remediate and protect the surrounding lands and lake bed, and so to the extent that there is an interest there, the stopping of work is of great concern to the state and that really is what got this ball rolling,” said Madeleine Whittier.
Judge Stormont ended up pulling back the court-appointed receiver, putting him in an observation role pending the Jan. 3 hearing.
“U.S. Magnesium shall cooperate in the receiver's monitoring activities. Receiver shall notify the Court if he has reason to believe environmental damage is imminent,” the judge said.
On Christmas Eve, Judge Stormont canceled the hearing, citing the settlement negotiations.
One environmental group that has watched U.S. Magnesium for years said it remains concerned about a risk.
"We aren't comforted by any means in thinking that contamination isn't ongoing," Lynn de Freitas, the executive director of Friends of Great Salt Lake told FOX 13 News on Tuesday. "Even though there has been work on constructing a containment dike, if you will, around a particular pond, it doesn't necessarily thoroughly address the concerns that we've always had."
De Freitas said it was her hope that any settlement the state may reach with U.S. Magnesium would involve finishing that berm.
“We want to see U.S. Magnesium following up with the responsibility of continuing to work to eliminate this concern,” she said. “Whatever it takes.”
