Colorado Department of Public Health and Environment News Release

FOR IMMEDIATE RELEASE

Friday, March 6, 2009

CONTACT
Jeannine Natterman
Colorado Department of Public Health and Environment
Public Information Officer
Metro: 303-692-3303
Toll Free: 1-888-569-1831, ext. 3303
Cell Phone: 303-921-2208

Mike Saccone
Colorado Department of Law
Communications Director
303-866-5632

Court Orders Elizabeth Mining and Development to Comply With
State Hazardous Waste Regulations

DENVER-The Montrose District Court on Wednesday granted the Colorado Department of Public Health and Environment a preliminary injunction directing defendants Steven Casebolt and Shirley Casebolt-Snedden of Elizabeth Mining and Development to determine what types and quantities of contamination may be present at the company’s facility in Montrose and implement the required cleanup. The company recycled platinum, palladium and rhodium from catalytic converters and then shipped the metals out of state for refining.

“Elizabeth Mining and Development was denied its effort to avoid responsibility for its poor business practices,” said Gary Baughman, director of the Hazardous Materials and Waste Management Division. “The court has made its directive very clear, upholding the required investigation and remediation of contaminants laid out in the February 2006 order.”

“The court’s order indicates there is significant evidence to show Elizabeth Mining and Development’s business practices have been environmentally irresponsible and incompatible with state law,” said Attorney General John Suthers. “We look forward to the case continuing to move ahead.”

The preliminary injunction, signed by District Court Judge Jeff B. Herron on March 4, orders the defendants to implement a work plan drafted by the Colorado Department of Public Health and Environment that gives plant owners 20 days to identify the contaminants in soils and groundwater at the Montrose facility. Within 10 days of completing the identification, the owners must submit a detailed report of their findings to the state.

The preliminary injunction also gives the defendants 60 days to submit closure plans for each tank and tank system used for the storage and treatment of hazardous wastes, bringing the facility into compliance with state hazardous waste regulations.

On Feb. 24, 2006, Elizabeth Mining and Development was ordered to identify contamination on the property after state health department inspectors found serious hazardous waste violations, including acids dumped directly onto the ground and the operation of inadequate waste storage tanks. The company had completed two preliminary characterization phases in compliance with the order.

The state-issued compliance order required the facility owners, Steven Casebolt and his late father, Joseph Casebolt, to cease all hazardous waste-generating processes until the owners completely returned to compliance with all hazardous waste requirements. When the company missed several deadlines in the compliance order and resumed operations before getting permission from the department, the state sued the company in Montrose County District Court. An inspection of the facility in September 2006 revealed that the company had resumed operations without coming into compliance with the order. This resulted in a 44-count criminal indictment of Joseph Casebolt, Steven Casebolt and defendants in Tennessee.

Penalties assessed for violations in the February 2006 order had been calculated to be $420,000, but were subsequently lowered significantly by an administrative law judge in August 2007. At its February 2009 meeting, the Solid and Hazardous Waste Commission voted to reconsider penalties against the Casebolts and Elizabeth Mining and Development, potentially reinstating most of the penalty. The commission will make a final decision at its next meeting on May 20.

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