Crescent Mine, LLC v. Bunker Hill Mining Corporation; and Placer Mining Corporation (d/b/a New Bunker Hill Mining Co.)

CourtDistrict Court, D. Idaho
DecidedJune 24, 2026
Docket2:21-cv-00310
StatusUnknown

This text of Crescent Mine, LLC v. Bunker Hill Mining Corporation; and Placer Mining Corporation (d/b/a New Bunker Hill Mining Co.) (Crescent Mine, LLC v. Bunker Hill Mining Corporation; and Placer Mining Corporation (d/b/a New Bunker Hill Mining Co.)) is published on Counsel Stack Legal Research, covering District Court, D. Idaho primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crescent Mine, LLC v. Bunker Hill Mining Corporation; and Placer Mining Corporation (d/b/a New Bunker Hill Mining Co.), (D. Idaho 2026).

Opinion

UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF IDAHO

CRESCENT MINE, LLC, Case No. 2:21-cv-00310-DCN Plaintiff, MEMORANDUM DECISION AND ORDER v.

BUNKER HILL MINING CORPORATION; and PLACER MINING CORPORATION (d/b/a New Bunker Hill Mining Co.), Defendants.

I. INTRODUCTION The parties filed three different summary judgment motions. The Court held oral argument on those motions.1 There are two consolidated cases, 2:21-cv-00310-DCN and 2:21-cv-00209-DCN. This decision will first address the summary judgment motions filed by Bunker Hill Mining Corporation (“BHMC”) and Placer Mining Corporation (“Placer”). Then, it will address Crescent Mine, LLC’s (“Crescent”) motion for summary judgment.

1 This decision has been a long time in coming. However, it must be remembered that there are two consolidated cases, three separate summary judgment motions, each involving multiple memorandums, and each memorandum was significantly over the 30-page limit of the local rules. In addition, the parties filed thousands of pages of exhibits supporting or opposing summary judgment. Finally, the parties cited hundreds of cases supporting their position or opposing others’ positions. The Court points this out, not to chastise any party or counsel, after all, proper requests were filed for permission to file over length briefs and permission was granted. Instead, it is pointed out only to show the volume of materials the court had to carefully review in ruling on the pending motions. This is a very complex and complicated situation with convoluted and extensive facts and law involved. II. BACKGROUND

The events at the center of this case began over three decades ago. The Bunker Hill Mine and the Crescent Mine are two adjacent mines located in northern Idaho. The mines and the Central Treatment Plant (“CTP”) were once owned and operated by the same company, Bunker Hill Mining Company (U.S.) Inc. (“Original Bunker Hill”). The two mines are connected by a 3.7-mile tunnel referred to as the Y-U Crosscut that connects at the 3100 level of the Crescent Mine and the 23rd level of the Bunker Hill Mine. Original Bunker Hill declared bankruptcy in 1991.

Prior to Original Bunker Hill filing for bankruptcy, the Environmental Protection Agency (“EPA”), in 1983, placed the site of both mines on the EPA’s National Priorities List. The EPA first conducted a remedial investigation and feasibility study of the Bunker Hill Mine in 1987 to address environmental contamination around the area, and the EPA adopted a remedial action that, in part, required water to remain in the Bunker Hill Mine

rather than being discharged elsewhere. EPA issued a Record of Decision (“ROD”) in 1992 for most of the area including the Bunker Hill Mine, the CTP, and most of the Crescent Mine. In 1994, the EPA assumed operation of the CTP and ordered the maintenance of the water level in the Bunker Hill Mine to remain around the 11 level. Shortly after Original Bunker Hill filed for bankruptcy, both mines were shut down.

This shutdown included the removal and sale of all electrical equipment and pumps. This resulted in the flooding of both mines with contaminated water referred to as Acid Mine Drainage (“AMD”). The Crescent Mine has no independent ability to pump water out of its lower levels, so the water level in both mines is controlled by pumping which takes place in the Bunker Hills Mine. Water pumped out of the Bunker Hill Mine is typically diverted to the CTP before being discharged into the Coeur d’Alene River. Sometime between December 1991 and April 1992, Placer acquired the Bunker Hill Mine’s property

and mineral rights. Placer shut off the water line to the CTP and diverted all of the contaminated surface inflow into the Bunker Hill Mine’s lower levels. Dkt. 116-2, ¶ 8. Pumping did not resume until December 1994. At that time, the water level in Bunker Hill Mine was near the 11 Level, and the water level has remained about the same ever since. In April 2001, the EPA conducted another remedial investigation and feasibility

study specifically related to managing AMD in the Bunker Hill Mine. The EPA ultimately decided to keep the AMD stored within the mine, even while considering alternatives like pumping it from the mine for treatment.2 In 2017, the EPA also issued a Unilateral Administrative Order (“UAO”) which required continued AMD storage in the Bunker Hill Mine at the level which it was currently being stored to facilitate upgrades to the CTP.

In 2014, Crescent acquired the Crescent Mine for $7.5 million in debt forgiveness. Dkt. 110-1, ¶ 11. This was through a bankruptcy receivership. Dkt. 51, ¶ 11. When Crescent acquired the Crescent Mine, it was aware that the mine was flooded. On December 1, 2017, BHMC entered a Mining Lease with Option to Purchase Bunker Hill Mine from Placer. The following year, BHMC and the EPA entered into a

Settlement Agreement whereby BHMC was required to maintain AMD levels. Those terms

2 In 1998, the EPA even hired a consultant to examine the possibility of dewatering the Crescent Mine. That consultant raised several concerns with such a plan, including logistics of pumping with the lower pumps being removed and the additional burden on the CTP. remained in place even after a 2021 amendment to the Settlement Agreement. In early 2021, BHMC attempted to purchase the Crescent Mine, but Crescent rejected the offer. In 2022, BHMC acquired the Bunker Hill Mine by exercising its option to purchase it from

Placer. Shortly after its failed attempt to purchase the Crescent Mine, BHMC sent a demand letter to Crescent alleging Crescent was responsible for 27.45% of all costs of water treatment at the CTP, including those costs accrued in the past. Dkt. 116-2, ¶ 27. In 2018, the EPA entered a Consent Decree with Placer and a Settlement Agreement with BHMC. On June 19, 2018, District Judge Edward J. Lodge entered an order adopting

the Placer Consent Decree and the BHMC Settlement Agreement. That order acknowledged that BHMC’s operation of the Bunker Hill Mine is “expressly subject to continued EPA approval and oversight.” U.S. v. Placer Mining Company, Inc., et al., 2:04- cv-00126-EJL, Dkt. 86, at 7 (June 19, 2018). The BHMC Settlement Agreement was amended in 2021.

On May 14, 2021, BHMC filed suit against Gold Finder Exploration LTD, Northstar Energy LLC, and United Silver Corporation to recoup some of its response costs. Case No: 2:21-cv-00209-DCN (“21-209”), Dkt. 1. On November 19, 2021, BHMC filed a Second Amended Complaint against Venzee Technologies Inc., Crescent Silver, LLC, Crescent Mine LLC, Syringa Exploration, Inc., and NorthStar Energy LLC again to recoup response

costs. 21-209, Dkt. 16. That Second Amended Complaint is BHMC’s operative complaint. BHMC brings four causes of action: three under CERCLA for cost recovery, contribution, and declaratory judgment and one common law claim for equitable indemnification, subrogation, or contribution. On July 28, 2021, Crescent filed suit against BHMC, Placer, and Robert Hopper, Jr. Dkt. 1. On April 1, 2021, Crescent filed a Second Amended Complaint against BHMC and Placer. Dkt. 51. This is Crescent’s operative complaint. Crescent brings six causes of

action: two under CERCLA for cost recovery and declaratory judgment on future costs and four under Idaho state law for common law trespass, statutory trespass, nuisance and negligence. Id. Crescent also seeks injunctive relief requiring the Crescent Mine to be dewatered. Placer filed a counterclaim against Crescent, with its Answer to Crescent’s First

Amended Complaint, on November 2, 2021. Dkt. 35. Placer refiled the First Amended Counterclaim on May 20, 2022, in response to Crescent’s Second Amended Complaint. Dkt. 58. This is Placer’s operative counterclaim.

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