Leadville mill operation threatens 510 local wells, Gold Medal fishery as Sunday comment deadline looms
Colorado regulators have until Sunday to receive public comments on CJK Milling’s proposal to disturb stabilized mine waste inside the California Gulch Superfund site. The company has changed processing methods three times in 13 months while seeking approval to excavate waste that took 40 years and $150 million to contain. The federal EPA has offered no public statement.
The February 2 deadline marks Lake County’s last chance to maintain legal standing on a permit threatening 510 domestic wells and the nation’s longest continuous Gold Medal trout fishery. At the January 20 commissioners meeting, residents warned the operation would cause $485,000 in annual road damage while CJK pays nothing. A technical coordinator identified “90 percent unplanned tailings management.”
DRMS opened comment January 22 on CJK’s December 29 flotation amendment—the third technology in 13 months. The mill sits adjacent to the county’s only wastewater treatment plant.
A 2021 cyanide application was withdrawn after DRMS rejected it for failing tailings standards. The February 2024 application drew 593 objections. DRMS identified 76 issues in August. Independent expert Dr. Steven Emerman found 29 inadequacies including conflicting permit boundaries.
On December 10, CJK announced it would eliminate cyanide using untested Extrakt technology. Nineteen days later, CJK abandoned Extrakt and filed for flotation. Representative Nick Michael told the Leadville Herald Extrakt “would take too long to get permits for.” He acknowledged flotation “doesn’t work as well as leaching does but for what we’re trying to do it works good enough.”
DRMS admitted in February 2023 it had misinformed CJK about water testing procedures—then required 15 months additional testing. When CJK announced Extrakt, DRMS told the Colorado Sun it “has not reviewed any information about Extrakt technology.”
The operation sits inside the California Gulch Superfund site designated in 1983 after rancher Bernard Smith reported orange Arkansas River water killing livestock. EPA cleanup cost $150 million by 2007. An additional settlement with Newmont and ASARCO followed in 2008. The Yak Tunnel plant removes 200 tons of metal annually. Result: 2014 Gold Medal Trout Stream designation for the longest continuous stretch nationally.
CJK proposes disturbing piles EPA worked four decades to cap. The company targets Breece Hill and Evans Gulch within Superfund boundaries where EPA’s Operable Unit 6 remediation continues through 2030. No public record shows EPA commenting despite federal authority under CERCLA to block actions that interfere with ongoing cleanup. EPA could designate the piles as part of federal remediation or object that disturbance violates the site’s Record of Decision. The agency remains silent while a state permit process threatens to undo its $150 million investment.
Colorado’s federal delegation has also remained quiet. Representative Brittany Pettersen and Senator John Hickenlooper—both facing reelection in 2026—have offered no public statements on a permit that could reverse four decades of federal Superfund success in their state. Pettersen represents Colorado’s 7th District, which depends on Arkansas River water via Front Range diversions. Hickenlooper, as former governor, oversaw DRMS during earlier phases of California Gulch cleanup. Neither office responded to constituent concerns documented in commissioner meetings. Pettersen can be reached at 202-225-2161 or via pettersen.house.gov. Hickenlooper’s office: 202-224-5941 or hickenlooper.senate.gov.
The Arkansas River serves Front Range cities and agricultural operations along 1,500 miles. The recreational economy generated $19 million from 196,100 visitors in 2022. Bob Hamel of Arkansas River Outfitters Association said, “There are a lot of communities with a lot invested in this river and we don’t want to withstand a spill.”
The mill sits upgradient from 510 wells. Dr. Emerman questioned whether CJK “adequately identify groundwater depth or preferential flow pathways.” DRMS specialist Dustin Czapla warned that even with monitoring wells, “oftentimes it’s too late by the time a contaminant is detected.”
Dr. Emerman found CJK refused signing the International Cyanide Management Code established after a 2002 Romania spill. “At the present time, any reputable gold mining company is a signatory,” Emerman said. “I’m surprised that DRMS would even consider an application from a company that is not a signatory.” Emerman noted switching to flotation “only addresses three of his concerns.”
The application contained conflicting permit boundaries, different versions of water monitoring well locations, and unclear point of compliance designation.
Approximately 2,000 mine waste piles remain around Leadville. CJK owns roughly 12 piles and purchased over 100 California Gulch plots. If approved, every pile owner could make the same argument. EPA’s containment strategy—stabilizing piles in place—would face systematic dismantling.
Nick Michael told the Denver Post, “I want to show that you can do this and make money.” CJK proposes processing 1.2 million tons over seven to eight years with plans for additional properties.
A resident calculated truck traffic would cause $485,000 in annual road damage, totaling $3.25 million over seven years, while CJK contributes nothing. The county also faces emergency response costs and perpetual monitoring obligations if CJK abandons operations. Lake County’s comment submission determines whether the county maintains legal standing for future hearings. Even with DRMS approval, the county Planning Commission must grant a Conditional Use Permit.
Public comment closes Sunday at midnight. If approved, the application moves to the Mined Land Reclamation Board for public hearing, then county Planning Commission. The Colorado legislature is considering legislation that could facilitate projects like CJK’s. Whether profit-driven mineral extraction qualifies as “reclamation” contradicts EPA’s four-decade containment strategy.
EPA needed 40 years to make the Arkansas River run clean after 150 years of mining contamination. CJK proposes reversing that success in eight years—leaving new contaminated waste, depleted wells, damaged roads, and precedent for 2,000 more disturbances.
Comments must be submitted at https://dnrlaserfiche.state.co.us/Forms/DRMS_Comment, referencing permit M1990057. Contact Concerned Citizens for Lake County at cc4lc.org or Arkansas River Outfitters Association at arkansasriveroutfitters.org.
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