State of Idaho and Hecla agree on cleanup payments

Business Wire, April 11, 1996

COEUR D'ALENE, Idaho--(BUSINESS WIRE)--April 11, 1996--The state of Idaho and Hecla Mining Co. have entered into an agreement designed to provide continued funding of ongoing cleanup initiatives in northern Idaho's Coeur d'Alene Basin, while putting on hold any litigation against Hecla for Basin-related natural resource damages.

The agreement is intended to put additional money and manpower into the Basin cleanup, rather than litigation. The state and Hecla will continue to seek a negotiated agreement on a final resolution of the state's claims against Hecla.

Under the agreement, Hecla will fund 14.8% of the costs of Basin cleanup-related projects undertaken with the current proceeds of the Silver Valley Natural Resources Trust Fund established in the state's 1986 settlement with other Silver Valley mining companies. The state, in turn, agrees not to initiate legal proceedings against Hecla for five years on its natural resource damage claim and to credit Hecla for its 14.8% payment and certain other contributions and expenses.

The agreement reflects the commitment of the state of Idaho and Hecla to pursue creative resolutions for the difficult issues the Basin presents without resorting to the courts. As Gov. Batt noted in his March 8, 1996, letter to U.S. Attorney General Janet Reno, "Litigation of Basin natural resource damage claims will only serve to frustrate the progress of actual Basin cleanup and exacerbate the economic consequence of the Superfund listing nearly 13 years ago."

The state, the Silver Valley Trustees and Hecla have been working cooperatively for the last several years on a variety of environmental improvement projects in the upper Coeur d'Alene Basin that are having a positive impact on water quality and aesthetics in the area.

There is considerable concern on all sides about the effect on these and other cleanup efforts as a result of the litigation recently initiated by the United States against Hecla and others on the federal government's Basin-related natural resource claims. Nonetheless, as evidenced by the agreement announced today, the state and Hecla remain committed to a cooperative effort that maximizes the benefit to the Coeur d'Alene Basin, its residents and visitors.

CONTACT: Hecla Mining Co.

Vicki Veltkamp, 208/769-4144

Internet: http://www.hecla-mining.com

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