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GRASS VALLEY, Calif.—A Denver-based mining company has agreed to pay the city of Grass Valley $4 million to settle a case over toxic water that has been spewing from a Gold Rush-era mine tunnel.
Newmont Mining Corp. will pay $2 million in attorney fees and $2 million in costs incurred at the city’s sewer plant since 2000. It also agreed to build a small, $2 million wastewater treatment plant.
The settlement ends a five-year-old legal battle that began when city workers expanding the plant hit the old tunnel, launching almost 500,000 gallons of water per day into the treatment plant.
Newmont did not admit wrongdoing in the settlement.
