October 30, 2006

The Department of Environmental Quality and Department of Attorney General announced today that the state has entered into an agreement with The Cleveland-Cliffs Iron Company (Cliffs) to resolve issues related to mercury deposition in Deer Lake, north of Ishpeming.

This historic settlement agreement will restore the quality of Deer Lake by assuring that the present water level of the lake is maintained, addressing sources of mercury to the lake, and monitoring the mercury level of fish in the lake, notifying those results to the public. Cliffs will also convey extensive acreage, properties, easements and rights-of-way to the state of Michigan that will dramatically increase public access to, and facilitate the use of, Deer Lake and other lakes and rivers in the area.

"This agreement will provide a tremendous benefit to the people of Michigan," said DEQ Director Steven E. Chester. "It will ensure the waters within this community are restored and protected and will enhance recreational opportunity for generations to come."

Cleveland-Cliffs will establish a Deer Lake restoration fund in order to create and upgrade public access to recreational areas and to restrict development in order to protect the water quality, maintain the aesthetics, and preserve the woodlands along the shores of Deer Lake.

Under terms of the settlement, 775 acres and 34,000 feet of shoreline of Deer Lake will be deeded to a local entity and 541 acres along the Carp River downstream of the Deer Lake dam will be deeded to the state of Michigan. In addition, Cliffs will provide funding to a dam maintenance account that will ensure the dam remains properly maintained.

Cleveland-Cliffs will also provide acreage, easements, and financial support to create or enhance the use of, and public access to, a number of Marquette County lakes, rivers, streams, and impoundments. This work will include improved access to the waters, and will offer additional recreational opportunities in the area.

"This agreement can serve as a model for successfully resolving environmental issues in a cooperative manner without litigation," said Michigan Attorney General Mike Cox. "It clearly demonstrates that sound environmental protection and viable economic activities are not mutually exclusive."

"This ends a lengthy period of uncertainty regarding Cleveland-Cliffs and the issues surrounding Deer Lake," said Dana Byrne, vice president of public affairs for Cleveland-Cliffs. "Our research indicates that conditions have improved at Deer Lake since the original consent agreement. While this amended agreement now completes the negotiation process with the state of Michigan, Cliffs' commitments regarding Deer Lake and the other provisions in the consent agreement will continue for many years to come. In particular, the Deer Lake provisions will preserve and protect the lake as a resource for recreational opportunities for residents and visitors."

Editor's note: DEQ news releases are available on the department's Internet home page at www.michigan.gov/deq.

"Protecting Michigan's Environment, Ensuring Michigan's Future"

Revised October 30, 2006 by Pat Watson