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Note 4. Environmental and Reclamation Activities
 12 Months Ended
Dec. 31, 2011
Environmental Exit Costs by Cost [Table Text Block]
Note 4: Environmental and Reclamation Activities

The liabilities accrued for our reclamation and closure costs at December 31, 2011 and 2010, were as follows (in thousands):

   
2011
   
2010
Operating properties:
         
Greens Creek
  $ 36,123     $ 35,267  
Lucky Friday
    1,520       1,130  
Non-operating properties:
               
San Sebastian
    218       218  
Grouse Creek
    13,262       13,651  
Coeur d’Alene Basin
    95,081       262,153  
Republic
    3,538       3,800  
All other sites
    4,069       2,578  
Total
    153,811       318,797  
Reclamation and closure costs, current
    (42,248 )     (175,484 )
Reclamation and closure costs, long-term
  $ 111,563     $ 143,313  

The activity in our accrued reclamation and closure cost liability for the years ended December 31, 2011, 2010 and 2009, was as follows (in thousands):

Balance at January 1, 2009
  $ 121,347  
Accruals for estimated costs
    5,980  
Revision of estimated cash flows due to changes in reclamation plans
    3,347  
Receipt of settlement payment for shared reclamation costs incurred
    3,150  
Payment of reclamation obligations
    (2,623 )
Balance at December 31, 2009
    131,201  
Accruals for estimated costs
    196,067  
Payment of reclamation obligations
    (8,471 )
Balance at December 31, 2010
    318,797  
Accruals for estimated costs
    7,869  
Payment of reclamation obligations
    (172,855 )
Balance at December 31, 2011
  $ 153,811  

During the fourth quarter of 2010, we recorded an additional $193.2 million provision for remediation of the Coeur d'Alene Basin based on an understanding reached among the United States, the Coeur d’Alene Indian Tribe (“Plaintiffs”), and the State of Idaho, bringing our accrual to $262.2 million as of December 31, 2010. On September 8, 2011, a Consent Decree (the “Consent Decree”) settling environmental litigation and related claims involving Hecla Limited pertaining to historic releases of mining wastes in the Coeur d'Alene Basin was approved and entered by the U.S. District Court in Idaho. The Consent Decree resolved all existing claims of the Plaintiffs against Hecla Limited and its affiliates under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”) (and certain other statutes) for past response costs, future environmental remediation costs, and natural resource damages related to historic releases of mining wastes in the Coeur d'Alene River Basin.  The Consent Decree also resolved all remaining obligations of Hecla Limited under the 1994 Consent Decree relating to the “Box,” a rectangular 21-square-mile site located near Kellogg, Idaho within the Bunker Hill Superfund site. The Consent Decree contains comprehensive terms of settlement, including financial terms which require that Hecla Limited pay, in the aggregate, $264.4 million to the Plaintiffs over approximately three years. In early October 2011, Hecla Limited made payments totaling approximately $168 million to the Plaintiffs, and delivered surety bonds providing security for the remaining $96.4 million due over the next three years. Subsequently, Hecla Limited paid an additional approximately $1million, leaving its remaining payment obligations at $95.4 million.  See the Settlement of Bunker Hill Superfund Site Claims section of Note 7 for more information.

In March 2010, Hecla Limited received an invoice for $5.3 million from the EPA to cover response costs incurred by the EPA in performing work required by the Bunker Hill Superfund Site Consent Decree.  Prior to this invoice, Hecla Limited determined its potential range of liability for these costs of between $2.7 and $6.8 million, and accrued $2.7 million (the minimum of this range), as we believed no amount within the range was more likely than any other.  Upon receiving the EPA’s March invoice, Hecla Limited increased its accrual to $5.3 million in the first quarter of 2010, and resolved the claim with payment of the invoice amount in May 2010.  See the Settlement of Bunker Hill Superfund Site Claims of Note 7, for more information.

In December 2009 Hecla Limited received $3.3 million plus interest for settlement of a claim by us against ASARCO through their bankruptcy proceeding.  The claim was for costs incurred by us for ASARCO’s share of such costs under cost sharing agreements relating to the Bunker Hill Superfund site.  Prior to receipt of the claim settlement, our accrued reclamation and closure cost liability was recorded net of approximately $3.2 million of the ASARCO claim amount.    Therefore, receipt of the claim settlement resulted in a $3.2 million increase to our accrued reclamation and closure liability balance, with the remaining $0.1 million recorded as a decrease to accounts receivable.

Asset Retirement Obligations

Below is a reconciliation as of December 31, 2011 and 2010 (in thousands), of the asset retirement obligations relating to our operating properties, which are included in our total accrued reclamation and closure costs of $153.8 million and $318.8 million, respectively, discussed above. The estimated reclamation and abandonment costs were discounted using credit adjusted, risk-free interest rates ranging from 6% to 7% from the time we incurred the obligation to the time we expect to pay the retirement obligation.

   
2011
   
2010
 
Balance January 1
  $ 36,397     $ 36,364  
Changes in obligations due to changes in reclamation plans
    387       —  
Accretion expense
    1,119       627  
Payment of reclamation obligations
    (260 )     (594 )
Balance at December 31
  $ 37,643     $ 36,397