In 1991 SCMCI was served with a cease-and-desist order by the state government, concerned with metal levels in nearby water due to the run-off of excess water from the heap leach pad and through the damaged pad liner. Possibly 85,000 US gallons (320 m3) of contaminated water had leaked into nearby creeks. In December 1992 Galactic Resources Ltd. declared itself bankrupt and declared that the site clean-up operations would halt immediately. The site clean-up was undertaken by the United States Environmental Protection Agency (EPA), from 1994 under Superfund Emergency Response. The main problem was the contaminated water held in an inadequate pond system. Another source of contamination was water leaking from older underground workings. The EPA estimated that 3,000 US gallons (11 m3) were leaking from the site every minute. However, despite the water having a pH of around 3 (acidic), a USGS study stated that the run-off was no serious threat.
