In 1989 the Montana Legislature passed the Bad Actors Law due to historical patterns of irresponsible behavior by some Montana mining companies and their chief officers. This pattern often resulted in major pollution and bankruptcy filings while the officers moved on leaving the costs and impacts on taxpayers. The law blocks Montana mining companies from receiving permits if any of their employees had worked for a Montana mine that failed to cleanup their pollution. To comply with the law the chief officer can be removed or the mine can pay for current and future cleanup of the previous mine employer.

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Hecla Mining's CEO Phillips Baker was previously a chief officer of Pegasus Gold when it declared bankruptcy in 1998, leaving behind a toxic mess at three of the company’s gold mines in Zortman-Landusky, Beal Mountain and Basin Creek. Montana taxpayers have paid over $32 million for site reclamation and treatment at Zortman-Landusky and will continue to pay $2 million per year forever. Hecla Mining is now applying for permits at the Rock Creek Mine in Noxon Montana and the Montanore Mine in Libby Montana while refusing to comply to the Bad Actors law as they fight it in court.