2016-08-13_PERMIT FILE - P2016020 (2)

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Notwithstanding that MineWater agrees to the payment of the civil penalty imposed hereby in accordance with the terms hereof, as applied to MineWater, the civil penalty to be paid pursuant to this paragraph is not meant to penalize or fine MineWater in any way because MineWater did not commit any of the violations of the Act described above and did not own or operate the London Mine when such violations occurred. 52. Neither London Mine, LLC, the Estate, the Personal Representative, Meyer, THE nor PCMD#9 has any performance or payment obligations under this Consent Order and Settlement Agreement. STIPULATED PENALTIES 53. MineWater agrees that it shall pay a stipulated penalty payment for each zinc, cadmium, and total suspended solids ("TSS") effluent violation reported under the Water Tunnel Permit subsequent to closing and the Parties execution of this Consent Order and Settlement Agreement and prior to September 30, 2018. In the event that a TSS effluent violation occurs, the stipulated penalty will be $750.00. In the event that a zinc or cadmium effluent violation occurs during a monitoring period, the magnitude of the penalty will be based on ambient water quality conditions. Should the ambient water quality monitoring data collected pursuant to paragraph 45 establish an exceedance of the applicable Water Quality Control Commission stream standard for zinc and/or cadmium in Segment COSPUS02c during the monitoring period, the stipulated penalty for such effluent violation(s) will be increased to the Tier 2 exceedance level set forth in the table, below. On the condition that the quality of the effluent from the Water Tunnel Facility does not deteriorate from the current quality and that MineWater is at all times property operating and maintaining all facilities and systems of treatment and control at the Water Tunnel Facility, the Division and MineWater agree that the following stipulated penalties shall apply to zinc, cadmium, and TSS effluent violations that occur following the Parties' execution of this Consent Order and Settlement Agreement and lasting through September 30, 2018, so that the maximum stipulated penalty incurred for any month is set forth below: MineWater STIPULATED PENALTY TABLE Tier 1 Stipulated Penalty Tier 2 Stipulated Penalty Penalty per month for Penalty per month for PARAMETER effluent violation and no effluent violation and an exceedance of stream exceedance of stream standard standard Zinc, potentially dissolved $750 $1,200 Cadmium, potentially dissolved $750 $1,200 Total Suspended Solids $750 NA 54. Following MineWater's submittal of a DMR that establishes Water Tunnel Permit effluent violation(s) for zinc and/or cadmium and/or TSS during a monitoring period, MineWater agrees that it will make a stipulated penalty payment within sixty (60) calendar days of its DMR submittal. All payment of stipulated penalties shall be made in the same manner set forth in paragraph 51 above and MineWater shall include a cover letter outlining MineWater's methodology of determining the stipulated penalty amount. London Mine, LLC, et at. C O L O R A D O Compliance Order on Consent and Settlement Agreement �® Department of Public Page 13 of 23 Health 6 Environment