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standards because of dilution and the precipitation of contaminants in the Reservoir. However, <br /> reliance upon physical processes within Eagle Park Reservoir to improve water quality violates <br /> the Stipulations in the AM-06 Settlement Agreement and the terms of the AM-06 approval. <br /> Climax is not allowed to rely on Eagle Park Reservoir for"any level of containment" or any part <br /> of its EPP. <br /> Eagle Park Reservoir Purchase Agreement <br /> The above listed provisions of the AM-06 Settlement Agreement are further consistent <br /> with the 1998 Purchase and Sale Agreement ("1998 Agreement") for Eagle Park Reservoir. <br /> Paragraph 3 of the=AM-06 Settlement Agreement recognizes that the 1998--Agreement "remain[s] <br /> in full force and effect." Exhibit C to the AM-06 Settlement Agreement included a"Remedies <br /> Agreement" pertaining to the 1998 Agreement that also recognized that "[b]y paragraph 15 of <br /> the 1998 Agreement, Climax made certain general covenants to the Reservoir Company <br /> regarding water quality and quantity in the Eagle Park Reservoir" and "that the 1998 Agreement <br /> continues in full force and effect, including without limitation paragraph 15 and 17 thereof." By <br /> these statements, compliance with the 1998 Agreement is explicitly recognized in the AM-06 <br /> Settlement Agreement, and are thus part of the AM-06 approval. <br /> For purposes of TR-25, the relevant portion of the 1998 Agreement are the covenants <br /> described in paragraph 15. The most relevant of these covenants state as follows: <br /> (a) Unless otherwise ordered by local, state, or federal officials, notice of which orders <br /> shall be promptly provided to the Reservoir Company, Climax shall take no action <br /> that detrimentally affects the Project, including but not limited to alteration of <br /> topography or other operations that adversely affect the amount or quality of water <br /> that can be collected by Eagle Park Reservoir, the Chalk Mountain Interceptor, or the <br /> East Fork Pumpback Facility. <br /> (b) Climax shall not modify any current operations or commence any new operations on <br /> any land owned, leased or controlled by Climax that result in the introduction of <br /> additional pollutants over the average current pollutant level in water that is to be <br /> collected for storage in Eagle Park Reservoir, provided that Climax shall not be <br /> responsible for the introduction of pollutants by third parties not within Climax's <br /> reasonable control. <br /> (c) Climax shall prevent any contamination of the Project or Project water from <br /> Robinson Reservoir or the other tailings facilities on the Climax Property, or by or <br /> from any of Climax's other activities. In addition, Climax shall operate the Robinson <br /> Seepage Pumpback Facility until such time as Robinson Reservoir is fully reclaimed <br /> and all water seeping, escaping or released therefrom meets the water quality <br /> standards of the East Fork of the Eagle River below Eagle Park Reservoir. Climax <br /> shall further operate the Dam 4 Seepage Pumpback Facility as provided in paragraph <br /> 9 above. <br /> (Emphasis added). <br /> 3 <br /> 93001 <br />