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fluids, and are designated as PW (refer to Facilities Summary, Table 1) will be subject to zero dischazge or treatment before dischazge. Areas Subject to Effluent Limitations Several seeps along the southern bank of the Rito Seco were discovered in 1998. Groundwater flows associated with the seeps and the backfilled West Pit are currently managed through the groundwater extraction and water treatment facility. The response activities were implemented in accordance with regulatory oversight by the State of Colorado Department of Health and Environment (CDPHE) and the State of Colorado Department of Natural Resources -Division of Minerals and Geology. These seeps are the subject of a Notice of Violation and Cease and Desist Order issued by CDPHE on August 20, 1999 and as amended on October 8, 1999. A Colorado Dischazge Permit System (CDPS) was issued to the Project in December 2000, effective January 2001 (Permit Number CO-0322280). The permit authorizes groundwater extraction from the West Pit and the operation of a water treatment facility for managing groundwater flows associated with the West Pit hydrologic system. As discussed eazlier in the facilities descriptions, process water from the previous milling activities is contained in the zero-discharge tailing disposal system. The mill facility itself was designed and constructed with numerous redundant safety features to prevent a discharge, with a final safeguard being that the mill area was graded to drain to the tailing facility. The zero discharge status of the tailing facility and the identified safeguazds remain in place to prevent the discharge of process water from these facilities. Although substantial reclamation has been completed at the tailing disposal facility since the completion of mining, the stormwater management system discussed previously remains in place. BMRI anticipates that the tailing disposal azea stormwater system will be decommissioned following final reclamation of the site and upon receipt of final bond release. No other areas of the project dischazge water subject to effluent limitations. Battle Mountain Resources, /nc. Telesto Solutions, /nc. ,anmU.~o.m~~:. mo~a8~e„~ym~.d~ 14 May 3, 2002