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III IIIIIIIII~III III n .~ Fax "~0, ~.=2-O~SO May 1t~rJ 13:20 <br />BEFORE THE DEPARTIDIENT OF PUBLIC HEALTH AND ENVIRONS <br />F. 02 0 <br />NT <br />DIVISION OF ADM[NISTRaTION <br />STATE OF COLORaDO <br />MAY 2 6 <br />Division of Minerals <br />SETTLEYIEtiT AGREEMENT AND STIPULATED ORDER <br />1~` THE ~VI,aTTER OF : B.aTTLE tt40UNTAIN GOLD COMY.aNY' <br />BATTLE htOUNTAIN RESOURCES INC., <br />COSTILLA COliNTY <br />The Water Quality Control Division {"Division") of the Colorado Dep ment of <br />Public Health and Environment ("CDPHE"}enters into this Settlement Agcee en[ and <br />Stipulated Order ("Order"} with Battle Mountain Gold Company ("BMGC") d $attle <br />Mountain Resources Inc. ("BMRI") (collectively "Battle iViountain") to addres alleged <br />violations of the Colorado ~Y'a[er Quality Control Act ("CWQCA"), sections Z -=3.101 to <br />-707, C.R.S. The issues which aze the subject of this Order have been settled y <br />agreement of the Division and Battle Ivfountain, without trial or adjudication o any issue <br />of fat[ of law. Accordingly, the Parties hereby agree and state as follows: ' <br />I. F1NDLtiGS OF FACT <br />1. The Division has statutory responsibility pursuant to sections 25-3-30~ to -303, <br />C.R.S., to enforce the provisions of the CWQCA, sections 25-3-1Ot to -703, .R.S. <br />2. The Colorado Mined Land Reclamation Boazd ("CtifLRB") and the ivision of <br />itilinerals and Geology ("DMG"), [he agency that provides administrative an technical <br />support to the Cti1LRB, are "implementing agencies" under sec[ion ?5-3-20~ 7), C.P..S. <br />of the C WQCA. In their role as implementing agencies, the CIvILR6 and D G have <br />primaryjurisdictionnver protection of groundwater quality with respect to H RI's <br />mining and reclamation operations. Pursuant to Section 25-8-202(7)(b)(I), C R.S., the <br />Division is solely responsible for the issuance and enforcement of permits a thorizing <br />point sotuce dischazges to surface waters of the State. <br />3. BMRI obtained Mining and Reclamation permit number rti1-33-1 IZ om the <br />C~1LF.H in Match 1939 ("the CMLRB Permii'), for mining and associated eclamation <br />activities at the San Luis Mine located in Costilla County. B~(RI beean mi ing at the <br />San Luis Mine in January 1990. B~SRI's facilities at the San Luis Mine in uded, among <br />other facilities, two open pits (the `'East" and `'West' Pits). <br />4. BMRl, a wholly owned subsidiary of BMGC, leased the 1Vest Pit~m October <br />1937 until t~tay 15, 1997, from Earth Sciene~s, lrc. ("ESI"), [he former o er of the ptt. <br />