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PAGE 5 <br />minimal amount of water. The water leaking out at the time of <br />inspection was in compliance with applicable water quality <br />standards and effluent limits. Normally, the valve seals when <br />closed. The valve had been closed the night before. The valves <br />are closed as the pond level reaches the desired level. Since this <br />is done while compliance water is discharged, the leak from the <br />valve is also in compliance. Water leakage from this valve was <br />estimated at less than 1/4 gpm, however, it appeared to be a lot <br />less. Hoth leaks are insignificant and non-detrimental. <br />Seriousness is extremely low. <br />FAULT: Again, extremely low. No major structural. damage or <br />problems associated with these leaks. Pond OCtl gave uo hint•of <br />leakage prior to filling to the level that the major storm caused. <br />Detection of this problem was not possible prior to this event. <br />Pond 007 gate valve normally seals. Upon closure the night before, <br />there was no indication of leakage. <br />GOOD FAITH: Maximum credit should be given. Many attempts <br />have been made to seal the leaks. The right method and materials <br />have now been found to solve the problems. Pond 007 gate valve has <br />been repaired. This was accomplished on August 13. The leakage <br />from pond 008 has also been eliminated. <br />In summary, the problems caused by the August 3 storm at the <br />New Elk Mine represented the effects of a greater than 10 year/24 <br />hour storm event that devastated the mine site. There was no <br />failure to design, construct, or maintain the structures that were <br />damaged by the storm; the design capacities of these structures <br />were simply exceeded. As a result of these exceedances, structures <br />failed. In all cases, cleanup and repairs were begun during the <br />storm or as quickly thereafter as possible, and were amply staffed <br />and funded by Basin. <br />Basin requests the Division review the facts of. the three NOVs <br />and consider the foregoing information .^.arefully during the <br />penalty-formulation stage of its deliberations. Basin believes <br />that, based on the foregoing information, there is no basis for any <br />seriousness or fault components to the penalty assessment on any of <br />these violations and that good faith be at the maximum. <br />Please call if you have any questions. <br />Sincerely, <br />Ralph L z <br />Environmental Engineer <br />