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Proposed Civil Penalty Assessment MINREC, Inc /The North Thompson Creek Miue NOV CV-2005-007 July IS, 2005 Materials reviewed: DMG NOV (6/20/05); DMG Inspection Report (6/6/05), DMG Photos from 6/6/05 inspection; Letter from J. E. Stover & Associates, Inc (6/27/05); Memo from Jim Stazk (7/4/05). History [Rule 5.04.5(3)(a)]: One NOV has been issued at this mine during the 12 months preceding the issuance of this NOV. The History component is therefore proposed to be set at $50. Seriousness [Rule 5.04.5(3)(b)]: The Seriousness component of a proposed assessment may range from $0 to $1750. The amount proposed depends upon whether the violation was one of performance requirements or of administrative requirements. This NOV was written for a violation of performance requirements. In the case of a violation of performance requirements, the amount to be assessed for Seriousness depends upon (1) the probability of the occurrence of the event which a violated standard is designed to prevent, and (2) the duration and extent of the potential or actual damage in terms of area and impact on the public or environment. (1) The event (an adverse impact to the hydrologic balance) that the statutory, regulatory, and permit standards aze designed to prevent did in fact occur. (2) An impact upon the public does not appeaz to have occurred. An impact upon the environment (mine water flowing out of the designed treatment system onto surrounding azea) did occur. The duration and extent of the actual damage upon the environment appear small. The Seriousness component of this assessment is therefore proposed [o be set at $250. Fault [Rule 5.04.5(3)(c)]: The fault component of a proposed civil penalty assessment may range from $0 to $1500. Assessments of "unavoidable" violations may range from $0 to $250. Assessments for violations that were the result of "negligence" may range from $250 to $750. Assessments for violations that resulted from "intentional conducN' may range from $750 to $1500. It appears that the first part of the violation (water flowing out of the "aeration" ditch) was "unavoidable", as i[ appears that the mine water dischazge rate was greater than normal and that the permittee has no significant control over the flow rate. It appears that the second part of the violation (water flowing overland into Pond P-9) may have been the result of an approved channel (shown appazently on Drawing D-2-5) not being constructed, and thus appears to be "negligence". The Fault component is therefore proposed to be set at $500. Good Faith in Achieving Compliance (Rule 5.04.5(3)(d)]: This NOV has not yet been terminated. Good faith credit is therefore not proposed at this time. The Total Proposed Civil Penalty Assessment for this NOV is therefore set at $800.