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STATE OF COLORADO <br />AND <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />DATE: <br />TO: <br />FROM: <br />RE: <br />November 8, 2004 / <br />Steve Brown, AGO / <br />COLORADO <br />DIVISION OE <br />MIN SRALS <br />GEOLOGY <br />RECLAMATION•M INING <br />SAFFTY•SCIENCE <br />Bill Owens <br />Governor <br />Russell George <br />Executive Director <br />Ronald W. Canany <br />Division Director <br />Natural Resource Trustee <br />Allen Sorenson ~ ~ / / <br />,~/ <br />Review of Technical Revision TR-14 Requirements, Sunnyside Gold Corporation, <br />Sunnyside Mine, Permit No. M-1977-378 <br />Compliance with the terms of technical revision TR-14 to the Sunnyside Permit has been achieved. The <br />primary compliance requirement was to conduct intensive inspections and sample all discharges in a study <br />area surrounding the mine that was established during the review period for the TR. The Operator was <br />also required to monitor the conjunctive flow in selected drainages surrounding the mine. These <br />requirements were designed to detect and characterize new or increased emergence of ground water <br />related to the flooding of the Sunnyside Mine. The terms of the TR required that inspections and sample <br />collection continue for two years following the equilibration of the Sunnyside mine pool. Equilibration <br />occurred in November 1999; the required inspection and sampling program terminated in November <br />2001. Through the inspection and sampling program, it was determined that the flooding of the <br />underground workings did result in increased surface flows to streams surrounding the mine, particularly <br />from the nearby Mogul Mine, but also from other locations. The Mogul Mine has since been plugged by <br />installation of a concrete bulkhead. <br />In 1993, the Water Quality Control Division issued a finding that any new or increased flows to surface <br />caused by flooding the Sunnyside Mine would be point sources requiring CDPS permits. Sunnyside filed <br />suit in District Court challenging this finding. The lawsuit resulted in the Consent Decree entered into <br />between Sunnyside and the WQCD; this Consent Decree essentially employed what the WQCD termed a <br />"bubble concept" for water quality in the Upper Animas River. Sunnyside would be allowed to flood the <br />mine, and the expected new and increased flows to surface surrounding the mine would be allowed to <br />develop without the need for individual CDPS permitting as long as Sunnyside took necessary and <br />appropriate measures to assure that water quality at monitoring point A-72 in the Animas River did not <br />degrade beyond the water quality at that point prior to mine flooding when 100 percent of flows from the <br />American and Terry Tunnels were being treated. It was DMG's understanding that Sunnyside would not <br />be released from the CDPS permit at the American Tunnel until it was demonstrated that water quality at <br />A-72 could be maintained without the need for active treatment. What is not clear to DMG at this time, <br />and should be discussed with WQCD at our meeting on November 9, 2004, is as follows: <br />1. Is the water quality at A-72 acceptable even without active treatment of remaining American <br />Tunnel flows and treatment of Gold King Mine discharge? <br />2. Was Sunnyside Gold Corp. released from its CDPS permits through full compliance with the <br />Consent Decree, or simply because the permit was transferred to Gold King? <br />Office of Office of Colorado <br />Mined Land Reclamation Active and Inactive Mines Geological Survey <br />