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II. Water Treatment Facilities. GKMC is obligated to treat water (for WQCC) using facilities that SGC is obligated to reclaim (for MLRB). Only one of these obligations can be carried out. Leaving along-term water treatment plant on site is not compatible with the approved reclamation plan. What are SGC's plans for reclaiming the water treatment plant? CDPHE and SGC's joint Fourth Amendment to the Consent Decree included GKMC's proposal to take over the water treatment facilities, pursuant to a related Agreement. The overall plan, consisting of numerous elements, was designed to achieve a water quality improvement in the basin. This Agreement included the assumption of reclamation responsibilities from SGC and is consistent with SGC's reclamation plan for the American Tunnel area. In SGC's reclamation plan, the facilities were to be offered by SGC to the property owner, GKMC, who would then be required to take over MLR reclamation responsibilities. Unfortunately, GKMC has been unable to wmplete this transfer of reclamation responsibilities. GKMC has, as a result of its failure to adhere to lease terms with the San Juan Corp., been evicted by Court Order from an integral part of the treatment system, the settling ponds. Without settling ponds or some comparable system to remove precipitate, the remaining portion of the system is not functional. The Deed to GKMC conveying the water treatment facilities, restricts GKMC from constructing or materially changing the property in a manner that would increase SGC's reclamation responsibility. Reclamation responsibility has to be assumed before GKMC could make changes within SGC's permit area to replace the function the settling ponds served. Therefore, GKMC, working with CDPHE, needs to develop a viable plan to reactivate and operate the system. A ]and use change request that will eliminate SGC's obligation to remove these facilities would then be appropriate. Since potential still exists for these facilities to serve a useful purpose and entities have expressed an interest to maintain the plant, SGC has been reluctant to pursue its right of access to wmplete its reclamation plan, allowing GKMC every opportunity to perform under the Agreement. It should become evident by the end of 2005, if this remains a possibility. If not, SGC has reserved the right to complete is reclamation responsibilities and is ready to proceed. SGC at the same time will cooperate with the appropriate agencies and entities, if there is a desire to preserve the plant, provided the DMG approves the same. IIL Sedimentation ponds. GKMC's access right, for treatment, is limited. However, even without that limitation, SGC is still obligated under the DMG permit to remove these ponds and reclaim the area to rangeland. Please clarify your access right to this property for reclamation. What are SGC's plans for reclaiming this area of the permit and what is the schedule? SGC and the owner of the sedimentation ponds are in agreement that reclamation according to SGC's reclamation plan is desirable and this work is currently in progress and scheduled for completion in 2005. There is no access issue with respect to the ponds.