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JUI,- 5-95 WED 229 PM TESSF~CT PP,ODUCTIONS FAX N0. 3~~79713 P, 7 continues to the present date (July 3, 1995), albeit at a much- reduced rate estimated at one to two quarts per minute (qpm). This is infected From observadon of surface water flow near the mouth of the edit, coupled with tbe fad that the water level behind the bulkhead was nearly the same as before, at about nineteen to twenty inches £reeboard, with significant leakage continuing at various points around the bulkhead. The implications of these observations are obvious. The Hazel A will take on water at significant rates during any extended wet spell such as we Lad in May 1995. To nraiatain froeboard the edit will gave to be pumped, presumably to the tailings pond, and this at just the time whm one would least wish w have additional water delivered to that place. This condition can continue far days m weeks, and accompanying climamlogical conditions can be such that little or no net evaporation is occurring from the tailings pond. It is difficult to see Low a zet+o-discharge posture can be maintained mdet suet condidans absent frequent to continuous pumping and a very substantial pond freeboard. It is also difficult [o see how edit discharge can be prevented by any passive system short of a full edit seal; this however would preclude easy access for periodic cleanout of tailings slimes as contemplated in the present decant line approach. Full seal would also almost certainly requue keying the seal into the floor, walls end roof of the edit, possibly supplemented by some grouting of the surrounding rock. Looked at solely from an environmental perspective, it appears that rema+~~ng pond slimes must be removed from Ute Hazel A and its use as a pond overflow reservoir must be abandoned. It is an open question at present whether residual water flows from the open edit are of acceptable quality. Doubtless some sampling will need to be done under quiescem conditions afocr alit cleanout. The alternatives, however, are also unattractive. Either the dam must be raised further, at considerable financial and environmental cost, or the tailings emplacement must be limited, thus reducing impoundment working life. A thirri aLetnadve of worse earisls, that of water treatment and permitted discharge. Costs of this, too, are likely m be unatttarxive if not pmhibidve. In Reference 5, Item 10, we tmderscored the need for a thorough, competent engineering review of the total milling system at the (}old Hill Mill. We continue m believe this will benefit all parties, the earlier the review, the greater the benefit. Of particular relevance in light of the issues discussed above is the matter of