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CDPHE WOCD Fax~303-782-0390 May 2000 1817 P. 03 •. from the north bank of the creek adjacent to the West Pit. This seepage contained elevated levels of pollutants leaching from the waste rock in the backfilled West Pit. As a result of the discovery of the seepage, Battle Mountain Resources undertook an investigation of the ground water hydrology in vicinity of the West Pit which was completed in March 1999. During the time of this study, the Water Quality Control Division worked with Battle Moutrtain Resources and the Division of Mmerals and Geology to determine whether the flow (discharge) from the West Pit would be continuing over a long period. The resu~ts of the study indicated that there would be an ongoing discharge from the West Pit On August 20, 1999, the Water Quality Control Division issued a Notice of Violation and Cease and Desist Order to Battle Mountain for violations ofthe Colorado Water Quality Comrol Act specifically for the unpermitted discharges to the Rito Seco. On the same day, Battle Mountain Resources filed an application for a Colorado Dischazge Permit System permit with the division. The discharges covered in the permit application included a proposed discharge from a [nine-site water treatment system designed to treat ground water from the West Pit and the sw-rounding area (discharge point 001) and the discharge from the seepage from in the alluvial groundwater which resulted from groundwater flow from the West Pit (discharge point 002). The division issued a drag of the requested permit for public comment on M azch 31, 2000. Since the filing of application for the additional discharge permit, Battle Mountain has fully cooperated with Division of Minerals and Geology and the Water Quality Control Division in addressing environmental issues associated with the West Pit. In October 1999, Battle Mountain began operating a system to pump and treat ground water from the West Pit. The aforementioned study of the ground water system had indicated that the pumping would reverse the flow of ground water from the West Pit to the Rito Seas alluvium and this appears to have occurred . The 682-day penalty period covered in the settlement agreement began on October 7, 1997, the date elevated pollutam levels were first detected in the surface water of the Rito Seco at the down stream monitoring station, and ended August 20, 1999, the date Battle Mountains kesources filed its permit application. Pursttant to the Water Quality Control Division's Civil Penalty Policy, the assessment of the penalty also included an analysis of (a) a fault wmponrnt; (b) a potential damage component; and (c) an economic benefit ofnon-compliance component. The division assessed the fault component in Category I, the lowest category, concluding it was appropriate bocause Battlc Mountain could not reasonably have been expected to be aware of the circumstances that led to the violations at issue. No amount was assessed fo- the potential damage componrnt because evidence relied upon by the division indicates that the violations at issue did not lead to impairment of the classified uses of the Rito Seco. Under the circumstances of this case, no amount was assessed for the economic benefit component as Battle Mountain did not realize a financial gain from its non-compliance.