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C~ Mr. Gary F. Fritz Page Two August 30, 1979 Kerr has initiated and is now engaged in the pLOCess of analyzing the rather limited alternatives available to it for improving the control of runoff at its tipple site. Since several of the alternatives may involve the use of wetlands, Kerr is evaluating the available alternatives very carefully. Thus, Kerr's present difficulty in meeting the abatement date is not caused by Kerr's lack of diligence, but rather, results from the company's efforts to take account of all the environmental implications of any abate- ment measures. Specifically, Kerr proposes the following sequence of actions to accomplish abatement of any water quality violations at the Kerr loadout. Kerr will select the most desirable abatement alternative on or before September 4, 1979. At that time, Kerr proposes to discuss the available alternatives with technical repre- sentatives of both the Office of Surface Mining ("OSM"} and the Colorado State Plined Land Reclamation Division ("~1LRD"). After receiving the concurrence of these two agencies concerning the most desirable alternative, ~:err will begin its implemen- tation. Whatever control devices are installed, Kerr desires to have them comply caith the final performance standards under the permanent regulatory program. If the alternative selected involves any fill to the surrounding marshes, the Corps of Engineers may become in- volved. If the Corps exerts jurisdication over any proposed alternative, obtaining the necessary permit under Section 404 of the Federal Water Pollution Control Act, as amended, could take several mo;iths and delay the initiation of any control measures. Thus, beyond a cor,~itment to present alternatives to the two regulatory agencies, and implement the chosen alternative upon receipt of all required regula- tory approvals, it is impossible for Kerr to commit to a timetable pursuant to orhich the Leadout facility cai11 be brought into compliance. Cnce the alternative is selected, however, a timetable could be agreed upon. Notcaithstanding the ultiriate resolution of the questions of compliance with the final regulatory program at the Kerr loadout, Kerr has iniriated the following interim measures to control runoff. The gravel berm, which was constructed primarily to control flooding across the tipple site from the adjoining marshes, will be extended to further contain runoff from the tipple site. In addition, straw dams have been placed in the drainages to capture suspended solids. •