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<br />are protected. See also 2 CCR407-1, Rule 4.16.1 (requiring an <br />operator to submit a report of compliance with the Act and permit <br />prior to bond release). <br />3. The Statement of Basis and Purpose for the groundwater <br />regulations provides that the rules may affect both new and <br />existing permits, and that the primary purpose of the rules is to <br />protect groundwater quality during both the mining operation and <br />reclamation phases of a mining operation. <br />4. In 1985, Homestake Mining Company ("HMC"j ceased its <br />mining operations. HMC began final reclamation work in 1992. <br />5. In 1994, HMC requested and obtained approval from the <br />Division of two technical revisions to its permit pertaining to its <br />reclamation obligations. <br />6. In September 1994, the Division inspected the site. The <br />Division found that a number of reclamation issues remained at the <br />site. See Qenerally inspection report dated September 28, 1994. <br />7. HMC has not completed reclamation at the site and has made <br />no request for release from its liability under the bond. <br />8. In December 1994, the Division notified HMC that the <br />Division had reason to believe that a reasonable potential existed <br />for degradation of groundwater quality in the area of the mine that <br />may adversely affect the existing and reasonably potential future <br />uses of the groundwater. The notice informed HMC of the <br />possibility of the need to modify its permit to comply with <br />groundwater regulations. <br />9. In January 1995, HMC informed the Division that it <br />believed that the mine was not adversely affecting beneficial uses <br />of groundwater in the area. <br />10. In April 1995, the Division sent notice to HMC that its <br />response to its December letter did not provide sufficient <br />information. The Division then requested that HMC provide <br />additional information. <br />11. HMC objected to the Division's request for additional <br />information. On July 7, 1995, HMC filed a Petition for a <br />Declaratory Order asking the Board to find that the Division "is <br />not authorized to direct Homestake to conduct an investigation and <br />characterization study after mine closure and final reclamation on <br />the nature and extent of ground water impacts that may have been <br />caused by past operations and activities at the Bulldog Mine." <br />12. The Board conducted a hearing on HMC's petition on July <br />26, 1995. HMC and the Division presented testimony at the hearing. <br />Based on the Findings of Fact and Conclusions of Law stated herein, <br />the Board rules that the Division has the authority to request <br />