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Jeff Fugate, Esq. <br />Page 2 of 3 <br />May 15,2008 <br />BMRI continued to use the water treatment facility to accomplish its goals, reclamation is then <br />considered completed. If no other reclamation matters need to be addressed, then DRMS is in a <br />position of terminating its permit. However, if the DRMS permit is terminated, the expectation <br />is that CDPHE will still have its discharge permit in place. In such event, CDPHE would then <br />continue to be the supervising agency for future purposes of pumping the West Pit wells and <br />water treatment. <br />BMRI; however, has elected to take a different course of action which is reflected in AM- <br />03. In AM-03, BMRI seeks to discontinue the water treatment facility. In its place, BMR1 seeks <br />to add the Newmont Reality ranch lands - approximately 2 and one-half miles down stream - to <br />the permitted area. These lands are targeted as use for land dispersal in which the untreated <br />waters are piped from the West Pit area and then dispersed on the lands. The net effect is that <br />both the soils and groundwater beneath the soils will be degraded. The question is how much <br />and to what effect. Other issues are the short and long-term impacts on the inhabitants and their <br />drinking water supply, as well as impacts on livestock, wildlife and related concerns. <br />The Newmont Reality ranch, for which land dispersal is contemplated, is not contiguous <br />to the permitted area although the permitted area and the Newmont Reality ranch are properties <br />purportedly owned in fee simple by the same or related entities. The sole nexus.between the two <br />parcels is by virtue of a pipeline corridor, through an easement. Part of the easement traverses <br />lands that neither BMRI nor an affiliate owns. Also, there are at least one or more parcels of <br />land that are not owned by BMRI, or its affiliate, between the permitted area and the ranch land <br />targeted for land dispersal. The pipeline is used as a means for transporting the untreated water. <br />An underlying concept behind BMRI's amended application is that the Newinont Reality, <br />ranch could be located anywhere in the State of Colorado as long as there is pipeline long <br />enough to reach these lands, and an easement is granted between the two parcels. <br />With this general background, Mr. Erickson's letter of April 28, 2008, addresses the issue <br />of reclamation and use of the water treatment plant on- a perpetual basis as follows: <br />Pursuant to Rule 3.1.7(8) an Operator shall demonstrate, to the <br />satisfaction of the Office, that reclamation has been achieved so <br />that existing and future uses of ground water are protected. Under <br />the current scenario of perpetual water treatment the requirement <br />of Rule 3.1.7(8) is satisfied through the CDPS permit. Under the <br />current scenario of perpetual water treatment in accordance with <br />the CDPS permit, it appears possible for the Operator to achieve <br />completion of reclamation, release of warranties and termination of <br />the DRMS permit. However, in the absence of the CDPS permit, <br />or other permit that protects existing and future uses of ground <br />water, there appears little possibility for the Operator to achieve <br />completion of reclamation and termination of the DRMS permit.