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CLIMAX PRE-HEARING STATEMENT <br />AM-06 APPLICATION, PERMIT No. M-1977-493 <br />MARCH 31, 2011 <br />• Ex. 77, 5/13/99 Letter from Climax to Division of Minerals and Geology <br />re: results of analyses conducted at Eagle Park Reservoir during 1998- <br />1999 delivery period; <br />• Ex. 78, 9/5/00 Letter from Climax to Division of Minerals and Geology re: <br />Eagle Park Reservoir Water Quality 1999-2000; <br />• Ex. 73, 1/03 Aquatics Associates Report of Results of Limnological <br />Monitoring; <br />• Ex. 67 at CM0001597-1598, June 17, 2003 ltr from A. Sorenson to B. <br />Romig re: satisfaction of conditions for SR-02 (in re: Ex. 75, 8/26/98 ltr <br />from A. Sorenson); and <br />• Ex. 96, Eagle Valley Monitoring Well data 1993- present. <br />2. Tenmile Basin <br />There are extensive water handling facilities and other EPFs in place in the <br />Tenmile Creek basin that provide environmental protection to Tenmile Creek, and these <br />facilities do not impact the quality or quantity of water in Clinton Gulch Reservoir <br />because they are downgradient of the reservoir. As is evident from Exhibit 97, an <br />undated photograph of Clinton Gulch Reservoir, impacted water from Climax processes, <br />including tailings ponds, are all "downhill" from Clinton Gulch Reservoir and therefore <br />Climax activities do not impact water quality and quantity at that reservoir. There is no <br />minim activity in the tributary stream (Clinton Creek) where Clinton Gulch <br />Reservoir is located. <br />Climax's East Interceptor, which consists of an open ditch, pipe, and inlets that <br />intercept clean runoff from the hillsides on the east side (upgradient from) the tailing <br />facility, does deliver water through Clinton Gulch Reservoir down to Climax's discharge <br />point on Tenmile Creek. This Tenmile Creek discharge point is the only permitted point <br />of discharge from the Climax system, and quality is controlled by a Colorado NPDES <br />permit and discharges meet applicable Colorado water quality standards. <br />The upstream end of the East Interceptor is McNulty Gulch. Currently, a divider <br />wall is in place that diverts impacted water runoff from the McNulty Overburden Storage <br />Facility ("OSF") towards the tailings facilities, and clean water to the East Interceptor. <br />Exhibit 61 is an aerial photograph of this McNulty Gulch interceptor; Exhibit 62 is a <br />schematic of the facility. This facility ensures that impacted water is not delivered from <br />McNulty OSF through the East Interceptor to Clinton Gulch Reservoir. The mine plan <br />included in the AM-06 application describes expansion of overburden storage in <br />McNulty OSF. However, prior to material being placed there, the East Interceptor will <br />be truncated so that no impacted water is diverted into the East Interceptor or Clinton <br />Gulch Reservoir. <br />13