2011-03-31_REVISION - M1977493 (3)

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CLIMAX PRE-HEARING STATEMENT AM-06 APPLICATION, PERMIT No. M-1977-493 MARCH 31, 2011 D. The actions planned at Climax after approval of AM-06 will not affect water quality or quantity in the reservoirs. As demonstrated in the discussion in Section C, above, environmental protections are currently in place to prevent adverse impacts to water quality and quantity in the Eagle Park and Clinton Gulch Reservoirs. Furthermore, full scale mining and milling will not resume until TRs are completed to allow review and revisions as appropriate of the EPP and WQMP. The actions planned after approval of AM-06 will not adversely affect water quality or quantity in the two reservoirs. Those activities include the open pit preparation project, which will begin to prepare the pit for future full-scale mining activities and the Robinson reclaim pipeline, both of which are imperative to be completed in summer 2011. The open pit preparation will include construction of a haul road on Ceresco Ridge, which is not near either of the two reservoirs, and in a separate drainage basin. The "status quo" of the water quality and quantity in the two reservoirs will not be altered at all after approval of AM-06 and before final approval of the upcoming TRs for the EPP and WQMP. The only planned action associated with AM-06's expansion of affected lands that will affect the area near Eagle Park Reservoir is Climax's plan to proceed with TR-17, the updated Robinson Reclaim Pipeline and Pump system that was previously approved by the Division as TR-14. This system will be put in place in the area near the current Robinson Lake Seepage Pump System, upstream of Eagle Park Reservoir, and the pipeline will cross a small area of land that was removed from the affected lands area in AM-02. Any concerns the Eagle Park Reservoir Company may have with operation of this pipeline may be addressed in the subsequent TRs for the EPP and WQMP. As noted above, Climax has agreed that Division approval of these plans will precede resumption of full-scale mining and milling operations; aside from testing and commissioning operations, the planned reclaim pipeline will not be employed at full capacity until that time. E. The Division has the discretion to consider revisions to the environmental protection plan and associated groundwater monitoring plan in a separate proceeding from the current AM-06 amendment process. At the pre-hearing conference, Objectors indicated their belief that all exhibits submitted with the AM-06 application, even if they did not concern the requested affected lands boundary, were before the Board at this time, and the that Board could not approve AM-06 regarding the affected land boundary request without also acting on the future EPP and WQMP. Essentially, Objectors indicated that the Board must wait to act on AM-06 until Climax has submitted the TRs for the revised EPP and WQMP. Objectors' position is untenable in the context of a permit amendment. Contrary to law, this position would essentially "re-open" all previously-approved elements of a 14