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 application. At that meeting, Climax representatives and the Division agreed that Climax would provide a revised EPP that addressed the Division's identified issues, as appropriate. The Division and Climax agreed that this EPP revision would, like the WQMP, be submitted as a TR to the permit. Therefore, in Climax's response to the Division's adequacy review, Climax stated that "[a]s discussed with DRMS in the meeting with Climax on February 4, 2011, the EPP will be updated following approval of AM-06 to incorporate all DRMS comments, as appropriate, for DRMS review and approval before full-scale mining and milling operations resume."9 Upon review of Climax's response to the Division's adequacy determination letter, and with Climax's commitment that it would submit a revised EPP and a revised WQMP as TRs to the permit after AM-06 was approved, the Division issued its recommendation that the Board approve AM-06 over objections with the stipulations regarding the WQMP and EPP. The Objectors' claims regarding environmental protections for the two reservoirs are not ripe because consideration of revisions to Climax's EPP and water quality monitoring plan are not at issue in AM-06, the plans will be subject to technical revision processes that provide Objectors with an opportunity to review the plans, the current water management plans are protective, and full scale mining and milling will not resume until Climax completes the technical revision process with the Division. B. Climax and the Objectors have a contractual relationship that protects Obiectors from the water quality and water quantity concerns expressed in their comment letters to AM-06. Climax's relationship with objector Clinton Ditch & Reservoir Company began in the years preceding 1992, when Climax conveyed the Clinton Gulch Reservoir to the reservoir company. Climax sold its Clinton Gulch Reservoir to Clinton via a July 1992 Purchase and Sale Agreement.10 Clinton Gulch Reservoir had always been a fresh water facility, and never contained process water or tailings. Further, Climax provided an analysis of reservoir water quality as part of the sale." As part of the purchase agreement, Climax committed that it would not operate in a manner that could result in the introduction of additional pollutants into the Clinton Canal or the Clinton Gulch Reservoir, or that could adversely impact water quantity into the Reservoir. 12 9 See Ex. 9, 3/1/11 Ltr from Climax to Division re: Response to DRMS Preliminary Review of a 112d Metals Reclamation Permit Amendment Application Package AM-06, Climax Mine, Permit No. M-1977- 493 (Adequacy Determination Letter), at 9, CM000654. 10 See Ex. 38, 7/21/92 Reservoir Purchase Agreement. 11 See id at CM0001201-1214. 12 See id at 6-10, CMC001141-1145. 6