2011-06-06_REVISION - M1981185 (62)

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Response to CN-01 Third Adequacy Issues - June 6, 2011 a. The Division has determined some of the proposed mining activities pose minimal potential to affect surface or ground water quality. Such activities may commence after the issuance of CN-01 and prior to the Division's approval of adequate hydrologic information for surface and ground water. These activities are limited to the following: • Stabilization and reconstruction of illegal access road from County Road 124 to bridge; • Grading of pre-existing access roads; • Installation of storm water management structures; • Excavation of the collapsed portal at May Day 1 level and establishment of a stable highwall and mine bench at the May Day 1 level; • Removal of soil, rock and mining related debris from the drainage channel of Little Deadwood Gulch at the Chief Portal and May Day 2 level; and • Corrective measures as necessary to comply with enforcement actions issued by other agencies, with written approval from the Division. b. The Division has determined some of the proposed mining activities pose significant potential to affect surface or ground water quality. Such activities may not commence until the Division receives and approves hydrologic information adequate to fully characterize baseline conditions for surface and ground water, and a hydrologic monitoring plan sufficient to verify compliance with water quality regulations. These activities, which cannot commence until hydrologic baseline conditions have been approved by the Division through a permit modification, include the following: • Mill retrofit and commissioning; • Ore stockpile consolidation; • Construction of the augmentation pond; • Milling optimization; • Production at May Day 1 level; • Exploration; • Production expansion; and • Milling completion and closure. The Applicant's response to this previously raised adequacy issue is not acceptable. Mining and milling activities may not commence until the Division has received sufficient surface and ground water data to appropriately characterize baseline conditions and a monitoring plan, sufficient to verify compliance with water quality regulations, is fully approved and implemented. Pursuant to the Joint Stipulation the Division has identified the limited activities which may occur subsequent to the issuance of CN-01 and prior to the Division's approval of adequate hydrologic information for surface and ground water. The limited activities are itemized above, in paragraph 14a of this adequacy item. Revised 6/6/2011 13