2011-08-15_REVISION - M1990057 (5)

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Following submittal of the TSF as -built documents and SWMP, demonstrating compliance with stipulations 4 and 5, UMC will hold an active permit for resumption of operations as described in the current permit and the TR currently under extension for review. Additional information is supplied below concerning the mitigation and /or compliance with the stipulations. Submission to the Division of correspondence with the State Enwineers Office regarding water rights UMC is purchasing water from the local water district. This mitigates the need for correspondence with the State Engineers Office regarding water rights. TR permit language. "There are no permitted wells on the property. Process water will be hauled to the property with contracted haulers. Bottled water will be provided to employees. Water for domestic and milling needs is purchased from Parkville Water District. No contract is required. Water is hauled to the site from a local construction water metering station located in Leadville. The mill requires approximately 8,000 - 10,000 gallons of make -up water per day. The mill maintains 2 -water tanks within the plant, with a combined capacity of 10,600 gallons. The mill will purchase water from the Parkview Water District until such time that the mill can legally obtain water from less expensive sources. Parkview Water District's commitment to provide water is shown in Figure C3 (See TR)." Submission to the Division of Correspondence with the Colorado Air Quality Control Division regarding an air permit UMC submitted to Colorado APCD an APEN permit application for a permit to construct. The permit is on expedited "Red Tag" review with APCD and the permit application is being reviewed by Adam Wozniak. Excerpted correspondence with APCD is presented below, showing compliance with the stipulation. Letter to Chuck Pray APCD, copied to Michael Cunningham CDRMS excerpt. "Union Milling Company (UMC) submitted on February 4, 2011, five (5) APENs for the Leadville Mill facility located in Lake County, Colorado. Operations at the Leadville Mill require a Construction Permit based on the TSP and PM -10 emission levels. Three (3) completed APCD -200 forms were submitted for the grouped mill emissions and two (2) completed Mining Operations forms were submitted for the grouped surface emissions occurring with the mill operations. These applications included supporting information. It is now 180 days since the submittal of the APENs and UMC is requesting that the Permit to Construct be issued for the Leadville Mill. The Air Pollution Control Division (APCD) statutory review periods include a 60 -day completeness review, followed by a 60 -day preliminary analysis review, and then a permit issued within 30 days following completion of preliminary analysis. UMC has patiently allowed APCD to extend its statutory review periods, however the construction season window is closing and this Permit to Construct is required to obtain additional operational permits. Specifically, UMC needs the permit for submission to Colorado Division of Reclamation, Mining and Safety (CDRMS) and Lake County Board of Commissioners in the next 10 days." Submission to the Division of quarterly water samples from tailings effluent UMC's reconstruction of the TSF embankment and subsequent lining of the TSF facility with a synthetic pond liner of 45 -mil Polypropylene Geomembrane or equivalent mitigates the quarterly sampling of the tailings effluent. TR permit language. The TSF is being reconstructed with a 6 -8 inch clay under liner on the interior slopes and impoundment bottom, compacted as one lift with a sheepsfoot roller. The clay material is selected from available onsite impermeable soils borrowed from the tailings disposal area. Following M1990 -057 August 15, 2011