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Financial Assurance bonding is also at issue as a result of these water quality issues. Under <br />HRMM Rule 5.3.3(1), the Board is authorized to set a financial warranty amount "based on the <br />projected costs of reclamation, taking into account the nature, extent, and duration of the prospecting <br />operation and the magnitude, type and estimated cost of the planned reclamation." Further, HRMM <br />Rule 4.2.1(4) specifically requires that a bond be secured for all reclamation activities, including "all <br />measures taken to assure the protection of water resources, including costs to cover necessary water <br />quality protection, treatment and monitoring as may be required by Permit, these Rules or the Act." <br />Because the proposed activities include the dewatering and treatment of contaminated water <br />generated from mining structures and is dependent on water treatment facilities, the applicant must <br />bond for water quality protection, including water quality treatment. As a result, the costs of effective <br />water treatment must be reflected in the calculation of the bond amount for the prospecting notice. <br />Currently, the Applicant does not appear to have given any consideration to water treatment costs in <br />setting the financial assurance bonding amounts for the proposed activities. <br />Given the impacts anticipated and historic violations of water quality standards, and the need <br />for the .water -treatment plant operation in order to address the water quality impacts- associated with the <br />proposed activities, the NOI must be substantially updated and the operation of the water treatment <br />facilities must be calculated as part of the applicable bond for reclamation. <br />Overall, the NOI requires substantial additional information in order to ensure compliance with <br />the MLRA and Division Rules. Commenters reserve the right to supplement and update these <br />comments as additional information is presented. <br />Sincerely, <br />/s/ Jeffrey C. Parsons <br />Jeffrey C. Parsons <br />Senior Attorney <br />Western Mining Action Project <br />Ashley D. Wilmes <br />Staff Attorney <br />WildEarth Guardians <br />827 Maxwell Avenue, Suite L <br />Boulder, Colorado 80304 <br />(505) 988 -9126 x1304 <br />3 <br />