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Rationale for Conditional Approval of CN -01 <br />May Day Idaho Mine Complex, M- 1981 -185 <br />Pursuant to Rule 3.1.6(1)(a), the application must demonstrate compliance with applicable <br />Colorado water laws and regulations governing injury to existing water rights. Colorado water <br />laws and regulations governing injury to existing water rights are enforced by the Division of <br />Water Resources of the Office of the State Engineer. The application for CN -01 has been <br />reviewed by the Division of Water Resources and the Division of Water Resources has <br />submitted their recommendation for conditional approval. Therefore, the application satisfies <br />the requirements of Rule 3.1.6(1)(a). <br />6. Concerns regarding discharge permits for mine water, process water and storm water. <br />Concerns regarding adverse impacts to water quality of La Plata River. Concerns <br />regarding the need for water treatment prior to discharge to the La Plata River. <br />Concerns regarding downstream water users, including but not limited to Lake <br />Durango Water Authority, which provides drinking water for approximately 1200 <br />homes and draws its raw water from the La Plata River approximately four miles <br />downstream of the May Day Idaho Mine Complex. (Aweida, Banton, Barfoot, Filler, <br />Giovanniello, Greaves, Harshman, Holland, Hughes, Karls, Lake Durango Water <br />Authority, La Plata County Planning Department, Linden, Petersen, Perkins, Polich, <br />Steele, Vigil, and Willis) <br />Pursuant to Rule 3.1.6(1)(b), the application must demonstrate compliance with applicable <br />federal and Colorado water quality laws and regulations, including statewide water quality <br />standards and site - specific classifications and standards adopted by the Water Quality Control <br />Commission. <br />On September 16, 2011, the Division received a correspondence from the Water Quality <br />Control Division (WQCD) of the Colorado Department of Public Health and Environment, which <br />clarified permitting requirements for the existing drainage from the Idaho #1 Mine Portal. <br />WQCD verified a National Pollutant Discharge Elimination System (NPDES) permit was required. <br />WQCD verified the mine drainage did not meet the receiving stream standards, and the <br />receiving reach of the La Plata River was reviewable and subject to an anti - degradation <br />evaluation. WQCD indicated treatment of the mine drainage was required. WQCD also <br />clarified the status of the various storm water permits associated with the property and <br />proposed operation. <br />The Applicant has affirmatively stated that the NPDES permit, as required by WQCD, will be <br />attained. See Recommended Conditions for Approval, item 4. The application satisfies the <br />requirements of Rule 3.1.6(1)(b). <br />7. Concerns regarding the Applicant being in violation of Section 404 of the Clean Water <br />Act. Concerns regarding the case being referred to EPA as lead enforcement agency. <br />(US Army Corps of Engineers) <br />See Recommended Conditions for Approval, items 1 and 2. <br />9 <br />