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Phase 1: Upstream Cutoff Wall and 8 Cubic Feet per Second (cfs) Bypass Pipeline — This <br />phase will involve the construction of an upstream cutoff wall (up to 1.5 -foot wide, 10 to 20 feet <br />deep, 140 feet long) during low flow conditions to create a barrier to alluvial and surface flows in <br />Ralston Creek upstream of areas of potential contamination. This cutoff wall will be constructed <br />at an existing road crossing of Ralston Creek upstream of the southern waste pile. A <br />replacement road crossing is included as part of the cutoff wall design. A short segment of 42- <br />inch diameter steel pipe will be installed in the cutoff wall in preparation for Phase 2. The <br />channel upstream and downstream of this cutoff wall will be armored with boulders and rock to <br />minimize erosion. <br />In conjunction with the upstream cutoff wall, a flexible, 8 cfs bypass pipeline (consisting of an <br />18 -inch flexible pipeline) will be installed to draw clean water from upstream of the cutoff wall, <br />discharging near the downstream property boundary. The 8 cfs bypass pipeline will run along <br />the north side of the existing unpaved road, with periodic anchoring and /or staking to prevent <br />excessive movement or rolling. The diversion of the creek into the 18 -inch diameter pipeline is <br />listed as "Substantial Completion of the Pipeline" on the attached schedule and will be complete <br />by January 31, 2012, pending agency approvals. The bypass pipeline will isolate the upgradient <br />groundwater and low flow surface water up to 8 cfs from potential areas of contamination on the <br />Site and will improve water quality in the creek downstream of the property. Water that exceeds <br />the 8 cfs bypass pipeline will pass through a 42 -inch diameter steel pipe and flow down the <br />existing channel. <br />Phase 1, listed as "Final Completion of Phase 1" on the attached schedule, will also include the <br />installation of an irrigation system to sustain riparian vegetation surrounding Ralston Creek. <br />According to the "Endangered and Threatened Wildlife and Plants, Revised Critical Habitat for <br />the PMJM (Zapus hudsonius preblei) in Colorado" by the Fish and Wildlife, U.S. Department of <br />the Interior, "The segment of Ralston Creek that passes through the Cotter Corporation's existing <br />Schwartzwalder Mine serves as a connector between areas supporting all PCEs [Primary <br />Constituent Elements] required by the PMJM located upstream and downstream ". Ralston Creek <br />provides linear riparian PMJM habitat through the Site. For more information on PMJM, we can <br />provide the Biological Assessment (BA), if desired. <br />A water supply for irrigation and other Project purposes has been agreed on, in principle, among <br />Cotter, Denver Water, the Colorado State Engineer's Office in Denver, and the Division 1 <br />Engineer's Office in Greeley. Cotter will divert water from Ralston Creek under the approved <br />exchange for beneficial uses, including irrigation of riparian vegetation. <br />Phase 2: Temporary Diversion Pipeline (100 cfs) and Downstream Cutoff Wall — After the <br />upstream cutoff wall and 8 cfs bypass pipeline have been constructed, construction of the 100 cfs <br />Temporary Diversion Pipeline will commence (pending authorization from the applicable <br />regulatory agencies). The pipeline will consist of a 42 -inch diameter steel pipe and will follow a <br />largely aboveground alignment from the upstream cutoff wall through the Site, discharging <br />downstream of the downstream cutoff wall near the property boundary. The downstream cutoff <br />wall will be constructed to key into bedrock to contain residual groundwater (primarily direct <br />precipitation and flows entering the alluvial fill between the two cutoff walls) so that it can be <br />collected via the existing pump- and -treat system. The discharge from the WWTP to Ralston <br />Creek will be below the downstream cutoff wall. Energy dissipation measures will be installed <br />October 7, 2011 <br />Page 2 <br />