2011-10-26_PERMIT FILE - P2011027

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COLORADO GOLDFIELDS INC. RESPONSE DRMS DEFICIENCY LETTER DATED SEPTEMBER 21, 2011 NOI P- 2011 -027 Deficiency Issue 4: Colorado Discharge permit System (WQCD); Degradation of Animas River The Division's comments include the following statement: "Clearly, the proposed [NOI] activities have potential to exacerbate the existing adverse impact to the water quality of the Animas River from the Silver Wing Mine." Respectfully, we do not believe that type of conclusion is "clear" at all. As discussed in more detail below, none of the proposed NOI activities will aggravate existing adverse impacts to water quality. On net, they will help lessen existing adverse impacts. Truly, if one is to consider what course of action has potential to exacerbate existing adverse impacts, doing nothing (i.e., no investigation, no sampling, no clean -up of rubbish, no removal of sludge from the sediment pond, etc.) arguably presents a greater threat than anything Colorado Goldfields has proposed. In any event, Colorado Goldfields' proposed NO1 activities do not themselves trigger Section 301 NPDES permitting requirements. Specifically, performing these particular activities does not involve or create or in any way necessitate the discharge of pollutants from a point source into any state water. In fact, the only discharge of water at the site — that from the existing mine portal — has been there for decades and will continue percolating as it has whether or not the proposed NOI activities are carried out. Past and present water sampling from the existing mine portal discharge does suggest that an NPDES point source discharge permit will be required for future mining operations. In anticipation of this requirement, Colorado Goldfields is working on putting together a permit application to submit to the Colorado Water Quality Control Division. An integral part of this effort is the NOI, the purpose of which is to determine (1) whether the existing portal discharge can be eliminated altogether and thus avoid the need for a permit (at least for that particular discharge) in the first place, and (2), if the discharge cannot be eliminated, what actions can be taken to minimize the discharge and, assuming a permit is still required, what permit conditions would be most effective and appropriate for preventing discharges of pollutants into the Animas River. In short, Colorado Goldfields is trying to find the best way to address a very-long -term, pre- existing problem. The proposed NOI itself does not create the need for an NPDES permit. Rather, the NOI merely represents a first step, followed if necessary by an NPDES permit incorporating thoughtfully and appropriately tailored conditions. As indicated above, Colorado Goldfields' proposed NOI activities will not aggravate existing adverse impacts to water quality. On net, they will improve existing water quality: • Investigate the sources of drainage and determine whether grouting or bulkheading is an option to reduce or stop the drainage. The primary impact from this activity will be stirring up sediments currently lying on the bottom of the adit drift between the portal and the furthest penetration of the existing workings. This sediment will be carried out of the portal to the existing sedimentation pond by the existing flow from the portal — approximately 20 gpm. (This is the same material that is currently in the sedimentation pond.) A filter will be incorporated at the discharge point of the sedimentation pond to filter out fine sediments prior to discharge to the Animas River.