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Mr. Randy Whicker Page 3 <br />January 30, 2012 <br />Attachment A <br />Attached to the letter dated January 30, 2012 <br />from the Division of Reclamation, Mining and Safety to Cotter Corporation <br />Unresolved Adequacy Items Schwarzwalder Mine <br />(Permit M- 1977 -300) <br />Permit Amendment AM -02 <br />In order to satisfy EPP requirements, you must include the following items and modifications in the permit: <br />1. Add a plan, including designs, and implementation schedule for reinitiating mine dewatering and water <br />discharge treatment sufficient to bring the mine water table to a level at least 500 feet below the Steve Level, <br />and sufficient to reestablish a hydrologic gradient away from Ralston Creek. <br />2. Add a cost estimate of all work necessary to accomplish the above, which the Division will review in <br />calculating the required financial warranty pursuant to Hard Rock Rule 4.2.1(4), sufficient to assure the <br />protection of water resources, including costs to cover necessary water quality protection, treatment and <br />monitoring. <br />3. Designate the underground workings as an Environmental Protection Facility (EPF) for storage and <br />treatment of mine pool water, and provide an appropriate monitoring plan. <br />4. Add a plan and cost estimate for long -term stabilization of the water level and water quality in the mine pool. <br />5. Integrate the existing alluvial treatment system, and designate it as an EPF. <br />6. Integrate a plan into the EPP for removal and offsite disposal of the alluvial source material, including a cost <br />estimate of completing the plan. <br />7. Integrate the Ralston Creek diversion project, and designate it as an EPF. <br />8. Add a plan and schedule for characterization, contaminant source delineation, monitoring, and mitigation of <br />the waste rock piles, and designate them as an EPF. <br />9. Integrate the required ground water monitoring wells described in the Division's letter to Cotter, dated <br />January 10, 2012. <br />Cotter may at its own discretion submit a plan and cost estimate for pursuing in -situ treatment (IST) of the mine <br />pool. IST would represent a significant change in the reclamation plan that would warrant focused attention and a <br />separate opportunity for public comment. Therefore, Cotter must submit any plan for IST in the form of an <br />amendment. The Division will review the merits of such an amendment but will not approve the amendment unless <br />it calls for IST to be implemented either concurrent with or after implementation of a mine dewatering and treatment <br />system that complies with the Mined Land Reclamation Board's August 11, 2010 Order. <br />