1993-05-26_REVISION - M1977378 (2)

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WELBORN DUFFORD BROWN 8 TOOLEY, P.C. Mr. J. David Holm May 26, 1993 Page Two In the joint meetings, and by correspondence from the Division of Minerals and Geology, several issues have been raised as to the legal status of various waters if plugs are installed. The DMG has directed Sunnyside Gold to obtain the views of the Water Quality Control Division (WQCD) on these issues. The purpose of this letter is to obtain from the WQCD clarification of that status so that final reclamation can be planned. Without resolution of these issues, there is no basis on which the company can continue to move toward final reclamation. Historically, the American Tunnel was first driven in the 1920s for a distance of approximately 5000 ' to provide access to claims which are the Gold King property -- a property not owned by Sunnyside Gold or its predecessors . In the late 1950s, Standard Metals extended the American Tunnel by approximately 3000 ' to obtain access to the Sunnyside property, and then another 2000' to the main Sunnyside workings. Sunnyside Gold acquired the assets of the Sunnyside mine from Standard Metals as part of its bankruptcy proceeding in 1985. There is an access agreement allowing Sunnyside Gold to utilize the first 8000 ' of the American Tunnel for access to its property and workings. The evolution of these changes to the American Tunnel is conceptually shown on the enclosed (Figures 1, 2, 3 and 4) , including a Post-Hydraulic Seal concept of what is expected to happen after the plugs are installed. In addition to reaching final decisions on reclamation requirements, Sunnyside Gold has previously requested that the Water Quality Control Division defer the enforceability under its NPDES permit of the biomonitoring requirement which becomes effective June 1, 1993. That is the matter of separate discussions, but also ties into the desire to complete tunnel plugging and avoid future discharge permit expenditures. The long-term reclamation action plan to meet all former NPDES permit requirements, including biomonitoring, is the plugging of the mine flow from the Sunnyside property. Sunnyside Gold requests that the Water Quality Control Division advise Sunnyside and the Division of Minerals and Geology of its position on the three aspects outlined below. (1) Property Line Plugging. The primary plug in the American Tunnel is recommended to be located just below the Sunnyside Gold property line at a geologic point where the maximum effectiveness of the plug can be achieved. The conceptual location of this plug is shown on Figure 4. The