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FROM :NATURAL RESOURCES SEC. 303 866 3SS8 1! .07-01 08:20 #215 P.02/OS <br /> DRAFT 6/24/96 <br /> MEMORANDUM OF AGREEMENT <br /> FOR THE n"LEMENTATION OF THE CONSENT DECREE IN <br /> SUNNYSIDE GOLD CORPORATION v. <br /> COLORADO WATER QUALITY CONTROL DIVISION OF <br /> THE COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT <br /> THIS MEMORANDUM OF AGREEMENT ("MOA") is entered into, <br /> below ifk , by and between the Colorado Department of Public Health and <br /> Environment, Water Quality Control Division ("WQCD") and the Colorado Department of <br /> Natural Resources, Division of Minerals and Geology ("DMG"). <br /> Section 1. BACKGROUND <br /> Sunnyside Gold Corporation ("SGC") owns the Sunnyside Mien ' , an inactive <br /> mining property in San Juan County, Colorado, near the City of Silverton. SGC <br /> holds two Colorado Discharge Permit System ("CDPS") permits authorizing the <br /> discharge of pollutants from the Mine in accordance with numeric effluent limits and <br /> other conditions. CDPS Permit No. CO-0027529 authorizes discharge of Mine water <br /> from the Mine's main access portal (the American Tunnel); CDPS Permit No. CO- <br /> 0036056 authorizes the discharge of Mine water from the Mine's secondary access <br /> portal (the Terry Tunnel). SGC treats mine water flows at these portals, which <br /> treatment includes creation of treatment residues which are periodically dredged and <br /> disposed of at SGC's existing tailings ponds. <br /> SGC also holds Mined Land Reclamation Permit.No. M77-378"��!.tf..` ' �1 • Th <br /> Mi e <br /> final reclamation plan ("Reclamation Plan"), submitted by SGC to and approved by <br /> the Colorado Mined Land Reclamation Board ("MLRB"), includes installation by <br /> SGC of a bulkhead seal at SGC's underground property line within the American <br /> Tunnel to prevent mine water from flowing directly out of the Mine workings through <br /> the American Tunnel portal to Cement Creek, and installation by SGC of a bulkhead <br /> seal at the Terry Tunnel portal. A technical revision recommended by DMG and <br /> approved by the MLRB specified the details and conditions for the installation of the <br /> underground bulkheads. <br /> Installation of these bulkhead seals will impound water behind the bulkheads, <br /> eventually flooding the Mine. At some time subsequent to initial Mine flooding, <br /> water which is now discharged through the Mine's access tunnel portals pursuant to <br /> the CDPS permits may flow through underground fractures and fault systems, <br /> forming seeps and springs which discharge into surface waters ading-'ter <br /> quaRfy. WQCD and SGC dispute whether or not these seeps and springs which may <br /> emerge or increase following installation of bulkhead seals would be subject to the <br /> permit requirements of the Colorado Water Quality Control Act ("CWQCA"). The <br /> 1 <br />