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AUG-12-98 WED 17: 18 P, 03/06 <br /> Mr.Allen Sorenson—DMG <br /> Page 2 <br /> August 12,1998 <br /> • The objective under conditional approval and ultimate acceptance of the Application for Warranty <br /> Reduction is to ensure that post-mining beneficial land use is subject to an evaluation that <br /> demonstrates compliance with water quality standards (Rule $3 1.6) and long-term success to <br /> Climax and Agency stakeholders, <br /> • Water Quality in Eagle Park Reservoir currently meets all standards under the use classifications <br /> and designations for waters in Segment 3 of the Eagle River. <br /> • Climax has completely removed the tailings from Eagle Park reservoir down to and including <br /> 54,000 yd3 of growth media below the oxide tails. <br /> • The DMG has approved all facilities protective of potential releases of process water or <br /> "designated chemicals" to Eagle Park Reservoir from upstream mining disturbances and mining <br /> activities. As such, if the approved Environmental Protection Facilities are properly maintained <br /> and operated, and continue to function in accordance with the design intent, there will be no <br /> contribution of contaminants to Eagle Park Reservoir from designated chemicals, Le. process <br /> waters, of the Climax Mine. <br /> • Under the Clean Water Act and the Colorado Water Quality Control Act, discharge permits are <br /> required for point sources that discharge pollutants to Waters of the United States or State <br /> Waters. Because there is no discharge of pollutants from a point source to Eagle Park Reservoir <br /> from the Climax Mine, and because the reservoir is functioning as a storage and delivery facility <br /> in the exercise of water rights(CRS 25-8-503 (5)), a water discharge permit is not required for the <br /> release of this water from the reservoir. The WQCD has reviewed the data and determined that a <br /> NPDES permit is not required for discharges from the reservoir. They are not requesting a <br /> permit, or claiming jurisdiction for delivery of water from Eagle Park Reservoir to the East Fork of <br /> the Eagle River. <br /> • Because regulations under the Colorado Water Quality Control Act ("the Act") that govern the <br /> discharge of point sources are divided into regulations for standards and regujations for the <br /> issuance of discharge permits, deliveries of water from Eagle Park Reservoir are not subject to <br /> evaluations required under the CDPS permit system.The WQCD has stated that it will not subject <br /> this discharge to anti-degradation requirements included in Regulation 31.8, Climax does not <br /> believe that DMG has the authority to implement these portions of the Act. <br /> • The DMG relies on performance standards to evaluate success of reclamation efforts conducted <br /> by permitted operators in the State of Colorado. Until such time as the DMG can evaluate long- <br /> term performance of the reclamation at Eagle Park Reservoir,the reservoir is considered by DMG <br /> to be a tailing impoundment. <br /> • Conventional reclamation performance standards include measures directed toward the <br /> evaluation of revegetation success. There are limited criteria formalized as performance <br /> standards for other post-mining beneficial land uses. With respect to Rule §3.1.6, however, the <br /> focus of performance standards is on achievement of water quality standards. Climax and the <br /> DMG will evaluate the performance of reclamation in Eagle Park Reservoir based on statistical <br /> summaries similar to those used in evaluating in-stream water quality and anti-degradation under <br /> the Water Quality Control Commission's permit regulations. These evaluations are not and will <br /> not be construed as evaluations made under the CDPS permit regulations. <br /> Response to Correspondence Relative to Conditions <br /> In a DMG letter of April 6, 1998, The DMG presented four(4) conditions upon which a finding can be <br /> made that the approved post-mining land use of developed water resources has been achieved for <br /> Eagle Park Reservoir. <br />