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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 yd 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, i.e. 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 regulations 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 />