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Mr. Allen Sorenson — DMG <br />Page 4 <br />August 12, 1998 <br />• If an exceedence of a water quality standard is measured in the release from the Eagle Park <br />Reservoir, weekly monitoring shall commence at a location downstream of the confluence <br />between the reservoir release and the Eagle River, for the parameter(s) which was <br />exceeded. If an exceedence is noted at the downstream monitoring location for the same <br />parameter(s) for two consecutive tests, DMG will be notified and Climax will take the <br />necessary measures to determine the source of the exceedence. This may include <br />monitoring the reservoir outlet, monitoring within the reservoir, verification that the cut -off <br />systems are properly functioning, monitoring upstream of the reservoir, and other appropriate <br />locations to determine the potential source. <br />• Weekly monitoring will continue at the outlet of the Reservoir and downstream of the <br />confluence of the Eagle River until it can be demonstrated that no exceedences are occurring <br />which may be caused by the Eagle Park Reservoir delivery or until water quality standards <br />are met for 2 consecutive weeks. <br />• Any two consecutive exceedences of the chronic aquatic life water quality standards at the <br />down stream point on the Eagle River shall result in an immediate reduction of discharge flow <br />sufficient to result in an in- stream water quality that meets the water quality standards of <br />Segment 3 of the Eagle River. If there is sufficient reason to believe that an emergency <br />condition exists related to aquatic life in the Eagle River, based either on the water quality <br />data observations or the condition of the aquatic life itself, the DMG may require Climax to <br />immediately reduce or discontinue discharge from the Eagle Park Reservoir such that the <br />water quality standards will be met. <br />• If it is determined that the source of the problem is related to sources upstream of the <br />reservoir, or mining materials in the reservoir, Climax Molybdenum Company, will restore, as <br />quickly as practicable, operational controls on the Eagle Park Reservoir or the approved <br />Climax Environmental Protection Facilities to prevent further exceedences. Based on mutual <br />agreement by the Division of Minerals and Geology and Climax, alternative methods of <br />addressing the cause of the exceedences other than restoration of operational controls can <br />be implemented. <br />Condition No. 3 <br />If there are no water quality standard exceedences, analytical results obtained during periods of water <br />delivery from Eagle Park Reservoir will be submitted to the DMG and the WQCD within 30 days after <br />water delivery is complete for the calendar year. <br />A report that summarizes the results of the three -year monitoring program will be submitted to the <br />Division of Minerals and Geology and WQCD no later than 60 days following receipt of the results of <br />the last sample. <br />Climax Molybdenum will notify DMG verbally or via facsimile within five (5) business days of the <br />receipt of results that show an exceedence of an in- stream water quality standard in the East Fork of <br />the Eagle River or determination that the reservoir is the source of an exceedence. Copies of such <br />analysis will be forwarded to the DMG within ten (10) business days of receipt. <br />Condition No. 4 <br />Climax understands that additional conditions to approval of SR -002 require the removal of inert <br />debris from below the high water mark of the reservoir and diversion of water from the steep slopes <br />on the reservoir's southern shore prior to final acceptance of the Application for Reduction of <br />Warranty. Climax understands that these items will be subject to a future inspection by the DMG. <br />Climax reserves the right to object to any additional requirements as specified by the MLRA. <br />