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6 Groundwater point of compliance All parameters monitored at SGAL70 Grassy <br />Creek and YSAL3 Sage Creek are below the maximum levels established in <br />the approved permit application package <br />7 Springs Flow was higher than average at the Annand Draw and Pond 011 area <br />spoil springs YSSPG1 and YSSPG2 Flow was lower than average in the spoil <br />springs feeding Pond 012 YSSPG3 and YSSPG4 A new spoil spring <br />YSSPG5 was identified above Pond 014 <br />TDS shows an increasing trend at the Annand Draw and Pond 011 spoil springs <br />and is decreasing in the two springs feeding Pond 012 Water quality in all of the <br />springs is consistent with irrigation standards with the exception of elevated <br />manganese <br />8 Surface water flows were above average at the surface water monitoring <br />locations again this is due to the exceptionally high snowpack and heavy spring <br />precipitation of 2011 <br />9 Surface water quality Receiving stream standards were exceeded on some <br />occasions as outlined in SCC s report <br />a Iron limits were exceeded on two occasions at each of YSG5 and YSGF5 <br />b Selenium was in excess of the receiving stream standard at two pond <br />outfalls Ponds 012 and 013 and at YSG5 SCC reports that they are <br />currently on a Compliance Schedule with CDPHE to meet the selenium <br />limit by December 31 2015 at Pond 012 CDPHE will evaluate selenium <br />at Pond 013 when the CDPS permit is next renewed <br />Surface water quality is generally consistent with agricultural standards with the <br />exception of occasional exceedances of the irrigation standard for manganese <br />and selenium <br />10 TDS values at stream monitoring locations on Sage Creek show a generally <br />decreasing trend upstream of mining activities and an increasing trend <br />downstream of Ponds 012 013 and 014 On Grassy creek TDS values are <br />decreasing at both monitoring locations TDS values are increasing at all of the <br />ponds except Pond 012 TDS values at surface water monitoring locations are <br />below the values predicted in the probable hydrologic consequences section of <br />the approved permit application package <br />11 No NPDES CDPS effluent limit was exceeded in 2011 <br />This concludes my review of the 2011 AHR for the Yoast Mine I do not have any <br />questions or issues to be addressed by the operator Should you have any questions or <br />need additional information please let me know