 Rick Rusz, Supervisor of Groundwater Permits Unit, Water Resources Division, and decision maker for the Groundwater Discharge Permit.  Ginny Pennala, Upper Peninsula Assistant District Supervisor, Water Resources Division  Jeanette Bailey, Permit Coordinator, Groundwater Permits Unit, Water Resources Division  Jeff Warner, Geologist, Groundwater Permits Unit, Water Resources Division  Randy Conroy, Geologist, Upper Peninsula District, Water Resources Division  Joe Maki, Geologist, Office of Oil, Gas and Minerals  Melanie Humphrey, Geologist, Office of Oil, Gas and Minerals

EAGLE MINE GROUNDWATER DISCHARGE PERMIT First Permit Issued on December 14, 2007 The permit protects both surface water and groundwater. Most restrictive limit for all substances in accordance with the Groundwater and Surface water Quality Rules. This hearing is regarding Lundin Mining Corporation’s application for reissuance of the permit. The draft permit retains most limits and restriction contained in the first permit.

 Site specific background concentrations for vanadium and pH  Recalibration of Allowable Operational Range for specific conductance  Uranium Monitoring

1. STATUTE NOT PROPERLY APPLIED 2. URANIUM 3. NON COMPLIANCE 4. SALMON TROUT RIVER 5. HYDROGEOLOGY 6. STATUTE NOT RESTRICTIVE 7. BACKGROUND WATER QUALITY

Issue: Limits instead of ‘only reporting’ Response: Nickel 29 ug/l to protect Salmon Trout River 50 ug/l to protect groundwater users Expected effluent is 4.9 ug/l Notification level is 24.5 ug/l

Issue: Limits instead of ‘only reporting’ Response: Aluminum No surface water standard 150 ug/l to protect groundwater users Expected effluent is 1.9 ug/l Notification level is 9.5 ug/l

Issue: Limits instead of ‘only reporting’ Response: Uranium No surface water standard 30 ug/l to protect groundwater users Expected effluent is <1 ug/l Notification level 5 ug/l, in 24 hours

Issue: ‘Uranium at Eagle is a hazard’ Response: 70% UP wells have detectable uranium 15% > 30 ug/l, drinking water limit Water in TDRSA: 0.13 ug/l Reverse Osmosis Effluent: non detect

Issue: ‘Groundwater standards exceeded 47 times with no enforcement action Response: 67% occurred prior to Eagle discharge 26% after Eagle discharge, similar to pre discharge groundwater quality 7% from disturbed well, currently compliant Eagle effluent less than (often non detect) ground water limits for metals

Issue: ‘Limits must protect Salmon Trout River and Seeps’ Response: Permit has more restrictive of groundwater and surface water limits. E.g. copper: Groundwater limit: 500 ug/l Surface water limit: 10 ug/l Permit limit: 10 ug/l

DEQ will recheck for omissions and will correct. We will also provide a table showing the ground and surface water limits.

Issue: ‘Groundwater permit increases Chromium by 940%’ Response: Background 2.5 ug/l Permit limit 52 ug/l Clean up standard 100 ug/l Surface water limit 63 ug/l Expected Effluent 0.5 ug/l

Issue: Proposed permit relaxes vanadium and pH limits Response: Rules set limits halfway between background and clean up standard. Some wells weren’t installed when first permit was developed. Background assumed to be zero. Pre discharge data is now being used to set limits, in accord with rules.

Rules provide for groundwater limits for most inorganic substances at ½ way between background groundwater quality and Part 201 generic residential clean up criteria. Background groundwater quality considered is establishing limits in original permit for several substances. Example: chromium In the absence of background groundwater quality data a permit limit was established ½ way between zero and Part 201 generic residential clean up criteria. Example: vanadium

Permittee requested revised groundwater limits for vanadium and pH based on site-specific background levels in its application for reissuance. DEQ performed its own calculations in establishing revised limits using all pre-discharge groundwater monitoring data. A separate analysis was performed for vanadium in Well QAL051A based its own background level.

Issue: The contact basin is undersized Response: The contact water basin was sized to handle: 100-yr, 24-hr event that produces 4.7 MG of water 50-yr rainfall/snowmelt event produces 7.8 MG over the entire snowmelt period. The basins are 14 MG when full, (11.5 MG when meeting the freeboard permit requirements).