1. 1 Mining Information Session State of Alaska and U.S. Environmental Protection Agency Alaska Forum on the Environment Anchorage, Alaska February 12, 2008

2. 2 AFE 2008 Mining Information Session Structure Module 1: Introduction & Mining Fundamentals Module 1: Introduction & Mining Fundamentals Module 2: Environmental Concerns & Issues Module 2: Environmental Concerns & Issues Module 3: Agencies & Process Module 3: Agencies & Process Module 4:Regulatory Framework Module 4:Regulatory Framework

3. 3 No Single Permit to Mine: there are many permits & authorizations STATE Plan of Operations (DNR) Plan of Operations (DNR) Reclamation and Bonding (DNR) Reclamation and Bonding (DNR) Waste Management Permits and Bonding (ADEC) Waste Management Permits and Bonding (ADEC) Certification of NPDES and ACOE Permits (ADEC) Certification of NPDES and ACOE Permits (ADEC) Sewage Treatment System Approval (ADEC) Sewage Treatment System Approval (ADEC) Air Quality Permits (ADEC) Air Quality Permits (ADEC) Fish Habitat and Fishway Permits (DNR) Fish Habitat and Fishway Permits (DNR) Water Rights (DNR) Water Rights (DNR) Right of Way/Access (DNR/DOT) Right of Way/Access (DNR/DOT) Tidelands Leases (DNR) Tidelands Leases (DNR) Dam Safety Certification (DNR) Dam Safety Certification (DNR) Cultural Resource Protection (DNR) Cultural Resource Protection (DNR) Monitoring Plan (Surface/Groundwater/Wildlife) (DNR/DEC) Monitoring Plan (Surface/Groundwater/Wildlife) (DNR/DEC) Coastal Zone Consistency Determination (DNR) Coastal Zone Consistency Determination (DNR)FEDERAL US EPA Section 402 NPDES Water Discharge Permit US EPA Section 402 NPDES Water Discharge Permit US EPA Air Quality Permit review US EPA Air Quality Permit review US EPA Safe Drinking Water Act (UIC Permit) US EPA Safe Drinking Water Act (UIC Permit) US ACOE Section 404 Dredge and Fill Permit US ACOE Section 404 Dredge and Fill Permit US ACOE Section 10 Rivers and Harbors Act US ACOE Section 10 Rivers and Harbors Act US ACOE Section 106 Historical and Cultural Resources Protection US ACOE Section 106 Historical and Cultural Resources Protection NMFS Threatened and Endangered Species Act Consultation NMFS Threatened and Endangered Species Act Consultation NMFS Marine Mammal Protection Act NMFS Marine Mammal Protection Act NMFS Essential Fish Habitat NMFS Essential Fish Habitat NMFS Fish and Wildlife Coordination Act NMFS Fish and Wildlife Coordination Act USFWS Threatened and Endangered Species Act Consultation USFWS Threatened and Endangered Species Act Consultation USFWS Bald Eagle Protection Act Clearance USFWS Bald Eagle Protection Act Clearance USFWS Migratory Bird Protection USFWS Migratory Bird Protection USFWS Fish and Wildlife Coordination Act USFWS Fish and Wildlife Coordination Act (These are only some of the authorizations required)

4. 4 State Agencies LARGE MINE PERMITTING TEAM Department of Natural Resources Department of Natural Resources ( Lead State agency for coordination ) Department of Environmental Conservation Department of Environmental Conservation Department of Fish and Game Department of Fish and Game Department of Transportation & Public Facilities Department of Transportation & Public Facilities Department of Commerce, Community and Economic Development Department of Commerce, Community and Economic Development Department of Law Department of Law Department of Health & Social Services Department of Health & Social Services

5. 5 State Agencies LARGE MINE PERMITTING TEAM Department of Natural Resources –Division of Mining, Land and Water –Office of Habitat Management and Permitting (OHMP moving from DNR to ADFG by July 1, 2007) –Office of Project Management and Permitting –Division of Coastal and Oceans Management

6. 6 State Agencies LARGE MINE PERMITTING TEAM Department of Environmental Conservation –Division of Water –Division of Air Quality –Division of Environmental Health

7. 7 State Agencies LARGE MINE PERMITTING TEAM Department of Fish and Game –Habitat Division (by July 1, 2008) –Division of Wildlife Conservation –Division of Subsistence –Sport Fish Division –Division of Commercial Fisheries

8. 8 Large Mine Permitting Team (LMPT) DNR Coordinates the permitting of large mine projects in the state in accordance with AS27.05.010(b): DNR is the lead agency for all matters relating to the exploration, development, and management of mining, and, in its capacity as lead agency, shall coordinate all regulatory matters concerning mineral resource exploration, development, mining, and associated activities. Before a state agency takes action that may directly or indirectly affect the exploration, development, or management of mineral resources, the agency shall consult with and draw upon the mining expertise of the department.

9. 9 THE LARGE MINE PERMITTING TEAM: Coordinates review of applications and numerous State permit requirements Reviews, analyzes, and evaluates complex technical documents for adequacy and soundness Benefits from multi-disciplinary expertise of team members (geologists, engineers, hydrologists, biologists, environmental scientists)

10. 10 THE LARGE MINE PERMITTING TEAM: If the Team does not have the expertise, it can hire additional experts. If the Team does not have the expertise, it can hire additional experts. At operating mines the team members conduct mine inspections and evaluates permit updates during operations. At operating mines the team members conduct mine inspections and evaluates permit updates during operations. The Team is involved from pre-permitting to post-closure. The Team is involved from pre-permitting to post-closure. State costs are billed back to the applicant/operator State costs are billed back to the applicant/operator

11. 11 CHECK OUT LMPT AT: http://www.dnr.state.ak.us/opmp/ or http://www.dnr.state.ak.us/mlw/mining/largemine.h tm Tom Crafford, Mining Coordinator Tom.Crafford@alaska.gov (907) 269-8629 http://www.dnr.state.ak.us/opmp/ http://www.dnr.state.ak.us/mlw/mining/largemine.h tm http://www.dnr.state.ak.us/opmp/ http://www.dnr.state.ak.us/mlw/mining/largemine.h tm

12. 12 Federal Agencies US Environmental Protection Agency US Environmental Protection Agency US Army Corps of Engineers US Army Corps of Engineers US Fish and Wildlife Service US Fish and Wildlife Service National Marine Fisheries Service National Marine Fisheries Service Bureau of Land Management Bureau of Land Management U. S. Forest Service U. S. Forest Service National Park Service National Park Service Federal Land Managers

13. 13 EPA Mining Team Established since 1995 Established since 1995 Includes staff from core program and technical areas that work on mining activities Includes staff from core program and technical areas that work on mining activities Team principles: Team principles: –Early involvement –Cross-programmatic multi-disciplinary team –Work in partnership with other involved agencies, tribes, industry, and NGOs –Programs operate in parallel

14. 14 For more information on EPA Mining Team Regional Mining Coordinator Regional Mining Coordinator Patty McGrath 1200 Sixth Avenue, Suite 900 Seattle, WA 98101 (206) 553-0979 mcgrath.patricia@epa.gov Alaska Mining Coordinator Alaska Mining Coordinator Cindi Godsey 222 W. 7 th Street Anchorage, AK 99513 (907) 271-6561 godsey.cindi@epa.gov

15. 15 National Environmental Policy Act (NEPA) Process

16. 16 Before Permitting: National Environmental Policy Act (NEPA) Purpose of NEPA: ensure that Federal agency decision makers understand and take into account environmental consequences. Purpose of NEPA: ensure that Federal agency decision makers understand and take into account environmental consequences. What triggers NEPA? What triggers NEPA? –application for new source NPDES permit –application for 404 permit

17. 17 NEPA Level of Analysis: Level of Analysis: –Environmental Assessment (EA) – if no significant impacts, otherwise…. –Environmental Impact Statement (EIS) Who prepares the EIS? Who prepares the EIS? –Lead federal agency US Forest Service or Bureau of Land Management US Forest Service or Bureau of Land Management US Army Corps of Engineers US Army Corps of Engineers US EPA US EPA –Assistance from cooperating agencies Other federal agencies Other federal agencies Tribes Tribes State agencies State agencies Local agencies Local agencies

18. 18 NEPA EIS Content EIS Content –proposed project and alternatives to the project (must include no action alternative) –description of the affected environment –analysis of the environmental consequences of the proposed project and alternatives on the affected environment

19. 19 NEPA EIS describes baseline conditions and impacts on: air quality air quality surface water quality surface water quality ground water quality ground water quality wetlands wetlands fish & aquatic habitat fish & aquatic habitat wildlife wildlife threatened & endangered species threatened & endangered species noise noise socioeconomics socioeconomics land use land use subsistence subsistence cultural resources cultural resources visual resources visual resources environmental justice environmental justice cumulative impacts cumulative impacts

20. 20 NEPA Process: Process: –Application – permit application and baseline studies –Planning – lead/cooperating agencies; solicit G-to-G consultation –Scoping – public comment –Draft EIS - public comment –Final EIS –Record of Decision

21. 21 Necessary NEPA Information

22. 22 For more information on NEPA: Hanh Shaw Hanh Shaw NEPA Compliance Coordinator 1200 Sixth Avenue OWW-130 Seattle, WA 98101 (206) 553-0171/(800)424-4372 shaw.hanh@epa.gov

23. 23 Typical Time Frame for a Completed Mine Project Years 30 35 40 45 50 55 60 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Initial Exploration Advanced Exploration Environmental Studies Prefeasibility Study Feasibility Study Permitting Financing Construction Operation Closure Post-Closure Monitoring

24. 24 Example: Pogo Mine Underground Gold Mine near Delta Junction Pogo

25. 25 The permit application package is comprehensive! Pogo Gold Mine Permitting Documents and Environmental Impact Statement

26. 26 Pogo Process Agency Discussions and Baseline Studies Initiated in 1997 Agency Discussions and Baseline Studies Initiated in 1997 EIS Initiated in August 2000 EIS Initiated in August 2000 Public input on Scoping 2000/2001 Public input on Scoping 2000/2001 Public Review of Draft EIS and Public Meetings, Spring 2003 Public Review of Draft EIS and Public Meetings, Spring 2003 Final EIS Completed in October 2003 Final EIS Completed in October 2003 State Permits Issued in December 2003 State Permits Issued in December 2003

27. 27 Baseline Studies Baseline Studies Surface Water Quality & Quantity Surface Water Quality & Quantity Groundwater Quality & Quantity Groundwater Quality & Quantity Subsistence Subsistence Aquatic Life Aquatic Life Wildlife Wildlife Wetlands Wetlands Socioeconomics Socioeconomics Cultural Resources Cultural Resources Meteorology Meteorology Traditional Ecological Knowledge (TEK) Traditional Ecological Knowledge (TEK) Visual Resources Visual Resources Noise Noise Air Quality Air Quality

28. 28 Coordinated State/Federal Process Draft State Permits included in Draft EIS for Public Review Draft State Permits included in Draft EIS for Public Review Public involvements (meetings, notices, etc) are synchronized Public involvements (meetings, notices, etc) are synchronized Processes are synchronized, not streamlined Processes are synchronized, not streamlined Public still comments on all State authorizations Public still comments on all State authorizations

29. 29 Pogo Public Participation Pre-Application meetings and outreach (community groups, Native groups, NGOs) Pre-Application meetings and outreach (community groups, Native groups, NGOs) Environmental Impact Statement Process Environmental Impact Statement Process –Scoping (meetings, public notice) –Draft EIS (meetings, public notice) –Final EIS (public notice) Tribal Consultation with 12 Tribes (Government to Government) Tribal Consultation with 12 Tribes (Government to Government) Public comments accepted on all State authorizations Public comments accepted on all State authorizations Open Communication (website, meetings, newsletters, etc) Open Communication (website, meetings, newsletters, etc)

30. 30 Do we ever say No ? ANSWER: We say NO many times There are numerous permits, each requiring YES/NO decisions There are numerous permits, each requiring YES/NO decisions A NO typically results in design changes to the project – Pogo is an example A NO typically results in design changes to the project – Pogo is an example The final approved permit never looks like what was initially submitted – agencies require numerous changes to get to YES The final approved permit never looks like what was initially submitted – agencies require numerous changes to get to YES Sometimes applicants abandon a project before they get rejected (because they dont want to do what the permitters require) Sometimes applicants abandon a project before they get rejected (because they dont want to do what the permitters require) Sometimes applicants abandon project before they even submit development permits – economics or permit requirements make project infeasible or unattractive to company Sometimes applicants abandon project before they even submit development permits – economics or permit requirements make project infeasible or unattractive to company

31. 31 Example In 1986 Echo Bay Mines began an evaluation of reopening the Alaska-Juneau Gold Mine that operated from 1911 to 1944. In 1986 Echo Bay Mines began an evaluation of reopening the Alaska-Juneau Gold Mine that operated from 1911 to 1944. Agencies did not approve the companys proposed uplands tailings storage facility. Agencies did not approve the companys proposed uplands tailings storage facility. Submarine tailings disposal (used historically) was not an option because of limitations of the federal Clean Water Act. Submarine tailings disposal (used historically) was not an option because of limitations of the federal Clean Water Act. Echo Bay Mines abandoned and closed the project in 1997 after expenditures in excess of $100 million. Echo Bay Mines abandoned and closed the project in 1997 after expenditures in excess of $100 million.

32. 32 How can tribes be involved? Respond to requests for G-to-G consultation Respond to requests for G-to-G consultation Request to be a NEPA cooperating agency Request to be a NEPA cooperating agency Provide input into NEPA and permit processes: Provide input into NEPA and permit processes: –participate public meetings –provide written comments –provide comments during G-to-G meetings Provide traditional knowledge Provide traditional knowledge

33. 33 Questions and Comments