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, 2007The 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. URANIUM3. NON COMPLIANCE 4. SALMON TROUT RIVER5. HYDROGEOLOGY6. STATUTE NOT RESTRICTIVE 7. BACKGROUND WATER QUALITY

Issue: Limits instead of ‘only reporting’

Response: Nickel 29 ug/l to protect Salmon Trout River50 ug/l to protect groundwater usersExpected effluent is 4.9 ug/lNotification level is 24.5 ug/l

Issue: Limits instead of ‘only reporting’

Response: AluminumNo surface water standard150 ug/l to protect groundwater usersExpected effluent is 1.9 ug/lNotification level is 9.5 ug/l

Issue: Limits instead of ‘only reporting’

Response: UraniumNo surface water standard30 ug/l to protect groundwater usersExpected effluent is <1 ug/lNotification level 5 ug/l, in 24 hours

Issue: ‘Uranium at Eagle is a hazard’

Response: 70% UP wells have detectable uranium15% > 30 ug/l, drinking water limit Water in TDRSA: 0.13 ug/lReverse Osmosis Effluent: non detect

Issue: ‘Groundwater standards exceeded 47 times with no enforcement actionResponse:67% occurred prior to Eagle discharge26% after Eagle discharge, similar to pre discharge groundwater quality7% 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/lSurface water limit: 10 ug/lPermit 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/lPermit limit 52 ug/lClean up standard 100 ug/lSurface water limit 63 ug/lExpected 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 undersizedResponse:The contact water basin was sized to handle: 100-yr, 24-hr event that produces 4.7 MG of water50-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).

pH Value H+ Concentration ExampleRelative to Pure Water

0 10 000 000 battery acid1 1 000 000 concentrated sulfuric acid2 100 000 lemon juice, vinegar3 10 000 orange juice, soda4 1 000 tomato juice, acid rain5 100 black coffee, bananas6 10 urine, milk7 1 pure water8 0.1 sea water, eggs9 0.01 baking soda10 0.001 Great Salt Lake, milk of magnesia11 0.000 1 ammonia solution12 0.000 01 soapy water13 0.000 001 bleach, oven cleaner14 0.000 000 1 liquid drain cleaner