MONITORING

STANDARD OF REVIEW

The CBJ Mining Ordinance does not require a monitoring plan as a condition for issuance of a large mine permit. With respect to reclamation of a mine, however, the Mining Ordinance (CBJ 49.65.135(b)) contemplates monitoring when it states:

"...Subsequent to the issuance of a permit..., the operator's compliance shall be measured against the requirements contained in that permit... and the operator's plans submitted with the permit application..."

Further, the Mining Ordinance, CBJ 49.65.150( c) establishes a clear role for the Community Development Department in ongoing monitoring of a mining operation:

"The department shall have ongoing authority to monitor any mining operation for which a permit has been issued in order to ascertain whether the mining operation is in compliance with the requirements, terms, conditions and mitigation measures in the permit. The operator shall, upon reasonable notice, provide the department with access, at reasonable times, to the premises and to the records of the mining operation to the extent such access to the premises and records is necessary to ascertain whether the mining operation is in compliance with the requirements, terms, conditions and mitigation measures in the permit."

Also, the Mining Ordinance, CBJ 49.65.150(d), states:

"Throughout the duration of the term of ...a large mine permit, the operator shall pay to the department an annual monitoring fee to defray the costs of inspecting and reviewing the affected surface and compliance with the permit. The annual monitoring fee shall be such amount as may be established by the commission as necessary to cover the reasonable costs of inspection and review."

BACKGROUND

Monitoring is designed to serve several purposes. At one level, monitoring is likened to inspections to determine if a project is constructed and operated in compliance with permit conditions. When various environmental and socioeconomic impacts are projected, monitoring means collecting data (with quality assurance) which are used to verify whether impacts have occurred. Monitoring may discover unforeseen impacts or problems that need attention. Also, monitoring can evaluate the effectiveness of mitigation measures and best management practices devised during the permitting process. Finally, one can monitor ongoing or post-activity reclamation to ascertain the success of efforts designed to return the environment to a pre-activity condition.

Monitoring of a development such as the Kensington mine is multi-faceted. A number of federal and state agencies have permitting responsibilities that will impose monitoring requirements on the mining company. The major permits and monitoring that will be identified are:

USFS - Plan of Operations (freshwater quality, aquatic habitat, dry tailings facility stability, and reclamation)

- Section 313 and 319 (Clean Water Act) Compliance (nonpoint source "stormwater" management)

EPA - National Pollution Discharge Elimination System (NPDES) Permit (point source --

"end-of-pipe" discharges and aquatic resources)

COE - Section 404 Permit (wetlands fill and mitigation)

DEC - State of Alaska Solid Waste Disposal Permit (groundwater and dry tailings facility stability)

- State of Alaska Air Quality Control Permit to Operate (air emissions and fuel

consumption)

DNR - State of Alaska Water Rights Permit (in-stream flow)

The Final SEIS (1997) provides an overall summary of the array of resources that will be monitored, method, frequency, threshold, authority, and responsible agency (Table 2-3; page 2-40). These agencies typically establish detailed monitoring requirements, and the mining operator conducts the sampling or testing according to a frequency required by the agency and then submits monthly, quarterly, or annual reports. For example, EPA's draft NPDES permit (February 1997) requires an extensive sampling of mine process water, stormwater, and ambient (background) condition of water, sediment, freshwater invertebrates and fish (see attached excerpt from draft NPDES permit). Another example is the applicant's proposed monitoring of the DTF for moisture and settlement, which is incorporated into the project description under the large mine permit.

The monitoring requirements for these various permits are currently being developed. The EPA draft NPDES permit provides perhaps the most explicit monitoring requirements established to date for the Kensington mine project. The U.S. Forest Service is currently working with the applicant on stormwater monitoring requirements as part of the Plan of Operations, generally modeled after a comparable monitoring program in place at the Greens Creek Mine. The U.S. Forest Service will include detailed monitoring requirements as part of its approval of the applicant's Plan of Operations.

The applicant presents an overall outline of the environmental monitoring activities proposed to be conducted or likely to be required by agencies during mine construction and operation (Chapter 6, Solid Waste Management Permit Application, September 1997, and Chapter 4, Amended Plan of Operations, August 1997). As described by the applicant, the objectives of the monitoring are as follows:

Water Quality Monitoring

Aquatic Resources Monitoring


Wildlife Monitoring

Air Quality Monitoring

 

Dry Tailings Facility Monitoring

Visual Quality Monitoring

Reclamation Monitoring

Key elements that measure status include:

Post Reclamation

At its best, monitoring is an evolving process. In the early years of a mine operation, typically more frequent sampling of more parameters at more locations is required at a project. As data are gathered and analyzed, monitoring requirements may be scaled back and targeted at particular components of a project or particular parameters. The NPDES permit will be subject to review and renewal in five years, thereby providing a formal opportunity to renegotiate terms of the monitoring program. Also, mitigating measures or best management practices can be modified to better address impacts.

CBJ MONITORING -- A CONCEPTUAL APPROACH

Monitoring Requirements. In the absence of a specific CBJ Mining Ordinance requirement to establish its own, independent monitoring plan with the applicant, CBJ will generally make use of the monitoring requirements imposed by federal and state agencies to ensure that "air and water quality be maintained in accordance with federal, state, and city and borough laws, rules, and regulations" and that "hazardous and toxic materials, sewage, and solid waste be properly contained and disposed of in accordance with applicable federal, state, and city and borough laws, rules, and regulations" as required by CBJ 49.65.135(a)(2) and (3). In addition, CBJ can use the state and federal monitoring to track compliance with requirements of the Large Mine Permit. Finally, CBJ reaffirms its authority to conduct field inspections either to enforce state and federal monitoring requirements incorporated by reference into the large mine permit, or to monitor its own permit requirements.

Field Inspections and Interagency Coordination. CBJ Community Development and Engineering staff familiar with the Kensington mine project and the Large Mine Permit requirements will conduct site visits during mine construction and operations. It is anticipated that interagency coordination with respect to site inspections and information-sharing will occur at the Kensington mine project. For comparison, the U.S. Forest Service personnel charged with day-to-day oversight of the Greens Creek Mine currently coordinate an informal agency round table for interested local, state, and federal agencies and the Kennecott Greens Creek Mining Company. Also, U.S. Forest Service personnel regularly visit the Greens Creek Mine and have extended a standing offer to transport CBJ staff to the mine site. Similar interagency cooperation is anticipated with respect to the Kensington Mine.

Monitoring Reports, Analysis and Interagency Cooperation. As noted previously, Coeur will be required to report the results of its monitoring on a monthly, quarterly, or annual basis depending on the particular permit requirement. The CBJ will be a recipient of these monitoring reports from the company. The nature of the reports required will vary from agency to agency. The U.S. Forest Service will require fairly detailed periodic water quality reporting, with laboratory and independent third-party QA reports attached to the mine operator report. Also, ADEC intends to require that the mine operator prepare an annual data review which includes statistical analysis to identify and report any trends in the environmental data in the ADEC Solid Waste Disposal Permit and in the ADEC 401 Certification of the EPA NPDES permit. CBJ staff believes that the level of detail required by these two agencies, for example, will be adequate for the detection of potential environmental problems related to the mine operations and closure. CBJ staff believes that all monitoring reports should routinely include a summary statement at the front of the report that clearly indicates sampling anomalies, observed trends and problems, and corrective actions taken. The applicant's Amended Plan of Operations (August 1997; page 4-10) anticipates this by discussing a comprehensive data base, with statistical analysis and annual reports identifying significant environmental trends, if any.

In the context of effective monitoring and useful reporting, CBJ staff recommends that the mine operator provide, in the annual progress report required under CBJ 49.65.150(b), information that summarizes efforts undertaken during the previous year related to requirements unique to the CBJ Large Mine Permit. CBJ staff will identify these unique requirements which are not covered under other state or federal permits prior to the date the first annual report is due.

Further, one aspect that would enhance the overall monitoring is a coordinated interagency-mine operator effort to convene annually, or as needed, to review the overall monitoring results and environmental conditions at the mine site. CBJ staff will work with the U. S. Forest Service, ADEC, and other agencies on cooperative reviews of monitoring data, as part of the overall interagency coordination anticipated for the Kensington Mine. Notice of these meetings should also be given to interested members of the public.

During the life of the mine, CBJ may want to establish professional services contract(s) for independent, third party analyses of particular monitoring data. For example, CBJ would seek an expert skilled in water chemistry (quality) data analysis to interpret the chemical laboratory reports and provide an independent assessment of the quality assurance/quality control of that data if an agency review indicates a cause for concern or if an agency fails to regularly review monitoring data. Further, CBJ would look to a geotechnical expert for an independent, third-party analysis of the DTF monitoring data to verify the stability of the DTF during mine operations, at closure, or prior to final release of a financial warranty.

Periodic Reports to the Planning Commission and the Community. A particular "niche" that CBJ can fulfill in the overall monitoring efforts related to the Kensington Mine would be a periodic report by the city and borough to the residents of Juneau on the general status of the environmental monitoring at the Kensington Mine. The goal would be to translate the frequently arcane and highly technical monitoring reports and correspondence into everyday English that the general public can understand. The report, prepared by Community Development Department, could be the subject of a Planning Commission meeting designed to inform the public as well as to identify CBJ enforcement that might be needed to ensure corrective actions are taken to address any problems. To the extent possible, the timing of such a report should follow any coordinated, interagency review of monitoring data, as previously noted. The company's monitoring reports submitted to CBJ would also be on file and accessible to members of the public year-round.

Staff Resources and Annual Monitoring Fees. The above-mentioned approach may entail the equivalent of roughly one-quarter of a full-time position combined at the CBJ Community Development Department (0.15 FTE) and Engineering Department (0.10 FTE), at least during the initial years of the mine construction and operation. CBJ staff recommends a modest effort directed toward monitoring the Kensington mine project, in keeping with the overall responsibilities and workload of the two departments. The specific tasks undertaken by staff include:

There would also be publication and distribution expenses to produce a report to the community. It is assumed that CBJ staff would not incur costs to access the mine site; rather staff would rely on the mine operator or other regulatory agencies for transport to and from the mine.

An annual monitoring fee, provided for in CBJ Mining Ordinance 49.65.150(d), will be established by the Planning Commission as part of the Large Mine Permit for the Kensington Gold Project to cover these "reasonable costs of inspection and review". The initial annual fee for the above-mentioned basic monitoring tasks is estimated in Fiscal Year 1998 at:

Personal Services (Salary & Benefits)

0.25 FTE $ 19,200.

Report Publication & Distribution

100 copies $ 800.

Annual Monitoring Fee Subtotal: $ 20,000.

Additional monitoring costs to be paid by the mine operator would be incurred for professional services of specialists to interpret specific water quality or geotechnical monitoring data for CBJ, as noted previously. On contract, the specialist would review a set of monitoring data and reports submitted by the mine operator, and provide to CBJ a report which draws independent conclusions about the data. While it is difficult to estimate precisely the expense for professional services under the monitoring fee, it is likely that individual contracts would be for services in the $100-150/hour range totaling perhaps $3,000 - $10,000 each, depending on the amount of monitoring data to be analyzed or the reclamation activities under review.

The established annual fee for basic monitoring tasks will be adjusted in future years to reflect changes in staff time, personal services costs, or inflation (i.e., CBJ currently uses 3 percent inflation factor for budgeting). The cost of professional services would be estimated annually by staff, but Planning Commission review and approval would be obtained before initiating any contract. The first annual fee, calculated on the basis of the portion of the fiscal year remaining, will be due prior to issuance of any CBJ building or grading permit for the activities governed by the Large Mine Permit. Thereafter, the annual fee for basic monitoring tasks and professional services, as needed, would be estimated annually by staff as part of the CBJ budget process and payment required at the beginning of the fiscal year at the department's request.

STAFF FINDINGS

The CBJ code does not require monitoring. The findings and recommendations in this section are intended to improve administration of the permit, not to satisfy a legal mandate.

1. Does the large mine permit application include information sufficient to assess the need for monitoring?

Yes. The application is sufficiently complete to discuss a general approach to CBJ monitoring of the project. The Amended Plan of Operations (August 1997), Final SEIS (August 1997) and state and federal permit applications and draft permits describe in considerable detail the objectives and parameters of project monitoring.

2. Will sufficient information and a monitoring process be established to ascertain compliance with the requirements, terms, conditions, and mitigation measures in the permit?

Yes. The general approach outlined in this staff report will enable CBJ to ascertain permit compliance. On-site inspections by CBJ staff, interagency coordination, and routine review of monitoring reports (with professional services, as needed) should provide a broad-based monitoring approach.

STAFF RECOMMENDATION

Staff recommends that the following conditions be included in the Large Mine Permit:

1. The operator shall pay an annual monitoring fee to the CBJ to cover the reasonable costs to inspect and review compliance with the permit. The initial fee shall be submitted to the department prior to issuance of CBJ building and grading permits for the mine project, and the annual fee thereafter on or about July 1 or as requested by the department. The fee for basic monitoring tasks is established at $20,000 and includes funding for CBJ staff time and production and distribution costs for a report to the community. The fee shall be adjusted annually by the department for personal services costs and inflation. A departure from the base fee amount, beyond annual adjustments for slight staff cost changes and inflation, will be subject to Planning Commission approval.

2. The operator shall pay additional costs under the annual monitoring fee for professional services necessary to ensure compliance with the permit, subject to review and approval by the Planning Commission.

3. The operator shall provide to the department copies of all state and federal permits requiring monitoring, monitoring plans required in these permits and any revisions to the monitoring plans specified in these permits. The operator shall provide to the department paper and electronic file copies of the periodic monitoring reports required in these permits, as requested by the department. All monitoring reports submitted to the department shall include a summary statement at the front of the report that describes any sampling anomalies, observed trends in the data, suggested changes to subsequent monitoring, any problems, and corrective actions taken to address any problem.

4. As part of the annual progress report required under CBJ 49.65.150, the operator shall submit to the department a section stating how conditions unique to the large mine permit have been met during the previous year. As requested by the department and to the extent practicable, the annual report shall coincide with annual reporting to other agencies.

5. The operator shall comply with the monitoring requirements of all state and federal permits and approvals for the Kensington Gold Project. The monitoring requirements of the following state and federal permits and approvals are hereby incorporated by reference:

U.S. Forest Service:

1. Plan of Operations Approval

2. Section 313 and 319 of the Clean Water Act Compliance

Environmental Protection Agency:

3. National Pollutant Discharge Elimination System (NPDES)

4. Spill Prevention Control Countermeasure Plan (SPCC) Approval

5. Facility Response Plan Approval

U.S. Army Corps of Engineers:

6. Section 404 Clean Water Act Permit

7. Section 10 Rivers and Harbors Act Permit

U.S. Coast Guard:

8. Spill Prevention, Containment and Countermeasure Plan Approval

Alaska Department of Environmental Conservation:

9. Certificate of Reasonable Assurance for Section 404/10 Permits

10. Certificate of Reasonable Assurance for NPDES Permit

11. Air Quality Control Permit to Operate

12. Solid Waste Disposal Permit

13. Alaska Domestic Wastewater Treatment System Plan Approval

14. Oil Discharge Prevention and Contingency Plan Approval

Alaska Department of Fish and Game:

15. Section 16.05.840 Permit (Fish Passage)

16. Section 16.05.870 Permit (Anadromous Fish Habitat)

Alaska Department of Natural Resources:

17. Water Rights Permits

18. Tideland Leases

19. Right of Way Permit

Return to Kensington Mine Review Page
Return to the Capital City Home Page

Our URL is http://www.juneau.lib.ak.us/cdd/Kensingt.htm

Last revised on 06/28/99 - bgb