RECOMMENDATION
On the basis of the Recommended Findings set forth in Chapter
II of this document, the Director recommends that a Large Mine
Permit be approved for the construction and operation of the
Kensington Gold Project. The Director recommends that the project
be subject to the following permit conditions which are
reasonably necessary to mitigate adverse environmental, health,
safety, or general welfare impacts which may result from the
mining operation. Further, the Director recommends that the
Reclamation Plan (August 1997) be approved and that the draft
Mitigation Agreement (10/2/97) be incorporated as part of the
permit.
PERMIT CONDITIONS
GENERAL CONDITIONS
1. Acceptance of this Large Mine Permit shall be considered agreement by the operator to the following general and specific conditions which have been deemed appropriate by the Planning Commission (Commission). Violation of any condition shall be grounds for suspension or revocation of the permit or other enforcement measures in accordance with CBJ 49.65.160.
2. The applicant shall obtain all required federal, state, and
local permits and approvals and shall comply with the permit
requirements.
3. The procedures, operating techniques, equipment, location,
and other descriptions set for by Coeur Alaska, Inc. in its
application to the CBJ (MIN-M96-01) and in subsequent amendments
and additions to that application, and as modified by this
permit, are incorporated herein as permit conditions and shall be
required elements of the project.
4. In addition to the authority to enforce and secure
compliance with provisions of this permit, the Commission may
order that action which is required to protect the environment,
public health, safety and welfare.
5. In the event that any condition contained herein is
determined to be invalid, then all remaining conditions shall
remain in force.
6. In the event that any condition herein is determined to be
in conflict with any other condition contained herein, then where
principles of law do not provide to the contrary, the condition
most protective of the natural environment, public health, and
safety shall prevail.
7. As used in this document, the terms "applicant",
"operator", "company" and similar terms mean
Coeur Alaska, Inc. The conditions of this permit shall be binding
on Coeur Alaska, Inc. And its successors and assigns.
8. This large mine permit, once issued, constitutes
authorization for the applicant to seek and receive building and
grading permits for all aspects of the project, if applicable
code requirements are met, a design review approval is obtained,
and the annual monitoring fee required under CBJ 49.65.150(d) is
received by the Community Development Department
("department").
9. The operator shall abide by the provisions of the
Socioeconomic Impact Mitigation Agreement, terms and conditions
of the Financial Warranty, and the Reclamation Plan.(August
1997), as modified by conditions of this large mine permit. These
documents are incorporated as part of the large mine permit.
10. The operator shall submit to the department mobilization
and construction schedules and revisions thereto at the time
these become available. These schedules shall be in sufficient
detail to enable the department to carry out its monitoring and
financial warranty responsibilities.
ISSUE-SPECIFIC CONDITIONS
WILDLIFE
11. The operator shall designate a position and hire an
employee who works on-site to serve as the primary "wildlife
contact" for the mine operation. Other employees will be
directed to report certain wildlife sightings and interactions
(as noted in condition #12) to this employee for recording and
reporting. Government agencies will use this employee as the
initial contact for information on wildlife issues at the project
site.
12. As part of employee orientation, the operator shall
provide training in wildlife management and interactions to all
project (i.e., company and long-term contract) employees.
Training shall include, but need not be limited to: appropriate
solid waste management, prohibitions on hunting and trapping at
the project site, briefing on black bear encounters and safety
measures, effects of noise and disturbance on wildlife, and
reporting unusual wildlife sightings or injured animals to the
"wildlife contact" (as described in condition #11). The
operator shall adopt a personnel policy that prohibits the
purposeful or negligent feeding of wildlife at the project site,
and shall inform personnel of this policy during training.
Training shall be provided to all project employees within 10
days of beginning work at the Kensington project site.
13. Unnecessary and avoidable interference and any harassment
of mountain goats during mine construction and operation are
prohibited. In particular, the mine operator shall ensure that
all helicopter pilots employed on the project receive training in
avoiding disturbance to mountain goats and in using appropriate
flight paths to minimize disturbance caused by aircraft. Training
shall be provided to all new pilots within 10 days of hiring.
14. The operator shall monitor mountain goats in the project
area. If two or more consecutive years of aerial surveys
conducted by the Alaska Department of Fish and Game indicate a
goat population decline of 50 percent or more from a benchmark
established during the first two years of project activity, the
operator shall contract with ADFG for an analysis of the Lion's
Head Mountain subpopulation decline. In conjunction with ADFG and
the U.S. Forest Service, the operator shall identify and
undertake interim mitigating measures, in accordance with the
analysis. If a 50 percent or greater population decline exists at
mine closure, the operator shall contract with ADFG for an
assessment of replanting mountain goats. A replanting effort
shall occur only if ADFG determines that there is a reasonable
likelihood of success. The operator shall conduct a one-time
transplant of about 15-20 goats, with aerial surveys during the
following two years to assess the success.
SOLID WASTE
15. Prior to shipping solid waste to Juneau for disposal, the
operator shall minimize waste at its mine facility.
16. In the event that one or more instruments register
saturation in the Dry Tailings Facility, the operator shall
notify the department within seven working days.
TRAFFIC/TRANSPORTATION
17. The mine operator shall avoid interfering with commercial
vessels engaged in fishing in the vicinity of Point Sherman and
Comet Beach by ensuring that barge operators adhere to U.S. Coast
Guard International Regulations for Preventing Collisions at Sea
(Rule 18). If continual conflicts occur between barges and
commercial vessels engaged in fishing, then the mine operator
shall schedule barge landings, to the maximum extent practicable,
during times when the local gillnet fishery in the vicinity of
Point Sherman is closed.
18. For barge arrivals and departures that occur during
periods when one or more commercial vessels are engaged in
fishing in the area, the mine operator shall further limit barge
interference with commercial fishing vessels through the
following mitigative measures:
a. barge-initiated radio contact with commercial fishing
vessels to notify and coordinate with fishermen about the timing
of barge approach or departure, and
b. barge approach to and departure from the marine terminal
perpendicular to the shoreline to minimize time in the fishing
area.
NOISE
19. Except during emergencies, helicopter flights shall be
limited to the hours between 6 AM and 10 PM.
20. Unless weather, safety procedures, emergencies, or Federal
Aviation Administration requirements dictate otherwise, the mine
operator shall operate helicopters at elevations and along the
flight path, as follows, in order to minimize noise levels on
residential areas, recreation users, and wildlife:
a. The minimum altitude shall be 300 feet above ground level.
The highest practicable elevation shall be maintained, preferably
at least 2,000 feet above mean sea level.
b. The flight path shall be: from the Juneau Airport, head
west while immediately climbing to the FAA-directed or highest
practical altitude, cross the Mendenhall River, turn north to
Montana Creek and then proceed northwest following the creek
drainage, on past Windfall Lake toward the mouth of Cowee Creek,
north across Berners Bay, and then along the coastline of Lynn
Canal to the mine site.
21. The mine operator shall use ambient-sensitive vehicle
backup alarms set at the lowest noise levels consistent with good
safety practices and Mine Safety and Health Administration
requirements.
VISUAL RESOURCES
22. The operator shall limit the visual impacts of the project
during construction and operation through the following
mitigative measures:
a. Preserve as much of the existing vegetation as possible
between proposed and existing Marine Terminal structures and Lynn
Canal.
b. Revegetate around buildings and other facilities
immediately after construction.
c. Use natural-appearing paints and finishes for construction
of buildings, tanks, ore containers, and other structures so that
the mine facilities blend in with the surrounding natural
landscape.
d. Design and place exterior lighting such that light and
glare are minimized from offshore viewpoints, while assuring that
worker safety is not compromised.
e. Revegetate cut and fill slopes for the access roads and
tailings slurry pipeline after construction.
f. Revegetate embankment slopes and other disturbed areas
after construction.
g. Locate overhead lines so that they are not readily
noticeable from offshore viewpoints.
SUBSIDENCE
23. The operator shall maintain at least 150 feet of crown
pillar to eliminate the possibility of subsidence.
AVALANCHE/LANDSLIDE
24. The operator shall prohibit job site access of workers to
the Sand and Gravel Borrow Pit when avalanche conditions are
present.
HISTORIC RESOURCES
25. In the event that any prehistoric, historic, or
archaeological evidence is discovered during mine construction
and operations, the operator shall stop work promptly in the
immediate area and notify the CBJ Community Development
Department and the Alaska State Historic Preservation Officer.
26. The operator shall consider offering any historic
artifacts found on private land to an appropriate museum or
Native heritage organization in the Juneau area.
MONITORING
27. The operator shall pay an annual monitoring fee to the
department 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 annually 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.
28. 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.
29. 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.
30. 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.
31. 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
RECLAMATION
32. As part of the annual progress report to the department
required under CBJ 49.65.150, the operator shall identify the
past year's reclamation and specific plans for reclamation
activities in the ensuing year. The operator shall also estimate
the amount of reclaimed acreage during the past year and
associated reclamation costs. Similarly, the operator shall
estimate the amount of acreage to be disturbed in the ensuing
year and anticipated costs of reclamation. The estimated acreage
and reclamation costs shall be provided for purposes of the
annual review of the financial warranty in accordance with CBJ
49.65.140(f).
33. The operator shall notify the department of proposed
changes in mine operations that may affect the total amount of
surface area disturbed or the reclamation in the approved
Reclamation Plan in accordance with CBJ 49.65.155. To the extent
possible, such notification will accompany the annual progress
report submitted to the department.
34. In the annual progress report to the department, the
operator shall provide data and analysis about the results of any
revegetation test plots and shall describe how successful test
results could be incorporated into revegetation practices and
amendments to the approved Reclamation Plan. The operator shall
also report and analyze water quality monitoring data from
reclaimed sites in the annual progress report.
35. To be considered successful and prior to final release of
the financial warranty by the department, mine reclamation shall
meet the requirements of CBJ 49.65.135(b), 49.65.140(a) and other
conditions of the large mine permit. Reclaimed sites shall also
support 75 percent live self-sustaining vegetative cover where
revegetation has been undertaken, and runoff from reclaimed sites
shall meet Alaska Water Quality Standards.
36. Reclamation of streams and the Ophir Creek diversion
channel shall include consideration of bioengineering techniques
to protect fish habitat in addition to the placement of rip rap
to meet the primary reclamation objective of stabilization.
37. Topsoil or growth media shall be applied over regraded
areas to a minimum depth of one foot, subject to modification
based on the results of site-specific revegetation test plots
identified in Permit Condition #38 above.
FINANCIAL WARRANTY
38. The Planning Commission sets the amount of the financial
warranty to ensure performance of the requirements of the permit
to reclaim the mine site after initial construction at
$3,491,000., subject to review by the department on an annual
basis. An increase or decrease in the amount of the financial
warranty shall be made by the Planning Commission.
39. In the initial year of operation, and each year thereafter
as deemed necessary by the department, at the time of the renewal
and updating of the financial warranty or if a review is required
sooner by a project amendment, the department shall engage the
services of a professional engineering consultant with experience
in rural Alaska construction cost estimating. The consultant
shall estimate the cost of performing complete reclamation of the
project site in the condition existing at the time of renewal
plus the cost of reclamation of activities scheduled in the
ensuing year of project development. This cost estimate, which
shall include all attendant construction, administrative, and
inspection costs as well as a reasonable contingency, shall
comprise the reclamation portion of the financial warranty. The
operator shall pay department expenses to prepare the reclamation
cost estimate.
CBJ COMMITMENTS
1. The CBJ will work with appropriate agencies to develop a multi-agency Memorandum of Agreement on procedural issues pertaining to reclamation of the Kensington Gold Project such that local, state, and federal agency needs can be handled in a coordinated and efficient manner. As part of this reclamation MOA, the CBJ will strive to achieve a financial warranty that satisfies all agencies requiring a warranty and avoids duplication for the operator.
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