Fact     Sheet

NPDES Permit Number: AKG-37-1000
Date:     April 21, 2005
Contact:   Cindi Godsey
        Alaska Operations Office/Anchorage
        (907) 271-6561 or (800) 781-0983 (in Alaska only)
        godsey.cindi@epa.gov

     The U.S. Environmental Protection Agency (EPA)
 Plans To Issue A General Wastewater Discharge Permit To:

                 Alaskan Suction Dredge Miners

                         and

              NOTICE OF STATE CERTIFICATION,
                         and
                  provide information on the
           ALASKA COASTAL MANAGEMENT PROGRAM

EPA Proposes NPDES Permit Issuance.
EPA proposes to re-issue a National Pollutant Discharge Elimination System (NPDES)
General Permit to Alaskan Suction Dredge Miners for gold placer mining operations in
Alaska. The draft permit sets conditions on the discharge - or release - of pollutants
from operations into waters of the United States. EPA's goal is to have this permit
become effective as the 2000 GP expires. If this occurs then EPA is proposing to
automatically cover anyone who submitted a timely NOI for reapplication under the
2000 GP. If the GP does not go into effect in October, EPA would make a
determination at the time of re-issuance whether a new NOI would be necessary for
coverage.

This Fact Sheet includes:
    $$ information on public comment, public hearing, and appeal procedures
    * a description of the industry
    * a description of proposed effluent limitations , monitoring requirements, and
        other conditions

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The State of Alaska certification.

      EPA has requested that the Alaska Department of Environmental Conservation
      (ADEC) certify the NPDES permit for this operation under section 401 of the
      Clean Water Act (CWA). A draft §401 Certification is included in this Fact Sheet
      as Appendix A.

Consistency Determination

      This GP was previously found consistent on June 23, 2000. On January 13,
      2005,  EPA requested information on the Alaska Coastal Management Program
      (ACMP) review.  On March 2, 2005, the Department of Natural Resources/Office
      of Project Management and Permitting (OPMP) sent a response letter. In its
      response, OPMP stated that with the minor proposed changes to the GP, a new
      ACMP review  is not required.

EPA invites comments on the draft permit.

      EPA will consider all substantive comments before issuing a final permit. Those
      wishing to comment on the draft permit or request a public hearing may do so in
      writing  by the public notice expiration date. Please submit comments to USEPA-
      Region 10, 1200 Sixth Avenue,  OWW-130, Seattle, Washington 98101.
      Comments may be submitted by e-mail to godsey.cindi@epa.gov or faxed to
      (206) 553-0165.  All comments  should include name,  address, phone number, a
      concise statement of basis for the comment and relevant facts upon which it is
      based. A request for public hearing must state the nature of the issues to be
      raised as well  as the requester's name, address and telephone number.

      Persons wishing to comment on State Certification should submit written
      comments by the public notice expiration date to Luke Boles, Alaska Department
      of Environmental  Conservation, 610 University Avenue, Fairbanks, Alaska
      99709. Mr. Boles may be reached  by phone at (907)  451-2142 or by e-mail at
      boles.luke@dec.state.ak.us

      For information on the ACMP review process, please  contact Ms Amanda Henry
      at DNR/OPMP, 550 W. 7th Avenue, Suite 1660, Anchorage, AK, 99501 or at
      (907) 269-7468.

      A General Permit follows rulemaking procedures so EPA's issuance and
      promulgation activities must be  conducted in accordance with the Administrative
      Procedure Act (APA).  The modifications in this general permit will become
      effective 30 days after publication of the final general  permit in the Federal
      Register according to Section 553(d) of the APA. Anyone wishing to appeal this
      general permit must do so in court according to 40 CFR §124.19. Interested
      persons may challenge the modifications, within 120 days of issuance, in the

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      Circuit Court of Appeals of the United States under Section 509(b)(1) of the Act.

Documents are available for review.

      The draft NPDES permit and fact sheet can be reviewed at EPA's Regional
      Office in Seattle between 8:30 a.m. and 4:00 p.m., Monday through Friday. This
      material is also available for inspection and copying  at the following places in
      Alaska:

      USEPA Alaska Operations Office
      Federal Building, Room 537
      222 West 7th Avenue
      Anchorage, Alaska  99513-7588
      Telephone:  (800) 781-0983 (Within Alaska)

      USEPA Alaska Operations Office
      410 Willoughby Avenue, Suite 100
      Juneau, Alaska 99801
      Telephone:  (907)586-7619

      ADEC
      Water Division
      610 University Avenue
      Fairbanks, AK 99709
      Telephone:  (907)451-2142

Copies of the draft permit and fact sheet can be found on the EPA, Region 10 website
at http://www.epa.gov/r10earth/waterpermits.htm (click on draft permits, then Alaska).
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                        TABLE OF CONTENTS

LIST OF ACRONYMS  	 5

I.   GENERAL PERMITS	 6

II.   BACKGROUND ON SUCTION DREDGE PERMITTING 	 8

III.  INDUSTRY DESCRIPTION	9

III.  RECEIVING WATER	 10


IV.  EFFLUENT LIMITATIONS, MONITORING & REPORTING REQUIREMENTS
     	 11

V.   BEST MANAGEMENT PRACTICES (BMPs)	 13

VI.  OTHER PERMIT CONDITIONS 	 14
    Oil Spill Requirements	 14
    Endangered Species Act	 14
    Essential Fish Habitat (EFH)  	 15
    State Certification	 16
    Consistency Determination  	 16
    Permit Expiration  	 16

APPENDIX A-- DRAFT §401 CERTIFICATION  	 17

APPENDIX B -- SUMMARY OF SUCTION DREDGE STUDY	 20

APPENDIX C -- REFERENCES	 21

APPENDIX D-APPROXIMATE CRITICAL HABITAT AREAS	 22
AKG-37-1000 Fact Sheet                                          Page 4 of 27

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                            LIST OF ACRONYMS

AAC          Alaska Administrative Code
ACMP         Alaska Coastal Management Program
ADEC         Alaska Department of Environmental Conservation
AR           Annual Report
AWQS        Alaska Water Quality Standard
BMP          Best Management Practices
CFR          Code of Federal Regulations
CSU          Conservation System Unit
CWA          Clean Water Act
DGC          Division of Governmental Coordination
EFH          Essential Fish Habitat
EPA          Environmental Protection Agency
ESA          Endangered Species Act
FR           Federal Register
NMFS         National Marine Fisheries Service
NOI           Notice of Intent
NPDES       National Pollutant Discharge Elimination System
NTU          Nephelometric Turbidity Unit
SPCC         Spill Prevention  Control and Countermeasure
USFWS       United States Fish & Wildlife Service
USGS         United States Geological Survey
AKG-37-1000 Fact Sheet
Page 5 of 27

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I.    GENERAL PERMITS

     A.   Permit Coverage
          1.    Section 301 (a) of the CWA provides that the discharge of pollutants is
               unlawful except in accordance with a National Pollutant Discharge
               Elimination System (NPDES) permit. Although such permits are
               usually issued to individual dischargers, EPA's regulations also
               authorize the issuance of "general permits" to categories of discharges
               [40 CFR 122.28] when a number of point sources are:

               a.    Located within the same geographic area and warrant similar
                    pollution control measures;

               b.    Involve the same or substantially similar types of operations;

               c.    Discharge the same types of wastes;

               d.    Require the same effluent limitations or operating conditions;

               e.    Require the same or similar monitoring requirements; and

               f.    In the opinion of the Director, are more appropriately controlled
                    under a general permit than under individual permits.

          2.    Like individual permits, a violation of a condition contained in a general
               permit constitutes a violation of the Act and  subjects the owner or
               operator of the permitted facility to the penalties specified in Section
               309 of the Act.

          3.    A Notice of Intent (NOI) to be covered  under this General Permit  (GP)
               is required [40 CFR 122.28(b)(2)(i)]. The requirements are outlined in
               Part I.F. of the permit and  an NOI is included as Appendix A of the GP.

          4.    This permit will expire five (5) years from the date of effective date. 40
               CFR 122.28(b)(1) allows a general permit to be administered according
               to the individual permit regulations found in 40 CFR 124 so the general
               permit will continue in force and effect  until a new general permit  is
               issued. Only those facilities authorized to discharge under the expiring
               GP that submit an NOI 90 days prior to the expiration of this GP are
               covered by the continued permit.

          5.    EPA is proposing that all facilities covered by the 2000 general permit
               are authorized under this GP if all NOI procedures are followed.
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     B.   Limitations on Coverage

          1.    Many streams and stream reaches in Alaska have been designated as
               part of the federal wild and scenic rivers system or as a Conservation
               System Unit (CSU). Because this permit does not relieve a permittee
               of the requirements of other applicable federal, state or local laws,
               permittees should contact the district offices of the agencies that
               administer these systems for additional restrictions that may apply to
               operations on claims within these designated areas.

          2.    Many streams in Alaska where suction dredging occurs have been
               designated by Alaska Department of Natural Resources,  Office of
               Habitat Management and Permitting (OHMP) as needing a permit with
               additional restrictions. Because this permit does not relieve a permittee
               of the requirements of other applicable federal, state or local laws, the
               draft permit requires permittees to contact OHMP.

     C.   Prohibitions

          1.    This general permit does  not apply to facilities that are proposed to be
               located in National Parks  System Units (i.e., Parks and Preserves),
               National Monuments, National Sanctuaries, National Wildlife Refuges,
               National Conservation Areas, National Wilderness Areas, National
               Critical Habitat Areas, or within one nautical mile of a Steller sea lion
               rookery or haulout area.

               This constitutes a change to the 2000 GP which also included "waters
               adjacent to the boundaries of areas designated as wild under the Wild
               & Scenic Rivers Act" in this section. EPA, Region 10, has issued
               several individual permits with the same requirements as the GP to
               facilities in this designated area. EPA has never received a comment
               on a draft permit that indicated special requirements were necessary
               for operating in these areas.  So EPA is proposing to remove this
               prohibition from the GP. If compelling comments are received  contrary
               to this action, EPA will consider them in  finalizing this GP.

          2.    This permit does not apply to wetlands designated in the 1995
               Anchorage Wetlands Management Plan.

     D.   Individual Permits

          1.    Owners or operators covered by a general permit may be excepted
               from coverage by applying to the Director of the NPDES program for an
               individual permit.  This request must be made by submitting an NPDES
               permit application, together with supporting documentation within 90
               days of publication by EPA of a final general permit in the Federal
               Register, or 180 days prior to the commencement of operation of a new
               source or new discharger.

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          2.   The Director may require any person authorized by a general permit to
              apply for and obtain an individual permit, or any interested person may
              petition the Director to take this action.  The Director may consider the
              issuance of an individual permit when:

              a.   The single discharge or the cumulative number of discharges
                   is/are a significant contributor of pollution;

              b.   The discharger is not in compliance with the terms and conditions
                   of the general permit;

              c.   A change has occurred in the availability of demonstrated
                   technology or practices for the control or abatement of pollutants
                   applicable to the point source;

              d.   Effluent limitation guidelines are subsequently promulgated for the
                   point sources covered  by the  general permit;

              e.   A Water Quality Management Plan containing requirements
                   applicable to such point sources is approved.

              f.    Circumstances have changed since the time of the request to be
                   covered so that the discharger is no longer appropriately
                   controlled  under the general permit, or either a temporary or
                   permanent reduction or elimination of the authorized discharge is
                   necessary

II.   BACKGROUND ON SUCTION DREDGE PERMITTING

     On June 30, 1992, EPA received a notice of citizen suit, alleging that EPA failed to
     perform a non-discretionary duty to regulate suction dredge gold placer mining
     operations in Alaska.  At that time, EPA decided it would issue individual permits
     for mechanical placer mining operations (for the 1993 mining season) and
     propose a general permit for suction dredge operations. On January 14, 1994,
     EPA proposed a general permit that extended coverage to mechanical as well as
     suction dredge operations.  59 FR 2504 (Jan.  14, 1994).  After responding to
     public comment, EPA issued the final general permit on May 13, 1994. 59 FR
     28079 (May 31, 1994). On September 28, 1994, two  environmental groups filed a
     petition for review of the general permit in the  Ninth Circuit Court of Appeals.

     On November 18, 1996, EPA and the two environmental groups entered into a
     settlement agreement to resolve the challenge to the general permit. Pursuant to
     the agreement, EPA agreed to issue three separate general permits to modify and
     supersede the original general permit challenged by the environmental groups in
     1994. The settlement agreement also required EPA to complete two studies
     related to the impact of placer mining on the natural environment in Alaska. One
     study was to address the discharge of metals  by placer mining operations and the

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     other was to address the impact of suction dredge mining.

     EPA issued three modified general permits on December 6, 1996, one for
     mechanical operations, one for medium-size suction dredge operations, and one
     for small suction dredges [61 FR 64796, December 6, 1996].  On April 4, 1997,
     three environmental groups challenged these permits.  No. 97-70365 (9th Cir). In
     a separate action, the Alaska Miners Association (AMA) also challenged the
     general permits. No. 97-70379 (9th Cir.).  These cases were consolidated on May
     5, 1997. The challenge by the AMA was dismissed on January 21,1999.

     During the summers of 1997 and 1998 EPA staff and EPA contractors collected
     data at 31 placer mine sites and several suction dredge sites. These data were
     analyzed and presented in two final reports, one entitled "Alaska Placer Mining
     Metals Study" and the other entitled "Impact of suction  dredging on water quality,
     benthic habitat, and biota in the  Fortymile River, Resurrection Creek, and
     Chatanika River, Alaska." The environmental groups believed that the suction
     dredge report did not address all of the required elements as set out in the 1996
     settlement agreement.

     To avoid further litigation over the general  permits, EPA and the environmental
     groups entered into another settlement agreement. Pursuant to the agreement,
     EPA agreed that further study was necessary to quantify the full impact of suction
     dredge mining on the  natural environment and that further research should  be
     conducted before conclusions are reached about the impact of suction dredge
     mining on Alaska streams. EPA further agreed that by January 7, 2000, it would
     transmit to the Federal Register any necessary revisions to the modified general
     permits to address the results of the metals study. As a result, the environmental
     groups' petition to review the three general permits was dismissed on August 31,
     1999.

     EPA transmitted the 2000 proposed general  permit to the Federal Register on
     January 7, 2000. The proposed GP was published in the FR on January 14,
     2000. The final  GP was published on August 31, 2000. The permit was effective
     on October 3, 2000.

     As of February 2005,  141 operations have active coverage under the GP. Re-
     notice, according to the 2000 GP, should occur by July 5, 2005 (90 days prior to
     the expiration date).

III.   INDUSTRY DESCRIPTION

     Placer mining involves the mining and extraction of gold or other heavy metals
     and minerals primarily from alluvial deposits. These deposits maybe in existing
     stream beds or ancient, often buried, stream deposits,  i.e. paleo or fossil placers.
     Many Alaskan placer deposits consist of unconsolidated clay, sand, gravel, cobble
     and boulders that contain very small amounts of native gold or other precious
     metals.  Most are stream deposits that occur along present stream valleys or on
     benches or terraces above existing streams. Beach placer deposits have been

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     and continue to be important producers in Alaska.  These deposits, most notable
     near Nome, include both submerged and elevated beach placer deposits.

     Dredging systems are classified as hydraulic or mechanical (including bucket
     dredging), depending on the methods of digging.  Suction dredges, the most
     common hydraulic dredging system, are quite popular in Alaska with the small and
     recreational gold  placer miner. Like all floating dredges, suction dredges consist
     of a supporting hull with a mining control system, excavating and lifting
     mechanism, gold recovery circuits, and waste disposal system.  All floating
     dredges are designed to work as a unit to dig, classify, beneficiate ores  and
     dispose of waste. Because suction dredges work the stream bed rather than
     stream banks, the discharge from suction dredges consists totally of stream water
     and bed material.

     In the modified 1994 permit, EPA defined a medium size suction dredges as those
     with nozzles greater than four and less than or equal to eight inches.  In the 2000
     re-issuance of this GP, EPA redefined the medium-size suction dredge  range as
     greater than four inches and less than or equal to ten inch dredges. When EPA
     re-issued the small suction dredge general permit in 2002, it changed the size
     requirements from four inches and under to six inches and under. Because the
     change was made to the small suction dredge general permit, this medium-size
     suction dredge general permit is now being  proposed to  cover facilities over six
     inches up to and  including ten inch dredges.

     RECEIVING WATER

     The receiving waters are the waters of United States and the State of Alaska,
     most of which are classified in  the Alaska Water Quality Standards (AWQS) [18
     AAC 70] as Classes (1)(A), (B), (C), and (D) for use in drinking, culinary and food
     processing, agriculture,  aquaculture, and industrial water supply; contact and
     secondary recreation; and growth and propagation of fish, shellfish, other aquatic
     life, and wildlife.  Some of the receiving waters have been  reclassified as industrial
     use only. These  are Isabell Creek (upper), Lillian Creek, Lucille Creek, Olive
     Creek (upper),  and Ruth Creek near Livengood and Nolan Creek and all its
     tributaries excluding Acme Creek near Wiseman.

     This permit will be available for dischargers in reclassified waters. The AWQS
     contained in this  permit are more stringent than would be applied in an individual
     permit in these locations. A facility located on any of the above receiving waters
     may apply for an  individual permit under Section I.D.1.

     Some of the receiving waters are marine waters that are classified in 18 AAC 70
     as Classes (2)(A), (B), (C), and (D) for use in aquaculture, seafood processing,
     and industrial water supply; contact and secondary recreation; growth and
     propagation offish, shellfish, other aquatic life, and wildlife; and harvesting for
     consumption of raw mollusks or other raw aquatic life.
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IV.   EFFLUENT LIMITATIONS, MONITORING & REPORTING REQUIREMENTS

     In establishing permit limits, EPA first determines which technology-based limits
     must be incorporated into the permit. EPA then evaluates the effluent quality
     expected to result from these controls, to see if it could result in any exceedences
     of the water quality standards in the receiving water.  If exceedences could occur,
     EPA must include water quality-based limits in the permit. The draft permit limits
     will reflect whichever requirements (technology-based or water quality-based) are
     more stringent.

     A.    Technology-based Effluent Limitations

          Pursuant to Section 402(a)(2) of the Act and 40 CFR 122.44(k)(2), Best
          Management Practices (BMPs) are being proposed in the permit.

          Suction dredging's unique method of intake and displacement present
          unusual  permitting issues. As discussed above, a suction dredge is a
          mechanical device that floats on the stream surface and pumps stream
          water and stream bed material through a suction intake conduit to a sluice
          box from which gold or other minerals may be recovered. The discharge
          from suction dredges consists totally of stream water and bed material
          immediately released back into the receiving water.

          The BMPs in Permit Part II.C. are being proposed because technology-
          based numeric effluent limitations are infeasible.

     B.    Water quality-based Effluent Limitations

          Section 301(b)(1) of the Act requires the establishment of limitations in
          permits necessary to meet water quality standards  by July 1,  1977. All
          discharges to state waters must comply with state and local coastal
          management plans as well as with state water quality standards, including
          the state's antidegradation policy. Discharges to state waters must also
          comply with limitations imposed by the state as part of its coastal
          management program consistency determination and of its certification of
          NPDES  permits under section 401 of the Act.

          The NPDES regulations at 40 CFR 122.44(d)(1) require that permits include
          water quality-based limits that "Achieve water quality standards established
          under section 303 of the CWA, including State narrative criteria for water
          quality."

          EPA has determined that turbidity is a pollutant of concern. Required
          turbidity monitoring is designed to ensure that the BMPs are being
          implemented properly.
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          1.    Freshwaters:

          The draft permit requires a daily visual inspection for turbidity of the area
          within 500 feet downstream of the suction dredge during operation. This
          also includes any turbidity that may result from any other part of the
          operation.  If turbidity is observed beyond 500 feet, the draft permit requires
          the permittee to modify the operation to meet the permit limitation. If the
          operation cannot be modified to meet the limit, the discharge is not
          authorized.  In most cases, water quality recovers rapidly.  The daily
          inspection during operation, combined with the BMPs in Permit Part  II.C. will
          assure that the water quality standards are met.

          2.    Marine Waters

          The draft permit requires a daily visual inspection for turbidity of the area
          within a 500 foot radius of the suction dredge during operation.  This also
          includes any turbidity that may result from any other part of the operation.  If
          turbidity is observed beyond 500 feet, the draft permit requires the permittee
          to  modify the operation to meet the permit limitation.  If the operation cannot
          be modified to meet the limit, the discharge is not authorized. In most cases,
          water quality recovers rapidly. The daily inspection during operation,
          combined with the BMPs in Permit Part II.C. will  assure that the water quality
          standards are met.

          3.    Mixing Zones

          ADEC provided a draft §401 Certification that mixing zones are protective of
          Alaska Water Quality Standards (AWQS) under  Section 401 of the CWA
          (see Appendix A).  If the final 401 certification authorizes a different size
          mixing zone, the limits in the draft permit will be changed as necessary to
          ensure that water quality standards are met at the edge of the mixing zone.
          If the certification does not authorize mixing zones for turbidity, the permit will
          be changed to require meeting the water quality  standard for turbidity at the
          point of discharge.

     C.   Monitoring

          Section 308 of the Clean Water Act and the federal regulations at 40 CFR
          § 122.44(i) require that permits include monitoring to determine compliance
          with effluent limitations.  Monitoring may also be required to gather data for
          future effluent limitations or to monitor effluent impacts on receiving water
          quality. The permittee is responsible for conducting the monitoring and for
          reporting results to EPA.

     D.   Reporting

          The draft permit requires permittees to submit an annual report by January
          31st of each year for activities during the previous calendar year, based on

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          the reporting provisions in 40 CFR §122.48. 40 CFR 122.44(i)(2) allows
          flexibility in determining the frequency of reporting.

V.   BEST MANAGEMENT PRACTICES (BMPs)

     BMPs are measures that are intended to prevent or minimize the generation and
     the potential for the release of pollutants from industrial facilities to the waters of
     the United States through normal operations and ancillary activities.

     Pursuant to Section 402(a)(1) of the Clean Water Act, development and
     implementation of BMP Plans may be included as a condition in NPDES permits.
     Section 402(a)(1) authorizes EPA to include miscellaneous requirements that are
     deemed necessary to carry out the provision of the Act in permits on a case-by-
     case basis .  BMPs are required to control or abate the discharge of pollutants in
     accordance with 40 CFR § 122.44(k).

     The draft permit requires compliance with the following BMPs:

     A.   Dredging that results in undercutting, littoral channeling, or otherwise results
          in stream bank or beach erosion, is prohibited.

               This practice will ensure that erosion does not occur and that the
              finer sediments that may be found in these areas do not cause
              turbidity problems in the receiving waters.

     B.   Motorized winches or other motorized equipment shall not be used to move
          boulders, logs,  or other natural obstructions.

               This practice should ensure that important habitat which includes
              large organic debris and large boulders in these areas will not be
              destroyed.

     C.   If an ADNR/OHMP Fish Habitat Permit (Title 41 Permit) is necessary,  no
          wheeled or tracked equipment may be used instream while dredging is in
          progress unless it is  allowed by a Title 41 permit.

               This practice should ensure that important habitat in these areas will
              not be destroyed. Also, pollutant loading from any instream operation
              should be considered as part of the operation.

     D.   Suction dredges shall not operate within 800 feet of:

          1.    another dredging operation occurring simultaneously or,

          2.   a location where it is apparent that another operation has taken place.

               This practice should ensure that the mixing zone of a facility does
              not overlap with that of another since 800 feet is the distance of a

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               500 foot mixing zone for each operation plus a designated 300
               foot buffer before the next suction dredge would impact water
               quality.

     D.   Dredging of concentrated silt and clay should be avoided. The permittee
          shall use reasonable care to avoid dredging silt and clay materials that would
          result in a significant increase in turbidity.  Reasonable care includes moving
          the dredge to a new location or reducing the volume of effluent discharge by
          limiting operation speed of the suction dredge.

               This practice will decrease the amount of fine material that will be
               released into the water that could cause turbidity plumes in
               excess of the permitted distance.

     E.   Care shall be taken by the operator during refueling of equipment to prevent
          spillage into surface waters or to groundwater.  Any spills shall be cleaned
          up using materials such as sorbent pads and booms. All spills shall be
          reported to DEC by calling 1-800-478-9300.

               This practice will decrease the potential for contamination of surface
               water by petroleum products.  This bolded portion of this requirement
               is included based on ADEC's draft §401 Certification which states:
               Under 18AAC 75.300: a person must notify the [ADEC] by telephone
               immediately in the result of a release or discharge of a hazardous
               substance.

VI.   OTHER PERMIT CONDITIONS

     Oil Spill Requirements

     Section 311 of the Act prohibits the discharge of oil and hazardous materials in
     harmful quantities. The operator shall  maintain fuel handling and storage facilities
     in a manner that will prevent the discharge of fuel oil into the receiving waters.  A
     Spill Prevention Control and Countermeasure Plan (SPCC Plan) shall  be prepared
     and updated as necessary in accordance with provisions of 40 CFR Part 112 for
     facilities with the capacity to store 660 gallons in a single container above ground,
     1320 gallons in the aggregate above ground, or 42,000  gallons below  ground.

     The Permittee shall indicate in the AR if an SPCC Plan is necessary and in place
     at the site and if changes were made to the Plan over the previous year.

     Endangered  Species Act

     The Endangered  Species Act (ESA) requires federal agencies to  consult with the
     National Marine Fisheries Service (NMFS) and the U.S. Fish and  Wildlife Service
     (USFWS) if their actions could beneficially or adversely affect any threatened or
     endangered species.  EPA sent a letter to the U.S. Fish and Wildlife Service and
     to the National Marine Fisheries Service on January 3, 2005, requesting a species

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     list for the coverage area of the general permit. If necessary, EPA will enter into
     informal or formal consultation with USFWS and NMFS to ensure that the general
     permit will not result in unacceptable impacts to any of the species identified on
     these lists.

     In a letter dated February 23, 2005, NMFS stated that there are no ESA species
     under their jurisdiction in freshwaters in Alaska. In marine waters, endangered
     species include blue whale, bowhead whale, fin whale, humpback whale, Northern
     right whale, Sei whale, sperm whale, Stellersea lion (western stock). Threatened
     species include the Steller sea lion (eastern stock).

     Some of these species have ranges in the areas where marine suction dredging
     has been most popular but these dredges have a small area of potential water
     quality impact and are relatively near shore.   For these reasons, EPA believes
     that the issuance of this GP will not have an adverse impact on the listed marine
     mammals.

     The previous GP contained a 1 nautical mile buffer around Steller sea lion
     rookeries and haulouts.  That provision has also been include in this draft GP.

     In a letter dated February 23, 2005, USFWS listed several T&E species for Alaska
     along with one proposed (P) and one candidate (C) species. Their table included
     the short-tailed albatross (E, Gulf of Alaska, Aleutians, Bering Sea coast), Aleutian
     Shield Fern (E, Adak  Island), Spectacled eider (T, W&N coastal Alaska), Steller's
     eider (T, southwestern, western and northern), Norther Sea Otter - SW Alaska
     population (P, Aleutian Islands, AK peninsula, Kodiak Island), and Kittlitz's
     Murrelet (C, coastal waters southern & northwestern Alaska). USFWS concluded
     that this project is not likely to adversely impact list species in freshwater so no
     further consultation is necessary.

     USFWS indicated that critical habitat for the spectacled and Steller's eider was
     designated in 2001.  USFWS stated that if activity was prevented in Critical
     Habitat areas then the GP was not likely to adversely impact listed species.  The
     GP already contains a prohibition of activities in Critical Habitat Areas.  The
     general areas (quadrangle maps) of concern are listed in the GP with contacts
     and references to more  details information. Appendix D contains maps showing
     the approximate locations of the Critical Habitat areas.

     Essential Fish Habitat (EFH)

     The 1996 amendments  to the  Magnuson-Stevens Fishery Management and
     Conservation Act set forth a number of new mandates for NMFS, regional fishery
     management councils and other federal agencies to identify and protect important
     marine and anadromous fish habitat.  The action agency needs to make a
     determination on Federal actions that may adversely impact EFH.

     In streams where suction dredging occurs, the most critical life stage for salmon is
     the egg stage. The GP  prohibits suction dredging within 500 feet of locations
AKG-37-1000 Fact Sheet                                                 Page 15 of 27

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     where fish are spawning or where fish eggs or alevins are known to exist. The
     Alaska Department of Natural Resource/Office of Habitat Management and
     Permitting issues permits for mining in anadromous streams that limit or prohibit
     mining while the eggs are in the gravel.  In freshwaters, the GP is unlikely to be
     used during the critical phase and if it were, the studies showed that the impacts
     of an operation are minimal after 500 feet so the 500 foot buffer should be
     sufficient protection.  EPA has determined that no adverse impact to EFH in
     freshwaters would result from the issuance of this permit.

     Most marine waters surrounding the state of Alaska have been designated as
     essential fish habitat. In a general permit,  it is not possible to determine where
     facilities might be located during the life of the permit so it is also not possible to
     determine the potential  impact on EFH.  This can be only be done on a project by
     project basis. Since each Suction Dredge in marine waters requires a Section 10
     permit from the Army Corps of Engineers and these federal permits require an
     individual EFH determination, EPA will defer to the Corps determination on these
     facilities.

     State Certification

     Section 401  of the Clean Water Act requires EPA to seek certification from the
     State that the permit is adequate to meet State water quality standards before
     issuing a final permit. The regulations allow for the State to stipulate more
     stringent conditions in the permit,  if the certification cites the Clean Water Act or
     State law references  upon which that condition is based. In addition, the
     regulations require  a certification to include statements of the extent to which each
     condition of the permit can be made less stringent without violating the
     requirements of State law.

     A draft certification  is included in this Fact Sheet as Appendix A.  The draft permit
     has been sent to the State to begin the final certification process.  If the state
     authorizes different or additional conditions as part of the certification, the permit
     may be changed to reflect these conditions.

     Consistency Determination

     This GP was previously found consistent on June 23, 2000. On January 13, 2005,
     EPA requested information on the Alaska Coastal Management Program  (ACMP)
     review.  On March 2,  2005, the Department of Natural Resources/Office of Project
     Management and Permitting (OPMP) sent a response letter.  In its response,
     OPMP stated that with the minor proposed changes to the GP, a new ACMP
     review is not required.

     Permit Expiration

     This permit will expire five years from the effective date of the permit.
AKG-37-1000 Fact Sheet                                                  Page 16 of 27

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                   APPENDIX A-- DRAFT §401 CERTIFICATION
                                                      FRANKH. MVRKOWSKI, GOVERNOR
                                                          410 Willoughby Avenue, Suite 303
                                                              Juneau, AK 99801-1795
                                                             PHONE: (907)465-5175
                                                             FAX:    (907)465-5177
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
DIVISION OF WATER
WASTEWATER DISCHARGE PROGRAM

                                  February 23, 2005

MikeLidgard                                                  ADEC Files: 900.60.001
NPDES Unit Manager                                                       900.68.002
USEPA
1200 Sixth Avenue
Seattle WA, 98101

RE: Draft 401 Certification of NPDES General Permits AKG-37-0000 and AKG-37-1000

Dear Mr. Lidgard;

On January 12, 2005 EPA Region 10 requested draft 401 certifications for the renewal of
NPDES General Permits AKG-37-0000 and AKG-37-1000, regulating discharges from placer
mining activities in Alaska.

The ADEC has enclosed the Draft Certificates of Reasonable Assurance to include as drafts in
the public notice process. These draft 401 certifications were created using the current NPDES
General Permits as preliminary draft permits. I look forward to working with your staff on the
renewal of these General Permits.

If you have any questions regarding these draft certifications please contact me at 907-451-2142
or at luke_boles@dec.state.ak.us.

Sincerely,

SIGNATURE ON FILE

Luke Boles
Environmental Engineering Associate
Wastewater Discharge Program

Enclosures:      Draft Certificates of Reasonable Assurance for NPDES General Permits
                AKG-37-0000 and AKG-37-1000.

CC:
Cindi Godsey, EPA, Anchorage              Jack Kerin, ADNR/DMLW, Fairbanks
Shannon Stambaugh, ADEC, Anchorage      Mac McLean, ADNR/OHMP, Fairbanks
Steve McGroarty, ADNR/DMLW, Fairbanks  Bill Jefferss, ADNR/OPMP, Anchorage

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                                 STATE OF ALASKA
               DEPARTMENT OF ENVIRONMENTAL CONSERVATION
               DRAFT CERTIFICATE OF REASONABLE ASSURANCE
A Certificate of Reasonable Assurance, as required by Section 401 of the Clean Water Act, has
been requested by EPA, Region 10, forNPDES Permit No. AKG-37-0000, MECHANICAL
PLACER MINING IN ALASKA

Public Notice of the application for this certification will be made in accordance with 18 AAC
15.140.

Water Quality Certification is required for the proposed activity because the activity will be
authorized by an EPA permit identified as No. AKG-37-0000 and a discharge may result from
the proposed activity.

Having reviewed the preliminary draft permit, the Alaska Department of Environmental
Conservation certifies that there is reasonable assurance that the proposed activity, as well as any
discharge that may result, is in compliance with the requirements of Section 401 of the Clean
Water Act, which includes the Alaska Water Quality Standards (18 AAC 70), provided that the
following stipulations are adhered to:

Having reviewed the preliminary draft permit, the Alaska Department of Environmental
Conservation certifies that there is reasonable assurance that the proposed activity, as well as any
discharge that may result, is in compliance with the requirements of Section 401 of the Clean
Water Act, which includes the Alaska Water Quality Standards (18 AAC 70), provided that the
following stipulations are adhered to:

1.    The ADEC authorizes  the language contained in section II.B.4 allowing permittees to apply
for a turbidity mixing zone.

Rationale: In accordance with State Regulations 18 AAC 70.240, the Department has authority
to designate mixing zones in  permits or certifications. Any authorized mixing zones will ensure
that the water quality standards are met at all points outside of the mixing zone.

2.    Add the following language to section II.D as BMP #8:

Care shall be taken by the operator during equipment refueling to prevent spillage into
surface waters or to groundwater. Any spills shall be cleaned up using materials such as
sorbent pads and booms. All spills shall be reported to DEC by calling 1-800-478-9300.

Rationale: Under 18 AAC 75.300: a person must notify the [ADEC] by telephone immediately
in the result of a release or discharge of a hazardous substance.
February 23,2005
Date
 DRAFT
Gretchen Keiser
Program Manager
Wastewater Discharge Program
AKG-37-1000 Fact Sheet
                                 Page 18 of 27

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                                 STATE OF ALASKA
               DEPARTMENT OF ENVIRONMENTAL CONSERVATION
               DRAFT CERTIFICATE OF REASONABLE ASSURANCE
A Certificate of Reasonable Assurance, as required by Section 401 of the Clean Water Act, has
been requested by EPA for NPDES Permit No. AKG-37-1000, ALASKA MEDIUM-SIZE
SUCTION DREDGE PLACER MINERS

Public Notice of the application for this certification will be made in accordance with 18 AAC
15.140.

Water Quality Certification is required for the proposed activity because the activity will be
authorized by an EPA permit identified as No. AKG-37-1000 and a discharge may result from
the proposed activity.

Having reviewed the preliminary draft permit, the Alaska Department of Environmental
Conservation certifies that there is reasonable assurance that the proposed activity, as well as any
discharge that may result, is in compliance with the requirements of Section 401 of the Clean
Water Act, which includes the Alaska Water Quality Standards (18 AAC 70), provided that the
following stipulations are adhered to:

1.    The ADEC authorizes  the 500 feet mixing zone for turbidity contained in section II. A and
the monitoring requirements contained in section n.B.l  of the draft permit.

Rationale: In accordance with State Regulations 18 AAC 70.240, the Department has authority
to designate mixing zones in permits or certifications. This mixing zone will ensure that the
water quality standards are met at all points outside of the mixing zone.

The Department considered all aspects required in 18 AAC 70.015 (Antidegradation) and 18
AAC 70.240-270 (Mixing Zones)  including, but not limited to, the potential risk to human health
and ecological resources of receiving waters and mixing zone modeling of the predicted effluent
quality from the discharge.

The Department finds that the size of the mixing zone authorized for discharge in this
certification is appropriate and provides reasonable assurance that existing uses of the receiving
waters outside of the mixing zone are maintained and fully protected.

2.    Amend section II.C.8 as noted in bold:

Care shall be taken by the operator during refueling of the dredge to prevent spillage into surface
waters or to groundwater.  Any spills shall be cleaned up using materials such as sorbent
pads and booms. All spills  shall be reported to DEC by calling 1-800-478-9300.

Rationale:  Under 18 AAC 75.300: a per son must notify the [ADEC] by telephone immediately
in the result of a release or discharge of a hazardous substance.
February 23, 2005	                DRAFT
Date                                      Gretchen Keiser
                                          Program Manager
                                          Wastewater Discharge Program

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            APPENDIX B -- SUMMARY OF SUCTION DREDGE STUDY

     EPA commissioned a suction dredge study that was conducted on the Fortymile
     River in 1997 and 1998 by Idaho State University. Two sites were chosen, Site 1
     was in the vicinity of a 10 inch suction dredge while Site 2 was in the vicinity of an
     8 inch suction dredge. USGS also conducted studies in the same area.

     The primary effect of dredging on water chemistry was increased turbidity, total
     filterable solids, and copper and zinc concentrations downstream  of the dredge.

     The turbidity plume was visually dramatic at Site 1 but spatially confined to less
     than 525 feet.  At 100 feet downstream, the turbidity values were reported at 19
     NTU which, with background  levels reported at 2.2 - 2.3 NTU, would exceed the
     AWQS of 5 NTU above background.  But at 200 feet below the dredge, the
     turbidity values were 3.7 NTU which is only 1.4 -1.5 NTUs above background
     which is well within the AWQS and the permit limits. The USGS report states that
     the turbidity values for Site 2 were less than Site 1. In their study, USGS
     attributes higher turbidity for Site 1 to increased volume of the larger dredge and
     the finer material being mined. It should be noted that even with these adverse
     conditions, the ten inch dredge was well within compliance with the discharge
     requirements of their NPDES permit.

     As the sediments were transported downstream, the total copper and zinc
     concentrations declined. By 262 feet downstream of the dredge, copper and zinc
     concentrations were similar to those measured upstream of the dredge.

     In general, the observed decrease in water clarity was unlikely to have altered
     ecosystem function in the area of the Fortymile where the dredge was located.
     There also did not appear to be any downstream influence on bed morphology by
     dredged sediments, indicating that dredging strongly influenced immediately
     adjacent substrates but had little effect beyond the dredged area. Based on
     observations made in both studies it appears that the dredge piles at the
     examined locations will remain in place no longer that 1 to 3 years and in many
     cases the stream channel will return to its pre-dredge condition in a  year.

     As with water clarity, the effect of suction dredging on macroinvertebrate
     abundance and diversity was confined spatially to a relatively small area
     downstream of the dredge. Both abundance and diversity were notably reduced
     for 33 feet downstream of Site 1 with similar occurrence at Site 2. By 262 feet,
     both appeared to be unaffected by the dredge plume.  The results from 1998
     indicate that substantial recovery of the macroinvertebrate community occurs
     within one year after suction dredging. The effects of suction dredge mining on
     macroinvertebrates are local and short lived.
AKG-37-1000 Fact Sheet                                                 Page 20 of 27

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                         APPENDIX C -- REFERENCES

NPDES Permit Writer's Manual. EPA, Office of Water, Office of Wastewater
Management, Permits Division. Washington, DC. 20460; EPA-833-B-96-003,
December 1996, 220pp.

Technical Support Document for Water Quality-based Toxics Control.  EPA, Office of
Water Enforcement and Permits, Office of Water Regulations and Standards.
Washington, DC, 20460; EPA/505/2-90-001, March 1991, 145pp.

Impact of suction dredging on water quality, benthic habitat, and biota in the Fortymile
River. Resurrection Creek, and Chatanika River. Alaska. Prepared for EPA by Aaron
M. Prussian, Todd V. Royer, and G. Wayne Minshall, Idaho State University. June
1999.

Regional Baseline Geochemistv and Environmental Effects of Gold Placer Mining
Operations on the  Fortymile River,  Eastern Alaska. Department of Interior, U.S.
Geological Survey. Open-File Report 99-328. 1999.

Regional Geochemical Results from the Analyses of Rock. Water. Soil. Stream
Sediment, and Vegetation Samples-Fortymile River Watershed, East-Central Alaska.
Department of Interior, U.S. Geological Survey. Open-File Report 99-33.  1999.

Administrative Record for the 2000 Re-issuance of the NPDES  GP for Alaskan
Medium-size Suction Dredge Placer Miners (AKG-37-1000).

66 FR 8849 February 2, 2001.  Endangered and Threatened Wildlife and Plants; Final
Determination of Critical Habitat for the Alaska-Breeding Population of Steller's Eider;
Final Rule.

66 FR 9145 February 6, 2001.  Endangered and Threatened Wildlife and Plants; Final
Determination of Critical Habitat for the Alaska-Breeding Population of the Spectacled
Eider; Final Rule.

Alaska Marine Mammal Stock Assessments. 2003. U.S. Department of Commerce,
National Oceanic and Atmospheric Administration, National Marine Fisheries Service,
Alaska Fisheries Science Center. Technical Memorandum NMFS-AFSC-144.
AKG-37-1000 Fact Sheet                                                Page 21 of 27

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     APPENDIX D--APPROXIMATE CRITICAL
               HABI TAT AREAS
          Opectacled and Oteller s Ciders

       (MAPS AVAILABLE UPON REQUEST)
AKG-37-1000 Fact Sheet                            Page 22 of 27

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