Frequently Asked Questions
About Environmental Aspects
of the Kennecott Eagle Mine Project
v>EPA
      United States
      Environmental Protection
      Agency
What is the federal role in regulating mining projects such as this one?

Mining projects tend to be complicated and have many governmental interests. Federal,
tribal, state and local government involvement in a mining project depends on the
specific circumstances associated with each phase of a project.  EPA's overarching role is
to ensure that all federal laws and regulations are complied with during the entire project
period. EPA is also responsible for consulting with federally recognized Indian tribes
where EPA actions can potentially affect tribal lands or resources.

What is EPA's role in regulating this mining project?

EPA is directly responsible for federal regulatory programs that have not been delegated
to a state. In this case, EPA has direct responsibility for implementation of the
Underground Injection Control program - often called the UIC program - under the Safe
Drinking Water Act since it has not been delegated to the state of Michigan.

EPA also retains an oversight role where the federal regulatory program has been
delegated to the state, even though a state is responsible for issuing permits and
complying with federal regulatory requirements. In this case, the state of Michigan is
delegated authority to issue permits under the Clean Air Act. Michigan issued an air
pollution control permit to Kennecott on Dec. 14, 2007.  Michigan has other non-federal
laws relating to mining projects, but EPA does not have an oversight role under those
state laws.

What is the Underground Injection Control program?

The UIC program is part of the federal Safe Drinking Water Act and is designed to
protect underground sources of drinking water.  The program regulates the underground
injection of waste, and its regulations require that a facility be authorized to dispose of
waste underground.

Why is the company allowed to do this?

A UIC permit can be issued only if EPA is convinced that the activity meets the
requirements of applicable Federal laws.  UIC permits contain performance requirements,
such as meeting all Federal drinking water standards, and enforcement action is taken if a
company does not comply with its permit.

Does Kennecott need a permit or permits from EPA for any part of this mining
project?

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Yes. Kennecott needs a federal UIC permit for portions of this project. There are actually
three parts of the project that involve disposal of fluids underground:
     • The planned septic system for the disposal of sanitary waste.  Disposal of this
      waste does not require an individual permit, but is authorized as long as the
      company complies with federal regulations.
     • The treated water infiltration system - sometimes referred to as the TWIS - for
      which an individual UIC permit is required.  The proposed treated water
      infiltration system is a large drainfield for the disposal of treated wastewater from
      the mining operation.  EPA calls this a Class V industrial wastewater disposal well.
      The fluids must be treated to meet or be better than drinking water standards
      before they can be discharged through the infiltration system. Kennecott applied
      for this permit, and EPA is reviewing the application.
     • Kennecott may need a second UIC permit from EPA if it injects water into the
      mine as part of closing the mine.  The company needs to submit more information
      about this proposal before we make a decision. If EPA determines a permit is
      necessary, the company will have to apply for and receive a permit.

What is the process for reaching a permit decision?

EPA staff reviews all information submitted by the permit applicant to determine whether
the proposed underground disposal facility meets the requirements of the regulations.
(These regulations can be found in Title 40  of the Code of Federal Regulations Parts 124,
144 and 146).  We consider the siting, construction, operation and maintenance of the
proposed system in making this determination. We may ask an applicant for further
information in order to determine if a permit should be issued.  If the application is
determined to meet the regulatory criteria, EPA will issue a draft permit for public
comment. If the application does not demonstrate compliance with the criteria, EPA will
propose denying the permit.  In either case, the draft decision will be issued for public
notice and comment. Depending on the degree of public interest, a public hearing may
be held. We specifically seek any information that the public may have  that was not
available during the review process. All comments received during the public comment
period are considered carefully and a response is prepared. EPA then issues a final
decision, based on all the information available.

EPA Headquarters website has a discussion of the permitting process in  the Technical
Program Overview: Underground Injection Control Regulations
http://www.epa.gov/safewater/uic/pdfs/techguide_uic_tech_overview_uic_regs.pdf
beginning on page 17.

What is being done to prevent pollution of ground water?

Preventing pollution of ground water is the  responsibility of both federal and state
agencies. EPA is reviewing the Kennecott permit application for an Underground
Injection Control permit under the  Safe Drinking Water Act to ensure that the proposed
waste disposal system will protect underground sources of drinking water. Any UIC
permit would require that wastewater is treated to meet  or exceed standards for drinking
water and would require monitoring to ensure this.  In addition, Michigan Department of
Environmental Quality has issued a ground water discharge permit under the Michigan
Natural Resources and Environmental Protection Act, which includes conditions relating
to ground water protection.

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The water in the aquifer is cleaner than the water Kennecott plans to put back in,
how is this NOT contamination?

The Safe Drinking Water Act only requires that contaminants in drinking water be below
concentrations for which there are known human health effects.  This is not a non-
degradation standard. If issued, a UIC permit would require the company to meet all
Federal drinking water standards before being allowed to dispose of its water using the
TWIS.

What is being done to prevent pollution of surface water?

Preventing pollution of surface waters is regulated under the National Pollution
Discharge Elimination System program, which is part of the Clean Water Act. MDEQ
has authority to implement this federal statute. The  company plans to treat all wastewater
and pump it into the ground. An NPDES permit is required only if there is an immediate
connection between the discharge and surface waters.  MDEQ determined that an
NPDES permit was not required. EPA reviewed this determination and agreed.

Doesn't the ground water under the infiltration system go into area rivers?

Yes. Treated water from the system is expected to move downward and join with local
ground water, which moves generally to the northeast. Some of this ground water
eventually emerges as springs along the north slope  of the Yellow Dog Plains. These
springs serve as the headwaters to some of the local  rivers.

What happens if they are unable to pump the amount of water they say they can
and it gets into the Yellow Dog River?

If a UIC permit is issued, it will have volume (rate) limits based on the available
information.  It will also require monitoring of the groundwater elevations and place
limits on how high the groundwater table can rise. If Kennecott is unable to comply with
these limits, it will have to find an alternate method to dispose of its water.

What about impacts on endangered species and the coaster brook trout?

EPA consults with U.S. Fish and Wildlife Service on this issue.  F&WS advises us about
any potential impacts on threatened or endangered species. F&WS has issued a
determination that the coaster brook trout is not a separate species in need of special
protection.

How does the National Historic Preservation Act apply to this project?

Region 5 UIC staff members are working with EPA's Office of Federal Facilities and
National Historic Preservation Act experts to determine how the act applies to this
project. We consulted with the Keweenaw Bay Indian Community as well as other tribes
and have received information concerning traditional cultural properties in the area.
Kennecott has also submitted a report on the subject. EPA will consider these reports  and
any other information received from the public.  We will also consult with the Michigan

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State Historic Preservation Office.  The requirements of the NHPA must be met before a
final UIC permit is issued.

Will Kennecott be required to reclaim the site of the treated water infiltration
system?

Yes. If a permit is issued, Kennecott will be required to remove the system completely
and dispose of its parts (e.g. pipes) properly, as well as restore the surface and replant
vegetation.

What financial assurances must be made to ensure that sufficient money has been
set aside to properly close the well?

If a UIC permit is  issued, EPA will require Kennecott to demonstrate that it has set aside
adequate funds to  remove the treated water infiltration system properly and restore the
area. In addition, Kennecott has provided a $17 million letter of credit to the state of
Michigan for site reclamation.

What recourse does EPA have if Kennecott provides that financial assurance and
later takes it back?

Kennecott cannot "take back" the financial assurance. All UIC permits require that the
permit holder maintain financial responsibility and resources to close the underground
injection well in accordance with federal regulations. Permit holders cannot substitute an
alternative demonstration of financial responsibility without the approval of the director
of the EPA Region 5 Water Division. The director may also require the permit holder to
update the financial assurance at any time.  If at any time the operator does not provide
adequate financial assurance, EPA can terminate the permit.

How can I get a copy of the information submitted by Kennecott?

That information is available at http://www.epa.gov/region5/water/uic/kennecott. If you
do not have access to the Internet, contact Ross Micham at 312-886-4237 or write to him
at EPA Region 5 (WU-16J),  77 W. Jackson Blvd., Chicago, IL 60604-3590.

What is the  timetable for the EPA decision process?

Assuming there is no need for further information, we hope to have a draft decision by
the end of this year, followed by a public comment period. EPA cannot make a final
determination until we analyze all public comments and finalize our responses.

Will the public have an opportunity to comment on EPA's proposed decision?

Yes. All UIC permit actions require a public comment period.  A notice of the proposed
decision will be sent to interested parties and put on the UIC Web site.  A public hearing
will be held during the comment period. This  hearing will be announced in a local
newspaper and on the EPA Web site. Both oral and written comments can be submitted
during the public hearing and comment period.

When is EPA taking comments on the UIC permit decision?

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The dates for reviewing the decision and providing comments will be announced on
EPA's Web site and through the local media. If you want us to notify you directly,
please send your mailing address or email address to Ross Micham via the Web page, by
e-mail to micham.ross@epa.gov, by calling him at 312-886-4237 or by writing to him at
the address above.

How many wells like this one have we approved? Have there been other systems like
this?

EPA Region 5 (based in Chicago) has never issued a permit for this type of Class V well.
Other EPA regions have issued  permits for disposal facilities with large drainfields.

Has there been an independent (third party) hydrologic study of the area?

No. Applicants for permits are required to provide this information. However, EPA hired
an independent contractor to review the permit application and the additional information
provided by Kennecott. The contractor's report was the basis for EPA's request for
Kennecott to provide additional information. The contractor will review reports
submitted by other parties related to this permit application.

Do we consider the cumulative impacts of this on the other aquifers in the area (or
the other projects in the area?)

We are not aware of any nearby injection operations that will affect the underground
source of drinking water.

How often will EPA monitor the data?

If a UIC permit is issued, it will require continuous monitoring of certain indicator
parameters and periodic monitoring of the injectate composition and ground water
quality. Monitoring results must be submitted to EPA on a regular basis and are reviewed
by EPA staff. If a draft permit is issued, the public will have the opportunity to comment
on the specific monitoring requirements.

How will the mine deal with extreme precipitation events?

The permit application indicates that the facility's storage basins have been  designed for
peak runoff events during periods of combined rapid snow melt and spring rains. The size
of these basins is based on the maximum annual precipitation for the period of record,
1948 to 2004.

Can we require them  to monitor hydrocarbons?

Yes. A UIC permit, if issued, can require this.

How are older adults  as a vulnerable group protected?

EPA sets values for national drinking water standards - known as Maximum
Contaminant Levels - to protect the health of everybody, including vulnerable groups

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like children and the elderly. For more information on setting standards for safe drinking
water, visitwww.epa.gov/safewater/standard/setting.html.

What is the status of EPA's National Historic Preservation Act review? Will the
public have the opportunity to provide input?

We are still engaged in the NHPA process. The public will have an opportunity to
provide input on NHPA issues following the procedures prescribed in the NHPA
regulations. NHPA regulations require EPA to consider the project as a whole when
looking at the potential effects of a project on historic properties eligible for listing in the
National Register of Historic Places. For more information, visit www.nps.gov/nr.

Are we considering what they can or can't do if the well fails?

UIC permits have requirements for corrective action if there is contamination of any
underground source of drinking water. The regulations allow EPA to order actions
necessary to prevent violations of any primary drinking water standard and to take
enforcement action when appropriate. (These regulations can be found in 40 CFR Section
144.12.) The Kennecott mine permit application indicates that the contact water basins
are designed to handle peak snow melt and rain events that exceed the 100-year, 24-hour
precipitation event. They are designed to hold 14 days of mine drainage water. In the
event that runoff exceeds the capacity of these basins, excess water will be routed to the
temporary development rock storage area and can also be pumped into vacant
underground mine workings in an emergency.

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