Frequently Asked Questions
About Environmental Aspects
of the  Kennecott Eagle Mine Project
svEPA
      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?

-------
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 at 40 CFR 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.

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.

-------
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 is studying whether
the coaster brook trout is truly 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
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 will provide 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 mailed 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?

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.

-------