EPA 542-R-13-004
                                                         July 2013
   United States                 Office of Solid Waste and Emergency Response
   Environmental Protection                  „,,.   , ~    ,   , .z    ,. ,.     ,
   Agency                             Office of Superfund Remediation and
                                               Technology Innovation
                   Optimization Review
     Bunker Hill Mining and Metallurgical Complex
                       Superfund Site
              Central Treatment Plant (CTP)
            Kellogg, Shoshone County, Idaho
www.epa.gov/superfund/remedytech | www.clu-in.org/optimization | www.epa.gov/superfund/cleanup/postconstruction

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               OPTIMIZATION REVIEW
 BUNKER HILL MINING AND METALLURGICAL COMPLEX
                  SUPERFUND SITE
          CENTRAL TREATMENT PLANT (CTP)
         KELLOGG, SHOSHONE COUNTY, IDAHO
                Report of the Optimization Review
Site Visit Conducted at the Bunker Hill Mining and Metallurgical Complex Superfund Site
                     April 19, 2012
                     July 31, 2013

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                             EXECUTIVE SUMMARY
Optimization Background

The EPA's working definition of optimization is as follows:

       "Efforts at any phase of the removal or remedial response to identify and implement
       specific actions that improve the effectiveness and cost-efficiency of that phase. Such
       actions may also improve the remedy's protectiveness and long-term implementation
       which may facilitate progress towards site completion. To identify these opportunities,
       regions may use a systematic site review by a team of independent technical experts,
       apply techniques or principles from Green Remediation or Triad, or apply other
       approaches to identify opportunities for greater efficiency and effectiveness. "^

An optimization review considers the goals of the remedy, available site data, conceptual site
model (CSM), remedy performance, protectiveness, cost-effectiveness and closure strategy. A
strong interest in sustainability has also developed in the private sector and within Federal,  State
and Municipal governments. Consistent with this interest, optimization now routinely considers
green remediation and environmental footprint reduction during optimization reviews.

An optimization review includes reviewing site documents, interviewing site stakeholders,
potentially visiting the site for one day, and compiling a report that includes recommendations in
the following categories:

    •   Protectiveness
    •   Cost-effectiveness
    •   Technical improvement
    •   Site closure
    •   Environmental footprint reduction

The recommendations are intended to help the site team identify opportunities for improvements
in these areas. In many cases, further analysis of a recommendation, beyond that provided in this
report, may be needed prior to implementation of the recommendation. Note that the
recommendations are based on an independent evaluation, and represent the opinions of the
optimization review team. These recommendations do not constitute requirements for future
action, but rather are provided for consideration by the EPA Region and other site stakeholders.
Also note that while the recommendations may provide some details to consider  during
implementation, the recommendations are not meant to replace other, more comprehensive,
 U.S. Environmental Protection Agency. 2012. Memorandum:  Transmittal of the National Strategy to Expand Superfund
Optimization Practices from Site Assessment to Site Completion. From: James. E. Woolford, Director Office of Superfund
Remediation and Technology Innovation. To:  Superfund National Policy Managers (Regions 1-10). Office of Solid Waste and
Emergency Response (OSWER) 9200.3-75. September 28

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planning documents such as work plans, sampling plans and quality assurance project plans
(QAPP).

Detailed consideration of EPA policy was not part of the scope of work for this optimization
review. EPA Region 10 and the EPA Office of Superfund Remediation and Technology
Innovation (OSRTI) will address EPA policy issues when considering the technical
recommendations provided in this report.

Site-Specific Background

The Bunker Hill Mining and Metallurgical Complex Superfund Site includes all areas of the
Coeur d'Alene Basin where mining-related contamination occurred and encompasses a 21-
square mile "Box" along Interstate 90 surrounding the former smelter complex. Operable Unit 1
(OU1) includes the populated areas and Operable Unit 2 (OU2) includes the non-populated areas
within the "Box." Operable Unit 3 (OU3) includes areas outside of the "Box" from near the
Idaho-Montana border to the State of Washington where mining-related contamination is
present. Contaminants of concern in soil, sediments, surface water and groundwater are specific
heavy metals which include arsenic, cadmium, lead, mercury and zinc. The 2001 OU2 Record of
Decision (ROD) Amendment (also referred to as the Mine Water ROD Amendment) indicated
that remediation would include acid mine drainage (AMD) source control, AMD collection,
AMD storage, AMD treatment, sludge management and monitoring. AMD treatment is currently
provided by the Central Treatment Plant (CTP) which is the focus of this optimization review.
The CTP has been operating since 1974 and needs various upgrades and repairs. According to
the 2000 CTP Master Plan (Appendix E of the Mine Water Management Remedial
Investigation/Feasibility Study, CH2MHill, 2001), upgrades are needed to improve effluent
quality,  reduce sludge production, increase system reliability and optimize capital and operating
costs. Several CTP upgrades were made prior to the optimization review, and several other
upgrades, unrelated to the optimization review are planned.

Summary of CSM

The CSM for the Site was not reviewed as this optimization review was focused solely on the
operations of the CTP.

Summary of Findings

The following is a brief summary of the key findings from the optimization review:

   •   The CTP is operated effectively and meets current discharge standards under normal
       operating conditions; however, exceedances (primarily for zinc) have occurred during
       high flows associated with spring runoff.

   •   Mitigation efforts were identified prior to this review to reduce the amount of AMD
       discharge by reducing surface water infiltration. A key potential mitigation which has
       been  identified would involve a diversion of the West Fork of Milo Creek, which could
       potentially reduce Kellogg Tunnel  AMD flow by approximately 50 percent.
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•  Approximate zinc concentrations in the influent sources to the CTP are:
       o  Kellogg Tunnel:  100 milligrams per liter (mg/L) (up to 500 mg/L during high
          flows)
       o  Smelter Closure Area:  15 mg/L
       o  Sources identified in the 2012 Upper Basin ROD Amendment for future
          collection and conveyance to the CTP:
             •   OU2 sources: 24.5 mg/L
             •   OU3 - Woodland Park, Osburn Drain and Gem #3: 4.12 mg/L
             •   OU3 (other) sources: 2.54 mg/L

•  Ferguson Contracting (Ferguson) staffs the CTP with two operators for 8 hours per day, 7
   days per week. Ferguson provides additional off-hour staffing during high flow periods
   (typically spring runoff). Routine operator labor expenses are approximately $350,000
   per year out of a total operation and maintenance (O&M) cost of approximately $942,000
   per year.

•  Approximately 2.4 tons of lime are used in the CTP per day at a current  cost of
   approximately $250 per ton or $18,000 per month. Polymer costs for flocculation are
   reported to be approximately $3,000 per month.

•  Power costs are approximately $110,000 per year with a demand of approximately 200
   kilowatts (KW). The electricity usage of 1.8 million kilowatt-hours (kWh) per year is the
   primary contributor to the CTP's energy footprint.

•  CTP compliance monitoring requirements include the collection and analysis of
   approximately 300 samples per year. Laboratory costs from 2006 to 2011 were reported
   to be approximately $120,000 per year. Sampling frequencies for 2012 and future years
   have been reduced by the site team prior to the optimization review by 50 percent. Based
   on the optimization team review, the new monitoring frequencies are appropriate.

•  The following improvements have been implemented at the CTP within the last 10 years:
       o  Constructed the direct feed branch of the mine water pipeline to provide gravity
          flow of AMD directly to the CTP.
       o  Refurbished the thickener.
       o  Increased the CTP hydraulic capacity to 5,000 gallons per minute (gpm) by
          replacing the launder drop box in the thickener and the pipeline between the
          thickener and polishing pond.
       o  Constructed a new waste sludge line from the CTP to the sludge  disposal pond at
          the Central Impoundment Area (CIA).
       o  Replaced the lime storage and feed system and converted from hydrated to quick
          lime.
       o  Constructed a new control building and updated the plant control system.
                                       in

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          o  Upgraded the plant electrical system.
          o  Installed a new backup generator (750 KW) capable of providing energy to
             operate the entire plant.
          o  Installed a new sludge recycle pump.


    •   Improvements proposed by the site team for the CTP, include the following:
          o  Add a granular media filter system to allow the plant to operate in the high-
             density sludge (HDS) mode, improving metals removal effectiveness and
             reducing sludge volume by approximately 67 percent.
          o  Replace the existing rapid mix tank (Reactor A) with a properly designed reactor
             and mixer.
          o  Replace the aeration basin (Reactor B) with a new basin, mixer and aeration
             system.
          o  Replace the manual polymer feed system with an automatic batching system.
          o  Remove the polishing pond to provide space for the filter system.
          o  Replace the remaining, older sludge recycle and wasting pumps.
          o  Add an influent flow meter.


    •   The CTP is effectively mitigating a major source of metals loading to the South Fork of
       the Coeur D'Alene River (SFCDR); however, effectiveness and  operator requirements
       are strained during high flows and components of the system are over 30 years old and
       should be replaced with modern, more effective and efficient equipment.

    •   Additional contributors to the SFCDR metals loading have been identified and can be
       treated in an expanded and upgraded system.

    •   The effort to meet stringent anticipated water quality discharge standards could delay
       system expansion significantly, require excessive capital and continuous operating
       expense for minimal load reduction and may still result in non-compliance for manganese
       and possibly other discharge standards.

Summary of Recommendations

The following recommendations are provided to improve remedy effectiveness, reduce cost and
provide technical improvement:

Improving effectiveness.

    •   Expand plant to a capacity of 20,000 gpm without filtration using a phased approach and
       using the proven CTP low-density sludge technology to treat the identified sources at a
       reasonable capital cost (approximately $13MM) and O&M expense (additional $650,000
       per year). Considerations behind this recommendation include:

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          o  Filtration is not recommended due to the substantial cost increase (approximately
              $18MM in additional capital cost and $1MM per year in additional O&M
              expense), relative uncertainty in the total flow to be treated, relative uncertainty in
              the water quality to be treated and relative uncertainty regarding the performance
              of the expanded CTP.

          o  Expansion to a capacity of 20,000 gpm will allow the maximum collection of
              additional metals sources as needed without requiring an additional clarifier and
              the expansion of the CTP footprint. It will also allow collection from the bulk of
              identified sources and treat a large percentage of the identified metal mass
              contribution.

          o  The expanded CTP should be able to meet the proposed zinc and lead discharge
              standards. The anticipated cadmium limit might be achieved without filtration.
              The expanded CTP with or without filtration would not be capable of achieving
              the anticipated manganese discharge standard and may not be capable of meeting
              limits for newly regulated metals  including mercury, selenium and thallium
              depending on influent levels. The relevance of the manganese standard is
              questionable because it is based on human consumption of shellfish, which are
              not present in SFCDR. Greensand filtration or ion exchange would be required to
              achieve reliable manganese treatment below the discharge standard. However, the
              capital cost ($10MM range) and O&M cost (additional $300,000 per year) to add
              either of these processes to a 20,000 gpm system are high. Selenium is especially
              difficult to remove if it is present  above the anticipated discharge standard;
              therefore, treatment by reverse osmosis will likely be required for consistent
              compliance. The addition of reverse osmosis to the upgraded CTP would require
              capital costs in the $40MM range and O&M costs in the  $7MM per year range.

          o  The system without filtration should be operated for an extended period of time in
              an interim or pilot mode to evaluate system performance relative to meeting
              discharge standards and the potential need, costs and benefits of adding any or all
              of the filtration, ion exchange and reverse osmosis steps.

          o  Additional operational tests such as varying sludge recycle rates or polymer
              addition rates should also be conducted during this period to optimize treatment
              effectiveness and possibly reduce O&M expenses. This interim testing period
              would allow the site team to reduce significant metals loading from additional
              sources, as needed.

    •   Do not convert to FIDS mode operation at this time as filtration would be necessary.

Reducing cost.

    •   Perform a cost-benefit analysis to support final decision-making on the West Fork of
       Milo Creek Diversion.

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    •   Include variable frequency drives for the replacement sludge recycle and discharge
       pumps and mixers to reduce electric costs and improve efficiency.

Technical improvement.

    •   Consider the addition of two new Reactor A basins during CTP expansion. Currently,
       only one new Reactor A basin is proposed, which simplifies lime addition due to one
       application point. However, the one Reactor A approach would also complicate lime
       addition because there would be two pH probes controlling the feed rate and this would
       require flow splitting to the two Reactor B basins that are proposed. For complete
       redundancy and simpler control, it may be better to construct two new Reactor A basins.

Site closure - no recommendations are provided as the CTP operation will be ongoing for the
foreseeable future.

Environmental footprint:

    •   The above recommendations will reduce electricity usage, which will result in reductions
       to the energy and air emission footprints.

    •   Consider using treated process water for lime slaking and polymer batching to reduce
       potable water use and associated costs.

    •   Evaluate the potential for manganese metal recovery if this is also a possibility at other
       sites managed by the EPA where treatment residuals with manganese are sent to a landfill
       for disposal. This evaluation should be based on numerous potential sources of treatment
       residuals rather than having the potential for multiple site teams independently evaluating
       its potential and getting distracted from higher priorities.
                                           VI

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                                      NOTICE
Work described herein, including preparation of this report, was performed by Tetra Tech GEO
(TtGEO) for the U.S. Environmental Protection Agency under Work Assignment 2-58 of EPA
contract EP-W-07-078 with Tetra Tech EM, Inc., Chicago, Illinois. Mention of trade names or
commercial products does not constitute endorsement or recommendation for use. This
optimization review is an independent study funded by the EPA that focuses on protectiveness
and cost-effectiveness. Detailed consideration of EPA policy was not part of the scope of work
for this review. The EPA will address EPA policy issues when considering the technical
recommendations provided in this report.
                                         vn

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                                      PREFACE
This report was prepared as part of a national strategy to expand Superfund optimization from
remedial investigation to site completion implemented by the EPA Office of Superfund
Remediation and Technology Innovation (OSRTI) ^2\ The project contacts are as follows:
         Organization
    Key Contact
        Contact Information
EPA Office of Superfund
Remediation and Technology
Innovation
(OSRTI)
Kathy Yager
EPA
Technology Innovation and Field
Services Division
11 Technology Drive (ECA/OEME)
North Chelmsford, MA 01863
yager.kathleen@epa.gov
phone:  617-918-8362	
Tetra Tech EM Inc.
(Contractor to EPA)
Jody Edwards
Tetra Tech EM Inc.
1881  Campus Commons Drive
Suite 200
Reston, VA 20191
jody.edwards@tetratech.com
phone:  802-288-9485	
Tetra Tech GEO
(Contractor to Tetra Tech EM,
Inc.)
Doug Sutton
Tetra Tech GEO
2 Paragon Way
Freehold, NJ 07728
doug.sutton@tetratech.com
phone:  732-409-0344
 U.S. Environmental Protection Agency (EPA). 2012. Memorandum: Transmittal of the National Strategy to Expand Superfund
Optimization Practices from Site Assessment to Site Completion. From: James. E. Woolford, Director Office of Superfund
Remediation and Technology Innovation. To: Superfund National Policy Managers (Regions 1-10). Office of Solid Waste and
Emergency Response (OSWER) 9200.3-75. September 28.
                                           Vlll

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                              LIST OF ACRONYMS
AMD
ARAR
Btu
Cd
CERCLA
CIA
C02e
CSM
CTP
EPA
Ferguson
ft2
g/L
gpm
gpd
HOPE
HDS
HP
IDEQ
Ib
LDS
LTM
LTMO
mg/L
MM
Mn
MSDS
NPDES
O&M
OSRTI
OSWER
OU
Pb
P&T
PTM
QAPP
RAO
ROD
RSE
SAP
SCADA
micrograms per liter
acid mine drainage
applicable or relevant and appropriate requirements
British thermal unit
cadmium
Comprehensive Environmental Response, Compensation, and Liability Act
central impoundment area
carbon dioxide equivalents of global warming potential
conceptual site model
central treatment plant
U.S. Environmental Protection Agency
Ferguson Contracting
square feet
grams per liter
gallons per minute
gallons per day
high-density polyethylene
high-density sludge
horsepower
Idaho Department of Environmental Quality
pound
low-density sludge
long-term monitoring
long-term monitoring optimization
milligrams per liter
million
manganese
material safety data sheet
National Pollutant Discharge Elimination System
operation and maintenance
Office of Superfund Remediation and Technology Innovation
Office of Solid Waste and Emergency Response
operable unit
lead
pump and treat
principal threat materials
Quality Assurance Project Plan
remedial action objective
Record of Decision
remediation system evaluation
sampling and  analysis plan
supervisory control and data acquisition
                                         IX

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SEFA             Spreadsheets for Environmental Footprint Analysis
SFCDR           South Fork of the Coeur D'Alene River
TtGEO            Tetra Tech GEO
TSS              total suspended solids
U.S.              United States
USAGE           U.S. Army Corps of Engineers
USGS             U.S. Geological Survey
VFD              variable frequency drive
WQS             Idaho Stream Water Quality Standards
WWTP            waste water treatment plant
yr                year
Zn                zinc

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                         TABLE OF CONTENTS
EXECUTIVE SUMMARY	i
NOTICE	vii
PREFACE	viii
ACRONYMS	ix

1.0  INTRODUCTION	1
    1.1 PURPOSE	1
    1.2 TEAM COMPOSITION	3
    1.3 DOCUMENTS REVIEWED	3
    1.4 QUALITY ASSURANCE	4
    1.5 PERSONS CONTACTED	4
2.0  SITE BACKGROUND	5
    2.1 LOCATION	5
    2.2 SITE HISTORY	5
       2.2.1   HISTORIC LAND USE AND FACILITY OPERATIONS	5
       2.2.2   CHRONOLOGY OF ENFORCEMENT AND REMEDIAL ACTIVITIES	6
    2.3 POTENTIAL HUMAN AND ECOLOGICAL RECEPTORS	6
    2.4 EXISTING DATA AND INFORMATION	6
       2.4.1   SOURCES OF CONTAMINATION	6
       2.4.2   GEOLOGY AND HYDROGEOLOGY	6
       2.4.3   SOIL CONTAMINATION	7
       2.4.4   SOIL VAPOR CONTAMINATION	7
       2.4.5   GROUNDWATER CONTAMINATION	7
       2.4.6   SURFACE WATER CONTAMINATION	7
3.0  DESCRIPTION OF PLANNED OR EXISTING REMEDIES	8
    3.1 REMEDY AND REMEDY COMPONENTS	8
       3.1.1    COLLECTION	9
       3.1.2    CENTRAL TREATMENT PLANT	9
       3.1.3    PROPOSED CTP UPGRADES AND EXPANSION	11
    3.2 REMEDIAL ACTION OBJECTIVES AND STANDARDS	11
    3.3 PERFORMANCE MONITORING PROGRAMS	12
       3.3.1    TREATMENT PLANT OPERATION STANDARDS	13
4.0  CONCEPTUAL SITEMODEL	16
5.0  FINDINGS	17
    5.1 GENERAL FINDINGS	17
    5.2 INFLUENT COLLECTION AND DIVERSION	17
       5.2.1    KELLOGG TUNNEL INCLUDING WEST FORK OF MILO CREEK	17
       5.2.2    SMELTER CLOSURE AREA	17

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       5.2.3   OTHER OU2 SOURCES	17
       5.2.4   OU3 UPPER BASIN SOURCES	18
    5.3 CURRENT CTP PERFORMANCE	18
    5.4 REGULATORY COMPLIANCE	19
    5.5 COMPONENTS OR PROCESSES THAT ACCOUNT FOR MAJORITY OF ANNUAL COSTS	19
       5.5.1   UTILITIES	20
       5.5.2   NON-UTILITY CONSUMABLES	20
       5.5.3   LABOR	20
       5.5.4   CHEMICAL ANALYSIS	20
    5.6 CTP UPGRADE AND EXPANSION COST ESTIMATES	21
    5.7 APPROXIMATE ENVIRONMENTAL FOOTPRINTS ASSOCIATED WITH REMEDY	22
       5.7.1   ENERGY, AIR EMISSIONS, AND GREENHOUSE GASES	22
       5.7.2   WATER RESOURCES	23
       5.7.3   LAND AND ECOSYSTEMS	23
       5.7.4   MATERIALS USAGE AND WASTE DISPOSAL	23
    5.8 SAFETY RECORD	23
6.0  RECOMMENDATIONS	24
    6.1 RECOMMENDATIONS TO IMPROVE EFFECTIVENESS	25
       6.1.1   EXPAND PLANT TO 20,000 GPM CAPACITY WITHOUT FILTRATION	25
       6.1.2   Do NOT CONVERT To HD SAT THIS TIME	26
    6.2 RECOMMENDATIONS TO REDUCE COSTS	27
       6.2.1   PERFORM ADDITIONAL COST-BENEFIT ANALYSIS OF THE WEST FORK OF MILO
              CREEK DIVERSION	27
       6.2.2   VARIABLE FREQUENCY DRIVES (VFDs) FOR REPLACEMENT MOTORS	28
    6.3 RECOMMENDATIONS FOR TECHNICAL IMPROVEMENT	28
       6.3.1   CONSIDER Two NEW REACTOR A's DURING CTP EXPANSION	28
    6.4 CONSIDERATIONS FOR GAINING SITE CLOSE Our	29
    6.5 RECOMMENDATIONS RELATED TO ENVIRONMENTAL FOOTPRINT REDUCTION	30
       6.5.1   METALS RECOVERY	30
       6.5.2   HYDROELECTRIC POWER	32
       6.5.3   REDUCE CITY WATER USE	32

List of Tables
Table 1: Optimization Team Composition	3
Table 2: Persons Contacted during Optimization Evaluation	4
Table 3: CTP Laboratory Sampling Schedule	12
Table 4: Current and Anticipated Future CTP Discharge Limits	13
Table 5: Metal Concentration Comparison (fig/L)	14
Table 6: Summary of Annual Operating Costs	20
Table 7: Upgrade and Expansion Cost Comparison With and Without Filtration	21
Table 8: Summary of Energy and Air Annual Footprint Results	23
Table 9: Recommendations Summary	33

Attachments
Attachment A: Select Figures from Site Documents
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                              1.0   INTRODUCTION
1.1      PURPOSE

During fiscal years 2000 and 2001, independent site optimization reviews called Remediation
System Evaluations (RSE) were conducted at 20 operating Fund-lead pump and treat (P&T) sites
(i.e., those sites with P&T systems funded and managed by Superfund and various States). Due
to the opportunities for system optimization that arose from those RSEs, the U.S. Environmental
Protection Agency Office of Superfund Remediation and Technology Innovation (OSRTI) has
incorporated RSEs into a larger post-construction complete strategy for Fund-lead remedies as
documented in Office of Solid Waste and Emergency Response (OSWER) Directive No. 9283.1-
25, Action Plan for Ground Water Remedy Optimization. Concurrently, the EPA developed and
applied the Triad Approach to optimize site characterization and development of a conceptual
site model (CSM). The EPA has since expanded the definition of optimization to encompass
investigation stage optimization using Triad Approach best management practices (BMP),
optimization during design, RSEs and long-term monitoring optimization  (LTMO). The EPA's
definition of optimization is as follows:

       "Efforts at any phase of the removal or remedial response to identify and
       implement specific actions that improve the effectiveness and cost-efficiency of
       that phase. Such actions may also improve the remedy 'sprotectiveness and long-
       term implementation which may facilitate progress towards site completion. To
       identify these opportunities, regions may use a systematic site review by a team of
       independent technical experts, apply techniques or principles from Green
      Remediation or Triad, or apply other approaches to identify opportunities for
      greater efficiency and effectiveness. " (3)

As stated in the definition, optimization refers to a "systematic site review", indicating that the
site as a whole is often considered in the review. Optimization can also be applied to a specific
aspect of the remedy (for example, focus on LTMO or focus on one particular operable unit
[OU]), but other site or remedy components are typically considered to the degree that they
affect the focus of the optimization. An optimization review typically considers the goals  of the
remedy, available site data, CSM, remedy performance, protectiveness, cost-effectiveness and
closure strategy. For the purposes of this optimization review effort,  the focus of review was on
one remedial element, the Central Treatment Plant (CTP).

A strong interest in sustainability has also  developed in the private sector and within Federal,
State and Municipal governments. Consistent with this interest, OSRTI has developed a
 U.S. Environmental Protection Agency. 2012. Memorandum: Transmittal of the National Strategy to Expand Superfund
Optimization Practices from Site Assessment to Site Completion. From: James. E. Woolford, Director Office of Superfund
Remediation and Technology Innovation. To: Superfund National Policy Managers (Regions 1-10). Office of Solid Waste and
Emergency Response (OSWER) 9200.3-75. September 28

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Methodology for Understanding and Reducing a Project's Environmental Footprint and
supporting Spreadsheets for Environmental Footprint Analysis (SEFA) to assist the conduct of
environmental footprint analyses for site cleanup (www.cluin.org/greenremediation). and now
routinely considers green remediation and environmental footprint reduction during optimization
reviews.

The review includes reviewing site documents, potentially visiting the site for one day, and
compiling this report which includes recommendations in the following categories:

    •   Protectiveness

    •   Cost-effectiveness

    •   Technical improvement

    •   Site closure

    •   Environmental footprint reduction

The recommendations are intended to help the site team identify opportunities for improvements
in these areas. In many cases, further analysis of a recommendation, beyond that provided in this
report, may be needed prior to implementation of the recommendation. Note that the
recommendations are based on an independent evaluation, and represent the opinions of the
optimization review team. These recommendations do not constitute requirements for future
action, but rather are provided for consideration by the EPA Region and other site stakeholders.
Also note that while the recommendations may provide some details to consider during
implementation,  the recommendations are not meant to replace other, more  comprehensive,
planning documents such as work plans, sampling plans and quality assurance project plans
(QAPP).

The national optimization strategy includes a system for tracking consideration and
implementation of the optimization review recommendations and includes a provision for
follow-up technical assistance from the optimization review team as mutually agreed upon by the
site management team and EPA OSRTI.

Purpose of Optimization at the Bunker Hill Mining and Metallurgical Complex Superfund Site -
Central Treatment Plant (CTP)

Environmental contamination of surface water, groundwater, soil and sediment occurred at the
Bunker Hill Mining and Metallurgical Complex Superfund Site as  a result of mining, milling and
smelting activities.  Contaminants of concern in the impacted media are arsenic,  cadmium, lead,
mercury and zinc. The surface water and groundwater remedy includes the CTP, which treats
acid mine drainage (AMD) from the Kellogg Tunnel and minimal flows that are generated from
the principal threat materials cell and smelter closure area drains.

The site was selected by the EPA OSRTI for optimization based on a nomination from the EPA's
Abandoned Mine Lands Team. The optimization review was focused on current CTP operations
and proposed upgrades and expansion. The optimization review includes discussion and

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evaluation of influent sources, metals mass loading, discharge criteria, solids handling and
operating costs.

This EPA-funded optimization review is an independent study that focuses on protectiveness and
cost-effectiveness. Detailed consideration of EPA policy was not part of the scope of work for
this review. EPA Region 10 and EPA OSRTI will address EPA policy when considering the
technical recommendations provided in this report.

1.2     TEAM COMPOSITION

The optimization review team consisted of the following individuals:

Table 1: Optimization Review Team Composition	
          Name                Affiliation            Phone              Email
Peter Rich
John Nemcik
Doug Sutton
(Did not attend site visit)
Tetra Tech GEO
Tetra Tech, Inc.
Tetra Tech GEO
410-990-4607
720-931-9307
732-409-0344
peter, richgitetratech. com
iohn.nemcik(S>tetratech.com
doug. sutton(@,tetratech.com
The following individuals from the EPA OSRTI also participated in the optimization site visit:


   •  Kathy Yager, EPA OSRTI

   •  Jenn Edwards, EPA OSRTI

1.3     DOCUMENTS REVIEWED

The following documents were reviewed. The reader is directed to these documents for
additional site information that is not provided in this report.


   •  OU2 Mine Water ROD Amendment, EPA, 2001

   •  Bunker Hill Mine Water Management Remedial Investigation/Feasibility Study, CH2M
      Hill, April 2001

   •  Proposed Plan, Upper Basin of the Coeur d'Alene River, EPA, July 2010

   •  Phase 2 Testing Results Bunker Hill Mine Water Treatability Study, URS Greiner and
      CH2M Hill, November 2000

   •  Design Considerations for Phase I and Phase 2 CTP Upgrades Draft, CH2M Hill,
      January 20, 2012

   •  Documentation of Estimated CTP Expansion and Water Treatment Costs Presented in
      the Draft Final FFS Report for the Upper Basin of the Coeur d'Alene River, CH2M Hill,
      February 28, 2012

   •  Canyon Creek Phase II Treatability Study, CH2M Hill, October 2006

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   •   Operations & Maintenance Services Central Treatment Plant Sampling and Analysis
       Plan (SAP), Ferguson Contracting, Inc., July 2011
   •   2010 Five-Year Review OU1, OU2 and OU3, EPA Region 10, November 2010
   •   CTP Expansion Costs.xls, Cost estimating spreadsheets developed by CH2M Hill,
       September 12, 2006.

1.4     QUALITY ASSURANCE

This optimization review utilized existing environmental data to evaluate remedy performance
and make recommendations to improve the remedy. The quality of the existing data is evaluated
by the optimization review team prior to using the data for these purposes. The evaluation for
data quality includes a brief review of how the data were collected and managed (where
practical, the site QAPP is considered), the consistency of the data with other site data, and the
use of the data in the optimization evaluation. Data that are of suspect quality are either not used
as part of the optimization review or were used with the quality concerns noted. Where
appropriate, this report provides recommendations made to improve data quality.

1.5     PERSONS  CONTACTED

A site visit was conducted on April 19, 2012. In addition to the optimization review team and the
EPA OSRTI personnel, the following individuals associated with the site were present:

Table 2: Persons Contacted during Optimization Evaluation
Name
Ed Moreen
Bill Adams
Kim Prestbo
Bernie Zavala
Don Carpenter
Joan Stoupa
Jim Stefanoff
Brad Brandt
Gary Fulton
Mark Reinsel
Affiliation
EPA Region 10
EPA Region 10
EPA Region 10
EPA Region 10
Idaho Department of
Environmental Quality
(IDEQ)
CH2M Hill
CH2MHill
U.S. Army Corps of
Engineers (USACE)
Ferguson Contracting
Apex Engineering
Phone
208-664-4588









Email
moreen. ed(@,epamail. epa. gov
adams.billtgiepa.gov
prestbo .kimtgiepa. gov
zavala.bernie(@,epa. gov
don, carpentertgideq. idaho . gov
j stoupa(@,ch2m. com
jim. stefanoff (@,ch2mcom
bradlev.r.brandt(@,usace.army.mil
garvfultontgiferconinc.com
marktgiapexengineering.us
The EPA contracts the U.S. Army Corps of Engineers (USACE) to subcontract and oversee the
CTP operator, Ferguson Contracting (Ferguson), and CH2M Hill for the CTP study and
conceptual design. Apex Engineering is contracted by Ferguson to help address CTP
operating/control issues.

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                          2.0    SITE BACKGROUND
2.1     LOCATION

The Bunker Hill Mining and Metallurgical Complex Superfund Site (Site) is located in the Silver
Valley area of Northern Idaho, Shoshone County, near the city of Kellogg. The Site includes a
21-square mile area (the "Box") along Interstate 90 and is divided into three OUs to focus
investigation and cleanup efforts. OU1  considers the populated areas of the Site and OU2
considers the non-populated areas, both of which are located within the "Box." OUS includes the
remaining area outside of the "Box" where mining-related contamination is located.

The surface water and groundwater remedy at the Site includes the CTP, which treats AMD; the
CTP is the focus of this optimization review report.

2.2     SITE HISTORY

2.2.1    HISTORIC LAND USE AND FACILITY OPERATIONS

The 2001 OU2Mine Water Record of Decision (ROD) Amendment, the July 2010 Proposed
Plan,  Upper Basin of the Coeur d'Alene River prepared by the EPA, and the January 2012
Design Considerations for Phase I and Phase 2 CTP Upgrades Draft prepared by CH2M Hill
provide the following information regarding historic land use and facility operations:

   •   The Bunker Hill Mine began operation in 1885 and continued until the 1980s. The mine
       consists of a complex network of about 150 miles of underground tunnels and 6 miles of
       underground shafts.  The shafts extend to more than 1 mile below the land surface. The
       mine was part of the Bunker Hill Mining Complex (Complex), which occupied
       approximately 350 acres between the towns of Smelterville and Kellogg. The Complex
       was an integrated mining, milling and smelting operation.

   •   Liquid and solid waste from the Complex was discharged directly into the South Fork of
       the Coeur d'Alene River prior to 1928.

   •   After 1928, a Central Impoundment Area (CIA) was developed in a nearby floodplain to
       accept AMD and wastewater from the Complex. This discharge was collected in a pond
       and allowed to settle solids before liquids were discharged into the river.

   •   In 1974, the CTP was built to receive and treat wastewater from the CIA collection pond
       before it was discharged into the river. A complex system of pumps, pipelines and
       channels have been constructed since the CTP was built to deliver the AMD and
       wastewater from the Bunker Hill Mine and Smelter Complex to the CTP. The Bunker
       Hill Smelter was decommissioned and demolished in the late 1990s and thus, those
       industrial flows are no longer generated.

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   •  In 1999, a new pipeline was constructed from the Kellogg Tunnel portal of the Bunker
      Hill Mine to the lined flow equalization pond to store water to be treated at the CTP.

The CTP, CIA, Kellogg Tunnel portal and other CTP-related features are shown in Figure 2-1
(see Attachment A). These features include the principal threat materials (PTM) cell and smelter
closure area, Sweeney Area Pipeline (water collection and conveyance), lined pond (for flow
equalization and side-stream storage) and unlined sludge disposal cell (lagoon).

The CTP flow diagram is shown in Figure 5-2 (see Attachment A). The CTP facilities include
lime feed and polymer feed pumps, a rapid mix tank (Reactor A), aeration basin (Reactor B),
flocculation (floe) tank, thickener, sludge recycling and wasting pumps, a polishing pond, flow
measurement equipment and discharge pipes and pumping to Bunker Creek.

Planning and studies have been underway for several years to modernize the CTP and expand its
capacity to allow the capture and treatment of additional metal contaminant sources. The s site
team stated that CH2M Hill is tasked with design through the 30 percent level; the U.S. Army
Corps of Engineers (USAGE) will then likely lead a design/build effort to upgrade and expand
the CTP. The schedule for this work is not known to the optimization review team. An upgraded
CTP design flow rate and sources to be treated have not been finalized.

2.2.2    CHRONOLOGY OF ENFORCEMENT AND REMEDIAL ACTIVITIES

The chronology of enforcement and remedial activities at the Site was not reviewed as part of
this optimization review.

2.3     POTENTIAL HUMAN AND ECOLOGICAL RECEPTORS

The primary potential receptors are environmental fauna and recreational and residential users in
contact with surface water and sediments in the South Fork of the Coeur D'Alene River
(SFCDR), SFCDR tributaries and downstream water bodies.

2.4     EXISTING DATA AND INFORMATION

2.4.1    SOURCES OF CONTAMINATION

With the exception of understanding known and potential influent flow volumes, chemistry and
mass as related to CTP operations and capacity, discussion of the various sources of
contamination at the Site is beyond the scope of this review. Flow volumes, chemistry and mass
are presented in Section 5.0

2.4.2    GEOLOGY AND HYDROGEOLOGY

Discussion of the geology and hydrogeology of the  Site is beyond the scope of this review.

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2.4.3    SOIL CONTAMINATION

Discussion of the soil contamination at the Site is beyond the scope of this review.

2.4.4    SOIL VAPOR CONTAMINATION

Discussion of soil vapor contamination, if any, is beyond the scope of this review.

2.4.5    GROUNDWATER CONTAMINATION

Groundwater impacted by heavy metals contributes to surface water impacts in the SFCDR. The
nature of the groundwater flow and the interaction with surface water are beyond the scope of
this review.

2.4.6    SURFACE WATER CONTAMINATION

The CTP operation currently intercepts a portion of the water that would contribute to SFCDR
metals loading treats the intercepted water and discharges the treated water to surface water.
Currently,  less than 10 percent of the average flow from identified adit drainage and groundwater
sources is intercepted from the combined OU2 and OU3 basins. Due to the high metals
concentrations in the intercepted water, approximately 33 percent of the metals loading is
intercepted. The discharge of treated water to surface waters abides by limits established in an
expired National Pollutant Discharge Elimination System (NPDES) permit. A new NPDES
permit and limits would be required for another entity to operate the CTP. The permit limits and
compliance with those limits are discussed in Sections 3.0 and 4.0 of this report, respectively.

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    3.0   DESCRIPTION OF PLANNED OR EXISTING REMEDIES
3.1     REMEDY AND REMEDY COMPONENTS
The CTP was originally designed to operate as a high-density sludge (HDS) process, but
currently is operated as a low-density sludge (LDS) system, with a low recycle rate from the
thickener to the flash mixer reactor. Sand filters included in the original construction of the CTP
have been removed and some form of filtration would need to be provided for a return to the
HDS mode of operation.
The CTP treats the largest single contribution of AMD in the SFCDR drainage basin from the
Bunker Hill Mine (Kellogg Tunnel portal); other significant contributions come from OU2
groundwater  and discharges in Canyon Creek and Nine Mile Creek (OU3 Upper Basin), which
are upstream  of the City of Kellogg. These contributing sources were not specifically reviewed
as part of the optimization review effort, however.
The current operating systems at the Site include the following:

   •  Kellogg Tunnel portal collection and conveyance to the CTP or lined pond
   •  Principal threat materials cell and smelter closure area water collection  and conveyance
      (Sweeney Area Pipeline) to the lined pond
   •  CTP
   •  CIA sludge disposal
   •  Bunker Creek discharge
Previously planned CTP upgrades and expansion include:

   •  Collection of additional OU2 groundwater
   •  Collection of OU3 groundwater and adit  flows
   •  Expansion and upgrade of existing CTP
   •  Addition of filtration to the CTP
   •  Discharge to the SFCDR
The following sections describe water collection and CTP features; these are shown in the
figures included in Attachment A.

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3.1.1     COLLECTION

3.1.1.1.    Kellogg Tunnel (KT) Portal
The KT Portal is currently the primary source of influent (currently > 95 percent) to the CTP.
AMD flows from the Bunker Hill Mine at a typical rate of 1,000 to 1,500 gallons per minute
(gpm). The site team monitors the quality of KT Portal discharge regularly; this data indicates
when the quality changes and when additional operational attention may be required. Typical
characteristics of the KT Portal discharge are: pH of 2.5-3.0, zinc concentration of 100 mg/L,
manganese concentration of 100 mg/L, lead concentration of 0.6 mg/L and cadmium
concentration of 0.2 mg/L. Flow rates increase to over 5,000 gpm during the spring runoff period
and metals concentrations also increase during these higher flow periods.

3.1.1.2.    PTM/Sweeney Area Pipeline
The PTM/Sweeney Area Pipeline is a smaller source of non-AMD influent (typically less than
10 gpm) to the CTP. This wastewater is continuously gravity-fed to the lined pond and then
periodically pumped to the CTP. Typical characteristics of the Sweeney/Outfall 004 water are:
pH of 7.0, zinc concentration of 15 mg/L, lead concentration of 0.05 mg/L and cadmium
concentration of 2 mg/L.

3.1.1.3.    Lined Pond Pump Station Discharge
Lined Pond Pump Station Discharge is a composite of KT discharge (when it is not directly fed
to the CTP), PTM/Sweeney area water, precipitation and other smaller sources. The lined pond
has a 7 million gallon capacity and is used for storage when the CTP is shut down for
maintenance or repairs or when the influent rate is above 2,500 gpm. It should be noted that this
pond provides capacity for only a relatively short duration. To increase storage capacity for
treatment emergencies, the EPA has an agreement in place with the mine owner to ensure that
additional waters can be stored in the mine.

3.1.2     CENTRAL TREATMENT PLANT

3.1.2.1.    Lime Feed
There are two 100-ton silos for storing and feeding quick lime. The silos are equipped with fill
lines, dust collectors on the roof, bottom cones with bin activators, volumetric screw feeders that
discharge into the slurry tank, one slurry tank per silo, a grit removal system and slurry feed
pumps.

The slurry is maintained at about  16 percent (by weight), which is fairly high.  There is a cross-
over screw conveyor that allows a feeder in one silo to feed lime to the  other slurry tank. This
feature provides  an added measure of redundancy.

The slurry is made in batches to allow cooling of the slurry tanks. During spring runoff, lime
usage spikes, going from an average of about 3 tons to 5 tons per day. Lime dosages vary from
about 0.25gram/liter (g/L) during the winter to as high as 1.44 g/L during the spring.

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17.2.2.    Re actor A
The rapid mix tank (Reactor A) receives only the recycled sludge from the thickener and the lime
slurry feed. Plant influent flows directly to Reactor B. Lime slurry feed is intermittent and is
controlled by the pH in the second reactor, Reactor B.

3.1.2.3.    Reactor B
Flow discharges from the rapid mix tank (Reactor A) to Reactor B by gravity. Reactor B is an
open earth-formed basin with a mechanical surface aerator in the center. Flow enters at one side.
Due to the swirling motion of the water caused by the surface aerator, the flow is directed toward
the effluent launder, causing short-circuiting.

The effluent from Reactor B passes through an abandoned flocculation tank that is full of sludge.
However, the site team stated the flocculation equipment was not adequate in keeping the solids
in suspension through this basin, and that the materials settled. In response, the site team shut off
the mixing equipment and allows the process flow stream to pass through the tank. Given the
amount of sludge  contained in the tank, there could be slug discharges that would affect the
operation of the thickener during high flow periods.

3.1.2.4.    CTP Thickener
The CTP thickener is essentially a large clarifier (approximately 210-foot diameter) as it has no
mechanism for "thickening" the sludge. The center "flocculation" well is undersized and
contains no means of mixing or flocculating other than what can be achieved by the velocity and
energy of the influent water. The side water depth was reported by the operator to be about 10
feet.  In windy conditions, there could be agitation of the basin contents and degradation of
effluent quality. During the Site visit, the water in the thickener was observed to be very clear,
indicating that the sludge blanket was near the floor of the thickener as is expected in LDS  mode.
When operated in the HDS mode, there would be more solids carryover from this tank, hence the
need for filtration.

Based on a flow rate of 5,000 gpm and a diameter of 210 feet, the approximate hydraulic surface
loading rate for this thickener (clarifier) would be about 200 gpd per square feet (ft) of surface
area. Typically for a lime floe clarifier, design loading rates can be anywhere between 800  and
1,200 gpd/ft2. At the current loading rate, the quality of effluent from this thickener should be
(and is) exceptionally high.

3.1.2.5.    Polymer Addition
Polymer is fed to the influent stream of the thickener. The polymer batching system is entirely
manual, and uses bag feed of dry polymer.

3.1.2.6.    Polishing Basin and Discharge
Effluent from the  thickener flows by gravity through a "polishing" basin that currently is full of
sludge up to within 2 feet of the basin water surface. Peak flows through this basin could cause
the settled solids to become re-suspended and to discharge with the  effluent. Final effluent  flows
                                           10

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down a cascade structure that provides some re-aeration prior to discharge to Bunker Creek.
There is an effluent flow measuring device ahead of the cascade.

3.1.2.7.    Sludge Recycle
A portion of the generated sludge is continuously recycled from the thickener to Reactor A per
the HDS design. The current LDS system has a lower recycle rate and would typically have a
different process flow configuration; however, the site team has effectively operated the system
in the LDS mode.

3.1.2.8.    Sludge Disposal
Sludge is pumped from the thickener directly to an approximately 5-acre sludge disposal lagoon
located on the CIA. Approximately 90,000 gallons of dilute sludge is discharged to the lagoon
per day by manual pumping at about 600 gpm for 150 minutes. The sludge consolidates and
water evaporates and infiltrates (the site team reports that the infiltration rate is very low).  The
lagoon is about half full and has an estimated 6 to 10 years of lifespan remaining under current
operation. The lagoon is unlined and the potential for leaching exists, but the ground surface is
the top of a tailings deposit. Any new lagoon would be lined to prevent water from draining into
the tailings deposits. There is available area on the CIA for additional  sludge lagoons, so liquid
sludge handling will be a viable long-term option as long as the clear water after sludge setting
can be effectively removed and additional lagoons can be approved with community and State
concurrence. With this condition, one of the benefits  of the HDS process, improved sludge
dewatering capability is diminished in value. Furthermore, the site team indicated that there was
not much difference in the lime dose for the current operation compared to the pilot testing of the
HDS process.

3.1.3     PROPOSED CTP UPGRADES AND EXPANSION

The CTP is operating near capacity in its current condition and cannot effectively treat water
from additional sources. In spite  of the CTP deficiencies discussed above,  the CTP effectively
meets discharge criteria (from the expired NPDES Permit) during average  flow periods;
treatment difficulties occur with high (> 2,500 gpm) flow during spring runoff. In addition to
plans for system expansion, proposed discharge standards are more stringent and will require
filtration and possibly additional processes for the CTP. The site team has  developed conceptual
level costs for CTP upgrades and expansion to 2,500; 5,000; 10,000; 15,000; or 20,000 gpm
design capacities. Expansion of the CTP to a 10,000; 15,000; or 20,000 gpm design capacity will
allow collection and treatment of the identified metals sources in OU2 and OU3.

3.2      REMEDIAL ACTION OBJECTIVES AND STANDARDS

The 2001 Mine Water ROD Amendment identifies the following remedial action objectives
(RAOs):

   •  Prevent the release of untreated AMD, which has metals concentrations that greatly
      exceed protective water quality standards, into Bunker Creek and the SFCDR.
                                          11

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   •  Reduce the concentrations and total pounds per day of metals discharged into Bunker
      Creek and the SFCDR to improve overall water quality in the Coeur D'Alene River
      Basin.

   •  Upgrade the CTP to meet current water quality standards and improve reliability and
      efficiency.

   •  Reduce the volume of sludge generated at the CTP to maximize existing sludge storage
      capacity.

   •  Provide for LDS storage needs.

   •  Reduce the quantity of AMD generated by the mine.

   •  Reduce the long-term AMD management costs. The forthcoming 2012 ROD Amendment
      for the Upper Basin has many RAOs including restoring surface water designated for
      beneficial use as drinking water and meeting water quality standards.

The main treatment objectives of the CTP from the 2000 CTP Master Plan are:

   •  Acceptable effluent quality
   •  Minimum sludge production

   •  Maximum system reliability

   •  Acceptable capital and operation and maintenance (O&M) costs

3.3     PERFORMANCE MONITORING PROGRAMS

The CTP process monitoring program consists of semi-weekly, weekly and bi-weekly sampling
events. The monitoring program from the Sampling Analysis Plan prepared by Ferguson
Contracting in July 2011 is summarized in Table 3:

Table 3:  CTP Laboratory Sampling Schedule
Sample Location
006 Outfall (CTP Effluent)
Kellogg Tunnel
PTM 004/Sweeny Pump Station
Sump
Lined Pond Pump Station
Discharge
Analytes
Cadmium (Cd), Lead (Pb),
Manganese (Mn), Zinc (Zn),
Total Suspended Solids (TSS),
pH
Cd, Pb, Mn, Zn, TSS, pH
Cd, Pb, Zn, TSS, pH
Cd, Pb, Zn, TSS, pH
Sampling Frequency
Composite sample collected 3 days per
week during CTP operation (typically
Mondays, Wednesdays, and Fridays)
Grab sample collected 2 days per week
Grab sample collected bi-weekly
Grab sample collected weekly during
pumping events
In addition, operators field measure pH and turbidity in Reactors A and B and the thickener to
verify process control and performance.
                                         12

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3.3.1     TREATMENT PLANT OPERATION STANDARDS
The standards for discharging the water treated at the CTP to surface water (Bunker Creek) are
based on a NPDES permit that expired in 19914 and are summarized in Table 4 along with
anticipated final remedy limits.

Table 4: Current and Anticipated Future CTP Discharge Limits
Parameter
Arsenic
Cadmium
Copper
Lead
Mercury
Selenium
Silver
Thallium
Zinc
Aluminum
Iron
Manganese
pH
Total Suspended Solids
Dissolved Oxygen
Temperature
Current Limit
(Monthly Average) (jig/L)
NL
50
150
300
1
NL
NL
NL
730
NL
NL
NL
6.0 to 10.0
20
NL
NL
Future Limit
(Monthly Average) (jig/L)
50
2.8
31.7
85.2
0.01
4.1
21.9
0.47
244
71.2
819
81.9
6.5 to 9.0
20
>6
<19
NL- no limit; /ng/L - microgram/liter

Expansion to increase the CTP capacity will include a discharge pipeline directly to the SFCDR
because the current 1-90 Bunker Creek culverts are undersized for a 100-year flood and, as a
result, additional flow to Bunker Creek is not feasible. In addition, the proposed discharge
location would reduce undesirable recharge to groundwater from Bunker Creek. During normal
flows, the system effectively meets the current discharge limits. The change from HDS operation
improved settling, and zinc is typically well below the discharge limit, however, zinc limits have
been exceeded during high flow and during operating upsets.

Anticipated future discharge limits, provided by the site team, that are based on State of Idaho
Stream Water Quality Standards (WQS), include considerable reductions from existing limits
and the inclusion of several previously unregulated metals, including:  arsenic, selenium, silver,
thallium, aluminum, iron and manganese. The site team has expressed some uncertainty
regarding the relevance of the proposed manganese limit (because it is based on human
consumption of shellfish, which are not present in the SFCDR), iron limit and thallium limit. The
anticipated zinc and lead limits could still be met without upgrading the CTP to include filtration.
4 NPDES permitting is not required at Superfund sites. CERCLA requires substantive compliance with permits.
                                           13

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The anticipated cadmium limit might be achieved without filtration, but would likely be more
consistently met with filtration. The manganese limit would not be met even with added filtration
and would require the addition of greensand filtration or ion exchange tertiary treatment with
additional associated capital costs in the $10MM range and O&M costs in the $300,000 per year
range for a 20,000 gpm system. Anticipated limits for mercury,  selenium and thallium could also
present problems  for treatment even with filtration added. The optimization review team could
not find expected influent quality and treatability information for several metals. Selenium is
especially difficult to remove, and if it is present above the anticipated limit, reverse osmosis will
likely be required for consistent compliance. The addition of reverse osmosis to the upgraded
CTP would require capital costs in the $40MM range with O&M costs in the $7MM per year
range (Estimating Water Treatment Cost, EPA, August  1979).

Currently zinc levels in the discharge from the CTP are  typically lower than those found in the
SFCDR at Kellogg. Existing manganese levels in surface water  were not found in available data.
Table 5 includes a comparison of metals concentrations in the CTP main influent source, planned
influent sources, CTP discharge,  receiving waters, current CTP, anticipated CTP limits, local
sewer district discharge limits and discharge limits for an operating mine treatment system for
comparison.

Table 5: Metal Concentration Comparison (ng/L)
Source
Existing Influent (Kellogg Tunnel
from Sept, Oct, Nov 201 1 DMRs)
Existing Discharge (avg. Sept, Oct,
Nov 20 11 DMRs)
Existing Discharge Limit (monthly
avg.)
Proposed Discharge Limit (monthly
avg.)
SFCDR Water Quality at Kellogg
(USGS 2006 SF-269 unfiltered
median)
SFCDR Sewer District Limits, (avg.
monthly)
OU2 Groundwater (avg.)
OU3 Woodland Park, Osburn Drain,
Gem #3
Other OU3 ROD Amendment H2O
Hecla Lucky Friday Mine NPDES
Permit, Mullan (Discharge Limits)
Zn
(total)
>100,000
197
730
244
621
802
24,452
4,123
2,543
71
Cd
>100
4
50
2.8
4.17
5.3
-
-
-
0.7
Pb
>400
10
300
85.2
9.54
63
-
-
-
30
Mn
>50,000
13,250
NS
81.9
NA
NS
-
-
-
NS
Average/
Max Flow
(gpm)
>1200
1,300/5,000*
-
-
50,000 min
72,0000 max
-200,000 avg
3,000 (Page,
Idaho WWTP)
3,900/4,400
4,701/5,623
7,602/11,538
-
Average Zn
Loading
(Ib/day)
> 1,400
3
(>99.5percent
reduction)
-
-
1492
-
1146
233
232
-
Notes:
Zn — zinc; Cd — cadmium; Pb — lead; Mn —manganese; gpm — gallons per day; Ibs/day—pounds per day; NS — no standard; NA — no analysis;
   WWTP — wastewater treatment plant; DMR — discharge monitoring reports.
Existing discharge standards from expired NPDES ID 000007-8; Proposed discharge standards from Bunker Hill Discharge Quality and
   Monitoring Plan, CH2MHill, 2007.
SFCDR Sewer District limits from NPDES Permit #002130-0 (flow <4.3 MGD), Response to Comments, June 2004; (Variances granted Page,
   Mullan, Smelterville WWTPs); currently in renewal discussions.
OU2 and OU3 information from revised Table 5.1, CH2MHHI, 2012.
Construction of the West Fork ofMilo Creek diversion would reduce the maximum flow to about 2500 gpm.
                                              14

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Treating to the stream standards requires the construction of the filters and other substantial
upgrades potentially including ion exchange and reverse osmosis, which will present a
significant capital and O&M cost increase. However, there are several factors limiting further
consideration of a variance regarding the CTP discharge, as follows:

   •   Pursuant to Comprehensive Environmental Response, Compensation and Liability Act
       (CERCLA), all Superfund remedial actions must be protective of human health and the
       environment and must comply with applicable or relevant and appropriate requirements
       (ARAR).

   •   The EPA has received a significant volume of negative input from other waste treatment
       plant operations including municipal and industrial  plants, which complain about the
       validity of stringent effluent standards.

   •   The optimization review team is advised that if the Bunker Hill Mine were to be sold to a
       new owner and re-opened, they would be responsible for the treatment of flows or for
       reimbursement to EPA for the treatment of flows, from the Bunker Hill Mine.
                                          15

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                    4.0   CONCEPTUAL SITE MODEL
This optimization review focuses on current CTP operations and proposed upgrades and
expansion. Discussion of a CSM including AMD sources, transport and fate is beyond the scope
of this review.
                                       16

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                                5.0   FINDINGS
5.1     GENERAL FINDINGS

This section presents the observations and interpretations of the optimization review team. The
observations and interpretations provided below are not intended to imply a deficiency in the
work of the system designers, system operators or site managers. These observations have the
benefit of being formulated based upon operational data unavailable to the original designers.
Furthermore, it is likely that site conditions and general knowledge of treatment have changed
over time.

5.2     INFLUENT COLLECTION AND DIVERSION

The following is summary information on influent volumes, chemistry and mass loading for
current and flows identified by the site team.

5.2.1    KELLOGG TUNNEL INCLUDING WEST FORK OF MILO CREEK

The base flow from this source is 1,000 to 1,500 gpm with zinc concentrations of about 100
mg/L. During spring runoff, flows increase from 1,500 to 6,700 gpm, and effluent zinc
concentrations rise from approximately 100 to approximately 500 mg/L (with peaks over 600
mg/L). The average zinc loading from this source is over 1,400 pounds per day (Ibs/day).

Mitigation efforts to reduce the amount of AMD discharge by reducing surface water infiltration
have been previously identified by the Site team. The main potential mitigation identified by the
site team would involve a diversion of the West Fork of Milo Creek. The site team estimates that
the diversion could potentially reduce Kellogg Tunnel AMD flow and total metals loading by
about 50 percent.

5.2.2    SMELTER CLOSURE AREA

The water collected in the smelter closure area and other minor sources are discharged to the
lined pond prior to being pumped to the CTP. This water is typically 10 gpm or less and is not
AMD. Zinc concentrations are in the range of 15 mg/L.

5.2.3    OTHER OU2 SOURCES

The site team estimates that currently uncollected groundwater flow volumes from the OU2 area
are approximately 3,900 gpm with an average zinc concentration estimated at 24.5  mg/L for an
average daily load of 1,100 Ibs/day. The actual flow volumes and concentrations are being
studied by EPA to better quantify both water quality and quantity.
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5.2.4    OU3 UPPER BASIN SOURCES

The site team indicates that there are 21 previously identified AMD adit drainage sources in the
OU3 Upper Basin (upstream of the CTP), as well as six additional areas with impacted
groundwater.

Three of the sources:  Woodland Park groundwater, Osburn Drain groundwater and Gem No. 3
adit drainage, have been grouped together by the site team as the initial sources to collect in
OU3. Collection would require extensive drains, and a lengthy pipeline to the CTP. The
combined total average flow of the three sources is estimated at 4,701 gpm with an average zinc
concentration of 4.12 mg/L for a total zinc loading of 233 Ibs/day.

The other 24 sources combined have a total average flow of 2,901 gpm and an average zinc
concentration of 1.83 mg/L for a 63 Ibs/day load.

5.3     CURRENT CTP PERFORMANCE

The CTP meets existing discharge standards (as provided in the expired NPDES Permit) under
normal operating conditions (see Table 4) and effective operator attention; however, exceedances
have occurred during high flows associated with spring runoff. The Reactor B tank is clearly not
an optimal mixing vessel and the downstream flocculation tank has been abandoned in place by
letting sludge fill it. The oversized thickener has overcome the shortcomings  of the reactor
portion of the system.

The polymer batching system is economical from a chemical  cost standpoint, but associated
labor costs are high because it is a time consuming operation. The polishing basin is filled with
sludge to within a few feet of the surface; it would be more effective if it were cleaned out
routinely to reduce the potential for upset.

The original sand filters were housed in a low profile metal building near the polishing basin and
have been completely removed. If new filters are to be constructed, either they would need to be
the low head auto-backwashing type or the deep bed type. The deep bed type will require
intermediate pumping, a clear well and dedicated backwash supply pumps.

The plant has a control room overlooking the thickener. A modern  supervisory control and data
acquisition (SCADA) system is provided in the plant for overseeing and controlling the
operation. The SCADA system cannot be accessed via the internet. An auto-dialer is used to
generate alarms and notify operators of problems during un-manned periods.

Recent Improvements at the CTP

   •  The site team has recently made the following improvements to the CTP:

          o  Constructed the direct feed branch of the mine water pipeline to provide gravity
             flow of AMD directly to the CTP.
          o  Refurbished the thickener.
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          o  Increased the hydraulic capacity of the thickener to 5,000 gpm by replacing the
             launder drop box in the thickener and the pipeline between the thickener and
             polishing pond.
          o  Constructed a new waste sludge line from the CTP to the sludge disposal pond at
             the CIA.
          o  Replaced the lime storage and feed system and converted from hydrated to quick
             lime.
          o  Constructed a new control building and updated the plant control system.
          o  Upgraded the plant electrical system.
          o  Installed a new backup generator (750 kilowatts [kW]) capable of providing
             energy to operate the entire plant.
          o  Installed a new sludge recycle pump.

   •  Improvements proposed by the site team for the CTP, include the following:

          o  Add a granular media filter system to allow the plant to operate in the HDS mode,
             improving metals removal effectiveness and reducing sludge volume by
             approximately 50 percent.
          o  Replace the existing rapid mix tank (Reactor A) with a more effectively designed
             reactor and mixer.
          o  Replace the aeration basin (Reactor B) with a new basin, mixer and aeration
             system.
          o  Replace the manual polymer feed system with an automatic batching system.
          o  Remove the polishing pond to provide space for the filter system.
          o  Replace the remaining older sludge recycle and wasting pumps.
          o  Add an influent flow meter.

5.4     REGULATORY COMPLIANCE

The site team noted that the CTP discharge has exceeded the current discharge limits for zinc
during high flow events, typically due to spring runoff.

5.5     COMPONENTS OR PROCESSES THAT ACCOUNT FOR MAJORITY OF
ANNUAL COSTS

Table 6 provides a breakdown of the anticipated ongoing annual costs to operate the current CTP
based on information provided by the site team (actual costs from 2006 through 2011) and/or as
costs estimated by the optimization review team based on discussions  with the site team.
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Table 6: Summary of Annual Operating Costs
Item
Project Management - U.S. Army Corps of Engineers Labor
Routine Operation and Maintenance (O&M) Labor
Routine Maintenance Other Direct Costs (ODCs) / Subcontractors
O&M Overtime for High Flows (201 1)
Process Analysis
Electricity
Lime
Polymer
Equipment
Total
Approximate Annual
Cost
$30,000
$350,000
$90,000
$40,000
$60,000
$110,000
$219,000
$36,000
$7,000
$942,000
5.5.1    UTILITIES

Power costs are approximately $110,000 per year at an approximate rate of $0.062 per kilowatt
hour (kWh) from Avista. This represents a demand of approximately 200 kW. Large consumers
of electricity in the system include continuously operating motors for the 25 horsepower (HP)
rapid mix tank (Reactor A) mixer, the 50 HP aeration tank (Reactor B) mixer and the sludge
recycle pump.

5.5.2    NON-UTILITY CONSUMABLES

Approximately 2.4 tons of lime is used in the CTP per day at a current cost of about $250 per ton
or $18,000 per month. Polymer costs for flocculation are reported to be about $3,000 per month.

5.5.3    LABOR

Project management costs include USAGE project management of approximately one half day
per month for routine management and contracting support, plus additional costs for contract
renewals and meetings as needed. Costs for EPA management are not included. Costs for CH2M
Hill related to investigation, testing and design for CTP upgrades are not included.

Ferguson staffs the CTP with two operators for 8 hours per day, 7 days per week. Ferguson
provides additional off-hour staffing during high flow periods (typically spring runoff). Ferguson
subcontracts Apex Engineering for CTP controls and engineering maintenance and repairs
(typically for 1 day per month). The operating staff completes system checks with readings of
pH, turbidity and flow at multiple locations in the system plus lime addition, polymer batching,
pump maintenance, line cleaning, process sampling for laboratory analysis and reporting of
collected data.

5.5.4    CHEMICAL ANALYSIS

The CTP Sampling and Analysis Plan (SAP) (July 2011) monitoring requirements (see Table 3)
include approximately 300 samples per year. Samples analyzed by contract laboratories cost
about $112 per sample for regular turnaround and about $205 per sample for 24-hour turnaround.
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Additional sampling and analysis beyond SAP requirements is expected for quality assurance
and unforeseen testing. Annual laboratory costs are expected to be approximately $60,000 per
year. Costs from 2006 to 2011 were reported by the site team to be approximately $120,000 per
year; sampling frequencies for 2012 and future years have been reduced based on the July 2011
SAP requirements. The optimization review team believes that the new SAP monitoring
requirements are appropriate.

5.6     CTP UPGRADE AND EXPANSION COST ESTIMATES

The latest cost information for recommended improvements to the CTP is contained in a draft
technical memorandum entitled Documentation of Estimated CTP Expansion and Water
Treatment Costs Presented in the Draft Final FFS Report for the Upper Basin of the Coeur
D 'Alene River, Bunker Hill SuperfundSite (CH2M Hill; February 28, 2012). The costs presented
in this memorandum are only at the level of accuracy of cost curves, since the facilities have not
yet been designed and accurate cost estimating is not possible.  Table 7 therefore presents the
approximate capital and O&M costs for the upgrade and expansion to varying capacities,
developed from data extracted from CH2M Hill's September 12 2006 cost estimation
spreadsheets (CH2M Hill, 2006).

Table 7: Upgrade and Expansion Cost Comparison  With and Without Filtration
Flow
Capacity
(gpm)



2,500
(existing)
5,000
10,000
15,000
20,000
Capital for
Non-Filter
Related
Upgrades
($MM)

3.5

4.2
5.4
6.1
7.0
Additional
O&M for
Non-Filter
Related
Upgrades
($MM/yr)
0

0.089
0.276
0.470
0.655
Capital for
Filter Related
Upgrades
($MM)


2.9

6.3
12.1
18.2
24.0
Additional O&M for
Filter Related
Upgrades ($MM/yr)



0.24

0.372
0.591
0.813
1.025
Combined
Increases -
Capital/O&M
($MM/$MM/yr)


6.4/0.24

10.5/0.46
17.5/0.87
24.3/1.28
31.0/1.68
"MM" = million; yr -year; gpm -gallonsper minute.

The following observations are noteworthy:

   •   With new filters, the cost of labor is expected to increase by one full-time employee;
       power and maintenance costs also increase.

   •   For the upgrade without filters, the cost of labor would not increase with the CTP
       expansion and improvements. Lime and polymer usage would increase. Maintenance
       costs would likely decrease and electric costs would decrease slightly for similar flow,
       because of updated and more efficient equipment, and would increase slightly for large
       flows; however, these maintenance and electric changes were not factored in the
       comparison and are considered minimal in comparison to other costs.
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   •   An additional sludge disposal cell could be required for the upgrade without filtration at
       an estimated cost of $6.1 million (MM) (414,000 cubic yards). This is not shown in Table
       7.

   •   The additional O&M costs are added to the current O&M costs of approximately
       $940,000/yr.

   •   The West Fork of Milo Creek diversion cost estimate (CH2M Hill 2009) is $8.74MM.
       Without filtration, the savings for not treating the diverted flow (2,500 gpm estimated
       maximum flow) would be approximately $500,000 (capital) and $100,000/yr (O&M)
       based on the values in Table 7, indicating that it would take more than 80 years (non-
       discounted) to recover the costs of implementing the diversion. If filtration is added to the
       CTP, the extra combined cost would be approximately $3.5MM capital and $200,000/yr
       O&M indicating that it would take approximately 26 years (non-discounted) to recover
       the costs.  The actual cost recovery periods are longer if the calculations are made based
       on average flow rates instead of maximum flow rates.

   •   Adding filtration is very costly for minimal additional mass removal. For example,
       adding filters and upgrading the existing plant, while maintaining the 2,500 gpm capacity
       would result in an additional $13.6MM expended over 30 years (non-discounted). By
       comparison, expanding the plant to a 10,000 gpm capacity without filtration would cost
       the same amount over the 30 years but would enable the collection and treatment of up to
       7,500 gpm in additional flows, as needed. It could also enable the removal of more than
       1,000 Ibs/yr of added zinc and other associated metals loading.

5.7     APPROXIMATE ENVIRONMENTAL FOOTPRINTS ASSOCIATED WITH
REMEDY

5.7.1    ENERGY, AIR EMISSIONS, AND GREENHOUSE GASES

The primary contributor to the energy footprint is the electricity usage of 1.8 million kWh per
year. Avista is the electricity provider for the Site; based on a preliminary review of Avista's
Integrated Resource Plan, it appears that approximately 50 percent of the electricity is generated
from hydropower, approximately 35 percent from natural gas, and approximately 15 percent
from coal. Based on this generation mix, the electricity is also a major contributor of the
greenhouse gases and other air emissions associated with CTP operation. The other largest
contributor to the greenhouse gas and other emissions is associated with lime
mining/manufacturing and transportation to the Site.

The EPA Spreadsheets for Environmental Footprint Analysis  (SEFA) were used to estimate the
energy and  air footprints. The results for key energy and air annual footprint metrics are
summarized in Table 8.
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Table 8: Summary of Energy and Air Annual Footprint Results
Green and Sustainable Remediation Parameter
Greenhouse Gas Emissions (carbon dioxide equivalents [CO2e]
Total NOx + Sox + PM emissions
Total Hazardous Air Pollutant (HAP) Emissions
Total Energy Use
Voluntary Renewable Energy Use
Approximate Annual Value
2,400 tons
34,000 pounds (Ibs)
250 Ibs
50,000 MMBtus
NA
Notes:   CO^e = carbon dioxide equivalents of global warming potential
   MMBtus = 1,000,000 Btus

Based on the assumptions made in SEFA, approximately 60 percent of the carbon dioxide
footprint is from lime usage and approximately 40 percent is from electricity usage. Other
contributions, including personnel transport and laboratory analysis, are negligible in
comparison.

5.7.2     WATER RESOURCES

An average of 8,136 gpd (May 2011 to April 2012) of potable water is used for lime slaking,
polymer batching and sanitary and cleaning purposes. Water that is intercepted as part of the
remedy is discharged to surface water, which would be the natural fate of the water in the
absence of the remedy.

5.7.3     LAND AND ECOSYSTEMS

Operation of the remedy does not have secondary effects on local land and ecosystems.

5.7.4     MATERIALS USAGE AND WASTE DISPOSAL

The primary materials usage is the lime and polymer usage. Waste disposal associated with this
remedy is to a basin in the CIA. This approximately 5-acre, 15-foot deep basin has been in
operation since about 1997 and is about two thirds full. Additional space is available for
additional disposal  basins adjacent to the current basin. Limited waste is sent to offsite landfills
for disposal.

5.8      SAFETY  RECORD

The site team did not report any safety concerns or incidents.
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                         6.0   RECCOMENDATIONS
This section provides several recommendations related to remedy effectiveness, cost control and
technical improvement. Note that while the recommendations provide some details to consider
during implementation, the recommendations are not meant to replace other, more
comprehensive, planning documents such as work plans, sampling plans and QAPPs.

Cost estimates provided in this section have levels of certainty comparable to those done for
CERCLA Feasibility Studies (-30 percent /+50 percent) and have been prepared in a manner
generally consistent with EPA 540-R-00-002, A Guide to Developing and Documenting Cost
Estimates During the Feasibility Study., July, 2000. This optimization review was unique in its
focus on the CTP and the proposed CTP expansion and upgrades. CTP upgrade and expansion
costs have already been estimated by the site team and are included in Table 7; the impacts of
recommendation on costs are explained in the text below. The recommendations are summarized
in Table 9; life-cycle cost implications are not calculated because of uncertainty regarding the
CTP expansion schedule.

The CTP is effectively mitigating a major source of metals loading to the SFCDR; however,
effectiveness and operator requirements are strained during high flows. Components of the
system are over 30 years old and should be replaced with modern, more effective and efficient
equipment. Additional contributors to SFCDR metals loading have been identified and can be
treated in an expanded and upgraded system.

The main concern of the optimization review team is that the effort to meet stringent anticipated
water quality discharge standards will delay system expansion significantly, require excessive
capital and continuous operating expense for minimal load reduction and may still result in non-
compliance for manganese and possibly other discharge standards. The optimization review
team, therefore, recommends a phased approach using the proven CTP LDS technology for an
expansion to treat the identified sources at a reasonable capital and operating expense. The site
team can then evaluate system performance and ambient surface water quality under various
conditions for an extended period of time to pilot test and evaluate the applicability, cost and
benefit of additional system modifications potentially including filtration, ion exchange and
reverse osmosis.

This optimization review is an independent study funded by the EPA that focuses on
protectiveness  and cost-effectiveness. Detailed consideration of EPA policy was not part of the
scope of work for this review. EPA Region 10 and EPA OSRTI will address EPA policy when
considering the technical recommendations provided in this report.
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6.1       RECOMMENDATIONS TO IMPROVE EFFECTIVENESS

6.1.1    EXPAND PLANT TO 20,000 GPM CAPACITY WITHOUT FILTRATION

The optimization review team recommends proceeding with expanding the plant to a capacity of
20,000 gpm, while maintaining the LDS operation, including all of the following proposed
upgrades:

   •   Replace the existing rapid mix tank (Reactor A) with a properly designed reactor and
       mixer.

   •   Replace the aeration basin (Reactor B) with a new basin, mixer and aeration system.

   •   Replace the manual polymer feed system with an automatic batching system.

   •   Replace the remaining older sludge recycle and wasting pumps.

   •   Add an influent flow meter.

These are the same recommendations discussed in Section 5.3 with the exception of the
recommendation to add filtration.

Cost for the additional 20,000 gpm capacity (versus 10,000 or 15,000 gpm) is comparatively
low.  The total estimated increase in capital and O&M costs over a 30-year period (non-
discounted) is approximately $27MM (not including sludge disposal cells closure and
construction) (CH2M Hill Upgrade Existing CTP Cost Opinion Tables, 9/12/2006). The
proposed 20,000 gpm capacity is within the existing thickener (clarifier) capacity. The 20,000
gpm  capacity would allow the maximum treatment of additional metals sources as  needed,
without having to provide an additional clarifier and expand the CTP footprint. Based on the
source information provided by the site team (Table 5), the 20,000 gpm capacity would also
enable treatment of a large percentage of the identified metal mass contribution.  Operation of the
current CTP indicates that the anticipated zinc and lead limits can be met during operation at
lower flows even though the current CTP has a substandard aeration and flocculation process.
An upgraded and expanded system should also be able to meet the anticipated zinc and lead
limits.

The filtration step would add significant cost and would provide questionable benefit as follows:

   •   The anticipated cadmium limit might be achieved by the LDS system without filtration
       but might be more consistently met with filtration.

   •   The expanded CTP with filtration (as currently proposed) would not be capable of
       meeting the limits for newly regulated metals including mercury, selenium  and thallium.

   •   The expanded CTP with filtration (as currently proposed) would not be capable of
       meeting the proposed manganese limit of 0.0819 mg/L. The relevance of the manganese
       standard is questionable because it is based on human consumption of shellfish, which
       are not present in SFCDR. If manganese treatment  to this limit was required, manganese

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       could likely be reduced to about 0.5 to 1.0 mg/L by increasing the pH to 10 standard units
       or higher. Additional treatment would be required to attempt to reduce the manganese to
       the proposed discharge limit of 0.0819 mg/L. Greensand filtration or ion exchange would
       be to achieve appropriate treatment technologies for achieving more consistent
       manganese treatment below the limit. However, the capital cost ($10MM range) and
       operating costs (additional $300,000 per year) to add either of these processes to a 20,000
       gpm system would be very high for manganese removal alone.

   •   Installing and operating a filtration step for a 30-year period is estimated to cost an
       additional $54MM over the $27MM noted above. (Assuming the LDS consolidated
       sludge generation volume is three times the HDS consolidated sludge generation volume,
       $12.2MM in sludge disposal cell construction costs could be saved by HDS
       implementation over a 30-year period partially offsetting the $54MM filtration cost.)

   •   Selenium is especially difficult to remove, and if it is present above the anticipated limit,
       it would not be adequately addressed by filtration. Reverse osmosis would likely be
       required for consistent compliance. The addition of reverse osmosis to the upgraded CTP
       would require capital cost in the range of $40MM range expense with O&M costs in the
       $7MM per year range.

Given the substantial cost increase, the relative uncertainty in the total flow to be treated, the
relative uncertainty in the water quality to be treated and the relative uncertainty in treatment
plant performance of an expanded treatment system, the optimization review team recommends
installation and optimization of a  system without filtration. The system without filtration should
be operated for an extended period of time in an interim or pilot mode to evaluate system
performance relative to standards and the potential need, costs and benefits of adding any or all
of the filtration, ion exchange  and reverse osmosis steps. Based on system performance over this
extended period, the site team could consider other improvements to the thickener (for example,
radial effluent launders, flocculation in the center well) prior to considering filtration. Additional
operational tests such as varying sludge recycle rates or polymer addition rates (potentially even
eliminating recycling and polymer addition) should also be tested during this period to optimize
treatment effectiveness and possibly reduce operating costs. This interim testing period would
allow the site team to reduce significant metals loading from additional sources, as needed.
During this time, various tertiary treatment processes such as filtration, greensand filtration, ion
exchange and reverse osmosis could be tested at bench scale and potential pilot scale on a small
portion of the system effluent.

6.1.2     Do NOT CONVERT To HDS AT Tffls TIME

Filtration would be necessary for HDS mode operation to reduce solids in the discharge. As long
as the CTP does not have filtration it should not operate in HDS mode.

The HDS process has a proven track record for reliability and offers the benefits of making the
most efficient use of the lime coagulant/flocculant and producing a sludge that can be readily
dewatered. However, because the long-term sludge disposal practice  at this facility consists of
discharging liquid sludge directly from the thickener to a lagoon where consolidation through

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evaporation occurs, the benefit of achieving a sludge that can be more readily dewatered is only
marginal. The lagoon contents under current LDS operation appear to be solidifying and
consolidating well. There was a concern expressed during the Site visit that lagoon expansion
would require a significant land area that may be wanted for other purposes. Those other
purposes are unknown but there appears to be vast land area available on the CIA such that
expansion of the lagoon system should not pose a problem. The future lagoon will be lined to
avoid leaching of water into the subsurface, but an underdrain or other means can be constructed
to help remove water from the basins.

If the sludge were dewatered using a plate and frame filter press and hauled to a remote Site for
disposal, this particular benefit of the HDS process would be much more technically and fiscally
attractive.

The Canyon Creek Phase II Treatability Study (CH2M Hill  October 2006, page 4-9) discusses
the benefits of the HDS process in regard to the sizing of the thickener. It indicates that for a
process flow rate of 1,200 gpm and using the HDS process,  the area required for the thickener
would be 2,152 ft2 (a diameter of 52 feet). Extrapolating the flow rate up to 5,000 gpm would
result in an area requirement of 8,970 ft2 (a diameter of 106  feet). Extrapolating the flow rate up
to 20,000 gpm would result in a diameter of 212 feet. The existing thickener has a diameter of
about 210  feet and has recently been refurbished. This unit, therefore, should be capable of
remaining in service for the long-term and  have more than enough surface area to adequately
settle particles developed in the LDS process, possibly even at the higher design flow rate. From
a capital investment standpoint, it is questionable what benefit there would be in converting to
HDS since the capacity of the thickener appears to be more than adequate for the projected
design  flow.

During the Site visit, the impact on lime dose associated with the conversion to HDS was briefly
discussed.  The site team indicated that there would not be a  significant change in the lime dose
once the HDS process was re-incorporated. One of the reported benefits of the HDS process is a
reduction in the lime and coagulant requirement. If the requirement for lime is not changed
significantly, especially since the cost of lime is one of the major O&M cost components for the
CTP and the thickener is adequate for expansion to a 20,000 gpm design flow, the need for
conversion to HDS is questionable.

6.2     RECOMMENDATIONS TO REDUCE COSTS

6.2.1    PERFORM ADDITIONAL COST-BENEFIT ANALYSIS OF THE WEST FORK OF MILO
        CREEK DIVERSION

The West Fork of Milo Creek diversion cost estimate (CH2M Hill 2009) is $8.74MM.  The
savings for not treating the diverted 2,500 gpm (maximum flow) without filtration is about
$500,000 in capital costs and  $100,000/yr (non-discounted)  in O&M costs (Table 7), requiring
more than  80 years to recover the costs. If filtration is  added, the extra combined cost is about
$3.5MM in capital costs and $200,000/yr (non-discounted) O&M costs, requiring approximately
26 years to recover the costs.  Therefore, the diversion  could be cost-effective only if the CTP
includes filtration. The actual cost recovery or payback periods are significantly longer for

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calculations based on average flow rates estimated at approximately 600 to 700 gpm rather than
the maximum flow rate of 2,500 gpm.

Based on the information provided, due to the very long payback, the optimization review team
recommends a thorough cost-benefit analysis be performed to support final decision-making on
the West Fork of Milo Creek Diversion.

6.2.2    VARIABLE FREQUENCY DRIVES (VFDs) FOR REPLACEMENT MOTORS

Several sludge recycle and discharge pumps and mixers have large (10+) HP motors that are
older and will be replaced with system upgrades. As the CTP is expanded and upgraded and
these older motors are replaced they should include variable frequency drives (VFD) to reduce
electric costs and improve efficiency. Capital costs for the VFDs and cost savings will depend on
the final design criteria, but VFDs on pumps are likely to  save 10 to 25 percent of total CTP
electric costs, equating to $10,000 to $25,000 of savings per year depending on the final CTP
design. The cost of a VFD for each large (approximately 50 FTP) motor is typically about $5,000.

6.3     RECOMMENDATIONS FOR TECHNICAL IMPROVEMENT

6.3.1    CONSIDER Two NEW REACTOR A's DURING CTP EXPANSION

Currently the plant influent is directed to Reactor B which is equipped with a bridge mounted
mechanical surface aerator.  Lime is added in the rapid mix tank (Reactor A), immediately
upstream from Reactor B. Recycle flow from the thickener co-mingles with the applied lime
slurry in Reactor A, and then the flow discharges to Reactor B. This is the typical flow pattern
for the HDS system, but not for an LDS lime precipitation process. In a typical LDS process, all
the influent flow passes through the flash mix tank where it has complete exposure to the lime
slurry. Following intensive flash mixing, the coagulated water flows on to the next reactor where
longer retention time allows the lime precipitation process to be completed. In the CTP, the
surface aerator provides the potential for oxidation of certain metals to further enhance the
removal efficiency.

The current flow path is limiting the effectiveness of the LDS process in several ways. In
Reactor A, or the rapid mix tank, only the recycled sludge from the thickener is treated with the
lime slurry. The plant influent bypasses Reactor A, thus influent contaminants must come in
contact with the effluent from Reactor A in Reactor B for removal to occur.  Reactor B is subject
to significant short-circuiting due to the configuration of influent and effluent entry and exit
piping, and more importantly, due to the swirling motion imparted in the water by the  surface
aerator. Much of the influent raw water passes through Reactor B without coming in contact with
lime; therefore, it is not effectively treated.

The lime feed system consists of the  silos, volumetric feeders, slurry tanks and centrifugal slurry
pumps that discharge slurry to Reactor A. Control of the lime slurry flow rate is based on a pH
sensor in Reactor B. The slurry feed pumps appeared to run continuously in a loop from the
slurry tank, out to Reactor A, and back to the slurry tank. When the pH drops below the set point,
the automated valves at Reactor A open and slurry is discharged into Reactor A. The cycle time

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on this open-close sequence is approximately every 30 seconds or longer. During the "off
period, no lime is being fed and recycled sludge is passing through Reactor A without slurry
application. As a result of the intermittent lime slurry feed and the short-circuiting in Reactor B,
the process is not achieving the best removal efficiency. In spite of these short-comings, the
overall process still appears to be achieving the required removal efficiencies.

Currently, it is proposed that only one new Reactor A be constructed as part of the upgraded
facilities. While this approach simplifies the lime addition due to one application point, it tends
to complicate the lime addition because two pH probes would then control the feed rate. It also
requires flow splitting to the two Reactor B basins that are proposed. Flow must also be split
upstream of the Reactor B basins. For complete redundancy and for  simpler control, it may be
better to construct two new Reactor A basins. The specific benefits for constructing two new
Reactor units include:

   1.     Redundancy. Similar to the configuration of the two Reactor B units, providing two
          Reactor A units will ensure that the plant will not be completely shut down if one
          Reactor A is out.

   2.     Better lime dose control. The pH is monitored in Reactor B and lime is added in
          Reactor A. With only one Reactor A, the flow from Reactor A must be split between
          the two Reactor B units. If the flow split is not accurate, the Reactor B receiving the
          lesser flow will experience a drop in pH that may not be effectively satisfied by
          addition of lime slurry to the common Reactor A. The control system would at best
          overdose in Reactor A causing higher than needed pH in  the Reactor B getting the
          higher flow proportion. This would result in poor lime dose control and a waste of
          lime. It would be more efficient to return separated flows to two Reactor A units that
          have been accurately measured with  flow meters, sense the pH in the separate Reactor
          B units, and adjust the lime dose accordingly for each treatment train.

   3.     Better process optimization. Slightly different pH targets can be established in two
          separate treatment trains to fine tune the process control during full scale operation.
          This approach provides a side-by-side comparison and allows the operations staff to
          determine impacts of changing the pH set-point on the overall  process efficiency.
          With only one Reactor A, both trains must always operate at the same pH, and this
          opportunity for full scale process optimization is lost.

Based on the site team cost estimates, a second Reactor A would cost approximately $700,000.

6.4     CONSIDERATIONS FOR GAINING  SITE CLOSE OUT

Close out is not a part of this optimization review. The CTP operation is indefinite.
                                           29

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6.5     RECOMMENDATIONS RELATED TO ENVIRONMENTAL FOOTPRINT
REDUCTION

The above recommendations provide substantial opportunity to reduce the remedy footprint.
Recommendations to reduce the electricity usage will result in reductions to the energy and air
emission footprints. In addition, options are suggested for reducing motor size and operation to
decrease or eliminate potable water that is used for lime slaking and polymer batching.
Reductions in process monitoring accomplished with the July 2011 SAP will reduce the
contributions of the remedy footprint associated with laboratory analysis.

Once the system is optimized as suggested and electricity usage is better understood, the site
team can consider the potential application of renewable energy at the Site.

6.5.1    METALS RECOVERY

A 1997 analysis of the residual solids from the CTP  showed that the dry solids in the sludge cells
is approximately 25 percent iron oxides and hydroxides, 25 percent zinc oxides and hydroxides,
22 percent manganese  oxides and hydroxides, 14 percent gypsum, 12 percent magnesium oxides
and hydroxides and 2 percent aluminum oxides and hydroxides. Assuming typical oxidation
states for these metals and the associated number of oxide and hydroxide anions per metal ion,
the dry solids in the sludge are approximately ISpercent iron, 16 percent zinc,  14 percent
manganese, 14 percent gypsum, 5 percent magnesium and 1 percent aluminum. The 1997
analysis concluded that ten to 20 million pounds (5,000 to 10,000 tons) of dry solids are likely
generated each year. The quantity currently in the sludge pits is unknown, but is likely over
200,000 tons. The two metals that are likely of highest potential value are the zinc and the
manganese. Therefore, this analysis focuses on these two metals.

   •  Manganese - According to the U.S. Geological Survey (USGS), the United States relies
      on imports for 100 percent of medium to high quality manganese ore. In 2010, the United
       States imported up to 489,000 metric tons of manganese ore (35 to 40 percent
      manganese), up to 326,000 metric tons of ferromanganese (typically over 75 percent
      manganese), and up to 297,000 metric tons of silicomanganese (typically over 65 percent
      manganese). The primary use for manganese is in steel production. Other uses of
      manganese include battery production, chemical production and stainless steel
      production. The material safety data sheet (MSDS) for a common alkaline battery reports
      that the battery is  comprised of 35 to 40 percent manganese dioxide (23 to 26 percent
      manganese). These latter uses typically require high purity (for example, 99.97 percent
      pure) manganese), which is achieved by leaching the manganese from ore with sulfuric
      acid and then electrolytically purifying the leached manganese in an  electro-winning
      process. The International Manganese Institute estimated that the average ore content in
      the market place in 2011 was approximately  32.8 percent. Based on this information, it
      would seem that the residual solids (approximately 14 percent manganese) would need to
      compete with manganese ores that are of substantially higher grade. The price of
      manganese ore is  commonly measured in dollars per metric ton unit (i.e., $ per Ipercent
      of manganese in a metric ton of ore). The USGS reports that the cost for manganese ore
      delivered to the United States with an average manganese content of 40 to 46 percent
      manganese was approximately $9 per metric ton unit in 2010 and 2011. Manganese ore

                                          30

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with 40 percent would cost approximately $360 per metric ton of ore ($0.36 per kg or
$0.16 per pound of ore). This pricing approach partially accounts for some of the
variability of the manganese content of ore. For example, assuming the same cost per
metric ton unit, the price of the treatment residuals at the CTP would be approximately
$126 per metric ton. However, given the significantly lower grade (14 compared to 40
percent) of the treatment residuals, the value would likely be significantly less or
impractical given the increased processing needed.
The above pricing likely refers primarily to very large amounts of manganese used in
steel production, given that approximately 90 percent of all mined manganese is used in
steel production. However, the use of high grade electrolytic manganese for specialty
uses is increasing in demand. In addition, electrolytic manganese involves significantly
more processing and perhaps allows more flexibility in the source of the manganese.
Despite the low manganese concentration of the treatment residuals, there may be
companies within the United States that might consider using the treatment residuals for
the manganese content. Battery recyclers (for example, www.toxco.com and
www.batteryrecycling.com) extract manganese dioxide and zinc from recycled batteries.
The optimization review team, however, is unaware if their processes or their end
customers could benefit from the manganese and zinc in the treatment residuals.
Additionally, some companies are apparently attempting to produce electrolytic
manganese in the United States based on very low grade deposits. For example,
American Manganese, Inc. (www.americanmanganeseinc.com) appears to have a
business model for producing electrolytic manganese from ores with manganese content
as low as 4.5 percent. A preliminary economic assessment on their webpage suggests the
ability to recover 108 million Ibs of manganese per  year from these deposits with an
electro-winning plant assuming a recovery rate of 90 percent and a cost for recovery
(mining and processing) of $0.44 per Ib.  For comparison, assuming the same 90 percent
recovery rate, the treatment residuals would yield approximately 2.5 million pounds of
manganese per year, and current "reserves" in the sludge pits likely exceeds 50 million
Ibs. Manganese removal rates at the CTP will likely increase (perhaps double) in the near
future to meet the NPDES permit requirements. As  a result, significantly more
manganese may become available. Hickman Williams and Company is an existing and
established provider of manganese products (ferroalloy and electrolytic manganese)
within the United States and may also see value in the manganese content of the
treatment residuals. The optimization review team is referencing the above companies
and the American Manganese, Inc. business model as potential examples of use for the
existing and future treatment residuals. The above references are not intended to support
or endorse the  companies or business models or recommend business with these
particular firms.

Zinc - According to the USGS, zinc is the fourth largest tonnage of production (after
iron, aluminum and copper). Zinc has a number of uses including metal coating (i.e.,
galvanized steel), bronze and brass production, and  various compounds used by the
rubber, chemical and paint industries. Zinc is primarily mined as a sulfide ore. Zinc ore is
both mined in the United States and imported. Zinc  ores commonly contain more than 60
percent zinc, and the process for extracting the zinc is highly dependent on sulfide nature
of the ore. Because the treatment residuals are not sulfides, it would appear challenging,

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       and potentially costly, to attempt to separate the zinc from the ore using common
       processes.

It would not be practical to separate the treatment residuals into different constituents at the Site,
and if metals recovery is pursued, the treatment residuals would be sent to either a manganese
recovery operation or a zinc recovery operation. Given the potential challenges of processing the
residuals for zinc, and the apparent possibilities for pursuing manganese recovery, the
optimization review team suggests potentially pursuing manganese recovery over zinc recovery,
if metals recovery is pursued at all. The optimization review team also notes that the demand for
manganese appears to be increasing and that the manganese in the residuals may have the
potential to become more valuable over time, particularly if the manganese content of the
treatment residuals significantly increases as the optimization review team projects. The
optimization review team, however, believes that metals recovery is a secondary priority relative
to the treatment plant upgrades and other remedial activities intended to protect human health
and the environment. Manganese metal recovery may also be a possibility at other sites managed
by the EPA, including the ARGO tunnel site (Colorado) where treatment residuals with
manganese are sent to a landfill for disposal. The optimization review team  suggests that EPA
OSRTI further evaluate the potential for manganese metal recovery based on numerous potential
sources of treatment residuals rather than have the potential for multiple site teams independently
evaluating its potential and being distracted from higher priorities.

6.5.2    HYDROELECTRIC POWER

The flow rate of approximately 1,500 gpm and the hydraulic head of 120 feet associated with the
collected AMD have a fluid horsepower of approximately 45. Losses due to turbine efficiency
and energy conversion would likely reduce this to approximately 15 HP of useable energy or 11
kW of electricity. This would translate to approximately 5 percent of the total electrical demand
for the Site and a value of approximately $6,000 per year in electricity costs. Unfortunately, the
collected AMD is not an appropriate fluid for hydropower given the precipitation of metals and
the anticipated fouling of the turbines. The site team already reports significant metals
precipitation and fouling of influent lines. The  optimization review team expects that labor and
materials to address the fouling would exceed the cost savings from the electricity generated on
an annual basis. The capital costs would never be recovered and electricity generation would
likely be significantly lower than projected due to down time. For these reasons, the  optimization
review team does not recommend pursuing hydropower on the collected AMD.

The future upgrades will involve pumping the treated water to the final outfall. As a  result,
hydropower is not appropriate for the treated water because it would take more energy to pump
the water and generate electricity from it than it would to discharge the water.

6.5.3    REDUCE CITY WATER USE

From May 2011 through April 2012, an average of 8,135 gpd was used in the CTP. The majority
of the water use is for lime slaking and polymer batching. The site team should consider using
the treated water from the CTP for these purposes to reduce potable water use and associated
costs.

                                           32

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Table 9: Recommendations Summary
Recommendation
6.1.1 Expand Plant to 20,000 gpm Capacity Without
Filtration
6.1.2 Do Not Convert To HDS At This Time
6.2.1 Perform Additional Cost-Benefit Analysis of the
West Fork of Milo Creek Diversion
6.2.2 Variable Frequency Drives (VFDs) For Replacement
Motors
6.3. 1 Consider Two New Reactor A's During CTP
Expansion
6.5.1 Metals Recovery
6.5.2 Hydroelectric Power
6.5.3 Reduce City Water Use
Reason
Effectiveness
Effectiveness
Cost Reduction
Cost Reduction
Technical Improvement
Environmental Footprint
Reduction
Environmental Footprint
Reduction
Environmental Footprint
Reduction
Change in Cost*
See Table 7
Not Quantified
Not recommended
Not Quantified
Not Quantified
Not Quantified
Not Recommended
Not Quantified
* Due to the nature of this review concerning the CTP expansion and the uncertain expansion
impacts were not quantified, gpm -gallons per minute; CTP - central treatment plant; HDS-
schedule, cost
high-density sludge.
                                                33

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          ATTACHMENT A:




SELECT FIGURES FROM SITE DOCUMENTS

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                        *'   "'"-     SMi^^^f :'''^
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                                          •>  • i < ,   *'&' '•* ,^^r^^  -   *
                                         ;«>'&  ^/'W
                                           **? > ^ "• ^-^ ^
Central Impoundment
   Area (CIA)
Confluence of Bunker Creek
  with the South Forte
  Coeur d'Aiene River
                 CTP Outfall to Blinker
                  Crook (006 Outfall)

                     Central Treatment
                       Plant (CTP)
                                                                    ^    \
                                                            Pipeline

                                                            River/Creek

                                                            C"VLimit
                                                         A L^
                                                                600   1 200 Feet
                                                         Base Map Data:
                                                         NHDPIus (Hydrography. 2005);
                                                         ESRI (Roads, JuristJicttonal Boundaries. 2006);
                                                         IDWR (Aerial Imagery. 2006).
                                                         Figure 2-1
                                                         Central Treatment Plant and
                                                         Related Features
                                                         BUNKER HILL SUPERFUND SITE

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Lime System    Lime Slurry
           Feed Pumps (2)
                                                                                     To Sludge Disposal
                                                                                     Cell at CIA
                                                                           Sludge Recycling &
                                                                           Wasting Pumps (3)
                                                                                             Polishing Pond
                                                                                           Figure 5-2
                                                                                           Bunker Hill CTP Flow Sheet
                                                                                           BUNKER HILL SUPERFUND SITE
                                                                                                                      xs/EPA

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                   atment
                Plant
      " ~ "••Mllfe',    I • -;."-'~

Sweeney Area Pipelin,
.
                                           Sludge Pond
               North
                                                         'L*^l*^^
             -N  1 1«"09'01.5I'W
                                                 3it?arilni(
Source: 2006 Google Earth™
                  FIGURE 3
                  CTP-RELATED INFRASTRUCTURE
                                                                                                      -QH2MHILL

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