Use of Cooperative Agreements

Toward a Common Goal

•	Approximately 95 million tons of ore have
been processed in the mining district.

•	EPA, Tennessee, and private companies are
coordinating detailed investigations, com-
munications, and cleanup efforts.

•	A new wastewater treatment plant has
removed approximately 6 million pounds of
metals from the Davis Mill Creek in its first
two years of operation.

The Copper Basin Mining District has been heavily scarred by mining
activities and is currently an area in transition. Once considered the
largest man-made biological desert in the nation, a 50-square mile tract
of land was completely denuded following years of mining; farmers' crops were
destroyed by sulfur dioxide gas emissions from mining wastes; and creek waters
were so acidic that no life flourished. In the 1970s, a biological survey found
only one living organism an insect-in the waters downstream of the mining
area. Today, EPA, private companies, and the State of Tennessee are working
together to reforest the land, clean the polluted waters, and stabilize and contain
mine wastes. On land that was once devoid of vegetation and clear waters, trees
have taken root and aquatic life is gradually returning. Tourists and locals alike
enjoy white water raft trips in the nearby Ocoee river, scenic train excursions,
and visits to a historic mining museum. It is only through coordinated efforts
by EPA, the State of Tennessee, and private companies with much input from
the surrounding communities—that this turnaround is possible. With continued
coordination and the ongoing work by all parties, the future for this mining area
looks promising.

July 2005


-------
Site Location

Roughly 50 square miles in area, the Copper
Basin Mining District site ("the site") is located
in southeastern Tennessee in Polk County and
northern Georgia in Fannin County, near the North
Carolina border. The site includes contaminated
segments of the Ocoee River system and two major
watersheds: the 10,000-acre North Potato Creek
watershed and the 3,000-acre Davis Mill Creek
watershed. These creeks drain the Copper Basin
area and discharge as tributaries into the Ocoee
River. Contamination in North Potato Creek and
Davis Mill Creek is attributed to multiple areas of
mining waste in both watersheds.

History of the Copper Basin
District

Copper was discovered in Ducktown, Tennessee
in 1843. Over the next 150 years, mining and
processing activities-centered on copper and
sulfur-occurred throughout Copper Basin with
brief interruptions. The total ore production of the
site from nine ore bodies exceeded 95 million tons.

The first large-scale environmental damages from
the mining and manufacturing operations were
described at the beginning of the 20th century.

Ownership and operation of the mines changed
many times throughout its history. Some of
the owners and operators since the late 1890s
included, the Tennessee Copper Company (TCC),
the Cities Services Company, and the Tennessee
Chemical Company. OXY Oil and Gas USA, Inc.

(OXY USA) became involved in the site as the
corporate successor to Cities Services Company.

Copper Basin Mining District

Mining Impacts

The mining and related processes produced solid wastes and byproduct
materials that remain on site including sulfide-rich ore, sulfide bearing
waste rock, tailings, granular and pot slag, iron calcine, magnetite, iron
concentrate, wastewater treatment sludge, and demolition debris. Many of
these materials are capable of, or are known to be, releasing acid or metals
to the environment.

In addition, mining and related activities resulted in metals andpolychlorinated
biphenyls (PCBs) contamination, deforestation, and severe erosion. By the
early 1900s, the area surrounding the site was deforested to provide fuel for
the roasting of ore. The ore roasters, in turn, generated sulfur dioxide gas
that killed any remaining vegetation and left the area denuded. Visitors to the

Former diversion tunnel outfall in the
Davis Mill Creek watershed

BctTsnnpcoip
\ Mhp

Co'dpp Unci

Ducktowii

Eurra ajrra
Mine

Eurph?
\Mln p

Mnrth Pn tain CitpH
Watorchpd

Da Ml cM III CtppH
Vrtitprchp d

Chirctaiu f.trw
lOiurclttH "rJiirti

Colp-favvn

Co pp prill II
Han t Cum pip i

Coppertiill

MCCaysvilfe

-2-

July 2005


-------
area in the early 1900s would have seen a vast area-approximate ly
50-square miles stripped of all vegetation. Without the plants to
protect the land, massive amounts of soil eroded, partially filling
the stream beds and two reservoirs on the Ocoee River.

The release of sulfur dioxide gas not only harmed native flora but
also severely damaged local crops and endangered the livelihood
of area farmers. In 1907, farmers in Georgia sued the owners of the
site for nuisance conditions. To resolve the situation, the company
reduced emissions by using sulfur gases from copper furnaces to
produce sulfuric acid. It wasn't until the 1980s that the area was
successfully reforested.

Both the Davis Mill Creek and the Lower North Potato Creek
contribute acid, heavy metals, and sediment to the Ocoee River.

The Davis Mill Creek watershed contains more than 15 million
tons of mining-related waste materials and is devoid of aquatic life.

The physical appearance of the streams has also changed, with large portions being redirected due to mining operations.
The Davis Mill Creek now meanders around and through waste piles, picking up additional contamination as it flows toward
the Ocoee River. Although Davis Mill Creek contributes approximately one percent of the water in the Ocoee River, it is
the largest single source of acidity and heavy metals. The pH of the creek water ranges from 2.5 to 3.5. Brightly colored
colloidal iron precipitates coat the stream bed and quickly cover any organism or organic matter that enters the stream.

Contaminated sediments impact the Ocoee River adjacent to the mining operations and continue approximately 25 miles
downstream of the site. The Ocoee River is listed under Section (303 )d of the Clean Water Act.

Investigation for the National Priorities List (NPL)

Under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), more commonly known
as Superftind, EPA has the authority to pursue long-term remedial response actions that permanently and significantly
reduce the dangers associated with releases or threats of releases of hazardous substances. When using Superfund monies,
however, these actions can be conducted at only those sites listed on EPA's National Priorities List (NPL). In order to
address the large-scale contamination at the site, EPA investigated placing Copper Basin Mining District on the NPL.
Although the site could have been addressed through listing on the NPL, an alternative solution was proposed: cleaning up
the site through enforceable legal agreements.

History of Cooperative Agreements

Under legal agreements dating from 1990, various
government agencies and private parties have taken steps
to stabilize and partially revegetate the area. In 1990, an
agreement among Boliden Intertrade, EPA, and the State
of Tennessee was finalized. The following year, EPA
and OXY USA entered into an Administrative Order on
Consent (AOC).

The site is currently being investigated and cleaned
up through a collaborative three party effort that was
formalized on January 11, 2001 in a Memorandum
of Understanding (MOU) and several related legal
agreements among EPA, the Tennessee Department of
Environment and Conservation (TDEC), and OXY USA.
The MOU provides an overall framework and establishes
roles and responsibilities among the three parties for the

-3-	July 2005

Isabella mine collapse

Photograph of leaf taken from the streambed of Davis Mill Creek
just upstream of the Calloway Mine. The leaf and the streambed
in the background are coated with iron hydroxide that has
precipitated out of the water in response to changes in pH.


-------
investigation and cleanup work. It also provides assurance
on the part of the federal government not to list or propose
to list the site on the NPL as long as terms of the MOU
are met. The enforceable agreements add details about
the legally binding commitments made between OXY
USA and the government.

Through the agreements and the cooperation of the
partners (TDEC, EPA, and OXY USA), various agencies
and programs will be able to lead and participate in the
cleanup actions based on the strengths of the particular
agencies and programs involved. Currently, Glenn Springs
Holdings, Inc. (GSHI), a wholly owned subsidiary of
OXY USA, conducts its share of the cleanup actions with
oversight from TDEC and EPA.

Work Status Overview

Area

Order

Purpose

Action

Status

Results

Davis Mill

Creek

Watershed

EPA Order-

Removal

Action

To create the Davis
Mill Creek Existing
and Committed Water
Treatment System
to detain and treat
contaminated water and
bypass the clean waters of
a 10-year 24-hour storm
event

GSHI refurbished the
Cantrell Flats Wastewater
Treatment Plant to treat
acid and metal laden
waters of the creek,
underground mine waters,
and contaminated storm
water.

GSHI installed the
Belltown Creek and the
Gypsum Pond Creek
diversion systems.

GSHI upgraded and
modified the three existing
dams in the watershed.

Complete

Complete
Complete

From November 2002
to November 2004, the
plant treated 1.9 billion
gallons of contaminated
water, removed 5,975,806
pounds of iron, zinc,
manganese, copper,
lead, and cadmium and
neutralized 13,935,382
pounds of acid.

Routes clean water around
the most contaminated
parts of the watershed and
reduces the volume of
water requiring treatment.

Detains contaminated
storm water for treatment.

North
Potato
Creek
Watershed

EPA Order-

Removal

Action

To temporarily alleviate
the contaminant discharge
while long-term actions
under the state VCP
proceed

GSHI installed lime
treatment plant near the
mouth of creek at the
South Mine Pit.

Complete

Removes 90 percent of
the dissolved metals of
ecological concern and
raises pH of the discharge
from 3.3 to 7.0.



State

Voluntary
Cleanup

To provide for long-term
protection of human health
and the environment

GSHI is evaluating areas
potentially affected by past
mining and will develop
cleanup alternatives.

Ongoing

Ultimately establish
biological integrity in the
watershed.

The legal agreements created the framework for cooperative remediation and site treatment activities that have been funded
by GSHI. As part of these remediation efforts, GSHI has conducted extensive studies and prepared reports and work

Table 1: Davis Mill Creek & North Potato Creek Actions Summary

-4.

July 2005


-------
plans that have been approved by TDEC and EPA.
Agreements and removal actions are frequently
amended as site activities progress to ensure the most
efficient site cleanup. GSHI, EPA, and TDEC have
undertaken both major and minor actions to clean the
Copper Basin area.

GSHI has implemented a series of EPA removal orders
in the Davis Mill Creek watershed and has established
the Davis Mill Creek Existing and Committed Water
Treatment system. EPA required short-term actions
in the North Potato Creek watershed to temporarily
alleviate the contaminant discharge of North Potato
Creek to the Ocoee River while long-term actions
under the State Voluntary Cleanup Program (VCP)
proceed. A summary of these Davis Mill Creek and
North Potato Creek actions is found in Table 1.

Surface impoundment for Cantrell Flats Wastewater Treatment Plant	. , , - , ,, -	„ , , .

In addition to the actions outlined in Table 1, a

TDEC Commissioners Order for North Potato Creek
Watershed established biological integrity of the watershed as its long-term goal and requires shorter, interim remedial actions
to protect the health and safety of the public and the environment. GSHI has completed or is in the process of completing
these actions. These include capping the lead contaminated soil at the site of the former Isabella chamber acid plant and
covering and revegetatmg the abandoned slag dump also at Isabella. The 300-acre tailings pond was revegetated with native
grasses and over 86,000 trees. PCB contaminated equipment and soils were removed from ten different areas across the
watershed. Over five miles of 8-foot tall, barbed wire topped chain link fencing and subsidence monitoring equipment have
been installed around seven different areas of abandoned and collapsing mine works. Additions and modifications to the
experimental passive wetlands system have been completed. A comprehensive inventory of acid generating materials and
hazardous substances associated with historic mining in the watershed has been conducted.

These actions illustrate how all parties are working to address waste from historical mining activities. Although work
remains to be done in Copper Basin, cooperatively planning and conducting cleanup activities will help reduce current and
future impacts to human health and the environment.

Community Involvement

Site partners have made extensive efforts to encourage community participation and involvement in the remediation
activities at the site. The legal agreements include a commitment from the parties to involve the community throughout the
remediation process. Using the legal agreements as a starting point, site partners have incorporated additional opportunities
for public participation.

The State of Tennessee operates the Burra Burra Historic Mine Site
Ducktown Basin Museum, which is a record of the basin's history,
mining technology, and the heritage of the Cherokee Nation.

GSHI and its parent company OXY USA, in coordination with
EPA and the State of Tennessee, keep the local press informed by
periodically taking them on site tours.

On July 4th each year ("Miners Day"), there are public tours of the
site along with an open house hosted by GSHI.

On Earth Day, there are tours and activities in Copper Basin for
local students and groups. In the past, Boy Scout groups and high
school students have helped create silt fences and plant trees at the
site.

I



AV|T

j*? iSs i ' A

London Mill Flotation Plant ruins

-5-

July 2005


-------
The partnership held a series of interviews and meetings
in 2001 with local officials, community members, and
other interested parties to determine the questions and
concerns that the community had about the site. Using
information gathered from these interviews and meetings,
the partnership developed a Community Involvement Plan.

In spring 2002, GSHI provided $50,000 to fund a Technical
Assistance Program to provide technical expertise to help
the community participate m the remediation process. In
2005, GSHI provided an additional $50,000 grant to the
community. The partnership developed and implemented
a site education program to keep the community informed
about site activities. As part of this program, the partnership
developed a video featuring mining history, environmental
effects of the mining, and remediation activities.

Early Pioneer of the Superfund Alternative Approach

In 2002, EPA issued guidance on response and settlement strategies for sites that are eligible but have not been listed on the
NPL. EPA revised this guidance in June 2004. It outlines the steps EPA Regions should take to ensure that the settlements
and cleanups at such Superfund Alternative (SA) sites are equivalent to settlements and cleanups at sites listed on the NPL.
Many of the same methods to foster effective collaboration while ensuring consistent and adequate cleanup were and are still
being used at the Copper Basin Mining District site, making it an excellent example of the use of the Superfund Alternative
approach in many ways.

Cooperation Among Parties Toward a Common Goal

The innovative multiparty agreements ensure that TDEC, GSHI, and EPA work together in a coordinated manner with the
common goal of environmental remediation and redevelopment of the Copper Basin Mining District. In addition, the agreements
ensure that the partners actively coordinate public participation activities and free-flow communication, which provides a
benefit to all parties. Timely cleanup will help ensure the community's continuing economic growth as natural resources are
protected, as illustrated by the protection of the Ocoee River white water rafting industry. All parties cooperate to apply and
shift resources where they can optimally benefit the site. The approach encourages long-term stewardship of the site by GSHI
and avoids prolonged litigation that could delay site cleanup and spend funds that could otherwise be used for cleanup efforts.

The cooperative and collaborative approach is maintained
between the site partners through technical progress meetings that
encourage coordination and allow for accelerated decisions about
site activities. The following agencies are typically represented at
the meetings: TDEC, TDEC Division of Water Pollution Control,
TDEC Division of Superfund, EPA Superfund. EPA Site Remedial
Project Managers (RPMs), GSHI, U.S. Army Corps of Engineers
(USACE), Tennessee Valley Authority (TVA), and contractors.

Site Reuse and Economic Development

All partners kept an end goal in mind while planning site activities:
to successfully clean the site in a way that allows future reuse of
the land and waters. As such, when addressing the tailings pond,
GSHI planted grass and trees, keeping in mind the final reuse goal
to create habitat suitable for wildlife.



Historic photo of deforestation in North Potato Creek Watershed

-6-

July 2005


-------
Some reuse strategies at the site also foster economic development in the surrounding community. For instance, the source
control efforts of the Davis Mill Creek and North Potato Creek have improved the water quality of the Ocoee River and have
allowed a white water tourist industry to thrive. Other mining sites could benefit by similarly incorporating reuse goals in
initial cleanup planning.

Limitations of the Approach

The MOU and State Voluntary Cleanup program were highly successful at this site, based largely on the willingness
and ability of the site partners to work cooperatively for the benefit of the site. GSHI has a long-standing reputation for
responsible environmental stewardship and was willing to collaborate with EPA and TDEC. This approach would not be
appropriate for sites with unwilling or unable potentially responsible parties (PRPs).

Lessons Learned and Conclusion

Successful cooperation among the partners at this site has been facilitated by several key features of the remediation process
that include the following:

formation of a site partnership to deal collectively with a large, complex site;

a highly collaborative remediation process with all parties involved at the site providing input at the technical meetings;
multiple party review and input into work plans;

dynamic work plans that are revised, when appropriate, due to new sampling or fieldwork information;
completion levels that are based on established performance goals, encouraging thorough workmanship; and
public participation.

The MOU and legal agreements promoted strong collaborative relationships among the partners, resulting in numerous
environmental studies, sampling events, and cleanup actions, all with the common goal of reducing the impact of 150
years of mining activities. In an area rich with natural resources and a long history of mining, the agreements provided a
framework that allowed the partners to work simultaneously on multiple areas of complex contamination with metals and
acid-producing materials. Innovative projects, such as recruiting help from community groups for planting trees and building
silt fences, and providing tours of the site to local schools and citizen groups, encouraged active public participation. The
remediation process for the Copper Basin Mining District site could be applied as a national model for abandoned mine land
cleanup, but the system requires consistent and diligent work by all parties involved.

North Potato Creek Area Cleanup Milestones

January 4, 2001

OXY USA and TDEC signed Voluntary
Cleanup and Oversight Assistance
Program for North Potato Creek.

July 2001

EPA approved GSHI work plan for
Engineering Evaluation/Cost Analysis
(EE/CA) for North Potato Creek.

October 2001

PCB-contaminated devices removed
from North Potato Creek area.

March 31, 2003

Action memorandum signed to
implement the selected alternative for
North Potato Creek.

Spring 2003

GSHI installed approximately five
miles of fences to restrict access to
potentially unsafe areas near Lower
North Potato Creek.

January 10, 2005

Lime treatment plant on North Potato
Creek began operation.

Davis Mill Creek Area Cleanup Milestones

June 21, 2001

GSHI completed work plan for
diversion of Belltown Creek and
Gypsum Pond and work plan for
refurbishment of Cantrell Flats
Wastewater Treatment Plan.

Fall 2001

EPA completed fieldwork forsampling
for Lower Davis Mill Creek area.

November 2002

Cantrell Flats Wastewater Treatment
System became active.

August 11, 2003

Additional AOC signed to amend the
original removal action for Davis Mill
Creek.

2004

Belltown Creek and Gypsum Pond
Creek diversion systems installed
and active.

-7-

July 2005


-------