CHEVRON QUESTA MINE

(Formerly Molycorp)

(TAOS COUNTY)
NEW MEXICO

EPA ID# NMD002899094
Site ID: 0600806

EPA REGION 6

U.S. CONGRESSIONAL
DISTRICT 03

Contact: Gary Baumgarten
214-665-6749

Laura Stankosky
214-665-7525

Updated: July 2015

Current Status

EPA, the State of New Mexico (State) and CMI entered into
negotiations for CMI to conduct early actions at the Site, On
March 7, 2012, EPA and CMI reached an agreement
(Administrative Order on Consent or AOC) for CMI to perform
removal actions at the Site beginning in 2012. The removal
actions will consist of (1) removal of PCB-contaminated soil at
the Mill Area with off-Site treatment/disposal, (2) removal of
historic tailing spill deposits along the Red River riparian
corridor, (3) removal of contaminated sediment at Eagle Rock
Lake and installation of an storm-water control structure for the
lake inlet, and (4) the piping of unused irrigation water within
the eastern diversion channel adjacent to the tailing facility.

Field work began in June 2012 with a pre-construction meeting
and health and safety meeting. Removal of PCB-contaminated
soil in the mill area began in July 2012, and was completed in
October 2012. Installation of the storm-water control structure
for Eagle Rock Lake inlet began October 29, 2012, and was

completed in December 2012. Cleanup of historic tailing spilis at the Lower Dump Sump started
February 11, 2013, and was completed in August 2013. Cleanup of tailing spills along the former tailings
pipeline adjacent to State Highway 38 started September 2013, and was completed in September 2014.
Work to pipe unused irrigation water within the eastern diversion channel adjacent to the tailing facility
began in October 2013 and was completed in September 2014. Work to remove contaminated sediment
at Eagle Rock Lake began on January 12, 2015.

On September 25, 2012, another AOC was signed which set forth early design actions that CMI will
conduct at the Site. The early design work involves additional ground water investigation at the tailing
facility, design support investigations for ground water extraction wells and expanded seepage collection
systems, characterization of Spring Gulch waste pile borrow material, a waste rock pile pilot project, a
slope stability analysis for the waste rock piles and treatability studies for water treatment.

The Pre-Design Borrow Characterization of Spring Gulch Waste Rock and Toxicity Review Work Plan
was approved in August 2013. Field work at Spring Gulch began in August 2013 and concluded in
September 2013. The field work at Spring Gulch included excavation and sampling of test pits and
drilling and sampling of boreholes. CMI submitted a report in April 2014 documenting the field work and
findings. The draft report was approved by EPA on December 1, 2014. The water treatability studies
began in September 2013 and work concluded in spring 2014. CMI submitted a report to document the
results of the water treatability studies to EPA on August 29, 2014. Following submission of comments by

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EPA on the water treatability study report in December 2014, CMI submitted a revised report to EPA in
December 2014. CMI is currently conducting the drilling program at the tailing facility to further evaluate
ground water.

As required under the September 2012 AOC, CMI initiated the multi-stakeholder facilitated process to
develop and evaluate remedial design options for the waste rock piles. CMI set up a technical working
group (TWG) in which experts retained by EPA, NMED, MMD, and other stakeholders were invited to
participate. The TWG will provide technical expertise to assist CMI in the development and evaluation of
design options for the waste rock piles. The TWG will provide input relating to EPA's Selected Remedy
as well as the regulatory requirements and Performance Standards set forth in the ROD. The TWG will
provide factual findings from that process to CMI for consideration in preparing deliverables for EPA
review. The TWG has met on the following dates: January 23-24, 2013; March 7-8, 2013; April 1-3, 2013;
May 8-9, 2013; July 23-25, 2013; August 28-29, 2013; November 19-21, 2013; January 22-24, 2014;
March 11-13, 2014; April 30 - May 2, 2014; June 9-11, 2014, July 30-August 1, 2014, September 3-5,

2014,	October 22-23, 2014, January 20-21, 2015, March 17-19, 2015, April 28-29, 2015, June 10-12,

2015.

On September 30, 2014, a first amendment to the Early Design AOC was signed which set forth
additional early design actions that CMI will conduct at the Site. The additional work to be conducted
under the first amendment includes: 1) Design of a Ground Water Extraction System in the Lower
Sulphur Gulch Waste Rock Pile Drainage; 2) Design of a Groundwater Extraction Systems to Enhance
Lower 002 Seepage Barrier and Upper 003 Seepage Barrier at Tailing Facility; and 3) Design and
Construction of Pilot Surface Based Mine Dewatering System.

On November 13, 2014, a second amendment to the Early Design AOC was signed which set forth
additional early design actions that CMI will conduct at the Site. The additional work to be conducted
under the second amendment includes: 1) Preparation of a Tailing Facility Grading Plan; and 2) conduct
field trials of Spring Gulch waste rock cover material.

Background

The Chevron Questa Mine site (Site), formerly Moiycorp, Inc., is
located in and near the village of Questa, Taos County, New
Mexico. The Site includes a former molybdenum mine and
milling facility located on three square miles of land and tailing
ponds located on approximately one and a half square miles of
land, which are currently owned by Chevron Mining Inc. (CMI).
A nine-mile long pipeline running along State Highway 38
connects the milling facility to the tailings ponds. Mining
operations at the site began at the mine in 1920. Open pit
mining was conducted from 1965 to 1983 and resulted in over
328 million tons of acid-generating waste rock being placed into
nine piles surrounding the open pit. Over 100 million tons of
tailing have been disposed at the tailing ponds.

EPA re-proposed the Moiycorp, Inc. site to the National
Priorities List (NPL) of Superfund Sites in March 2011. The site
was placed on the NPL on September 16,2011. As part of the
listing, EPA changed the name of the site to the Chevron
Questa Mine Superfund site based on comments received
during the public comment period. EPA selected the remedy in
a December 20, 2010 Record of Decision (ROD).

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Benefits

The selected remedy outlined in the ROD will allow EPA to mitigate threats to public health and the
environment from the release or potential release of hazardous substances, pollutants, and contaminants
at or from the Site.

National Priorities Listing (NPL) History

Site Hazard Ranking System Score: 50
Proposed Date: May 11, 2000
Re-proposed Date: March 10, 2011
Final Date: September 16, 2011

Site Description

Location: The Site is located 4 miles east of Questa, Taos County, New Mexico. The tailings
ponds are located 1 mile west of Questa.

Population: An estimated 1,100 people live within a mile of the tailings ponds. There are no people
currently living within one mile of the mine site.

Setting:	The mine site and milling facility are located in the Sangre de Cristo Mountains and the

tailing facility is located in the Rio Grande rift basin. The mine and tailings ponds are
bounded to the south by the Red River, a tributary of the Rio Grande. The Red River is
home to a State fish hatchery located 2 miles downstream of the tailings ponds and is
designated as a Wild and Scenic River in the vicinity of its confluence with the Rio
Grande. Over the years numerous breaks in the pipeline resulted in the spilling of tailings
into and along the flood plain of the Red River, threatening the fishery and nearby
endangered species habitats. Tailing seepage from the tailings ponds and acidic metal-
laden leachate generated from the weathering of the waste rock piles (referred to as acid
rock drainage or ARD) at the mine site has contaminated ground water and surface
water. Past operating practices at the tailing facility has resulted in adjacent surface soil
being contaminated with molybdenum. A small lake, known locally as Eagle Rock Lake,
is located along the Red River riparian corridor and receives its water from the river
through an inlet gate. Sediments in Eagle Rock Lake are contaminated with heavy
metals.

Hydrogeology: Mine Site — Contaminated ground water within side drainage basins flow into the Red
River alluvial aquifer. Some of the ground water within the alluvial aquifer flows into the
Red River as seeps and springs at zones of upwelling. Acidic, metal laden seepage at
the toe of the Capulin and Goat Hill North rock piles is captured and directed to the
underground mine workings. The dewatering of the underground mine workings has
created a zone of capture for the deep bedrock ground water. Molycorp uses water
collected from the underground workings and the alluvial aquifer (via pumping wells) for
production water in its milling operations.

Tailings Ponds — Ground water is present beneath the tailings ponds in an upper alluvial
aquifer and a basal volcanic aquifer. Saturation of the tailings has created a partial
mounding of ground water beneath the ponds. Seepage from the tailings ponds has
moved both downward into the underlying aquifers and laterally to ground surface as
seeps. Seepage-impacted water is extracted by collection systems and discharged to
the Red River via a permitted outfall (002 Outfall).

Heavy metals, including aluminum, arsenic, cadmium, chromium, cobalt, fluoride,
lead, manganese, molybdenum, sulfate and zinc.

Principal
Pollutants:

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Record of Decision

Signed: December 20, 2010

Remedy Selected:

Mill Area - Excavate PCB-contaminated soil and dispose at off-site treatment/disposal facility, cover with
3 feet of amended, non-acid generating waste rock in areas designated for forestry and revegetate;

Mine Site Area - Source containment by regrade of waste rock piles to slopes ranging between 3
horizontal to 1 vertical and 2 horizontal to 1 vertical interbench slopes, with partial/complete removal of
waste rock to accommodate slope requirement, cover with 3 feet of amended, non-acid generating waste
rock and revegetate; operate seepage interception and ground water extraction systems, dewater
underground mine, treat water, provide temporary alternate water supply if necessary, and temporary well
drilling restrictions;

Tailing Facility Area - Source containment by regrade, cover, and revegetation of tailing impoundments,
upgrade of existing seepage collection (drains and wells), piping of irrigation water in eastern diversion
channel, ground water extraction and water treatment, control access to site by physical barriers,

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including exclusion fence to restrict access by deer and elk, provide wildlife drinkers, provide temporary
alternate water supply if necessary, and temporary well drilling restrictions;

Red River, Riparian, and South of Tailing Facility Area - Remove molybdenum-contaminated soil and
tailing spill deposits and on-site disposal;

Eagle Rock Lake - Inlet storm water controls, dredge sediment and on-site disposal.

Contacts

EPA Remedial Project Managers:

Gary Baumgarten
Laura Stankosky
Janetta Coats

214.665.6749
214.665.7525
214.665.7308
214.665.8525
214.665.6483
505.222.9560

EPA Community Involvement Coordinator:

EPA Attorney:

EPA Region Public Liaison

New Mexico Environment Department:

Elizabeth Pletan
Donn R. Walters
Joe Fox

EPA Region 6 Superfund Toll Free Number:

800.533.3508

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