i A t, PROPOSED PLAN FACT SHEET

1 w I

* — INVITATION to comment on the

PROPOSED CLEANUP OF MOLYCORP INC. SITE

(NOW CHEVRON MINING INC. - QUESTA MINE)

Questa, Taos County, New Mexico
December 31, 2009

This Sheet will tell you about...

•	Proposed Cleanup Plan

•	How to Participate

•	Site Risks

•	Cleanup Goals

•	Where to get more information

PROPOSED CLEANUP PLAN

The U.S. Environmental Protection Agency, Region
6 (EPA) announces the Proposed Plan for the
Molycorp Inc. (now Chevron Mining Inc. - Questa
Mine or CMI) site (Site), located near Questa, New
Mexico. The Proposed Plan identifies the actions that
EPA believes are the best way to protect your health
and the environment. The following actions will
address mining-related contamination at five areas of
the Site that warrant cleanup under the Superfund
law:

•	Mill Area

Dig up 2,400 cubic yards of contaminated soil to
a depth of about 2.5 feet and transport the soil to
a permitted off-Site treatment and disposal
facility. This will cost $3 million and take 1.5
years to complete (Alternative 3).

•	Mine Site Area

Regrade waste rock piles, cover with clean soil
and revegetate with native plants. Move any
excess waste rock to another location

(repository) at the mine site to be determined
during design. Collect contaminated ground
water below the waste rock piles using existing
and new pumping wells and drains. Build a
new water treatment plant at the mine site and
treat collected seepage and ground water to
remove contamination. Maintain water in the
underground mine at a level below the Red
River and treat collected mine water. Use
Conservation Easement and Restrictive
Covenants recorded by CMI in 2009 to legally
restrict land and ground-water use at the mine
site, including the mill area. These actions will
cost between $364 million and $730 million and
take between 25 and 28 years to complete
(Alternative 3 A and 3B).

• Tailing Facility Area

Collect/extract contaminated ground water
downgradient of the dams using existing and
new drains and pumping wells south and
southeast of the tailing impoundments. Treat
collected water with CMI's existing water
treatment plant or a new plant to remove
contamination and discharge clean water to the
Red River. Pipe unused irrigation water in the
eastern diversion channel adjacent to the tailing
impoundment to prevent it from seeping
through buried historic tailing located north of
Change House and contaminating ground water.
Cover tailing impoundments with 3 feet of
clean soil and revegetate with native plants
following cessation of tailing disposal
operations. Use Restrictive Covenants recorded
by CMI in 2009 to legally restrict residential
land use and ground water use at the tailing


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facility. Continue to monitor ground water
outside and within tailing impoundment to
ensure cleanup actions are effective. Perform
additional characterization of ground water in
some areas to determine if the ground water
remedy needs to be expanded. These actions
will cost $143 million. Ground water is
expected to be cleaned up 15 years after
cessation of tailing disposal operations and
placement of soil cover (Alternative 3B).

•	Red River. Riparian, and South of Tailing
Facility Area

Protect fish by controlling inputs of
contaminated ground water at seeps and springs
along mine site reach of Red River. Dig up
26,000 cubic yards of contaminated soil in the
valley south of the tailing facility to a depth of 2
feet to protect wildlife and livestock. The soil
will be disposed in the tailing facility and the
excavation backfilled with clean soil. Dig up
3,800 cubic yards of tailing spills along the north
bank of the Red River (the riparian area) to
protect wildlife. Dispose these materials in the
tailing facility. This will cost $4 million and take
2 years to complete (Alternative 3B).

•	Eagle Rock Lake

Install storm water inlet controls to reduce the
amount of sediment entering the lake during
storm events. Dredge 15,000 cubic yards of
contaminated sediment from the 3-acre lake,
dewater the sediment and dispose at an
appropriate on-Site facility (most likely in the
tailing facility). This will cost $2 million and
take 2 years to complete (Alternative 3B).

HOW TO PARTICIPATE

EPA and the New Mexico Environment Department
(NMED) want to know your views about the plans
for cleaning up this Site. We are providing a
variety of ways for you to comment on the Proposed
Plan, learn more about the project, and get involved.

Attend the Public Meetings

To help you understand and comment on this
Proposed Plan, EPA will host two public meetings.
At the first meeting, we will discuss the contents of
the plan, help you understand the cleanup

alternatives, and answer questions.

At the second meeting, EPA will listen to public
comments and discuss next steps. A court
stenographer will record the meeting transcripts.
The public meetings will be held:

Thursday, January 21, 2010
6:30 p.m. - 8:30 p.m.
and

Thursday, January 28, 2010
6:30 p.m. - 8:30 p.m.
at

VFW Hall Post 7688
(2 miles north of Questa)

Hwy 522, Questa, NM

Provide Comments to EPA

Your comments will help EPA make final
decisions about the Site cleanup, and they may
result in a final cleanup plan that differs from this
one. The final cleanup plan (or "selected remedy")
will appear in a document called a Record of
Decision (ROD), which is expected to be
completed in 2010.

Written comments on the Proposed Plan or other
material in the Administrative Record file must be
postmarked by January 29, 2010. A summary of
the comments received along with how those
comments changed the decision that was reached
will be documented in the ROD.

SITE RISKS

EPA performed a human health and ecological risk
assessment on the environmental data collected at
the Site by CMI for the Remedial Investigation and
Feasibility Study (RI/FS). These findings were
presented to the community on August 23, 2007.
Based on the human health risk assessment, EPA
found that there is some risk to people
(hypothetical future resident or future
commercial/industrial worker) who may come into
contact with contaminated soil at the Mill Area.
There is also some risk to people (for example
residents) who may drink contaminated ground
water drawn from rural domestic wells in the area
south of the tailing facility or in the mine site area


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or come into contact with contaminated surface
water at the mine site or tailing pond sediment at
the tailing facility (such as a recreational visitor or
trespasser). Currently, there is no known exposure
to the contaminated ground water from use of
private water wells, as there are no residents near
the mine site and most of the residences south of
the tailing facility are connected to the Questa
municipal water supply. EPA is continuing to
evaluate the water quality of the Red River State
Fish Hatchery, as several full-time workers and
their families live at the hatchery.

While the chance of being harmed from exposure
to this Site contamination is small, it is serious
enough to require that actions be taken to reduce
the level of the contaminants of concern (COCs)
present in the soil, sediment and water at the Site.
It is noted that EPA did not evaluate potential
exposure to current mine workers, as they are
covered under Mine Safety Health Administration
(MSHA) regulations for an operating mine.

Based on the ecological risk assessment, EPA
found that there is a risk to fish (resident brown
trout) from exposure to contaminated surface water
in the Red River at and down stream of seeps and
springs along the mine site reach of the river.
There is also a risk to wildlife (deer, elk, birds) and
livestock (domestic cattle, sheep) from exposure to
contaminated soil and tailing spills in the riparian
area of the Red River or the area south of the
tailing facility and to deer and elk due to exposure
to tailing at the tailing impoundments.

Finally, there is a risk to aquatic insects and other
invertebrates due to exposure to contaminated
sediment in Eagle Rock Lake.

CLEANUP GOALS

Several cleanup goals have been developed for
each of the five areas that will be addressed by
EPA's proposed cleanup plan. A summary of
these goals are:

•	Protect people by preventing direct
contact/ingestion of contaminated soil in Mill
Area.

•	Prevent ingestion by people of contaminated
ground water drawn from private wells.

•	Eliminate or reduce, to maximum extent
practicable, leaching and migration of COCs and
acidity from waste rock (acid rock drainage) to
ground water.

•	Protect recreational visitors/trespassers by
reducing exposure of contaminated surface
water.

•	Remediate contaminated ground water at the
Mine Site Area and Tailing Facility Area to meet
state/federal ARARs or preliminary Site-specific
risk-based cleanup levels.

•	Eliminate or reduce, to the maximum extent
practicable, the seeping and migration of COCs
from tailing to ground water.

•	Protect Red River aquatic species from long-term
(chronic) exposure to COCs and acidity at
springs by reducing discharge of contaminated
spring water to Red River.

•	Eliminate or reduce direct exposure and exposure
via accumulation in plants to contaminated soil
and tailing spills for protection of wildlife and
livestock.

•	Eliminate or reduce direct exposure of aquatic
insects to contaminated sediment in Eagle Rock
Lake.

WHERE TO GET MORE
INFORMATION

You can see a copy of the Proposed Plan, which
describes the cleanup alternatives studied, and also
get more information about the Site by visiting the
Administrative Record file, which can be found at:

Village of Questa

2500 Old State Road 3, P. O. Box 260
Questa, New Mexico (575) 586-0694

New Mexico Environment Department

1190 St. Francis Drive, P.O. Box 26110
Santa Fe, NM (505) 827-2340


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U.S Environmental Protection Agency -
Region 6

1445 Ross Avenue, Suite 1200
Dallas, TX (214) 665-6427

If you have questions or need additional
information, contact:

Mark Purcell

Remedial Project Manager

U. S. Environmental Protection Agency

214-665-6707 or 1-800-533-3508 (Toll-free)

Joseph Fox

Project Manager

New Mexico Environment Department
505-827-2340

Phyllis June Hoey

Region 6 Community Involvement Team/SEE
U. S. Environmental Protection Agency
214-665-8522 or 1-800-533-3508 (Toll-free)

Beverly Negri, Team Leader

Technical Assistance Grant Project Officer
U. S. Environmental Protection Agency
214-665-8157 or 1-800-533-3508 (Toll-free)

For press inquiries, please call the EPA Region
6 Press Office, at 214-665-2208 or 214-665-2261.

You can find more information about the
Region 6 Superfund program on EPA's Region
6 website:

http://www.epa.gov/region6/superfund or
http://www.epa.gov/earthlr6/6sf

The EPA wishes to thank the community members for their participation at all EPA community
meetings and encourages everyone to attend the January 2010 meetings to be held by EPA.

Phyllis June Hoey
Region 6

1445 Ross Ave. (6SF-TA)
Dallas, TX 75202


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