DECISION MEMORANDUM TONGASS NATIONAL FOREST THORNE BAY RANGER DISTRICT. Poorman Monitoring Wells 2010

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1 DECISION MEMORANDUM TONGASS NATIONAL FOREST THORNE BAY RANGER DISTRICT Poorman Monitoring Wells 2010 BACKGROUND The Poorman project is located on the Kasaan Peninsula along the eastern portion of Prince of Wales Island, Alaska within the Thorne Bay Ranger District in Sections 1 & 12, Township 73 South, Range 85 East, Copper River Meridian. Eagle United, LLC, proposes to use tracked drilling equipment to drill up to three water quality monitoring wells at two sites on National Forest System lands to adequately characterize premining groundwater system is support of a proposed mining development project on non- National Forest System lands. The well at the northern site is intended to be upgradient of disturbances of the project and will monitor quality of bedrock groundwater prior to any disturbance at the site. The well is expected to be relatively deep, perhaps up to 400 feet. Drilling and installation of water monitoring wells is expected to take approximately two weeks. Total disturbance on USFS land would be approximately 0.2 acres. This activity falls within a category of actions established by the Chief of the Forest Service which normally do not individually or cumulatively have a significant effect on the quality of the human environment, and therefore, may be categorically excluded from documentation in an environmental impact statement or environmental assessment. This category of actions is identified in Forest Service Handbook , Chapter 30, Section 31.2 (8) as: Short-term (one year or less) mineral, energy, or geophysical investigations and their incidental support activities that may require cross-country travel by vehicles and equipment, construction of less than one mile of low standard road (Service Level D, FSH ), or use and minor repair of existing roads. This activity under Section 31.2 requires a project file and Decision Memorandum. No extraordinary circumstances exist which would result in additional impacts. No irreversible or irretrievable commitment of resources is anticipated. DECISION It is my decision to approve the Plan of Operations submitted September 21, 2009 by Eagle United, LLC for water monitoring well sites located on National Forest Systems lands. The proposed sites have had the appropriate environmental analysis completed at this time and are authorized for immediate installation activities. This decision includes by reference all mitigation measures attached to this document and identified in the Plan of Operation.

2 The USDA Forest Service will require bonding to ensure, if necessary, reclamation and the transfer of Eagle United, LLC property from NFS lands to their patented mining claim for proper disposal in accordance with CFR Bonds. Eagle United, LLC will implement the use of Best Management Practices (BMP s) as established in FSH SOIL AND WATER CONSERVATION HANDBOOK CHAPTER 10 WATER QUALITY MANAGEMENT FOR NATIONAL FOREST SYSTEM LANDS IN ALASKA. PUBLIC INVOLVEMENT The proposed activities were reviewed internally by a Forest Service mineral administrator, ecologist, biologist, soils scientist and archeologist. Their input and evaluations were used to formulate this decision and are located in the project file. Scoping notices have been published in the Ketchikan Daily News on October 6, 2009 and the Island News. The following individuals were contacted in a letter dated October 2, 2009, informing them of the Plan of Operations and providing them time to submit comments. U.S. Army Corps of Engineer John Leeds 8800 Glacier Highway Alaska Dept. of Environmental Conservation Kenwyn George 410 Willoughby Ave. Suite 303, Division of Coastal and Ocean Management Clair Batac 302 gold Street, Suite 202 Juneau, AK Haida Corp. Alvin Edenshaw, President PO Box 89 Hydaburg, AK Ketchikan Indian Community Norman Arriola, President 2960 Tongass Avenue Ketchikan, AK National Marine Fisheries Service Janet Herr P. O. Box Juneau, AK Alaska Department of Natural Resources Division of Mining, Land and Water Tom Crafford 550 West 7 th Avenue; Suite 900B Anchorage, AK Rick Fredericksen Alaska Department of Natural Resources Division of Mining, Land and Water 550 West 7th Ave., Suite 920 Anchorage, Alaska Hydaburg Cooperative Association Sid Edenshaw, President PO Box 349 Hydaburg, AK Organized Village of Kasaan Richard Peterson, President PO Box 26 - Kasaan Ketchikan, AK U.S. Fish & Wildlife Service Deb Rudis 3000 Vintage Blvd. John Dunker Alaska Department of Natural Resources Division of Mining, Land, & Water Water Resources Section P.O. Box , Juneau, AK Cape Fox Corporation Bruce Borup, CEO P.O. Box 8558 Ketchikan, AK Kavilco Inc. (field office) Louis Thompson, CEO Box KXA Kasaan Ketchikan, AK Southeast Alaska Conservation Council 419 Sixth St. Responses from public scoping have been reviewed and made part of the project file. Biological Evaluations were completed for sensitive plants and animals. No sensitive species will experience impacts that would cause or contribute to a trend towards federal listing or cause a loss of viability to the population or species.

3 FINDINGS REQUIRED BY OTHER LAWS 2008 Tongass Land and Resource Management Plan This decision is consistent with the 2008 Tongass Land and Resource Management Plan (TLRMP) FEIS Plan Amendment. The drill sites are located within a Land Use Designation (LUD) identified as Timber Production and Mineral Exploration. This activity meets the goals of the forest-wide standards and guidelines for Minerals: To encourage the prospecting, exploration, development, mining, and processing of locatable minerals in areas with the highest potential for minerals development. To ensure minerals are developed in an environmentally sensitive manner and other high-valued resources are considered when minerals developments occur. ANILCA Section 810, Subsistence Evaluation and Finding The effects of this project have been evaluated to determine potential effects on subsistence opportunities and resources. There is no documented or reported subsistence use that would be restricted as a result of this decision. For this reason, none of the alternatives would result in a significant possibility of a significant restriction of subsistence use of wildlife, fish, or other foods. Coastal Zone Management Act of 1972, as Amended Under the Coastal Zone Management Act (CZMA), Federal agency activities within the coastal zone must be consistent with the Alaska Coastal Management Program (ACMP). This is a Federal agency activity as defined in 15 CFR (a). The MOU between the Forest Service and State of Alaska lists activities normally requiring a consistency. This activity is authorized under a categorical exclusion (FSH , Section ) rather than EA or an EIS, and is not listed in Section 202.B.1 as normally requiring a consistency determination. Therefore, unless the State of Alaska requests and is granted permission from the National Oceanographic and Atmospheric Administration to review this permit, no consistency certification or review will be required. Endangered Species Act of 1973 A Biological Evaluation has been completed for this action which indicates that no Federally listed threatened or endangered species will be affected by this activity. National Historic Preservation Act of 1966 The Forest Service program for compliance with the National Historic Preservation Act includes locating, inventorying and nominating all cultural sites that may be directly or indirectly affected by scheduled activities. This activity has been reviewed by a qualified archeologist and a determination made that no known cultural resources are present in the project area.

4 Floodplain Management (E.O ), Protection of Wetlands (E.O ) This activity will not impact the functional value of any floodplain as defined by Executive Order and will not have negative impacts on wetlands as defined by Executive Order Recreational Fisheries (E.O ) This activity is consistent with Executive Order 12962, in that it will not improve nor negatively affect the quantity, function, sustainable productivity, and distribution of United States aquatic resources for increased recreational fishing opportunities. Environmental Justice (E.O ) I have determined that, in accordance with Executive Order 12898, this project does not have disproportionately high and adverse human health or environmental effects on minority populations and low income populations. IMPLEMENTATION DATE This action falls within a category of actions which are not subject to appeal (36 CFR 215.8). Implementation of this decision may occur immediately. CONTACT PERSON Scott Leslie Mineral Administrator Craig Ranger District P. O. Box 500 Craig, Alaska Phone /s/ Jason C. Anderson JASON C. ANDERSON District Ranger 3/15/10 Date

5 Mitigations: Move well site MW4 to at least 100 feet away from the small un-named tributary to Footbridge Creek. Access trails should be slashed for their entire length. Leave as much of the surface soil intact as possible. Areas of exposed mineral soil greater than 100 square feet (on the access trails and around the well site) should be slashed with a goal of at least 80 percent cover to prevent erosion. As stated in the Plan of Operations slash may have to be carried or hauled from the existing clear cut on private property. If Mattex Foamer ES is used please ensure that the leak and spill procedures and waste disposal procedures provided on the MSDS are followed. A fuel spill clean up kit and prevention plan shall be kept on site where fuel and petroleum are located or transferred from one container to another. Apply BMP s 12.8, and The amount of water taken from each of the water sources should be limited to maintain the natural temperature regime, the natural hydrologic function and protect aquatic habitat. Apply BMP s and Disperse drilling discharge into non-saturated forested areas to prevent discharge being transported into fish bearing streams. There must be sufficient area for the soil to be able to filter the leftover water and sediment before it can each the fish bearing water bodies. Depending on soil moisture this might be more then a hundred feet from any stream. Apply BMP s 12.4, 12.5, 12.6, 13.12, 13.16, and 14.8.

6 Distribution Alaska Department of Natural Resources Division of Mining, Land and Water Alaska Dept. of Environmental Conservation Cape Fox Corporation Division of Coastal and Ocean Management Haida Corp. Hydaburg Cooperative Association Kavilco Inc. Ketchikan Indian Community National Marine Fisheries Service Organized Village of Kasaan Southeast Alaska Conservation Council U.S. Army Corps of Engineer U.S. Fish & Wildlife Service