7th Annual Surface Water Monitoring and Standards Meeting SWiMS Chicago, IL March 18-20, 2008

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7th Annual Surface Water Monitoring and Standards Meeting SWiMS Chicago, IL March 18-20, 2008 Comparison of Predicted and Actual Water Quality at Hardrock Mines The reliability of predictions in Environmental Impact Statements James Kuipers, Kuipers and Associates, Butte, MT Ann Maest, Buka Environmental, Boulder, CO Kimberley MacHardy, Kuipers and Associates, Butte, MT Greg Lawson, Buka Environmental, Boulder, CO Project Background Project funded by Earthworks/MPC with grant from Wilburforce Foundation 2 year effort One additional report: Predicting Water Quality at Hardrock Mines: Methods and Models, Uncertainties, and State-of-the-Art Reports available at: www.kuipersassoc.com Kuipers & Associates 2 1

Fate and Transport Physical movement of chemical constituents from sources to receptors Chemical changes and interactions along that pathway Kuipers & Associates 3 Pathways: Hydrologic Cycle Kuipers & Associates 4 2

Primary Sources at Mine Sites Underground workings Open pits Waste rock Tailings Leach pads, solution ponds Stock piles Smelter emissions Kuipers & Associates 5 Source and Pathway Overview Kuipers & Associates 6 3

Pathways: Infiltration and Runoff Kuipers & Associates 7 Leaching of Mine Materials Moving from solid to liquid Acid and/or metal-rich drainage, metal salts/crusts How to test or predict/simulate Before mining begins: leach tests - short term, long term Active mining: sample drainage Kuipers & Associates 8 4

Pathways: Transport in Streams Kuipers & Associates 9 Project Tasks Define and identify major hardrock mines in the U.S. Identify NEPA eligibility of major hardrock mines Identify and gather NEPA documentation for major mines Identify and compile water quality predictions information from NEPA documents Identify other water quality predictions information Conduct case studies analysis of NEPA process, predictions results, and actual water quality history Analyze NEPA predictions and water quality information on a comparative basis and in subgroups Kuipers & Associates 10 5

Project Database Location Ownership Commodity Operation Type Operation Status Disturbance and Financial Assurance NEPA Documentation Record of NEPA document requests and retention NPDES Information Data provided in Excel database form and statistically evaluated in appendices to report Kuipers & Associates 11 Major Mines Identification Major Mines Criteria disturbance area of over 100 acres, and financial assurance amount of over $250,000, or having a production history (1975 to current) of greater than 100,000 oz s Au, 100,000,000 # s copper, or equivalent in other metal In operation 1975 to present Sources Kuipers, Randol, USGS, Infomine 182 major mines identified in U.S. 132 of those mines NEPA eligible Kuipers & Associates 12 6

Methods Identified 182 major hardrock mines and 136 major mines eligible for National Environmental Policy Act (NEPA) Gathered information on: geology/mineralization climate hydrology field and lab tests performed constituents of concern identified predictive models used water quality impact potential (pre-mitigations) mitigations predicted water quality impacts (after mitigations) discharge information Information was scored numerically and entered into an Excel database Kuipers & Associates 13 Methods Selected case study mines based on: availability of water quality information after mining began characteristics (commodities, mining types, and climates) similar to larger set of mines mines with long histories and NEPA documentation from new project through reclamation and closure mines with different proximities to water resources mines that conducted some geochemical testing, and if possible, some water quality modeling and mines with different potentials to generate acid and leach contaminants to water resources Kuipers & Associates 14 7

Methods Obtained data/information on operational water quality for case study mines from NEPA documents, State agencies, and/or consultant or agency reports Compared potential (pre-mitigation) and predicted (after considering effects of mitigations) water quality from the EISs with actual water quality at the case study mines. Evaluated effects of geochemical and hydrologic characteristics on operational water quality. Kuipers & Associates 15 Selected Case Study Mines Case Study Mine State Case Study Mine State Greens Creek AK Golden Sunlight MT Pogo AK Mineral Hill MT Bagdad AZ Stillwater MT Ray AZ Zortman and Landusky MT Safford AZ Florida Canyon NV Jamestown CA Jerritt Canyon NV McLaughlin CA Lone Tree NV Royal Mountain King CA Rochester NV Grouse Creek ID Round Mountain NV Thompson Creek ID Ruby Hill NV Beal Mountain MT Twin Creeks NV Black Pine MT Flambeau WI Kuipers & Associates 16 8

Inherent Factors Affecting Water Quality Some characteristics that may influence environmental behavior of a mine include: Ore type and association Climate Proximity to water resources Pre-existing water quality Processing chemicals used Type of operation Constituents of concern Acid generation and neutralization potentials Contaminant leaching potential Kuipers & Associates 17 Inherent Factors - Summary Table Site State Acid Drainage Developed on Site? SW Impact? Standards Exceeded in SW? GW Impacts? Standards Exceeded in GW? Greens Creek Ψ AK Yes Yes Yes Yes No Bagdad AZ Yes Yes Yes NA NA Ray AZ Yes Yes Yes NA NA Jamestown CA No NA NA Yes Yes McLaughlin Ψ CA Yes Yes Yes Yes Yes Royal Mountain King CA No Yes Yes Yes Yes Grouse Creek Ψ ID No Yes Yes Yes Yes Thompson Creek Ψ ID Yes Yes Yes NA NA Beal Mountain Ψ MT No Yes Yes Yes Yes Black Pine Ψ MT Yes Yes Yes NA NA Golden Sunlight Ψ MT Yes No No Yes Yes Mineral Hill MT No Yes Yes Yes Yes Stillwater Ψ MT No Yes No No No Zortman Landusky Ψ MT Yes Yes Yes Yes Yes Florida Canyon Ψ NV No No No Yes Yes Jerritt Canyon Ψ NV No Yes Yes Yes Yes Lone Tree Ψ NV No Yes Yes No? (baseline?) Yes (baseline?) Rochester Ψ NV No Yes Yes Yes Yes Round Mountain NV No NA NA No? (baseline?) Yes (baseline?) Ruby Hill NV No NA NA No (baseline) Yes (baseline) Twin Creeks Ψ NV No Yes Yes Yes Yes (perched GW) Flambeau Ψ WI Yes No No Yes Yes Ψ = mines with springs on site, or discharges to groundwater, and with moderate to high acid drainage or contaminant leaching potential = mines with close proximity to surface water and high acid drainage or contaminant leaching potential Kuipers & Associates 18 9

Surface Water: Inherent Factors Surface Water Impacts For the 13 mines with close proximity to surface water and high acid drainage or contaminant leaching potential (mines with in Summary Table) 12 (92%) have had some impact to surface water. 11 (85%) have had exceedences of standards or permit limits in surface water as a result of mining activity. Of the 11 with exceedences, ten (91%) predicted that surface water standards would not be exceeded. 77% underpredicted actual impacts to surface water. Kuipers & Associates 19 Inherent Factors Groundwater Impacts Groundwater: There are 15 mines with close proximity to groundwater, springs on site, or discharges to groundwater and with moderate to high acid drainage or contaminant leaching potential (mines with ψ in Summary Table). 14 (93%) have had mining-related impacts to groundwater, seeps, springs, or adit water. 11 (73%) have had adverse mining-related impacts to groundwater Of the remaining four mines three have mining-related impacts to spring, seeps or adit water only one has exceedences in groundwater that may be related to baseline conditions. Kuipers & Associates 20 10

Inherent Factors Conclusions Mines with close proximity to surface water or groundwater resources and with a moderate to high acid drainage or contaminant leaching potential have an increased risk of impacting water quality. These combined factors at a mine appear to be a good indicator of future adverse water quality impacts. Mines in this category must rely on well executed mitigation measures to ensure the integrity of water resources during and after mining and are also the most likely to require perpetual treatment to guarantee acceptable water quality. Kuipers & Associates 21 Failure Modes and Effects Analysis Table 8.2 Failure Analysis Spreadsheet NEPA/EIS Case Studies Water Quality at Hardrock Mine Sites Hydrological Characterization Geochemical Characterization Mitigation Failure Mode Effects Consequences Examples Dilution overestimated Surface water impacted in smaller upper M Greens Creek, Jerritt Canyon watershed streams Presence of water from springs Ground and surface water impacts from contact H Black Pine, Mineral Hill, Royal Mountain King or lateral flow not recognized with contaminant source Amount of water Load of contamination exceeds surface water M Mineral Hill underestimated discharge standards H Ray, Zortman and Landusky Sample representation, testing methods or interpretations inadequate Mitigation Not identified identified, inadequate or not installed Waste rock mixing and segregation not effective Liner leak, embankment failure or tailings spill potential for acid drainage and other contaminants not recognized leading to failure to identify need for or type of mitigation inadequate mitigation identified to prevent impacts to water resources leachate contains acid drainage and other contaminants greater than design (e.g. exceedances) impacts to water resources M H S M H M L M H S Greens Creek, Jamestown, McLaughlin, Royal Mountain King, Thompson Creek, Jerritt Canyon Grouse Creek, Beal Mountain, Black Pine Golden Sunlight, Zortman and Landusky Greens Creek, Jamestown, Thompson Creek, Jerritt Canyon Bagdad, Grouse Creek, Beal Mountain, Black Pine, Zortman and Landusky Greens Creek, McLaughlin, Jerritt Canyon Stillwater, Florida Canyon, Lone Tree, Rochester, Twin Creeks Jamestown, Royal Mountain King, Jerritt Canyon, Mineral Hill Bagdad Golden Sunlight Kuipers & Associates 22 11

Failure Modes and Effects Analysis Hydrological Characterization Failures: 7 of 22 mines exhibited inadequacies in hydrologic characterization At 2 mines dilution was overestimated At 2 mines the presence of surface water from springs or lateral flow of near surface groundwater was not detected At 3 mines the amount of water generated was underestimated Kuipers & Associates 23 Failure Modes and Effects Analysis Geochemical Characterization Failures: 11 of 22 mines exhibited inadequacies in geochemical characterization Geochemical failures resulted from: Assumptions made about geochemical nature of ore deposits and surrounding areas Site analogs inappropriately applied to new proposal Inadequate sampling Failure to conduct and have results for long-term contaminant leaching and acid drainage testing procedures before mining begins. Failure to conduct the proper tests, or to improperly interpret test results, or to apply the proper models Kuipers & Associates 24 12

Failure Modes and Effects Analysis Mitigation Failures: 18 of 22 mines exhibited failures in mitigation measures At 9 of the mines mitigation was not identified, inadequate or not installed At 3 of the mines waste rock mixing and segregation was not effective At 11 of the mines liner leaks, embankment failures or tailings spills resulted in impacts to water resources Kuipers & Associates 25 Failure Modes Root Causes Hydrologic Characterization Failures most often caused by: Over-estimation of dilution effects Failure to recognize hydrological features Underestimation of water production quantities Prediction of storm events or deficiencies in stormwater design criteria is the most typical root cause of hydrologic characterization failures Kuipers & Associates 26 13

Failure Modes Root Causes Geochemical Characterization Root causes of Geochemical Prediction Failures include: Sample representation Testing methods Modeling/Interpretation Geochemical Characterization Failures can be addressed by: Ensuring sample representation Adequate testing Interpretation Kuipers & Associates 27 Failure Modes Root Causes Mitigation Hydrologic and geochemical characterization failures are the most common root cause of mitigation not being identified, inadequate or not installed Most common assumption is that oxide will not result in acid generation Mitigations are often based on what is common rather than on site specific characterization Kuipers & Associates 28 14

Failure Modes Root Causes Mitigation Waste rock mixing and segregation not effective In most cases, no real data is available (e.g. tons of NAG versus tons of PAG and overall ABA accounting) Failures typically caused by: Inadequate neutral material Inability to effectively isolate acid generating material from nearby water resources Kuipers & Associates 29 Failure Modes Root Causes Mitigation Liner leak, embankment failure or tailings spill Mitigation frequently fails to perform and can lead to groundwater and surface water quality impacts Failures are typically caused by: Design mistakes Construction mistakes Operational mistakes Kuipers & Associates 30 15

Failure Modes Root Causes Recommendations A more systematic and complete effort should be undertaken when collecting data Recognize the importance of thorough hydrological and geochemical characterization Utilize information in a conservative manner to identify and utilize mitigation measures Consider the likelihood and consequences of mitigation failures Kuipers & Associates 31 16