WHEREAS:

1. Discharges of acid drainage from Penn Mine can impair beneficial uses of Camanche Reservoir and the Mokelumne River; and

2. On March 16, 1985 the State Water Resources Control Board adopted Resolution No. 95-14 approving expenditure of $5,125,000 over three years from the State Water Pollution Cleanup and Abatement Account (Account) for cleanup activities at Penn Mine; and

3. The Regional Water Quality Control Board, Central Valley Region (Regional Board) has expended approximately $928,500 of these funds to develop an Environmental Impact Report (EIR), to treat acid mine drainage, and provide additional site maintenance at Penn Mine, thereby leaving a remainder of $4.2 million; and

4. On February 28, 1997 the Regional Board adopted Resolution 97-039 certifying the Penn Mine EIR with the preferred alternative (5A) known as the Penn Mine Long Term Solution project (project); and

5. On February 1997 a settlement was reached such that the Regional Board and East Bay Municipal Utilities District (EBMUD) agreed to pay up to $10 million towards the remediation of abandoned Penn Mine through implementing the project; and

6. The Regional Board has determined that the project will take two years with completion of construction activities by November 2000, and will continue thereafter with site operations, maintenance and monitoring for at least another five years; and

7. Past funding agreements between EBMUD and the Regional Board have resulted in equal sharing of costs associated with the Penn Mine projects; and

8. The Account is currently over committed. To ensure that it remains solvent, any major projects funded by the Account must be segmented; and

9. It has been determined that an additional commitment of $800,00 over the seven year period will not jeopardize the security of the Account.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board:

1. Allocates an additional $800,000 from the Account to supplement State Board Resolution 95-14 which provided $5 million for the Penn Mine Long Term Solution project in accordance with the February 1997 settlement.

2. The project period for the Penn Mine Long Term Solution is extended to June 30, 2005.

3. The Regional Board will segment major procurement to the degree possible, and before entering any contract in excess of $250,000, will obtain approval from the Executive Director to ensure sufficient funds are in the Account to cover the contract.

The undersigned, Administrative Assistant to the Board, does hereby certify that the foregoing is a full, true, correct copy of a resolution duly and regularly adopted at a meeting of the State Water Resources Control Board held on January 22, 1998.

/s/

Maureen Marché

Administrative Assistant to the Board