WHEREAS:

1. Leviathan Mine is an inactive sulfur mine on property presently owned by the State of California under the jurisdiction of the State Water Resources Control Board (SWRCB). The mine is located in Alpine County, approximately five miles east of Markleeville, California.

2. Degradation of water quality in Leviathan, Aspen, and Bryant creeks occurs as a result of the discharge of acid mine drainage (AMD) from Leviathan Mine. The AMD from Leviathan Mine can be characterized as a dilute sulfuric solution (pH 2-3) containing dissolved heavy metals, including: arsenic, copper, nickel, aluminum, and iron.

3. Anaconda Minerals Company, a wholly owned subsidiary of Atlantic Richfield Company (ARCO), conducted open pit mining at Leviathan Mine from 1954 until 1962. Anaconda's mining activities contributed to the discharge of AMD from Leviathan Mine.

4. ARCO, through its ownership of Anaconda Minerals Company, is a previous mine owner/operator.

5. In 1984, the SWRCB acquired ownership of the mine. The Lahontan Regional Water Quality Control Board (LRWQCB) completed the Leviathan Mine Pollution Abatement Project in 1985. The completed project included several remediation measures, including: channelization of Leviathan Creek to prevent its contact with mine tailings, re-grading and compacting the mine pit to reduce AMD production, and construction of five lined ponds to capture and partially evaporate AMD from underground mine workings.

6. Overflow of AMD from the evaporation ponds occurs when the influent AMD and direct rainfall exceed the storage and evaporative capacity of the ponds. Pond overflows result in the discharge of AMD to Leviathan Creek.

7. As a means to prevent pond overflows, LRWQCB staff are exploring various means to increase the storage capacity of the evaporation ponds. One obvious method of increasing pond capacity is the removal of AMD from the ponds during the summer months. Removal of AMD during the summer months will provide additional storage capacity and prevent overflows later in the water year.

8. The United States Environmental Protection Agency (USEPA) has issued an Administrative Order on Consent (AOC) to ARCO. According to the AOC, ARCO is required to provide at least 8.5 million gallons of storage capacity in the evaporation ponds by October 1, 1998.

9. There exists several unresolved issues regarding responsibility for ongoing discharge of AMD, with ARCO alleging the LRWQCB has some responsibility and the LRWQCB disagreeing. Nonetheless, both parties agree that immediate action is necessary to prevent pond overflows in 1999. One option is to enter into a contract with ARCO. If this option is pursued and ARCO incurs cost prior to initiation of the contract or beyond the contract amount, these costs will be borne by ARCO. The LRWQCB proposes to contract with ARCO or another contractor to provide adequate storage capacity in the evaporation ponds, to significantly reduce the possibility of pond overflows to Leviathan Creek in 1999.

10. Execution of an agreement during state fiscal year 1998-1999 to provide adequate storage capacity in the evaporation ponds, to significantly reduce the possibility of pond overflows to Leviathan Creek in 1999, shall be contingent upon the LRWQCB securing the contract amount ($625,000) for expenditure during state fiscal year 1998-1999.

THEREFORE BE IT RESOLVED THAT:

Subject to availability of funds being appropriated for this purpose in fiscal year 1998/99, the SWRCB authorizes the Executive Director, or his designee, to execute a standard agreement to provide adequate storage capacity in the evaporation ponds at Leviathan Mine, to significantly reduce the possibility of pond overflows to Leviathan Creek in 1999. The contract amount shall be no more than $625,000.

The undersigned, Administrative Assistant to the Board, does hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the State Water Resources Control Board held on June 18, 1998.

/s/
Maureen Marché

Administrative Assistant to the Board