ITEM 9: REQUEST FROM THE CALIFORNIA REGIONAL WATER QUALITY CONTROL BOARD, CENTRAL VALLEY REGION, FOR $1,200,000 FROM THE STATE WATER POLLUTION CLEANUP AND ABATEMENT ACCOUNT (ACCOUNT) TO CONTINUE MONITORING AND PROJECT MAINTENANCE AT WALKER MINE FOR THE NEXT 10 YEARS

DISCUSSION: On June 20, 1997 the Regional Water Quality Control Board, Central Valley Region, (Regional Board) adopted Resolution No. 97-160 (Attachment #1) which authorized the Executive Officer to apply to the State Water Resources Control Board for $1,200,000 from the Account to respond to the problems associated with the Walker Mine. The Regional Board also adopted Resolution No. 97-161 (Attachment #2) which adopted long term Operation and Maintenance Procedures (O&M Procedures)for the Walker Mine pollution control facilities. On July 24, 1997 the Executive Officer of the Regional Board submitted a Request for Cleanup and Abatement Funds (Request) and Funding Criteria for the Walker Mine Acid Mine Drainage Abatement Project (Attachment #3)

The Request and Funding Criteria were reviewed and it has been determined the documents contain the required information. The funds requested will be used for annual maintenance/ monitoring (inspections, water quality sampling), periodic maintenance (surface diversion ditches, timber support replacement, concrete seal testing) and long term maintenance (concrete seal repair/replacement.

The O&M Procedures include a detailed discussion of the Walker Mine Acid Drainage Abatement Project (Project)including background information, a description of the maintenance program and schedule of operations, and estimated annual cost of the activities. The estimated annual cost is $111,000, therefore the Regional Board has requested $1,200,000 disbursed over the next ten years.

Prior to this request the Account received $1,500,000 in settlement of a lawsuit against a former owner of Walker Mine and those funds have been used for cleanup activities. Nearly $1,171,000 has been expended, $62,800 is encumbered and the available balance is $266,200. It is estimated that all the funds authorized for the Project will be expended by the end of FY 97/98.

POLICY ISSUE: Should the State Water Resources Control Board approve $1,200,000 from the Account to fund the request made by the Regional Water Quality Control Board.

FISCAL IMPACT: As of July 1, 1997 the Account has a cash balance of at least $5,912,900, and there is $8,628,900 committed to cleanup and abatement activities. Approximately $7,758,600 will be needed during Fiscal Year 1997/1998 (FY 97/98) for the current approved projects and $4,946,400 will be deposited to the Account. The estimated cash balance at the close of FY 97/98 is $3,100,700 if no new projects are approved. Approximately $6,025,100 will be needed during FY 98/99 for the current approved projects and $4,923,300 will be deposited to the Account. The estimated cash balance at the close of FY 98/99 is $1,998,900.

Although the Account is over committed, most funds will be disbursed over extended periods and we are confident the Account will maintain a positive cash balance at all times. An additional commitment of $111,000/year should not jeopardize the security of the Account.

Account funds currently available Walker Mine ($266,200) should fund the O&M cost through FY 97/98.

RWQCB IMPÄCT: Yes, Central Valley Region.

STAFF RECOMMENDATION: We recommend that the State Water Board adopt the proposed resolution approving a commitment of $1,200,000 to be expended over a ten year period.for operation and maintenance of the Walker Mine Acid Mine Drainage Abatement Project with no expenditures to be made until the Regional Board has expended the funds that are currently available in the Account for the project

[Attachments not available electronically but can be obtained by calling Alan Garbutt at (916) 227-4440.]

September 9. 1997 DRAFT

WHEREAS:

1. Discharges of acid mine drainage from Walker Mine can impair beneficial uses of Dolly Creek, Little Grizzly Creek and the Feather River; and

2. In settlement of a lawsuit against the former owner, $1,500,000 was added to previous allocations from the State Water Pollution Cleanup and Abatement Account (Account) for cleanup activities at Walker Mine; and

3. The Regional Water Quality Control Board, Central Valley Region, (Regional Water Quality Control Board) has expended all Account funds allocated for Walker Mine except for $266,200; and

4. The Regional Water Quality Control Board has determined there are sufficient funds allocated for 1997. However additional funding of $1,200,000 is needed to continue monitoring and maintenance for the next 10 years; and

5. The Regional Water Quality Control Board has requested $1,200,000 over a ten (10) year period from the Account for activities detailed in the Operations and Maintenance Procedures for Walker Mine; and

6. The Regional Water Quality Control Board has resolved, that before using funds from the Account the Executive Officer is directed to seek funding from any responsible party; and

7. The Regional Water Quality Control Board has resolved, that if funds are expended the Executive Officer is directed to seek reimbursement from any responsible party; and

8. The Account is currently over committed. To insure 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 $111,000 per year will not jeopardize the security of the Account.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board:

1. Allocates up to $1,200,000 from the Account over a ten (10) year period to the Regional Water Quality Control Board to operate and maintain the Acid Mine Drainage Abatement Project at Walker Mine in accordance with the Operation and Maintenance Procedures adopted by the Regional Water Quality Control Board.

2. The Regional Water Quality Control 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.

3. The unused portions of the Account funds previously allocated to Walker Mine must be expended before these additional funds may be expended.

The undersigned, Administrative Assistant to the Board, does hereby certify that the forgoing 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 September 18, 1997.

_____________________________________

Maureen Marché

Administrative Assistant to the Board