
FOR IMMEDIATE RELEASE
November 3, 1997
97-171
Contact: Jani Gilbert, Public Information Officer, (509) 456-4464;
pager (509) 622-1289
Carol Fleskes, former Program Manager for Ecology's Water Resources Program,
(360) 407-7012
OLYMPIA, WA - Based on the results of an Environmental Impact Statement (EIS) and an extensive mitigation plan, the Department of Ecology has approved water rights permits for an open-pit gold mine proposed for northern Okanogan County.
The Crown Jewel Mine, proposed by the Battle Mountain Gold Company and Crown Resources, would be located on a site about three miles east of Chesaw.
"The state and the public have given this project more intensive scrutiny than any mining project ever proposed in this state," said Department of Ecology Director Tom Fitzsimmons. "The environmental effects of a mine can be substantial, but every environmental issue we have raised so far has been addressed with a solution that is considered viable and reasonable under the law."
Ecology's approval of the company's water-rights permits hinged on the acceptability of the company's plan to lessen the effects to stream flows associated with constructing and operating a mine and mine pit. The streamflow mitigation would compensate for the effects of the hydrological changes that would occur as the mine is constructed and operated.
Briefly, the plan provides for delivering water to the site from the Starrem Creek Reservoir. From there, water would run through underground pipes to the affected drainages. After the mine is closed, two nearly horizontal boreholes would be drilled from the pit lake, and the water would run to Bolster and Gold creeks. The water would be treated to make sure it is clean before being discharged to the creeks.
The stream flow mitigation plan underwent additional environmental review because there were new effects that were not analyzed in the original Crown Jewel EIS released early this year. Funding the long-term mitigation system will be assured through a "perpetual trust" account set up by Battle Mountain Gold Company.
In deciding to approve the water rights permits, Ecology considered the complete EIS; the company's stream flow mitigation plan for reducing the effects of water use; a water-quality treatment report for the pit lake water; and technical information supplied by the Colville Tribes. Ecology had to determine that enough water was available and that the proposed uses of the water meet the definition of "beneficial uses" listed in the Water Rights Act of 1971. In addition, the company had to show that the water use would not harm those with older water rights and would not be detrimental to the public interest.
"The mitigation plan is unprecedented in Washington State in terms of its scope and its efforts to protect the environment from the effects of this mine," Fitzsimmons said.
In their official "Record of Decision," released with the final EIS, the U.S. Forest Service and the Bureau of Land Management selected an alternative that consists of an open-pit mine that would operate 24 hours a day for about 10 years, including construction, operation and reclamation. The mine would employ about 144 people during operations, and produce an average of 3,000 tons of ore per day. Buses would transport employees to the site from locations in or near Oroville.
As required under the 1994 Metals Mining and Milling Act, Battle Mountain Gold is responsible to supply a "performance security" to assure the state that, no matter what happens, the bill for reclaiming the site and protecting the environment won't be sent to the taxpayers. A performance security is similar to a bond, making money more directly accessible should environmental restoration be needed.
The water rights permits are among several local, state and federal permits required before mining construction and operations can begin. Besides water rights, other permits are required to protect water quality, air quality, fish and wildlife habitat, surface reclamation, facility construction, zoning and public health.
To date, the company has supplied $20.4 million in performance security to cover reclamation, stormwater activities, dam safety, wildlife mitigation and water rights. Additional security will be required for protecting water quality.
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