# Joint Appendix — Alaska v. Southeast Alaska Alaska Conservation Council (No. 07-990)

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385015_0065%3A08

## Record

- **Collection:** Supreme Court brief
- **Document type:** Joint Appendix
- **Published:** January 1, 2009

## Text

\O'e — |
SEP 17 2008

OFFICE OF THE CLERK

~\

oO

Nos. 07-984 and 07-990

IN THE
Supreme Court of the United States

COEUR ALASKA, INC., Petitioner,
Vv.

SOUTHEAST ALASKA CONSERVATION COUNCIL, ET AL.,
Respondents.

STATE OF ALASKA, Petitioner,
.
SOUTHEAST ALASKA CONSERVATION COUNCIL, ET AL.,
Respondents.

On Writ Of Certiorari
To The United States Court Of Appeals
For The Ninth Circuit

JOINT APPENDIX
Volume 1 of 2
(Pages la-286a)

THEODORE B. OLSON THOMAS S. WALDO
Counsel of Record Counsel of Record

GIBSON, DUNN & CRUTCHER LLP EARTHJUSTICE

1050 Connecticut Ave., N.W. 325 Fourth Street

Washington, DC 20036 Juneau, AK 99801

(202) 955-8500 (907) 586-2751

Counsel for Petitioner Counsel for Respondents

Coeur Alaska, Inc. Southeast Alaska

Conservation Council, et al.

[Additional Counsel Listed on Inside Cover]

PETITION FOR WRIT OF CERTIORARI FILED JANUARY 28, 2008
CERTIORARI GRANTED JUNE 27, 2008

1.O0adn 7

ail

MATTHEW D. MCGILL
AARON D. LINDSTROM

GIBSON, DUNN & CRUTCHER LLP

1050 Connecticut Ave., N.W.
Washington, DC 20036

ROBERT A. MAYNARD
PERKINS Coik LLP

251 East Front St. Ste. 400
Boise, ID 83702

Counsel for Petitioner
Coeur Alaska, Inc.

JONATHAN S. FRANKLIN
TILLMAN J. BRECKENRIDGE

FULBRIGHT & JAWORSKI L.L.P.

801 Pennsylvania Ave., N.W.
Washington, DC 20004
(202) 662-0466

TALIS .J. COLBERG
Attorney General
STATE OF ALASKA
Department of Law
P.O. Box 110300
Juneau, AK 99811
(907) 465-3600

CAMERON M. LEONARD
Assistant Attorney General

STATE OF ALASKA

Department of Law

100 Cushman St., Suite 400

Fairbanks, AK 99701

(907) 451-2311

Counsel for Petitioner
State of Alaska

Scotr L. NELSON

PUBLIC CITIZEN LITIGAITON
GROUP

1600 20th St., N.W.

Washington, DC 20009

(202) 588-1000

Counsel for Respondents
Southeast Alaska
Conservation Council, et al.

GREGORY G. GARRE
Solicitor General
Counsel of Record
RONALD J. TENPAS
Assistant Attorney General
ELLEN DURKEE
LANE MCFADDEN
Attorneys
DEPARTMENT OF JUSTICE
Washington, DC 20530-0001
(202) 514-2217

Counsel for Federal Respondents

DAVID C. CROSBY

Counsel of Record
5280 Thane Road
Juneau, AK 99801-7717
(907) 586-6262

Counsel for Respondent
Goldbelt, Inc.

[List of Additional Counsel Continued from Front Cover]

TABLE OF CONTENTS
Page

Volume I

A.

G.

Relevant Docket Entries from the
United States Court of Appeals for the
Ninth Circuit, No. 06-35679 ...............cccccceeceeees la

Relevant Docket Entries from the
United States District Court for the
District of Alaska, No. 1:05-CV-00012-

Response to Comments Document re-

garding Section 404 Definitions of “Fill
Material” and “Discharge of Fill Mate-
gt EEE Sa ea ne 22a

Kline Environmental! Research, Ken-

sington Project Lower Slate Lake

Tailings Impoundment: Habitat Crea-

tion and Mitigation Plan (July 14, 2003).....128a

Memorandum from Ed Kline, Kline En-
vironmental Research, to Susan

Hitchcock, Corps of Engineers (Dec. 23,

ERSTE NCTE ur eae Reena aCe ra 13la

Memorandum from D. Regas, et al.,
EPA, to R. Smith, EPA Region X (May
Si TIL ssdiidisiscteneurnniddcsideiidaimditecnigadcbniabdiaebedenetune 14la

Technical Memorandum from Ed Kline,
Kline Environmental Research, to Rick
PRMD GENE, DF, TO Pccencacccsiccccsevcncsscesccnsces 150a

Letter from Dan Easton, State of
Alaska Department of Environmental

Conservation, to John Leeds III, De-
partment of the Army (Dec. 6, 2004) ........... 155a

il

I. Forest Service, Kensington Gold Project
Final Supplemental Environmental
Impact Statement (Dec. 2004) (ex-

J. Forest Service, Kensington Gold Project
2004 Record of Decision (Dec. 2004)............

K. Coeur Alaska, Inc., Reclamation and
Closure Plan for the Kensington Gold
a

L. Letter from Ron Klein, State of Alaska
Department of Environmental Conser-
vation, to Rich Richins, RTR Resource
Management, enclosing Certificate of
Reasonable Assurance (May 6, 2005) ..........

M. Corps of Engineers, Section 404 Permit
I I cscs caiecaaldndtaniaconentendainenaniel
Volume II

N. EPA, Record of Decision: Kensington
Gold Project, Section 402 NPDES Per-
eB citi tcnniitiiscintitetiatnistninciienosiencee

O. EPA, NPDES Permit No. AK-005057
i iiscctiininspdipeinihinnsinsesndesoeneses

P. Declaration of Joe Kahklen (Oct. 12,

Q. Corps of Engineers, Kevised Record of
SE INN TE, SII vcnisedccnccctinntancocceensens

R. Corps of Engincers, Section 404(b)(1)
Evaluation for Kensington Gold Project
I a caibealenioaioaiion

ili

Corps of Engineers, Section 404(b)(1)
Evaluation for Cascade Point (Mar. 29,

TET SE ATT 434a
First Amended Complaint (Apr. 4,
EERIE ee Se a 459a

Opinion of the United States District
Court for the District of Alaska (Aug. 3,

ST ichlisinsidaeihipininsiihsilgeiliininabatipihiibaiignimddbedeveineineiies 478a
Declaration of Randy Wanamaker (Aug.
a eeisinnenon 497a

Order of the United States Court of Ap-

peals for the Ninth Circuit Granting

Injunction Pending Appeal (Aug. 24,

Ee en a 509a

Order of the United States Court of Ap-

peals for the Ninth Circuit Denying

Motion to Vacate the Injunction Pend-

ing Appeal (Dec. S, 200G).........c.cecccsesseccesesees 5lla

Opinion of the United States Court of
Appeals for the Ninth Circuit (May 22,

Order of the United States Court of Ap-
peals for the Ninth Circuit Denying
Rehearing En Banc (Oct. 29, 2007).............. 552a

. Order of the United States Court of Ap-
peals for the Ninth Circuit Staying the
Mandate (Nov. 14, 2007) .....................ee cece 554a

AB. Order of the United States Court of Ap-

peals for the Ninth Circuit Directing
Preparation of Reclamation Plan (Nov.
SE HE til oteiinaisanenasuedeanaibaisaiadbiniinsiiainescenes 555a

la

APPENDIX A

General Docket
United States Court of Appeals for the Ninth
Circuit

Court of Appeals Docket #: 06-25679

Docketed: 08/10/2006

Termed: 05/22/2007

Nature of Suit: 1893 Environmental Matters
Southeast Alaska, et al v. USACE, et al

Appeal From: US District Court for Alaska, Jun-
eau

Case Type Information:
| 1) civil

2) united states

3) null

Originating Court Information:
District: 097--1 : CV-05-00012-J-JKS
Trial Judge: James K. Singleton, Senior Dis-

trict Judge

Date Filed: 09/12/2005

Dese Order/Judgment: Date NOA
Filed:

Nee OO

08/04/2006 08/07/2006 |

* eK K *

|

2a

SOUTHEAST ALASKA CONSERVATION
COUNCIL; SIERRA CLUB; LYNN CANAL
CONSERVATION,

Plaintiffs - Appellants

UNITED STATES ARMY CORPS OF
ENGINEERS; TIMOTHY J. GALLAGHER, Colo-
nel, in his official capacity as District Engineer;
LARRY L. REEDER, in his official capacity of
Chief of the Regulatory Branch; DOMINIC IZZO,
in his official capacity as Principal Deputy Assis-

tant Secretary of the Army (Civil Works); UNITED |

STATES FOREST SERVICE,
Defendants - Appellees

COEUR ALASKA, INC.; GOLDBELT, INC.;
STATE OF ALASKA,

Defendant-intervenors - Appellees

AMERICAN RIVERS; CLEAN WATER ACTION

| NETWORK; COOK INLETKEEFPER;

EARTHWORKS; FRIENDS OF THE EARTH;
NATIONAL WILDLIFE FEDERATION;
NATURAL RESOURCES DEFENSE COUNCIL,
INC.; OXFAM AMERICA; UNITED STATES
PUBLIC INTEREST RESEARCH GROUP;

_WATERKEEPER ALLIANCE; MEMBERS OF

3a

CONGRESS OF THE UNITED STATES, FRANK
PALLONE, JR.; EARL BLUMENAUR; RAUL
GRIJALVA: MAURICE D. HINCHEY; RUSH
HOLT: MIKE HONDA; DENNIS KUCINICH;
BETTY MCCOLLUM: JAMES A. MCDERMOTT:
MARTIN T. MEEHAN: DONALD M. PAYNE: |
JANICE D. SCHAKOWSKY; CHRISTOPHER H.
SHAYS; FORTNEY H. (PETE) START, JR.; NEW |
| STUYAHOK TRADITIONAL COUNCIL;

MOUNTAIN STATES LEGAL FOUNDATION:
| SOUTHEAST CONFERENCE; CITY AND
| BOROUGH OF JUNEAU: BERNERS BAY
CONSORTIUM: NATIONAL MINING
ASSOCIATION,

Amici Curiae

08/10/2006 8 _ Filed (filed per 8/24/06 order) Ap-
pellants Southeast Alaska
Conservation, et al., emergency
motion for injunction; exhibits;
proposed order; served on 8/10/06
[5915052] (to MOATT)

| 08/14/2006 10 Filed appellee Coeur Alaska, Inc.'s
"faxed" motion to strike plntfs'
emergency motion for injunction
pending appeal; served on 8/14/06 |
[5918608] (to MOATT) (hardcopy
recvd 8/17/06)

* * K K XK

4a

See | " |

| 08/18/2006 13 Filed federal appellees USACE, et |
al. "faxed" response in opposition |
to emergency motion for injunction.
pending appeal [5915052-1];
served on 8/18/06 (to MOATT) [06- |
35679] (hardcopy recvd 8/21/06)

* * * * *

08/18/2006 15 Filed appellee Goldbelt, Inc.'s
"faxed" response in opposition to
emergency motion for injunction
(5915052-1]; declaration of Randy |
Wanamaker; exhibits; servedon |
8/18/06 (to MOATT) [06-35679] |
(hardcopy recvd 8/22/06) |

08/18/2006 16 Filed appellee Coeur Alaska, Inc.'s.
"faxed" response in opposition to |
emergency motion for injunction
pending appeal (5915052-1]; |
served on 8/18/06 (to MOATT) [06- |
35679] (hardcopy recvd 8/21/06)

| 08/18/2006 17 Filed appellants Southeast Alaska,
et al. "faxed" response in opposi- |
tion to motion to strike emergency >
motion for injunction pending ap- |
peal [5918608-1]; exhibits; served |
on 8/18/06 (to MOATT) [06-35679] |
(hardcopy recvd 8/22/06) |

* Oe Kk

| 08/21/2006 20 Filed (filed per 8/24/06 order) Ap-
pellants Southeast Alaska _

5a

08/22/2006 21

08/24/2006 24

9/14/2006 28

10/04/2006 41

| 10/04/2006 42

Conservation, et al. "faxed" reply |
in support of emergency motion
[5915052-1]; exhibits; served on
8/21/06 (to MOATT) [06-35679]
(hardcopy recvd 8/24/06)

Filed Appellee Coeur Alaska, Inc.'s
"faxed" reply in support of its mo- |
tion to strike [5918608-1]; served |
on 8/22/06 (to MOATT) [06-35679] |
(hardcopy recvd 8/23/06)

Filed order MOATT ( Alfred T.
GOODWIN, Stephen R.
REINHARDT, ): * * * * (Order
granting injunction pending ap-
peal. See J.A. 458a.] |
* * *K *X * :
Filed original and 15 copies Appel-;
lant Southeast Alaska, et al's :
opening brief ( Informal: n) 54
pages and five excerpts of record
in 3 volumes; served on 9/12/06
[(06-35679]

* KKK *

Filed original and 15 copies appel- :
lee Coeur Alaska, Inc.'s 51 pages
brief, 2 vols of joint Supp EOR
(w/federal appellees); served on
10/3/06 (PANEL) [06-35679]

Filed original and 15 copies appel-
lees' US Army Corps of Engineers,
Timothy J. Gallagher, Larry L.

6a

ee eee

| 10/06/2006 52

| 10/06/2006 53

10/24/2006 58

11/07/2006 67

11/22/2006 70

Reeder, Dominic Izzo, US Forest
Service's 42 pages brief, 2 vols. of
joint Supp EOR (w/appellee Coeur
Alaska); served on 10/3/06
(PANEL) [06-35679]

xk AK HK *K

Filed original and 15 copies appel-
lee State of Alaska's 19 pages
brief; served on 10/6/06 (PANEL)
(06-35679]

Filed original and 15 copies inter-

venor- appellee Goldbelt, Inc.'s 16

pages brief; served on 10/3/06 [06- |

35679)

* * Ke K

Filed original and 15 copies aplts
Southeast Alaska, et al., reply

brief, ( Informal: n ) 40 pages, and |

5 supp’! excerpts in 1 vol.; served
on 10/13/06 (panel already served) |
(06-35679]

* * KK *

Filed aple Coeur Alaska, Inc.'s ur- |

gent motion to vacate injunction
pending appeal on or before
12/8/06; exhibits; served on 11/7/06
(6000308] (faxed to PANEL)

* * * * *

Filed Appellants Southeast

Alaska, et al., response in opposi- —

_ tion to Coeur Alaska's urgent __

Ta

11/30/2006 71

| 12/04/2006 72

12/08/2006 73

05/22/2007 91

motion to vacate injunction
{6000308-1]; exhibits; served on
11/21/06 (fedex to PANEL) [06-
35679]

Filed Appellee Coeur Alaska, Inc.'s
reply in support of its urgent mo-
tion to vacate injunction pending
appeal on or before 12/8/06
[6000308-1]; served on 11/30/06
(faxed to PANEL) [06-35679]

ARGUED AND SUBMITTED TO
Procter R. HUG, A. W. TASHIMA, |
Susan P. GRABER [06-35679]

Filed order (Procter R. HUG, A. W.
TASHIMA, Susan P. GRABER,):
Appellee Coeur Alaska, Inc.'s Ur-
gent Motion Under Circuit Rule
27-3(b) to Vacate the Injunction
Pending Appeal is denied. * * * *
[See J.A. 460a.]

* * KX Kk *

FILED OPINION: REVERSED
and REMANDED ( Terminated on
the Merits after Oral Hearing; Re- |
versed; Written, Signed,
Published. Procter R. HUG, au-
thor; A. W. TASHIMA; Susan P.
GRABER. ) FILED AND
ENTERED JUDGMENT. [06-
35679]

* * * K OX

8a

08/20/2007 102

08/20/2007 104

08/27/2007 106

10/12/2007 115

[08/20/2007 101

[6265410] Filed original and 50 |
copies Appellee State of Alaska's |
petition for rehearing en banc, 18
p.pages; served on 8/17/07
(PANEL, ALL ACTIVE JUDGES |
AND INTERESTED SENIOR
JUDGES) [06-35679]
|

|
|
[6265430] Filed original and 50
copies Appellee Coeur Alaska, Inc. |
petition for rehearing en banc, 20 |
p.pages; served on 8/17/07 |
(PANEL, ALL ACTIVE JUDGES |
AND INTERESTED SENIOR
JUDGES) [06-35679] |
|
|

(6267155) Filed original and 50 |
copies Appellee Goldbelt, Inc. peti-
tion for rehearing en banc, 13
p.pages; served on 8/17/07
(PANEL, ALL ACTIVE JUDGES |
AND INTERESTED SENIOR |
JUDGES) [06-35679] |

Filed order ( Procter R. HUG, A. |
W. TASHIMA, Susan P. GRABER, |
): Plntfs-aplts are requested to file |
responses to Federal aples' peti-
tion for limited panel rehearing |
and each of the intvrs-aples' peti-_.
tions for rehearing en banc.
Responses are to be filed by
10/5/07. (06-35679]

* kK KK

Filed original and 3 copies Appel- —

9a

10/12/2007

10/23/2007

| 10/25/2007

:

10/29/2007

116

123

128

129

lants Southeast Alaska, et al. re-
sponse to federal aples' petition for
limited panel rehearing [6265284- |
1]; served on 10/11/07 (to PANEL)
|(06-35679]

Filed original and 50 copies Appel-
lants Southeast Alaska, et al.
response to petition for rehearing
en banc of aple Goldbelt, Inc.
[6267155-1]; 8 pages; served on
10/11/07 (PANEL, ALL ACTIVE
JUDGES AND INTERESTED
SENIOR JUDGES) [06-35679]

KKK KX

Filed orig & 50 copies of Aplits
Southeast Alaska, et al. response
to petitions for rehearing en banc |
of Coeur Alaska, Inc. and State of
Alaska in 28 pgs; served on
10/11/07. (PANEL, ALL ACTIVE
JUDGES & ANY INTERESTED
SENIOR JUDGES PREVIOUSLY |

SERVED) [06-35679]

Filed Appellants Southeast
Alaska, et al. response in opposi-
tion to motion of Coeur Alaska,
Inc. to file reply brief in support of
petition for rehearing en banc
(6325729-1]; served on 10/24/07
(faxed to PANEL) [06-35679]

Filed order ( Procter R. HUG, A.

W. TASHIMA, Susan P. GRABER,

10a

11/02/2007 133

11/14/2007 139

11/15/2007 140

| 11/26/2007 142

| 06/11/2008 148

): The panel has voted to DENY
the federal aples' petition for lim- |
ited panel rehearing... (6265284-1]
The petitions for rehearing en |
banc are DENIED. (6265410-1),
(6265430-1], (6267155-1] [(06-
35679] |

* * * KX

Filed aple Coeur Alaska, Inc.'s we
tion to stay issuance of the

mandate pending the filing and
disposition for a petition for writ of
certiorari; served on 11/2/07 |
(63399 16} (faxed to PANEL) |

* *K KK

Filed order ( Procter RR. HUG, A. |
W. TASHIMA, Susan P. GRABER,

): * * * *(Order staying the man-
date. See J.A. 503a.]

Filed Appellants Southeast |
Alaska, et al..response in opposi- |
tion to motion of Coeur Alaska,
In.c, to stay issuance of the man-
date [6339916-1]; exhibits; served _
on 11/14/07 (to PANEL) [06-35679]

Filed order ( Procter R. HUG, A.
W. TASHIMA, Susan P. GRABER,
): * * * *(Order re reclamation
plan. See J.A. 504a.])

kK KK *

}

Filed order (A. WALLACE

lla

06/26/2008 149

07/07/2008 150

| 07/07/2008 151

| 07/08/2008 152

07/23/2008 154

TASEIMA, SUSAN P. GRABER
and PROCTER R. HUG) The par-
ties are directed to provide a
status report on the Government’s |
reclamation plan, which was due

May 1, 2008.

Filed joint status report; served on
06/25/2008. (PANEL)

Filed order (A. WALLACE
TASHIMA, PROCTER R. HUG
and SUSAN P. GRABER) In order |
to keep the court fully informed,
we request the parties furnish
three copies of the reclamation
plan.

Received notice from the Supreme
Court. Petition for certiorari
GRANTED on 06/27/2008. Su-
preme Court Number 07-984

Received notice from the Supreme
Court. Petition for certiorari
GRANTED on 06/27/2008. Su-
preme Court Number 7-990. The
case is consolidated with No. 07-
984.

* OK Ke Kk

Filed an orig. & 4 copies Appellee
Coeur Alaska, Inc.'s reclamation
Plan. (fed-ex PANEL)

12a

APPENDIX B

U.S. District Court
District of Alaska (Juneau)
CIVIL DOCKET FOR CASE #: 1:05-cv-00012-JKS

Southeast Alaska Conserva- Date Filed:

tion Council et alv. United 09/12/2005
States Army Corps of Engi- Date Terminated:

neers et al 08/03/2006

Assigned to: James K. Sin- Jury Demand: None

gleton, Jr Nature of Suit: 893

Case in other court: Environmental Mat-
9CCA, 06- ters

35679 Jurisdiction: U.S.

Cause: 05:702 Administra- Government Defen-

tive Procedure Act dant

| ~vanel # Docket Text

i * eK KK

13a

04/04/2006

28

AMENDED COMPLAINT
(First) against Timothy J.
Gallagher, Larry L. Reeder,
Dominic Izzo, U.S. Forest Ser-
vice, United States Army
Corps of Engineers, filed by
Southeast Alaska Conserva-
tion Council, Sierra Club,
Lynn Canal Conserva-
tion.(Schane, Demian)
(Entered: 04/04/2006)

* KKK *

04/05/2006

31

MOTION to Intervene by
Coeur Alaska, Inc.. (Attach-
ments: # 1 Text of Proposed
Order Motion to Intervene# 2
# 3)(Berghoff, John) (Entered:
04/05/2006)

xe KK *K

04/06/2006

33

MOTION to Intervene by
State of Alaska. (Attach-
ments: # 1 Proposed Order# 2
Proposed First Amended An-
swer)( Heese, Ruth) (Entered:
04/07/2006)

x KK KK

l4a

04/07/2006

38

MOTION to Intervene by
State of Alaska. (Attach-
ments: # 1 Proposed Order# 2
Proposed First Amended An-
swer)(Heese, Ruth) (Entered:
04/07/2006)

* eK KK

04/07/2006

41

MOTION for Summary Judg-
ment by Southeast Alaska
Conservation Council, Sierra
Club, Lynn Canal Conserva-
tion. (Attachments: # 1 Text
of Proposed Order Proposed
Order Granting Injunction# 2
H#ZSH4AH#5SHGCHT#H#S#HO#H IO
# 11)(Schane, Demian) (En-
tered: 04/07/2006)

* * KK *

05/03/2006

61

RESPONSE in Opposition re
41 MOTION for Summary
Judgment filed by Goldbelt,
Incorporated. (Attachments: #
1 Exhibit # 2 Exhibit # 3 Ex-
hibit # 4 Exhibit # 5 Exhibit #
6 Exhibit # 7 Exhibit # 8 Ex-
hibit # 9 Exhibit # 10
Exhibit)(Crosby, David) (En-
tered: 05/03/2006)

* * KK *K

15a

05/05/2006

67

RESPONSE in Opposition re
41 MOTION for Summary
Judgment filed by State of
Alaska. (Attachments: # 1
Exhibit State's A# 2 Exhibit
State's B# 3 Exhibit State's
C# 4 Exhibit State's D-I# 5
Exhibit State's D-II# 6 Ex-
hibit State's E# 7 Exhibit
State's F)(Leonard, Cameron)
(Entered: 05/05/2006)

x KKK *

16a

05/05/2006

71

RESPONSE in Opposition re
41 MOTION for Summary
Judgment filed by Coeur
Alaska, Inc.. (Attachments: #
1 Exhibit 1# 2 Exhibit 2# 3
Exhibit 3# 4 Exhibit 4# 5 Ex-
hibit 5# 6 Exhibit 6# 7 Exhibit
7# 8 Exhibit 8# 9 Exhibit 9#
10 Exhibit 10# 11 Exhibit 11,
pages 1-34# 12 Exhibit 11,
pages 35-68# 13 Exhibit 12#
14 Exhibit 13# 15 Exhibit 14#
16 Exhibit 15# 17 Exhibit 16#
18 Exhibit 17# 19 Exhibit 18#
20 Exhibit 19# 21 Exhibit 20#
22 Exhibit 21# 23 Exhibit 22#
24 Exhibit 23# 25 Exhibit 24#
26 Exhibit 25# 27 Exhibit 26,
pages 1-30# 28 Exhibit 26,
pages 31-55# 29 Exhibit 27#
30 Exhibit 28# 31 Exhibit 29#
32 Exhibit 30# 33 Exhibit 31#
34 Exhibit 32)(Berghoff, John)
(Entered: 05/05/2006)

* * KK *

17a

05/05/2006

80

REPLY to Response to Motion
re 41 MOTION for Summary
Judgment filed by Southeast
Alaska Conservation Council,
Sierra Club, Lynn Canal Con-
servation. (Attachments: # 1
Exhibit 43# 2 Exhibit 44# 3
Exhibit 45# 4 Exhibit 46# 5
Exhibit 47, part 1# 6 Exhibit
47, part 2# 7 Exhibit 48, part
2# 8 Exhibit 48, part 2# 9 Ex-
hibit 49# 10 Exhibit 50# 11
Exhibit 51# 12 Exhibit 52# 13
Exhibit 53# 14 Exhibit 54# 15
Exhibit 55)(Schane, Demian)
(Entered: 05/18/2006)

* * * *K K

05/18/2006

104

REPLY to Response to Motion
re 41 MOTION for Summary
Judgment filed by Southeast
Alaska Conservation Council,
Sierra Club, Lynn Canal Con-
servation. (Attachments: # 1
Exhibit 43# 2 Exhibit 44# 3
Exhibit 45# 4 Exhibit 46# 5
Exhibit 47, part 1# 6 Exhibit
47, part 2# 7 Exhibit 48, part
2# 8 Exhibit 48, part 2# 9 Ex-
hibit 49# 10 Exhibit 504 11
Exhibit 51# 12 Exhibit 52# 13
Exhibit 53# 14 Exhibit 544 15
Exhibit 55)(Schane, Demian)
(Entered: 05/18/2006)

18a

* * KK *

08/03/2006

118

JUDGMENT that complaint
is dismissed w/prejudice;
judgment is entered in favor
of Defendants . Signed by
Judge James K. Singleton on
8/3/2006. (DPM, ) (Entered:
08/04/2006)

08/04/2006

117

MEMORANDUM DECISION
denying 41 Motion for Sum-
mary Judgment; granting 80
Cross-Motion for Summary
Judgment; complaint is
hereby DISMISSED
w/prejudice . Signed by Judge
James K. Singleton on
8/3/2006. (DPM, ) (Entered:
08/04/2006)

08/04/2006

119

MOTION for Preliminary In-
junction Pending Appeal
(shortened time) by Southeast
Alaska Conservation Council,
Sierra Club, Lynn Canal Con-
servation. (Attachments: # 1
Proposed Order Granting In-
junction Pending
Appeal)(Waldo, Thomas) (En-
tered: 08/04/2006)

KKK AK K

19a

08/07/2006

125

NOTICE OF APPEAL as to
117 Order on Motion for
Summary Judgment by
Southeast Alaska Conserva-
tion Council, Sierra Club,
Lynn Canal Conservation.
(Attachments: # 1 Civil Cover
Sheet Civil Appeals Docketing
Statement# 2 Exhibit Repre-
sentation Statement)(Waldo,
Thomas) (Entered:
08/07/2006)

* * * * *

08/22/2006

136

RESPONSE in Opposition re
119 MOTION for Preliminary
Injunction Pending Appeal
(shortened time) filed by State
of Alaska. (Attachments: # 1
Exhibit Hughes Declaration
part 1# 2 Exhibit Hughes Dec-
laration part 2)(Leonard,
Cameron) (Entered:
08/22/2006)

20a

08/22/2006

137

RESPONSE in Opposition re
119 MOTION for Preliminary
Injunction Pending Appeal
(shortened time) filed by
Coeur Alaska, Inc.. (Attach-
ments: # 1 Exhibit A# 2
Exhibit B# 3 Exhibit C# 4
Exhibit D# 5 Exhibit E# 6
Exhibit F# 7 Exhibit G# 8
Exhibit H# 9 Exhibit I# 10
Exhibit J# 11 Exhibit K# 12
Exhibit L# 13 Exhibit M# 14
Exhibit N# 15 Exhibit O# 16
Exhibit P)(Berghoff, John)
(Entered: 08/22/2006)

08/22/2006

138

RESPONSE in Opposition re
119 MOTION for Preliminary
Injunction Pending Appeal
(shortened time) filed by
Goldbelt, Incorporated.
(Crosby, David) (Entered:
08/22/2006)

* * KK *

Zla

08/23/2006

143

REPLY to Response to Motion
re 119 MOTION for Prelimi-
nary Injunction Pending
Appeal (shortened time) filed
by Southeast Alaska Conser-
vation Council, Sierra Club,
Lynn Canal Conservation.
(Attachments: # 1 Exhibit 1#
2 Exhibit 2# 3 Exhibit
3)(Schane, Demian) (Entered:
08/23/2006)

eK AK KK

22a

APPENDIX C

RESPONSE TO COMMENTS DOCUMENT
FOR FINAL RULE AMENDING THE
ENVIRONMENTAL PROTECTION
AGENCY'S AND U.S. ARMY CORPS OF
ENGINEERS' CLEAN WATER ACT
SECTION 404 DEFINITIONS OF
"FILL MATERIAL" AND "DISCHARGE OF
FILL MATERIAL"

May 3, 2002

23a

TABLE OF CONTENTS

I sail icceneies carted biechinapeietindaibedd ladasibecmseti 1
lcci idepan duincsauiinodinle ek ae
A. April 2000 Proposal............. >
Access Roads 22.8 22.8 28.9 28.9 28.9
Tailings Facility 113.4 50° 86.1° 86.1¢ 86.1°
Stormwater De-
tention/Sediment 75 7.6 a” ma af
Ponds
Laydown Area 08 0.8 5 5 5
Borrow Site(s) 54.7 36.6 84 84 84
Brae paces 93 93 16 16 16
Personne] Camp’ 6 6 NA NA NA
Batch Plant 13 1.3 NA NA NA
ell si 6 6 6 6 6
— a Temporary Temporary 36.3 36.3 36.3
Upper Portals 6 6 BY em Bi
me ema - -" - 88 19
Inundation
(during opere- NA NA NA 112 NA
tions only)
a insite 268.6 187.1 196.6 216.6 197.4
* Located underground.

» Isotainer storage included in laydown area, process area, and marine facility acreages
* Figure includes 33-ecre DTF, 6-acre berm, and 10-acre staging area.

op igure includes pipeline a» ws. (vad and cutoff road.

® Figure is included in the ps se area acreage
* Not required because o Jualin access tunnel

® figure included in DTF acreage.
NA = Not applicable.

180a

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FIOURE 2-1. OVERALL LOCATION OF FACILITIES

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FIGURE 24 ALTERNATIVES 6, C, AND D, JUALIN PROCESS ARIA

2.2.2 Alternative Al: Reduced Mining Rate DTF

Alternative Al represents one possible development
scenario if the No Action Alternative was selected
under current economic conditions. It is included to
provide a mechanism for comparing all alternatives
under a similar development scenario. Because AIl-
ternative A represents an approved Plan of
Operations, the limited mining scenario under Alter-

182a

native Al could not be imposed on the company if the
No Action Alternative was selected.

Alternative Al would result in 4.5 million tons of
tailings being placed in the DTF, assuming that 40
percent of the tailings would be backfilled. As de-
scribed under the selected alternative in the 1997
ROD and as Alternative A in this analysis, the DTF
would be constructed in three phases, each of which
would use a separate cell within the DTF footprint.
The size of the DTF under Alternative Al is assumed
to be the same as that proposed for the first cell un-
der Alternative A (40 acres, including 6 acres for the
structural berm). The analysis assumes a distur-
bance footprint of 50 acres during development of the
DTF to allow room for staging of the dewatering op-
erations and material stockpiles. This staging would
have occurred within the full DTF footprint under
Alternative A. The reduced mining rate presented
under Alternative Al would produce very limited
amounts of waste rock. Because waste rock would
not be available for use in DTF construction under
Alternative Al, the impact analysis assumes that the
same number of acres of sand and gravel borrow area
as that under Alternative A would be required. The
analysis also assumes that about half of the coarse
and fine till borrow area would need to be developed
to support construction of a smaller DTF. Other as-
pects of Alternative Al, including transportation of
employees and materials, would be the same as those
described under Alternative A. The life of the opera-
tion would be reduced to 10 years following 2 years of
construction.

2.2.3 Alternative B: Proposed Action

Alternative B reflects:a number of changes to the
mine plan associated with the No Action Alternative.

183a

These changes include constructing an underwater
TSF within Lower Slate Lake, relocating milling op-
erations to the Johnson Creek drainage, and
eliminating the personnel camp. The operation
would mine a smaller amount of ore with a higher
average gold concentration compared with that pro-
posed under Alternative A. Alternative B would
include the development of a tunnel to connect the
Kensington and Jualin areas of the mine. Access to
the site would be from marine terminals built in
Slate Creek Cove and at Cascade Point. A daily crew
shuttle boat service would transport employees to
and from the project site. The TSF would be sized to
accommodate the disposal of 4.5 million tons of tail-
ings. Borrow areas would need to be developed for
construction of the TSF dam and roads. The produc-
tion rate would be approximately 2,000 tons of ore
per day. This alternative includes recycling water
from the TSF to the mill circuit. Alternative B would
require upgrading the 5-mile-long access road, con-
structing a 3.5-mile pipeline access road, and
constructing a 1-mile cutoff road connecting the
other two roads.

2.2.4 Alternative C: Dock Location and Design /
Diversion

Alternative C would include a dock in Echo Cove,
approximately 0.75 mile north of the existing Echo
Cove boat ramp. Mine workers would use this dock
to reach the crew shuttle that would deliver them to
the dock at Slate Creek Cove. The landing craft ramp
at the Slate Creek Cove marine terminal would be
eliminated, minimizing the amount of fill in the in-
tertidal areas. Alternative C would not include
recycling water from the TSF and the mill circuit.
The “no recycle" aspect was included in Alternative C

184a

at the request of the operator to address the possibil-
ity that the operator might be granted an exemption
from the regulatory requirement at 40 CFR Part 440
that process water must be recycled. This alternative
would also include diversion channels to direct the
flow from Mid-Lake East Fork Slate Creek and over-
land runoff from undisturbed areas around the TSF.
The diversions would require a dam on Upper Slate
Lake to maintain water levels in the diversion suffi-
cient to reach the spillway at the TSF dam. The
diversion would discharge to a spillway at the top of
the TSF dam. The purpose of the diversion, would be
to minimize the volume of fresh water in contact
with the tailings. The remaining project components,
including the production rate of 2,000 tons per day of
ore and the access tunnel, would be the same as
those under Alternative B.

2.2.5 Alternative D: TSF Water Treatment and
Pipeline Diversion

Alternative D includes a modified TSF design. A dam
would be constructed in Mid-Lake East Fork Slate
Creek, and it would gravity-feed a diversion pipeline.
TSF water would be pumped to a reverse osmosis
treatment system. The treatment plant effluent
would discharge into the diversion pipeline, which
would flow to East Fork Slate Creek below the TSF
dam. Once tailings disposal was complete, the tail-
ings would be capped with native material unless the
operator can demonstrate that uncovered tailings
would not cause toxicity throughout Lower Slate
Lake after closure. The remaining components would
be same as those of Alternative B.

185a

2.3 PROJECT COMPONENTS STUDIED
IN DETAIL

2.3.1 Project Location/ Duration

Figure 2-1 shows the location of project facilities,
which would be built on National Forest System
lands as well as private land (dark shading). Under
Alternative A, the facilities would be contained
within watersheds draining to Lynn Canal. The
process area would be near the Kensington 850-foot
portal and would consist of the mill, warehouse
buildings, maintenance shop, administrative offices,
and laboratory. The personnel camp would be near
the wastewater treatment plant, downslope of the
process area. Under Alternatives B, C, and D, por-
tions of the operation (waste rock disposal and
wastewater treatment of the mine drainage) would
remain within the Sherman Creek drainage; how-
ever, facilities would also be built in the Johnson
Creek and Slate Creek drainages, within the Bailers
Bay watershed. Under Alternatives B, C, and D, the
facilities mentioned above would be moved to an area
above the historic Jualin Mine (Figure 2-5) consist-
ing mostly of patented mining claims (private land).
The personnel camp would be eliminated.

Under Alternative A, the active life of the project
would be at least 12 years based on the existing re-
serve, following a 2-year construction period.
Alternative Al would have an active life of 10 years
following a 2-year construction period. Mining opera-
tions lasting 10 years are projected under
Alternatives B, C, and D, following an 18-month con-
struction period.

186a

2.3.2. Mining Methods

The proposed mining methods are similar to those
presented in the 1997 Approved Plan of Operations.
The following discussion provides a brief summary of
mining methods based on details provided in the
1992 FEIS. The reader is referred to pages 2-5
through 2-7 of that document for additional details.

Under Alternatives A and Al, the ore body would be
accessed by the existing tunnel at the Kensington
850 portal. Under Alternatives B, C, and D, the
Jualin tunnel would be used as the primary access
for workers and materials into the mine, as well as
ore haulage between the mine and mill. The Jualin
tunnel would be 18 feet wide by 15 feet high to ac-
commodate 40-ton haul trucks. On the Jualin side,
the portal would be near the mill at an elevation of
1,050 feet. From the portal, it would slope downward
at a grade of 1.5 percent for 5,000 feet toward the ex-
isting Kensington tunnel, which it would intersect at
an elevation of 932 feet. The tunnel would be driven
from both sides to reduce the duration of the pre-
production development period and to eliminate the
need for a ventilation raise to the surface. The esti-

mated schedule for completing the tunnel is about
150 days.

The Kensington ore body consists of a dense pattern
of quartz veins and veinlets that extend from the
surface to a depth of approximately 3,000 feet. The
ore zone averages approximately 60 feet wide but
ranges in width from 22 feet to more than 165 feet.
The ore body is irregular in shape and erratic in the
distribution of gold content. Coeur selected a mining
method called the long-hole, open-stope technique on
the basis of a number of factors, such as the spatial

187a

and physical characteristics of the deposit, econom-
ics, and environmental considerations.

The long-hole, open-stope technique is employed in
situations where ore occurs in wide and steeply dip-
ping vein deposits. Mining would progress
throughout the ore body as dictated by mine design,
stope size, backfilling sequence, and other key ele-
ments that maximize extraction of the mineral
resource. The long-hole, open-stope method allows
for flexibility in handling irregular ore body widths
and allows efficient removal of ore. It also allows safe
working conditions while using a minimal workforce.
Figures 2-13 and 2-14 depict the extent of the mine
workings under Alternatives Al , B, C, and D in rela-
tion to the ground surface and surface water
drainages, respectively.

The operation under all the alternatives would mine
the Kensington ore body. Alternative A proposes to
process ore at a rate of 4,000 tons per day (tpd) and
produce approximately 26 million tons of tailings
over the life of the mine. The DTF would be sized to
hold a maximum of 20 million tons, and 25 percent of
the tailings would be backfilled. Under Alternatives
Al, B, C, and D, a smaller portion of the same ore
body would be mined at a rate of 2,000 tpd. The
2,000-tpd operation would target smaller quantities
of higher-grade ore (ore with a higher gold content)
than the operation proposed under Alternative A.
Operations under Alternative Al, B, C, or D would
produce a total of 7.5 million tons of tailings over the
life of the mine: 4.5 million tons (60 percent) would
be disposed of in the TSF (or the DTF in the case of
Alternative Al), and 3 million tons (40 percent)
would be backfilled.

188a

2.3.3 Waste Rock Disposal

Waste rock is material encountered during the min-
ing process that has a gold content less than that
economically recoverable. During operations, waste
rock would be hauled to the surface for storage, use,
or disposal.

Under Alternative A, waste rock would be used as
foundation, drainage, and berm material in construc-
tion of the DTF. A 15-acre temporary stockpile would
be located near the mine opening for the first 3 to 4
years while the DTF was being developed. Once the
DTF became active, the demand for waste rock
would essentially equal production; that is, all waste
rock would eventually be used in the DTF. Section
2.3.3 of the 1997 SEIS provides a more detailed dis-
cussion of waste rock management under Alternative
A. Very little waste rock would be produced under
Alternative Al.

Under Alternatives B, C, and D, most of the waste
rock would be generated in the process of developing
the access tunnel between the Kensington and Jualin
portals. This tunnel would not be developed under
Alternative A or Al. The waste rock would be hauled
by truck to a 31.5-acre permanent disposal site near
the Kensington 850-foot portal. There would also be
capacity to store approximately 500,000 tons of
waste rock on 4.8 acres in the vicinity of the process
area at Jualin. Under all alternatives, waste rock
could also be placed underground as part of the back-
fill process.

189a

PIGURE 344 UNDERGROUND MIME WORSDNDS URDER ALTERNATIVES i]
. TO GURFACE WATER At, 8, C, ANDO

2.3.4 Ore Processing

Ore processing refers to the methods by which gold is
separated from the surrounding material. The steps
in ore processing would be nearly the same under all
alternatives; the only difference would be the loca-
tion of the processing facilities. Processing steps
include crushing, grinding, flotation, thickening, and
filtration. Under Alternatives A and Al, crushing
would take place underground and all the other steps
would be conducted in buildings. Under Alternatives
B, C, and D, all steps would be done in buildings.
Table 2-4 summarizes the chemicals and materials
used in the milling process under each alternative.

190a

Table 2-4
Chemical and Material Use

Approximate Daily Use (tons)
Milling Reagent Container Alternatives
Process | or Material (Shipping and Storage Alternative A JAL, B, C, and D
Crinding |Steel balls 10 ton steel bins 56 465
Potassium amy! xanthate [50-gallon drum 1 0.5
MIBC (frother) 50-gallon drum 0.4 0.2
Flocculant 1-ton Flo-bin 0.2 0.1
Flotation |Polymer 50-gallon drum 0.02 0.01
Surfactant 50-gallon drum 0.04 0.02
[Seale inhibitor ~~"160-gallon drum na ay an
Lime* 1,000-1b bags 2 1

* Lime is also used in concentrate thickening.

The mill would be located at the Kensington process
area under Alternatives A and Al and at the Malin
process area under Alternatives B, C, and D. In each
case, ore would be hauled from the active mining
area and dumped down an ore chute. The material
would then be sent through the primary crusher,
which would reduce the size of the ore to less than 6
inches. The crushed ore would then be hauled by
truck to the coarse ore stockpile at either the Ken-
sington side (Alternatives A and Al) or Jualin side
(Alternatives B, C, and D) of the operation. There,
the ore would be fed into a hopper with a vibrating
feeder and then onto a belt that would discharge into
a semiautogenous grinding (SAG) mill.

The SAG mill would be set up in a closed circuit with
a horizontal vibrating screen and a ball mill. Over-
sized material would be fed back into the SAG mill,
while undersized material (minus 100 mesh) would
be directed to hydrocyclones. Hydrocyclones use cen-
trifugal force to separate coarse material from fine
material. The heavy material (underflow) from the
cyclones would be directed to a gravity concentrator
used to recover coarse gold. Lighter materials from
the cyclones would be fed back to the cyclone circuits,
eventually overflowing from the cyclones to a condi-
tioning tank feeding the flotation circuit.

19la

The flotation process would involve separating the
gold from the barren material in a froth flotation. A
slurry would be fed from the cyclones to the condi-
tioning tank, where conditioners (e.g., potassium
amyl xanthate) and frothing agents would be added.
These materials would cause the sulfide and tellu-
ride minerals (both gold-bearing) in the slurry to
attach to air bubbles once air was pumped through
the system. The bubbles containing the mineralized
portion of the slurry, including the gold, would form
a froth on top of the flotation tank. The gold-bearing
froth would then be skimmed off and collected. This
"concentrate" would flow through additional flotation
tanks to further concentrate the gold. The flotation
process would separate approximately 93 to 96 per-
cent of the non-gold material from the ore fed into
the system, leaving 160 to 280 tons (under Alterna-
tive A) or 80 to 140 tons (under Alternatives Al, B,
C, and D) of flotation concentrate per day. Most of
the chemicals added to the system would stay in the
flotation tanks or be removed with the flotation con-
centrate as opposed to being discharged with the
tailings. Most of the metals associated with the ore
body would be removed from the system with the
gold concentrate.

Following the final flotation, the concentrate would
be dewatered before being placed into specialized 8-
foot by 8-foot by 20-foot sealed marine transport con-
tainers for shipment to an _ existing, off-site
processing facility outside Southeast Alaska. Under
Alternative A the average production would be ap-
proximately 1,400 tons (40 containers) of concentrate
per week. The production level would average ap-
proximately 700 tons (20 containers) of concentrate
per week under Alternatives Al, B, C, and D.

192a

2.3.5 Tailings Disposal

Tailings are the material that remains in the flota-
tion tanks once the gold-bearing material has been
removed. This Final SEIS evaluates two methods of
tailings disposal. Under Alternatives A and Al, tail-
ings would be placed in the DTF. Alternatives B, C,
and D would employ wet (underwater or subaqueous)
tailings disposal methods in the TSF constructed in
Lower Slate Lake. Under all the alternatives, the op-
erator would backfill some of the tailings to permit
the maximum extraction of the resource and provide
structural stability within the mine. Under Alterna-
tive A, the operator would backfill at least 25 percent
of the tailings generated. Under Alternatives Al , B,
C, and D, the operator proposes to, backfill at least
40 percent of the tailings generated over the life of
the operation.

Dry Tailings Disposal

The following discussion is taken from Section 2.3.6
(pages 2-20 through 2-22) of the 1997 SEIS. Addi-
tional detail on the DTF can be found in that
document. Under Alternatives A and Al, the DTF
would be constructed using methods similar to the
construction of landfills. The slurry would be thick-
ened to approximately 55 percent solids. The
thickened slurry would be moved from the mill to the
DTF through an 8,000-foot, gravity-fed pipeline. The
pipeline would be built within the footprint of the
haul road for most of its length. The pipeline would
be approximately 14 inches in diameter with a 20-
inch casing for spill containment. At the DTF the
tailings would be dewatered, using plate filters (or
the design equivalent), to a moisture content of 5 to
18 percent. The filter cake would then be loaded into
trucks and placed in the DTF.

193a

The DTF would be constructed in a series of three
stages or cells. Before placement of the first lift of
each cell, a series of foundation drains would be in-
stalled to form the base. The drains would be laid out
in a herringbone pattern and consist of gravel
wrapped in geotextile material. A minimum of 2 feet
of waste rock or development rock would be placed
over the drains. Each cell would consist of five to
seven lifts, each 28 feet high. Tailings would be
placed (unconsolidated) into the 28-foot lifts followed
by 1 foot of compacted, low-permeability fine till and
1 foot of waste rock to provide a cover and working
surface. Stockpiles of waste rock to be used in DTF
construction would be placed within the footprint of
the next cell. The final cover for the facility would
consist of 6 to 8 feet of coarse and fine till. The un-
derlying fine till layer would serve as a capillary
break, and the overlying coarse till would promote
infiltration and drainage. Growth media would be
placed on the coarse till to support revegetation.

To ensure that tailings placed into the DTF did not
contain excess moisture, there would be no tempo-
rary storage at the process area or the dewatering
area. Tailings would be placed directly into the DTF
or backfilled. The operation would generally expose
less than 5 acres of tailings to direct precipitation at
any one time (before concurrent covering and revege-
tation), as illustrated in Figure 2-15.

An engineered structural berm would be constructed
around the north, south, and west sides of each cell
to increase the stability of the facility. The berm
would be constructed of waste rock, compacted tail
ings, or other suitable material. The berm would
extend to a height of approximately 100 feet along
the west slope and 50 feet along the north and south

194a

slopes. Under Alternative A, the DTF, including the
berm, would ultimately cover 113 acres and have a
capacity of 20 million tons of tailings. Under Alterna-
tive Al, the DTF would cover approximately 40 acres
and be able to store 4.5 million tons of tailings.

Subaqueous Tailings Disposal

Under Alternatives B, C, and D, tailings would flow
by gravity as a slurry from the mill facility located on
private land near the Jualin Mine portal to the TSF
at Lower Slate Lake through a 3.5-mile pipeline
(Figures 2-5 and 2-6). The pipeline would be double-
walled, high-density polyethylene (HDPE), approxi-
mately 6 inches in diameter. Flow sensors with
automatic shutdown mechanisms would be used to
detect any blockages or breaks in the system.

Before the slurry left the mill, a polymer and floccu-
lant would be added to agglomerate the small
particles and enhance settling once the tailings were
deposited into the TSF. The polymers and flocculants
are not toxic and would have no effect on water qual-
ity beyond their capability to improve the efficiency
of settling out fine material. The tailings slurry
would be discharged into the TSF through perfora-
tions in a portion of the tailings delivery pipeline
submerged in the TSF.

A portion of the perforated segment of the pipeline
would always be above the bottom of the TSF, allow-
ing the tailings to flow freely from the pipe. The
perforations would be very large in comparison to the
size of the tailings particles to prevent the tailings
from clogging the pipeline. Valves would be placed in
the delivery pipeline to allow for maintenance or re-
location of the tailings discharge point (perforated
pipe). The tailings pipeline would be moved periodi-
cally to ensure equal distribution of the tailings.

195a

Under Alternative B, water from the slurry transport
of tailings and natural inflow from the drainage ba-
sin would maintain a relatively consistent lake
volume and thus provide water cover for the tailings.
The tailings would be deposited to a final elevation of
704 feet with a constant cover of at least 9 feet of wa-
ter. Figures 2-16 and 2-17 provide an overview of
biological activity in Lower Slate Lake before and af-
ter mining operations. The maximum depth of the
tailings at closure would be approximately 120 feet.
The operational details of the facility at the initial
dam construction stage (705 feet) have yet to be de-
termined. Water would be recycled from the TSF for
reuse in the process facilities at an average rate of
100 gallons per minute (gpm).

Under Alternative C, all natural inflows from the
channel between the two lakes (Mid-Lake East Fork
Slate Creek; see Figure 3-3) and the drainage areas
surrounding the TSF would be diverted around the
TSF. In this case, natural flows would be captured in
diversion ditches, carried around the north and east
shores of the TSF, and discharged to a drop structure
constructed at the TSF dam spillway. Water from the
TSF would not be recycled under Alternative C.

Under Alternative B, a drop-structure spillway
would be installed at the east abutment of the dam
to direct discharge from the TSF to East Fork Slate
Creek. An energy dissipater at the bottom of the
spillway would allow the water to flow into East
Fork Slate Creek without affecting the downstream
velocity in the creek. Operationally, water would be
pumped from a clear portion of the pond, away from
the tailings discharge, to the spillway inlet for dis-
charge. The operator would manage the TSF so that
the water is maintained at a steady level. This ap-

196a

proach would maintain flow-through conditions so
that releases from the TSF would be roughly equiva-
lent to the natural inflow to the lake from natural
sources. Under Alternative C, the discharge from the
TSF would be pumped to the diversion channel,
where it would combine with the natural flows in the
diversion channel before flowing into East Fork Slate
Creek below the embankment. Upon completion of
mining operations, the lake ecosystem would be rees-
tablished at its new level and flows would passively
discharge through the permanent embankment
spillway.

* KKK KK

2.3.6 TSF Dam Construction

The TSF would be formed in part by the natural lake
basin at Lower Slate Lake and a dam constructed at
the outlet of the lake. The dam would be a concrete-
faced rockfill dam constructed in two phases. During
operations, the dam of the TSF would be 90 feet tall
and approximately 500 feet long. The TSF would be
sized to accommodate 4.5 million tons of tailings.
Figure 2-19 shows the TSF dam. The phased ap-
proach to constructing the dam would allow tailings
disposal to begin once the first stage of the dam was
completed. The second stage would be built while
mining operations and tailings disposal were active,
likely 4 to 5 years into the process.

* KK * KK K

4.9.3 Effects Common to Alternatives B, C, and D

Under Alternatives B, C, and D, mine drainage
would be treated the same as under Alternative A.
However, most operations would occur within the
Johnson Creek drainage (access roads and process

197a

area) and the Slate Creek drainage (access roads and
the TSF). The same indicators as described under Al-
ternatives A and Al were used to compare the
potential impacts.

Integrity of Freshwater Habitat

Alternatives B, C, and D would require a stormwater
diversion channel above the Jualin Mine portal and
process area bench and would discharge to Johnson
Creek. Stormwater discharged from the diversion
would not affect fish or other aquatic organisms.

Alternatives B, C, and D include tailings disposal in
Lower Slate Lake through a slurry pipeline from the
mill. For the purposes of this analysis, it is expected
that all fish and most other aquatic life (such as
macroinvertebrates, periphyton, and zooplankton) in
Lower Slate Lake would be lost during operations as
a result of this action. Some individuals might sur-
vive, but marginal food sources and the lack of
suitable habitat as the lake elevation rises appear to
be the major limiting factors.

Two species of fish are present in Lower Slate Lake:
three-spine stickleback (a forage fish) and Dolly
Varden char (a sport fish). Estimates of mortality
based on the survey completed in 2001 indicate ap-
proximately 1,000 Dolly Varden char could be lost
because of the tailings disposal in Lower Slate Lake
(Kline, 2003a). The Dolly Varden char in Lower Slate
Lake appear to be small and exhibit slow growth, ac-
cording to a comparison of the literature on other
Dolly Varden char in Southeast Alaska lakes (Kline,
2003a). As discussed in Section 3.9.2, the number of
three-spine sticklebacks in Lower Slate Lake has not
been defined, although it is likely greater than the
number of Dolly Varden char. The entire population

198a

of three-spine sticklebacks could be lost during op-
erations.

Placement of tailings in Lower Slate Lake would
raise the lake level to the point that most of both
channels of Mid-Lake East Fork Slate Creek would
become inundated. Kline (2003c) indicated that there
is no evidence that Lower Slate Lake Dolly Varden
char spawn in Mid-Lake East Fork Slate Creek.
Dolly Varden char have been captured in this system
in June, August, September, and October. In the ac-
cessible reaches of Mid-Lake East Fork Slate Creek,
an average of seven Dolly Varden char were captured
in each sampling effort. Of the fish captured in this
system, 90 percent have measured less than 5.5
inches in total length. These fish represent the lower
50 percent of the Dolly Varden char hi the Slate
Creek system and are thus unlikely to include sexu-
ally mature fish. This lack of evidence of stream
spawning is not sufficient to rule out the possibility
that some stream spawning occurs; however, in this
case, it appears very limited.

Mortality of macroinvertebrates and other aquatic
organisms would also occur in close proximity to the
deposited tailings. As the water level in the TSF
rose, lakeshore vegetation would become inundated
and provide new microhabitat and detritus for colo-
nizing macroinvertebrates. Generally, macroinverte-
brate species adapted to highly variable stream envi-
ronments are better able to tolerate change than
those in more stable lake and pond environments
(Mackie, 1998). Impacts on species abundance and
diversity resulting from catastrophic substrate loss
or degradation are well documented. Reports of heav-
ily disturbed streams indicate that macroinverte-
brate recovery can occur within time frames ranging

199a

from months to a few years (Appendix C; Hill, 1975;
Gore, 1985; Thomas, 1985), though responses can
vary for individual species (Minshall, 1982).

Figures 2-16 and 2-17 provide overviews of Lower
Slate Lake before operations and after closure. As
discussed below under Sedimentation and in Appen-
dix C, toxicity tests show that the tailings might not
provide suitable habitat for macroinvertebrates.
Over the long term, as natural materials redeposit
throughout the lake, the larger shallow/productive
areas should increase the available habitat (and cor-
responding fish and macroinvertebrate populations).
In the proposed reclamation plan, after mine closure
the lake would have at least an equivalent area of
plant and shallow water macroinvertebrate habitat
that is not covered by tailings. It is therefore as-
sumed that post-closure habitat should be adequate
to support a macroinvertebrate population at least
comparable to the pre-mining population.

The work completed to date demonstrates that the
TSF can be restored to at least equivalent habitat
and fish populations after closure. The operational
monitoring described in Section 2 would be used to
further refine and optimize the reclamation plan.
These data would be reviewed by the Forest Service
and ADNR, which would approve and oversee im-
plementation of the final reclamation plan.. As
required by the ADNR ‘Title 41 permit, downstream
fish passage would have to be provided at closure
from Upper Slate Lake through Lower Slate Creek to
East Fork Slate Creek below the lakes. Upstream
fish passage would not be restored from East Fork
Slate Creek below Lower Slate Lake to Lower Slate
Lake.

200a

The existing Jualin access road would be maintained
as the primary access to the mine under Alternatives
B, C, and D. The road would be upgraded as needed
to suit construction and operational requirements
and extended from Jualin to the proposed mine por-
tal using appropriate Forest Service BMPs. This road
has two stream crossings over Johnson Creek. Exist-
ing bridges would be upgraded. Construction would
be consistent with Forest Service standards and
guidelines (TRAN214), including the use of erosion
control and stabilization measures. The installation
or improvement of the bridges would also be done
under ADNR Title 41 permits that would address
impacts on fish habitat.

* * KK K OK

Sedimentation

Sediment resulting from road construction and im-
provement and, to a lesser extent, from mine
operation could be carried into the Slate and Johnson
Creek drainages. Impacts on the stream systems
from these relatively minor amounts of sediment
from construction-related activities would be similar
to those described under Alternative A.

Under Alternatives B, C, and D tailings would be de-
posited subaqueously into the TSF. AScl Corporation
(2000a, 2000b) conducted habitability tests using
several amphipods on shallow and deep Lower Slate
Lake sediments, a control lake sediment, and sedi-
ment composed of Kensington Mine tailings. AScl
Corporation (2000a, 2000b) conducted tests using
Hyalella azteca and Chironomus tentans in the vari-
ous sediments to determine effects on survival,
growth, emergence, and egg production. Results of
the habitability tests on Hyalella azteca indicated

201la

the control lake sediments and Lower Slate Lake
sediments (both shallow and deep) supported accept-
able growth as defined by weight and length. The
tailings sediment sample caused a statistically sig-
nificant reduction in the survival of Hyalella azteca
when compared with the control lake sediments and
Lower Slate Lake shallow and deep sediments. Spe-
cifically, the survival of Hyalella azteca was as
follows:

e 83 +13 percent in control lake sediments

¢ 76 + 22 percent in Lower Slate Lake deep sedi-
ments

e 62 + 28 percent in Lower Slate Lake shallow
sediments

e 5+ 8 percent in tailings sediments

The suggested USEPA minimum survival rate of
Hyalella azteca for a 28-day sediment exposure is 80
percent. The effect of the tailings sample on Hyalella
azteca reproduction could not be determined because
of low survival in the tailings sample after 28 days.

Results of the habitability tests on Chironomus ten-
tans indicated that the control lake sediments, Lower
Slate Lake sediments, and tailings supported accept-
able 20-day growth. Samples from shallow Lower
Slate Lake and deep Lower Slate Lake and tailings
samples supported emergence rates of 85 percent, 53
percent, and 43 percent, respectively, showing a sta-
tistically significant reduced emergence rate of
Chironomus tentans when compared with the control
lake sample and shallow Lower Slate Lake sedi-
ments. USEPA recommends a minimum endpoint of
50 percent for emergence.

These results indicate that mortality of and repro-
ductive effects on Hyalella azteca and Chironomus

202a

tentans that attempted to recolonize the deposited
tailings would occur as a result of subaqueous tail-
ings deposition in the TSF. It is likely that similar
effects on other macroinvertebrates and aquatic in-
sects would occur. Appendix C shows that the
sediment is not toxic to fish populations. However,
the reduced number of macroinvertebrate and
aquatic insect forage species might indirectly affect
post-deposition fisheries populations. As discussed
previously, it is assumed that the majority of the fish
and other aquatic life in Lower Slate Lake would be
lost during operations as a result of tailings disposal.
Some individuals might survive, but limited food
sources and the lack of suitable habitat as the lake
elevation rose appear to be the major limiting fac-
tors.

At closure, the shallow aquatic habitat that is not
covered by tailings should support near-term resto-
ration of the macroinvertebrate and fish populations
in the lake. Modeling shows that the tailings would
not generally resuspend and redeposit over the natu-
ral sediment areas (Appendix C).

Finally, some uncertainty is associated with these
analyses, including the tailings toxicity test results.
Reasonable "worst-case" assumptions, however, have
been made here and in Appendix C in presuming
that all aquatic life would be lost in the TSF during
operations and that the tailings would not support
macroinvertebrates after closure (Tetra Tech, 2003b).
As additional test and operational data became
available, the mine operator would modify tailing
deposition procedures and the reclamation plan to
maximize opportunities for improving aquatic re-
sources in the lake.

KKK KK

203a

Functional Losses. The predominant wetland types
that would be affected by Alternatives B, C, and D
are forested and emergent wetlands. Forested wet-
lands at the outlet of Lower Slate Lake received high
functional ratings for wildlife habitat, carbon/detrital
export, and fish habitat. They received moderate rat-
ings for sediment/shoreline stabilization and
nutrient cycling. Emergent wetlands within the vi-
cinity of the proposed process area received moderate
ratings for all functions except groundwater inter-
change (low). Wetlands in the vicinity of the Slate
lakes and Spectacle Lake form a large forest and
emergent wetland ‘system. This area would experi-
ence approximately 23 acres of impacts under
Alternative B, almost 35 acres under Alternative C,
and 25 acres under Alternative D. The for-
ested/emergent system provides high levels of
wildlife habitat and moderate values for fish habitat,
nutrient cycling, carbon/detrital export and sedi-
ment/toxicant retention. Of the additional affected
acres under Alternative C, the inundation of 11 acres
around Upper Slate Lake would occur only during
the life of the project. These wetlands would be ex-
pected to reestablish once the water levels receded.
Construction and operation of the TSF would result
in the permanent loss of 23 acres (13.5 acres of for-
ested wetlands and 9 acres of emergent wetlands).

The direct loss of function would result from the
placement of fill, burial by tailings, or inundation.
With the exception of the areas inundated by the
TSF or buried by the dam, impacts on forested wet-
lands would remain in place through the duration of
operations and would begin recovery with reclama-
tion. The loss of the habitat function would not occur
simply as result of construction and operation of the
project because the presence of humans and equip-

204a

ment would likely affect the habitat values well be-
yond the direct impacts on, forested wetlands. The
loss of hydrologic functions of the DTF began. Under
Alternative A, some of the palustrine forested and
scrub-shrub wetlands in other portions of the project
area would become emergent or aquatic bed wet-
lands (borrow areas), while others would be
encouraged to return to their pre-mining form follow-
ing reclamation. Alternative Al would have
proportionally fewer impacts on wetlands in the ter-
race area because of the reduced footprint of the
DTF.

By comparison, Alternatives B, C, and D would affect
substantially fewer acres of wetlands but would af-
fect a greater number of wetland types, including
palustrine emergent, palustrine aquatic bed (Upper
Slate Lake), and lacustrine (Lower Slate Lake).
Lower Slate Lake provides high values for fish habi-
tat, high values for wildlife habitat, and moderate
values for nutrient cycling and carbon export. Upper
and Lower Slate lakes provide aquatic habitat for the
Dolly Varden char, three-spine sticklebacks, and
benthic organisms that inhabit the lake. In addition,
the lake margins support the wide variety of wildlife
in the area, including moose and Vancouver Canada
geese. Not all functions provided by the lakes would
be lost during construction and operations; however,
the value for fish habitat is assumed to be lost for the
duration of operations and the value in terms of wild-
life habitat wouid be reduced at a minimum.
Nutrient cycling and production export values would
aiso be lost during operations. The diversity in form
provided by the palustrine emergent wetlands pro-
vides moderate wildlife habitat values and sediment
retention, as well as high values for flood flow altera-
tion. The forested wetlands would provide values

205a

similar to those associated with Alternatives A and
Al. Impacts on the emergent, forested, and shrub-
scrub wetlands would remain at least through the
duration of operations; the extent of recovery follow-
ing reclamation would depend to a great extent on
the extent of fill removal and reestablishment of wet-
land hydrology.

Alternative C would also affect Upper Slate Lake
(palustrine aquatic bed) during operations. The effect
of losing or reducing the functions of both lakes si-
multaneously during operations would _ be
substantially greater than the effects on Lower Slate
Lake alone under Alternatives B and D, including
the loss of nutrient cycling, and production export
and loss/reduction in value of habitat for fish (see
Section 4.10) and wildlife (see Section 4.11). Upper
Slate Lake and the wetlands surrounding it would
recover from the impacts from inundation after rec-
lamation; however, the recovery of emergent and
submergent wetland vegetation along the margins of
the lake would take years, with herbaceous vegeta-
tion recovering first, followed by shrubs and trees.

* * Kk Ke OK K

Appendix C

Ecological Risk Assessment of Aqueous Tailings
Disposal at the Kensington Gold Mine

* KK KK KK

4.3.3 pH

Only direct exposure of aquatic receptors to water is
considered an issue for pH in the ERA. In general,
the scientific literature on pH is concerned with low-
pH conditions rather than high-pH conditions. As a
result of the milling process, the tailings decant wa-

206a

ter has high pH levels (Table 3.1). The Gold Book
(USEPA, 1986) lists a pH range of 6.5 to 9.0 for
aquatic life, though there is no support provided for
the upper value of 9.0. McKean and Nagpal (1991)
report that a high pH (>9.5) can disrupt ammonia
excretion across the gill epithelium and that a pH of
more than 10.2 results in salmonid mortality.

4.3.3.1 Worst-Case Water

The decant water has a pH of approximately 10,
which is above the protective concentration pH range
of approximately 6-9 for aquatic life. Although a pH
of 10 would likely pose a risk to aquatic biota in the
TSF, elevated pH levels are expected to occur only in
the immediate vicinity of the tailings pipe outfall and
perhaps in the pore water of small spatial areas
around the outfall. The LSL volume of at least 1.4 x
10° gallons would be orders of magnitude greater
than the projected daily tailings input of 2.1 x 10°
gallons per day (148 gallons per minute [gpm]).

207a

APPENDIX J

2"" HEP? ww su.

er

7

SEPA USDA Fores Service, Tongass National Forcss

Cooperating Agencies

US Eavuanmenta! Protection Ageucy, Region 10
US Army Corps of Enginecrs, Alaska Dnurict
pe A Alaska Department of Natural Resources

Prepared by

Tears Tech. Inc

14° Unie Dowewant
Rite 1010
Lakewood, OD 802.28

December 2004

PECT AVAIL ADIEC COADV

208a

Record of Decision
USDA FOREST SERVICE

Kensington Gold Project

Juneau Ranger District

Tongass National Forest

Decision to be made

This Record of Decision documents my selection of an
alternative that will be used to amend the 1997 Plan
of Operations for the Kensington Gold Project. My
decision is based on the analysis and evaluations in
the 2004 Final Supplemental Environmental Impact
Statement (FSEIS) as well as information incorpo-
rated by reference from the 1997 FSEIS and ROD
and the 1992 FEIS and ROD.

While the 2004 FSEIS considers and discloses all di-
rect, indirect and cumulative impacts related to this
project, regardless of land ownership or jurisdiction,
my decision addresses only those project components
subject to my authority over National Forest System
lands. Other Federal and State agencies and the City
and Borough of Juneau have authority to issue spe-
cific permits on National Forest System lands and
elsewhere. In particular, both the Environmental
Protection Agency and the U.S. Army Corps of Engi-
neers have yet to exercise their permitting authority
over this project and have indicated their intent to
issue separate Records of Decision based on this
FSEIS. The State of Alaska will also rely on much of
this analysis to approve activities on state lands and
issue applicable permits. Implementation of my deci-

209a

sion to select an alternative is subject to the comple-
tion of those necessary permit processes by the other
federal, state, and local authorities.

As part of this decision I will also consider recom-
mendations from an interagency team to modify
three small Old Growth Habitat reserves located in
the project area.

Background

The Kensington Gold Project is an underground gold
mine located approximately 45 miles_ north-
northwest of Juneau, Alaska. The recent history of
the Kensington Gold Project began in 1990 when the
Kensington Venture (a joint venture between Coeur
Alaska, Inc. [Coeur] and Echo Bay Exploration)
submitted plans to the Forest Service to develop the
Kensington mine. The Forest Service completed the
Kensington Gold Project Final Environmental Impact
Statement (1992 FEIS) and Record of Decision (ROD)
in 1992 to consider and disclose environmental im-
pacts that could arise from the project. Alternative F,
Water Treatment — Option | was selected as the basis
for a plan of operations which was subsequently ap-
proved by the Forest Service in July 1992.
Alternative F consisted of underground mining, ore
processing using cyanide vat leaching, tailings im-
poundment in Sherman Creek, marine discharge of
process wastewater and various support facilities in-
cluding liquefied petroleum gas for power generation.

In 1995, prior to obtaining all necessary permits, the
joint venture was dissolved and Coeur became the
sole stakeholder in the property. Coeur submitted an
Amended Plan of Operations to the Forest Service in
September 1995.

210a

In June 1996 Coeur revised the 1995 Amended Plan
of Operations in response to issues raised during
scoping and at meetings with state and federal agen-
cies. The 1996 Amended Plan of Operations was
analyzed in the Kensington Gold Project Final Sup-
plemental Environmental Impact Statement (1997
SEIS) and a ROD signed in August 1997 in which Al-
ternative D (the No Action Alternative in the current
SEIS) was selected. Major project changes approved
as part of Alternative D in the 1997 decision included
off-site shipment of concentrate rather than on-site
cyanide leaching, elimination of the slurry disposal
dam in Sherman Creek in favor of a dry tailings dis-
posal facility and use of diesel fuel rather than
liquefied petroleum gas for power generation. The
Forest Service approved an amended plan of opera-
tions, consistent with the selected alternative, on
May 28, 1998. Coeur obtained all permits necessary
for construction from federal, state, and local au-
thorities.

In 2001 Coeur submitted an amendment to the ap-
proved 1997 Plan of Operations for the stated
purpose of improving efficiency and reducing the ex-
tent of surface disturbance of the approved project.
The amended plan proposes a number of changes to
the 1997 approved plan, including changing the loca-
tion of the processing facilities from National Forest
System lands in the Sherman Creek drainage to pri-
vate lands in the Johnson Creek drainage near the
historic Jualin Mine workings, tailings disposal in
Lower Slate Lake, an access tunnel from the mill to
the Kensington claims and a daily commute of work-
ers via shuttle boat rather than on-site housing with
helicopter access. The operation would also mine a
smaller portion of the ore body containing a higher
average gold concentration than proposed under pre-

2lla

vious plans. The amended plan calls for the construc-
tion of two marine terminals on state tidelands; one
at Slate Creek Cove and one at Cascade Point, adja-
cent to lands owned by Goldbelt Incorporated
(Goldbelt), an Alaska Native corporation. Goldbelt
would own and operate the Cascade Point dock as
well as the ferry service between the two marine fa-
cilities. See Chapters 1 and 2 of the FSEIS for a more
detailed description of the proposed action and alter-
natives.

The Forest Service directed the preparation of this
SEIS using a third-party contractor, Tetra Tech, Inc.
The U.S. Environmental Protection Agency
(USEPA), U.S. Army Corps of Engineers (USACE),
and Alaska Department of Natural Resources
(ADNR) participated as cooperating agencies with
the Forest Service in preparing the SEIS.

The current SEIS was developed to evaluate pro-
posed changes to the approved plan of operations
which could effect National Forest System, State of
Alaska, Goldbelt Native Corporation and private
lands. Approval for components not on NFS lands
will be accomplished through other state and federal
agencies with jurisdiction. This SEIS is intended to
supplement the 1997 SEIS and 1992 FEIS. Accord-
ing to requirements in the Council on Environmental
Quality regulations for implementing NEPA (40 CFR
Part 1500), this document analyzes and discloses the
direct, indirect, and cumulative impacts associated
with the proposed changes to the approved plan of
operations.

Decision

Based on the analysis and evaluation in the SEIS for
the Kensington Gold Project, it is my decision to se-

212a

lect Alternative D. In conjunction with this decision,
I am also approving a non-significant Forest Plan
amendment to enlarge three Old Growth Habitat re-
serves as recommended by an interagency review
team and described in Appendix 1 to this ROD.

My decision is based upon the analysis and evalua-
tion in this 2004 Final SEIS as well as information
incorporated by reference from the 1997 SEIS and
ROD and the 1992 EIS and ROD.

My selection of Alternative D, as described in the
SETS, approves modifications to the 1997 Approved
Plan of Operations to include the following:

e A Tailings Storage Facility (TSF) will be lo-
cated at Lower Slate Lake rather than a Dry
Tailings Facility (DTF) near Comet Beach.
The TSF will be sized to accommodate 4.5 mil-
lion tons of tailings and will ultimately
increase the size of Lower Slate Lake from 23
acres to 56 acres. East Fork Slate Creek will
be dammed between Upper and Lower Slate
Lakes and diverted by pipeline around the
TSF. The construction and operation of a wa-
ter treatment system for the TSF discharge is
authorized as required to meet NPDES permit
limits. All discharge waters are required to
comply with conditions to be established in a
National Pollution Discharge Elimination Sys-
tem (NPDES) permit administered by the
USEPA.

e Surface processing of ore will be done at mill
facilities located on patented (private) lands in
the Johnson Creek drainage. A floatation
process will be used to separate gold from tail-
ings and gold concentrate will be shipped off-

213a

site for further processing. Tailings will be
transported as slurry through a 3.5-mile long
pipeline from the mill to the TSF at Lower
Slate Lake. Approximately 40% of tailings will
be backfilled into underground workings.

The existing Kensington and Jualin Mine ac-
cess roads will be upgraded to safely
accommodate mine traffic. Two new bridges
will be constructed on the Kensington access
road and two existing bridges will be upgraded
on the Jualin access road. A 3.5-mile pipeline
access road and a l-mile cutoff road will be
constructed. All road construction on NFS
land will be subject to Forest Service stan-
dards and_- guidelines’ utilizing’ Best
Management Practices (BMPs).

Dry Tailings Facility (DTF), personnel camp,
and mooring facilities located at Comet Beach
will be eliminated.

A tunnel to connect the Kensington Mine with
ore processing facilities on private land near
the Jualin Mine in the Johnson Creek drain-
age will be built.

A permanent waste rock disposal facility at a
31.5-acre site near the Kensington 850-foot
portal and a 4.8-acre site near the Jualin Mine
process area will be developed.

Surface water diversions will be built above
the Kensington Mine 850-foot portal and
waste rock disposal area, the Jualin process
area and mine portal, and the diversion pipe-
line around the TSF.

214a

e A fresh water infiltration gallery will be con-
structed in Johnson Creek, subject to ADNR
approval, and a 300,000 gallon tank will be
built at the Jualin process area for fresh wa-
ter. A water recycle pipeline will be
constructed alongside the tailings slurry pipe-
line to return process water to the mill.

e Diesel fuel delivery, transport, and storage us-
ing 6,500 gallon isotainers. Isotainers will be
placed in the laydown area at Slate Creek
Cove, near power generation facilities, and at
equipment fueling areas. All isotainers will be
stored in HDPE-lined and bermed storage ar-
eas.

e The development of two new sand and gravel
borrow areas, as well as the continued use of
two existing borrow areas, disturbing ap-
proximately 7.1 acres will provide construction

{ materials.

Inch ded in the Selected Alternative is my decision to
adopt the mitigation and monitoring measures iden-
tified Yn the 2004 SEIS as described in section 2.5
that are within the authority of the Forest Service.
This incjudes mitigation measures for safety, and the
protection of the environment. My decision is also
premised upon other permitting agencies adopting
the mitigation and monitoring measures identified in
the SETS that are within their authority. In the
event that the other mitigation and monitoring
measures are not adopted, I will review this decision
to determine whether any changes are needed.

The legal framework applicable to authorizing a
large mine requires permits from different federal
agencies, each of which must engage in consultation

215a

under Section 7 of the Endangered Species Act before
the project may proceed. In particular, the mine op-
erator must receive a permit under Section 404 of
the Clean Water Act from the U.S. Army Corps of
Engineers before construction or operation of marine
terminals in Berners Bay. The USACE (and the For-
est Service) initiated formal consultation under
Section 7 and the USACE will not issue any permit
for the marine terminals until consultation is com-
pleted. The USACE retains full discretionary
authority to deny or condition the terminal permits
in response to a biological opinion or the identifica-
tion of reasonable and prudent alternatives.
Therefore, my decision on the plan of operations does
not constitute an irretrievable or irreversible com-
mitment of resources foreclosing any reasonable and
prudent alternatives with regard to the marine ter-
minals that might be found necessary to avoid
jeopardy to an endangered or threatened species.

In addition to a Section 404 permit, the operator
must receive Tidelands Leases (Alaska Department
of Natural Resources) for construction and operation
of marine terminals. Operation of crew transport fer-
ries across Berners Bay and barge traffic is subject to
National Marine Fisheries Service (NMFS), U.S.
Coast Guard, and Alaska Department of Environ-
mental Conservation regulation. The City and
Borough of Juneau (CBJ) has issued an Allowable
Use Permit to Coeur for mining operations and Slate
Creek Cove marine facility operation. Goldbelt has
received a CBJ Conditional Use Permit for opera-
tions at Cascade Point.

Rationale for the Decision

In making my decision, I considered the many con-
cerns raised during the analysis of this project, as

216a

well as those raised during the preparation of earlier
NEPA documents related to the Kensington Mine. I
took into account competing interests and values of
the public and included mitigation measures, where
possible, to avoid or minimize undesirable effects. All
alternatives considered in detail are consistent with
Forest Plan standards and guidelines designed to
protect resources within the project area. I have
carefully reviewed relevant information documented
in the SEIS, discussions between cooperating agen-
cies, and mitigation measures applicable to the
project. Chapter 2 of the SEIS contains a detailed
summary of the effects of each alternative both in
tabular and narrative form. Based on that review, I
believe that the actions described in Alternative D
will be permitted by the other regulatory agencies.

I have also considered input from USEPA in their
December 1, 2004, memo (SEIS — Appendix K) iden-
tifying their Environmentally Preferred Alternative
(Alternative A) and Preferred Alternative (Alterna-
tive. A). USEPA stated that their input was provided
without the benefit of a completed practicability
evaluation by the USACE or a completed Biological
Opinion from NMFS.

I am confident those analyses, when completed, will
provide information leading to reasonable environ-
mental mitigation measures for project components
subject to the regulatory authority of the cooperating
agencies.

I have also considered the advice of the State of
Alaska in its memo December 1, 2004 (SEIS — Ap-
pendix K) to me_ regarding environmentally
preferable and preferred alternatives. The State
identified both Alternatives A and D as environmen-
tally preferable and Alternative D as its preferred

217a

alternative. The State of Alaska is confident that
mitigation measures identified in the FSEIS, the
conditional and allowable use permits issued by the
CBJ, agreed to by Coeur in its transportation plan,
and those identified in the BA/BE submitted to
NMFS on November 17, 2004, will all serve to reduce
impacts to minimal levels for resources under the ju-
risdiction of the State of Alaska, herring in
particular. The State of Alaska will be including a
number of those mitigation measures in its Tide-
lands leases for marine facilities and Alaska Coastal
Zone consistency review. I agree with the comment
and analysis provided by the State.

As noted above, other agencies have the final deci-
sion in authorizing the type of transportation system
to be used to access National Forest System lands.
The FSEIS does, however, attempt to predict likely
effects to non-National Forest resources based on an-
ticipated activities and both mandatory § and
anticipated mitigation. Based on this analysis and
current mitigation requirements it appears that the
effects to wildlife, fish, and recreational resources in
Berners Bay are minimal. It is also possible that ad-
ditional permit conditions could be imposed under
both the USCOE permit and the State of Alaska tide-
lands lease that would further reduce impacts. Given
this conclusion, and the level of concern regarding
the effects of helicopter transport on wildlife and rec-
reation expressed during the 1992 and 1997
analyses, both helicopter and vessel transport result
in low to moderate effects on various resources, in-
cluding the recreational setting. As a_ result
transportation related effects are not a deciding fac-
tor in my selection of Alternative D.

218a

Alternative D provides the best combination of com-
ponents to minimize ground disturbance, reduce
impacts to wetlands, provide safe and efficient
transportation of workers, and reduce on-site fuel
storage with the related risk of fuel spills within the
framework of existing laws, regulations, and policies
while meeting the stated purpose and need.

The Forest Service generally encourages use of pri-
vate land for construction of privately owned
facilities and roads where possible. Alternative A has
the greatest impact on NFS lands in terms of surface
disturbance (248 acres) whereas alternatives B, C,
and D put more of the disturbance onto privately
held lands, and impact less acreage of NFS lands
(157 acres, 177 acres, and 159 acres respectively for
alternatives B, C, and D).

The EPA has indicated that both Alternative A and
Alternative B could be permitted under an NPDES
permit pursuant to the Clean Water Act. Without
additional water treatment, neither Alternative B
nor Alternative C could meet expected NPDES per-
mit conditions at all times and, therefore, could not
discharge to Slate Creek under all conditions. Alter-
native C also does not include process water
recycling which the EPA has indicated will be re-
quired by the NPDES permit (40 CFR 440.104(b)).
The open channel diversion of East Fork Slate Creek
around the TSF in Alternative C would provide the
same minimum in-stream flows to Slate Creek as Al-
ternative D, but would result in more ground
disturbance and be more difficult to maintain than
the pipeline diversion in Alternative D. Modifying ei-
ther alternative to address these concerns would -
make them similar to Alternative D.

219a

Alternative D disturbs approximately 197 acres, of
which 96 acres are wetlands, while Alternative A (No
Action) disturbs 268 acres, all of which are wetlands.
Although the total disturbed wetland acreage is low
for all alternatives, Alternative D does reduce wet-
land disturbance by 171 acres compared to the
previously approved plan and virtually all of the wet-
lands affected by Alternative D will be reclaimed
following closure. Approximately 164 acres of wet-
lands lost to the TSF under Alternative A would not
be regained.

Under Alternative D, water treatment and tailings
capping offer reasonable assurances that water qual-
ity downstream of the TSF will be protected.
Reclamation of the TSF, post closure, will recreate
habitat lost during operations and restore a viable
fish population comparable to pre-operational condi-
tions.

Both the DTF under Alternative A and the TSF un-
der Alternative D pose a minor threat due to the
potential for design failure. Any tailings facility ap-
proved will be required to be built to high standards.
Construction of the TSF dam will require certifica-
tion from the Alaska State Dam Officer and bonding
for maintenance in perpetuity.

Alternative D provides for safer handling of fuels
compared to Alternative A. The risk of diesel spills is
reduced under Alternative D by requiring all diesel
fuel to be delivered, transported, and stored in iso-
tainers rather than pumped frem a fuel barge at
Comet Beach as under Alternative A. Since fuel stor-
age facilities under all alternatives would be within
approved containment the effects of a spill at those
facilities would be minimal should one occur.

220a

Slate Creek Cove offers more reliable and safer con-
ditions for marine traffic. This reduces the need to
store excess fuels, chemicals, and materials onsite as
a contingency for weather delays.

Construction of 4.5 miles of road, common to alterna-
tives B, C, D, results in a minimal change to the
character of Roadless Area 301. Roads not required
for future monitoring and maintenance will be re-
claimed following mine closure and revegetated with
native plant species.

The 122-acre DTF under Alternative A would be
highly visible from Lynn Canal, the only Visual Pri-
ority Travel Route (VPTR) impacted by project
components on NFS lands. Figure 4-1 in the SEIS
provides a visual simulation of this effect. By elimi-
nating this component, my decision reduces visual
impacts along the VPTR.

I recognize the high recreational value of Berners
Bay to users. Berners Bay is an outstanding resource
that provides unique opportunities for wildlife and
landscape viewing. Portions of the operations will be
visible from the Forest Service Berners Bay Cabin,
Echo Cove, and Point Bridget. Impacts to users of
Berners Bay are related to marine facilities at Cas-
cade Point/Echo Cove and Slate Creek Cove and the
vessel traffic between them. Although these project
components are outside of National Forest System
lands, the impacts related to them have been evalu-
ated in the SEIS and are considered in my decision.
The Forest Service will work, to the extent practica-
ble, with the other Federal, State, and local agencies,
as well as with the operator to minimize these im-
pacts. I believe recreational values. will be
maintained with the mitigation measures considered
in the SEIS. I also recognize that there may be some

221a

forest users that find even these minimal impacts to
be unacceptable.

Alternatives Considered in Detail

Four alternatives were considered in detail, includ-
ing the No Action Alternative. This range of
alternatives addressed the major issues associated
with this project. The three action alternatives dif-
fered from each other in the type and location of
various project components. The alternatives are
summarized below. Table 2-5 in the FSEIS compares
alternatives by key project components.

Alternative A - No Action — As a result of this al-

ternative, the Forest Service would not approve
proposed changes to the 1997 Approved Plan of Op-
erations. This alternative includes underground
crushing of ore with aboveground grinding and flota-
tion. Flotation concentrate would be shipped to a
processing facility off-site. Employees would be
housed on-site and transported by helicopter for
weekly rotations. Supplies, including fuel, would be
delivered to a marine terminal on Comet Beach. Tail-
ings would be dewatered before being placed in a dry
tailings facility (DTF) facing Lynn Canal. The DTF
would have the design capacity to hold 20 million
tons of tailings and would include an engineered
berm around each cell of the facility. The production
rate would be 4,000 tons of ore per day and 400 tons
of waste rock per day. The waste rock would be used
in the construction of the DTF. Road and DTF con-
struction would require the development of sand,
gravel, and till borrow areas.

Alternative Al: Reduced Mining Rate, DTF - Al-
ternative Al illustrates the impacts that might occur
if the No Action Alternative were selected and the
operator chose to mine the same ore volumes pro-

222a

posed in the action alternatives. Alternative Al re-
flects a mining plan similar to that described for
Alternative A but uses a mining rate and tailings
production levels consistent with the Proposed Ac-
tion (2,000 tons per day and 7.5 million tons total,
respectively). The effects of Alternative Al were in-
cluded in the FSEIS for comparison purposes only.
The Forest Service does not regulate mining rate or
target ore body.

Alternative Al would result in 4.5 million tons of
tailings being placed in the DTF, assuming 40 per-
cent of the tailings would be backfilled. The DTF
would be approximately 65 percent smaller than it
would be under Alternative A. The reduced mining
rate presented under Alternative Al would produce
very limited amounts of waste rock for DTF con-
struction. For this reason, the impact analysis
assumes the same number of acres of sand and
gravel borrow areas would be required as under AIl-
ternative A, although the coarse and fine till borrow
area would be reduced in size. Other aspects of Al-
ternative Al, including transportation of employees
and materials, would remain the same as those de-
scribed under Alternative A. The life of the operation
would be reduced to ten years following two years of
construction.

Alternative B: Proposed Action — Alternative B
reflects a number of changes to the mine plan com-
pared with the No Action Alternative, including
constructing a tailings storage facility (TSF) in
Lower Slate Lake, relocating milling operations to
the Johnson Creek drainage, and eliminating the
personnel camp. The operation would mine a smaller
amount of ore with a higher average gold concentra-
tion compared with that proposed under Alternative

223a

A. Alternative B would include the development of a
tunnel connecting the existing Kensington Mine to
the process area located near the Jualin Mine in the
Johnson Creek drainage. Access to the site would be
from marine terminals built in Slate Creek Cove and
at Cascade Point. Crew shuttle boats would trans-
port employees daily to and from the project site. The
TSF would be sized to accommodate the disposal of
4.5 million tons of tailings. Borrow areas would need
to be developed for construction of the TSF dam and
roads. The production rate would be approximately
2,000 tons of ore per day. This alternative includes
recycling water from the TSF to the mill circuit. Al-
ternative B would require upgrading the 5-mile-long
access road from Slate Creek Cove and constructing
a 3.5-mile pipeline access road and a 1-mile cutoff
road connecting the other two roads.

Alternative C: Dock Location and _ Design/

Diversion — Alternative C would eliminate the dock
at Cascade point and instead include a dock in Echo
Cove, approximately 0.75 mile north of the existing
Echo Cove boat ramp. Also, the landing craft ramp at
the Slate Creek Cove marine terminal would be
eliminated, minimizing the amount of fill placed in
the intertidal zone. Alternative C does not include
recycling process water from the TSF and the mill
circuit. This alternative would include diversion
channels to direct the flow from Mid-Lake East Fork
Slate Creek and overland runoff from undisturbed
areas around the TSF. The diversion would dis-
charge to a spillway at the top of the TSF dam. The
diversions would require a dam on Upper Slate Lake
to maintain water levels sufficient to reach the spill-
way at the TSF dam. The purpose of the diversion
would be to minimize the volume of fresh water in
contact with the tailings. The remaining project

224a

components, including the production rate of 2,000
tons per day of ore and the access tunnel, would be
the same as those under Alternative B.

Alternative D: Modified TSF Design and Water
Treatment — Alternative D was developed to ad-

dress comments received and concerns about the
TSF effluent meeting NPDES permit limitations in-
tended to protect downstream water quality in East
Fork Slate Creek below the TSF. Alternative D in-
cludes a dam in Mid-Lake East Fork Slate Creek
that would gravity feed a pipeline diversion around
the TSF. Water would be pumped from the TSF to a
reverse osmosis treatment system that would remove
solids and metals to ensure compliance with permit
limits. The treatment system would discharge to the
diversion pipeline. Alternative D also requires the
tailings placed in Lower Slate Lake to be capped if
the operator cannot demonstrate that the tailings
are re-colonized by plant and shallow-water macro
invertebrates at least comparable to pre-mining con-
ditions. The remaining project components would be
same as those under Alternative B. Alternative D,
the selected alternative, is described :« more detail
above.

Environmentally Preferable Alternative

Environmentally Preferable Alternatives) is (are) the
alternatives) that cause the least damage to the bio-
logical and physical environment and which best
protect, preserve, and enhance historic, cultural, and
natural resources.

I have identified Alternatives A and D as the envi-
ronmentally preferable alternatives. While both
alternatives include environmental impacts ranging
from short to long term, each are protective of water
and air quality standards. Each has different envi-

225a

ronmentally negative and positive aspects that,
when compared, make the two alternatives different
but near equal with respect to overall impact to the
environment. I have reviewed input from the USEPA
and the ADNR in reaching my determination. The
written conclusions and rationale from both agencies
are provided in Appendix K to the SEIS. While the
Forest Service and ADNR appear to be in agreement
about the relative effects of the alternatives on the
environment, the USEPA differs in its relative
weighing of project effects. Several interagency work-
ing meetings were held to attempt to reach
consensus regarding the environmentally preferable
alternative but, contrary to the USEPA' s view, no
group consensus was reached.

Comparing numerical differences of similar effects
between alternatives (i.e. acres) provides one means
of differentiating between the alternatives but is lim-
ited to easily measurable effects. Weighing the actual
importance of an impact on one resource against a
different impact on another resource is a much more
difficult undertaking. For example; weighing the ex-
tremely low risk of a catastrophic event in one
alternative against the certainty of a very small im-
pact in a different alternative results in a very
subjective ranking of one alternative against an-
other. In the end, in my opinion, a meaningful
difference between Alternatives A and D was not ap-
parent based on the resource values affected, nor the
degree to which those values would be affected.
Chapter 2 of the SEIS contains a detailed summary
of the effects of each alternative both in tabular and
narrative form. Chapter 4 of the SEIS contains a de-
tailed discussion of those effects.

226a

Alternatives Eliminated from Detailed Analysis

There were a number of alternatives and project
components studied in the 1992 FEIS and 1997 SEIS
including submarine tailings disposal, marine dis-
charge of wastewater, and wet tailings disposal in
the Sherman Creek drainage, among others. Those
discussions are not repeated here. This FSEIS dis-
cusses a number of additional alternatives and
components including disposal of tailings in Upper
Slate Lake, use of tailings in the construction of the
Juneau Access Road, helicopter access during eula-
chon and herring runs, and Cascade Point to Comet
Beach crew shuttle access among others. Each is
briefly discussed and reasons for not considering the
alternative or project component in detail are listed.

Mitigation, Monitoring, and Reclamation

The FSEIS, Chapter 2, Mitigation and Monitoring
list the mitigations measures required as part of al-
ternative D that are designed to avoid or minimize
potential environmental impacts during construc-
tion, operation, and project reclamation. A summary
of mitigation measures and a summary of monitoring
measures, including various authorities and the re-
sponsible parties, are identified in Table 2-6 and 2-7
of the FSEIS respectively. These mitigation meas-
ures have been used successfully in other projects
with similar types of activities. As a result, they are
considered effective and are made part of this deci-
sion. The mine operator will be required, as part of
the amended plan of operations, to submit mitigation
and monitoring plans. Mine construction may not
begin until the Forest Service approves the plan of
operations.

Environmental monitoring programs that meet the
requirements of the Forest Service, USEPA, ACOE,

227a

ADNR, ADEC and other agencies will be imple-
mented. These programs will be designed to
determine compliance of the project with the plan of
operations, other federal, state and local permits,
and to validate the projected effects of the project's
construction, operation, reclamation, and _post-
closure conditions. Impacts that are likely to or do
result in violations of regulatory stipulations will re-
quire alterations of project operations and/or
additional mitigation actions.

Permits, Licenses and Certifications

To proceed with development of the Kensington Gold
Project as approved in this ROD, various permits, li-
censes and certifications must be obtained from
federal, state, and local agencies. The following per-
mits must be obtained:

USDA Forest Service

Approval of the amended plan of operations includ-
ing posting of the approved reclamation bond.

U.S. Army Corps of Engineers

Clean Water Act Section 404 Permits
Rivers and Harbors Act Section 10 Permits
U.S. Environmental Protection Agency

Clean Water Act Section 402 - National Pollutant
Discharge Elimination System Permit

Clean Air Act

State of Alaska, Department of Environmental
Conservation

Clean Water Act Section 401 Certification of the
USACOE Section 404 permit

228a

Cleam Water Act Section 401 Certification of the
USEPA Section 402 - NPDES permit Air Quality
Control Permit

Domestic wastewater system plan approval

Boat requirements (SPCCP and financial assur-
ances)

State of Alaska, Department of Natural Re-
sources

Water rights authorizations

Tidelands leases for marine facilities

Alaska Coastal Zone consistency review

Certificate of Approval to Construct a Dam

Title 41 authorizations for fish passage and fish
habitat Right-of-way authorizations

Approval of the reclamation plan.

City and Borough of Juneau

Allowable Use Permit for Gold Mine Development
and Production within the Rural Mining District at
Berners Bay. (Approved September 13, 2004)

Conditional Use Permit to allow development of a
ferry dock and related access at Cascade Point. (Ap-
proved October 15, 2004)

Public Involvement

On September 13, 2002, the Forest Service published
a Notice of Intent to prepare a Supplementary Envi-
ronmental Impact Statement (SEIS) for the proposed
project in the Federal Register (Vol. 67, No. 178,
Page 58011-58012). Cooperating agencies as defined
in 40 CFR, section 1501.6 are the U.S. Army Corps of
Engineers, Environmental Protection Agency, and
The State of Alaska. The National Marine Fisheries
Service (NMFS) was invited to participate as a coop-

229a

erating agency, but declined. A Memorandum of Un-
derstanding was executed that included the following
State of Alaska agencies as participants in the devel-
opment and review of the SEIS: Alaska Department
of Naturai Resources (ADNR), Alaska Department of
Environmental Conservation (ADEC), and Alaska
Department of Fish and Game (ADF&G). On the
date of the Notice of Intent, the Kensington Gold Pro-
ject Amended Plan Of Operations; Supplemental
Environmental Impact Statement; Scoping Docu-
ment; USDA Forest Service, Juneau Ranger District;
September 2002 was distributed to agencies, organi-
zations, tribes, and persons who had previously
expressed interest in minerals projects on the Ton-
gass National Forest. Outreach was conducted with
public service announcements in the Juneau Pmpure
and by radio media.

On September 17, 2002 a scoping meeting/opem
house was held in Juneau, Alaska at Centennial!
Hall, and a second open house on September 19,
2002 in Haines, Alaska at the City Council chambers
in City Hall. The open houses were designed to pro-
vide background information or technical assistance
that the public or interested agencies might need be-
fore commenting. The scoping document was made
available at these meetings. The formal comment pe-
riod ended October 15, 2002.

The following significant issues were identified based
on comments from the public, other agencies, feder-
ally recognized tribes, and non-governmental
organizations.

1). Marine-related transportation will impact
users of and resources within Berners
Bay.

230a

2). Construction and operation of the tailings
disposal facility and other mine facilities
will impact aquatic resources from Slate
and Johnson Creeks to Slate Creek Cove
and Berners Bay.

3). The Lower Slate Lake tailings storage fa-
cility, docks, access road, and other mine
facilities will impact the scenic character
of Berners Bay for recreationists.

To address these issues, the Forest Service developed
aliernatives to the Proposed Action, as described
above.

A Notice of Availability of the Draft SEIS was pub-
shed January 23, 2004 in the Federal Register (Vol.
69, No. 15, Page 3340-3341) and copies of the docu-
ment distributed to interested and affected parties. A
public meeting was held on February 24, 2004 at
Centennial Hall in Juneau and on February 26, 2004
at the American Bald Eagle Foundation Building in
Haines. The extended comment period for the Draft
SEIS closed April 7, 2004. Based on comments to the
Draft SEIS, Alternative D was developed. The only
new component introduced in Alternative D was a
reverse osmosis water treatment facility to address
concerns about the TSF effluent meeting NPDES
permit limitations intended to protect downstream
water quality in East Fork Slate Creek below the
TSF.

Planning Record

The planning record for this project includes the
Draft SEIS, Final SEIS, appendices, public com-
ments, response to public comments, Forest Plan, all

material incorporated by reference including the
1997 SEIS and ROD and 1992 EIS and ROD, and all

23la

materials utilized during the analysis of this project.
The planning record is being compiled and will be
available for review at the Juneau Ranger District
office when legal notice of this decision is published
in the Juneau Empire.

Findings Required by Law

Tongass Land and Resource Management Plan,
1997

All project alternatives are consistent with the 1997
Land and Resource Management Plan for the Ton-
gass National Forest. The site is located within an
area designated as Modified Landscape with a Min-
erals prescription. My decision to approve the
amended plan of operations for the Kensington Gold
Project as described in Alternative D is consistent
with the intent of the Forest Plants long-term goals
and objectives listed on pages 2-2 to 2-5. The project
was designed in conformance with Forest Plan stan-
dards and incorporates appropriate Forest Plan
guidelines for Modified Landscape with a Minerals
prescription (Forest Plan, pages 3-135 to 3-136 and
3-151 to 3-157).

As part of the Kensington Gold Project analysis,
three small Old-Growth Reserves (OGR) within the
project area were reviewed by an interagency team .
These OGRs are synonymous with the Old-Growth
Habitat land use designation in the Forest Plan. A
non-significant amendment expands the OGRs in
VCUs 160, 190, and 200 to meet the requirements of
the Forest Plan. (ROD, Appendix 1)

232a

The Roadless Area Conservation Rule
(Roadless Rule)

On January 12, 2001 the Forest Service published a
final rule for roadless area conservation known as
the "“Roadless Rule", which generally prohibited
commercial timber harvest and road construction
within inventoried roadless areas on national forests.
In December 2003, the Forest Service exempted the
Tongass National Forest from the roadless rule.

Alaska National Interest Lands Conservation
Act (ANILCA)

An ANILCA Section 810 subsistence evaluation was
conducted. The Kensington Gold Project is located
within the City and Borough of Juneau, whose resi-
dents are non-rural for subsistence purposes in
terms of the ANILCA. Documented subsistence use
of the area is limited to the some fishing off Comet
Beach by Skagway and Haines residents. The docu-
mented use of the project area by rural residents is
well below the levels considered for subsistence use.
Therefore, no significant restrictions on subsistence
resources would be expected by implementing any of
the alternatives..

Endangered Species Act

No threatened or endangered species either occur
upon or would be affected by project components oc-
curring on NFS land and approved by my decision.
The Forest Service has determined that project com-
ponents occurring outside of NFS land are not likely
to affect threatened and endangered species. As indi-
cated above, formal consultation with the NMFS is
ongoing, and implementation of my decision is sub-
ject to the completion of this process. The USACE
retains the full authority to deny or condition the ac-

233a

tivities at the marine terminals in response to a bio-
logical opinion and any reasonable and prudent
alternatives to protect listed species. Other agencies
may, as a result of NMFS recommendations and
fmdings, incorporate additional mitigations or modi-
fications. Such mitigations and modifications will be
incorporated within the permits of agencies with ju-
risdiction. The Final’ Biological Assessment/
Biological Evaluation (BA/BE) submitted to NMFS
on November 17, 2004 is included as Appendix J to
the SEIS and contains current and expected operat-
ing conditions. In the event that other mitigation
measures or operating conditions are incorporated, I
will review my decision to determine whether any
changes are needed.

Essential Fish Habitat

The potential effects of the Kensington Gold Project
on essential fish habitat (EFH) have been evaluated.
No adverse effects to freshwater EFH will occur as a
result of my decision. Although the risk of measur-
able impact on essential fish habitat has been
minimized, I have determined that this project could
adversely affect essential fish habitat in the marine
environment. Marine components of this project
could have short- and long-term adverse effects on
EFH. These components will be addressed by other
Federal, state, and local agencies that may require
mitigation measures to reduce adverse impacts to
EFH. In addition, Coeur is sponsoring a monitoring
plan by NMFS and the state to assess the effects of
petroleum releases into Berners Bay. ! will continue
to work with the NMFS in evaluating monitoring re-
sults. For specific information regarding essential
fish habitat and potential impacts refer to sections

234a

4.9 and 4.10, and the EFH Assessment included as
Appendix B in the SEIS.

National Historic Preservation Act

A cultural resource survey of the area of potential ef-
fect for the Kensington Gold Project was completed
in 2003, in compliance with Section 106 of the Na-
tional Historic Preservation Act. Determinations of
eligibility for 43 historic sites within the area of po-
tential effect were submitted to the State Historic
Preservation Officer for its concurrence with our de-
terminations of eligibility. In March 2004 the Forest
Service completed the determinations of effect for
each of the historic properties in each of the propose”
alternatives. A mitigation plan to address the aa-
verse effects to historic properties has _ been
documented in a Memorandum of Agreement (MOA)
between Coeur Alaska Inc., Alaska State Historic
Preservation Officer, and the Tongass National For-
est as executed by the Forest Service on November
29, 2004 (FS No. 05MU-111005-017).

Implementation of this MOA during all phases of the
mining operations, through closure, evidences that
the Tongass National Forest has satisfied its section
106 responsibilities for all undertakings pursuant to
the plan of operations.

The area of potential effect was also evaluated for
the presence of any Traditional Cultural Properties
(TCP). The State Historic Preservation Officer con-
curred with our determination of "No Traditional
Cultural Properties Affected". Members of the Auk
Kwaan were consulted regarding TCP in a May 2003
meeting in Juneau in order to complete and verify
Forest Service records.

235a

Coastal Zone Management Act

The Coastal Zone Management Act (CZMA) requires
that the Forest Service, when conducting or author-
izing activities or development be consistent with the
approved Alaska Coastal Management Program
(ACMP) to the maximum extent practicable. This ac-
tivity is one authorized under a Forest Service
permit, as defined in 15 CFR 930.51(a). The Forest
Service/State of Alaska Memorandum of Under-
standing on Coastal Zone Management Act/Alaska
Coastal Management Program Consistency Reviews
(MOU) lists permitted activities normally requiring a
consistency determination (MOU, Section 302.8.2.).
This activity is listed in Section 302.8.2 as normally
requiring a consistency determination. Coastal Pro-
ject Questionnaires have been completed by Coeur
Alaska, and submitted to the State of Alaska for a
consistency determination. A consistency determina-
tion must be received before the state can issue any
permits and before the Forest Service can approve
the plan of operations.

Executive Orders

Executive Order 11988
(Floodplain Management)

This area is not located within floodplains as defined
by executive order 11988.

Executive Order 11990
(Protection of Wetlands)

Because wetlands are so extensive in the Kensington
Gold Project area, it is not feasible to avoid all wet-
land areas. I have determined that the selected
alternative includes all reasonable measures to
minimize harm to wetlands, which may result from

236a

such use. A separate permit, issued by the USACOE,
is required for all wetland fill. The selected alterna-
tive eliminates the permanent loss of 122 acres of
wetlands resulting from construction of the DTF.
Construction of the TSF will impact 23 acres of wet-
lands, however, a similar amount of wetlands are
expected to develop naturally or be created along the
edges of Lower Slate Lake upon the completion of
reclamation.

Executive Order 12898
(Environmental Justice)

Implementation of this decision will not result in
disproportionate adverse human health or environ-
mental effects to minority or low-income populations.

Executive Order 12962
(Recreational Fisheries)

With the application of Forest Plan standards and
guidelines, including those for riparian areas, no sig-
nificant adverse effects to freshwater or marine
fisheries will occur. Most recreational fishing
throughout the Tongass National Forest occurs by
boat in saltwater, and any adverse effects would be
minimal.

Executive Order 13175
(Indian Tribal Governments)

The Forest Service conducted consultations with the
Chilkoot Indian Association, Chilkat Indian Village,
and the Tlingit-Haida Central Council, as well as re-
gional corporations, on the proposed project.

237a

Executive Order 13186
(Migratory Birds)

Implementation of this decision will not have any
significant adverse effects to migratory birds and
their habitat. (SEIS Appendix H)

Process for Change During Implementation

Proposed changes to the authorized project actions
will be subject to the requirements of National Envi-
ronmental Policy Act (NEPA), National Forest
Management Act (NFMA), Section 810 of Alaska Na-
tional Interest Lands Conservation Act (ANILCA),
Coastal Zone Management Act (CZMA), 36 CFR 228
(Subpart A), and other laws concerning such
changes.

In determining whether and what kind of NEPA ac-
tion is required, the Forest Supervisor will consider
the criteria set forth in the Code of Federal Regula-
tions (40 CFR 1502.9(c)), and FSH 1909.15, sec. 18,
for determining whether to supplement an existing
EIS. In particular, the Forest Supervisor will deter-
mine whether the proposed change is a substantial
change to the Selected Alternative as planned and
already approved, and whether the change is rele-
vant to environmental concerns. Connected or
interrelated proposed changes regarding particular
areas of specific activities will be considered together
in making this determination. The cumulative im-
pacts of these changes will also be considered.

The intent of field verification is to confirm field con-
ditions and to determine the feasibility and general
design and location of a structure or road, but not to
designate final locations. Minor adjustments are ex-
pected during implementation to better meet on-site
resource management and protection objectives.

238a

Many of these minor changes will not present suffi-
cient potential impacts to require any specific
documentation or other action to comply with appli-
cable laws. Some minor changes may still require
appropriate analysis and documentation to comply
with FSH 1909.15, sec. 18.

Implementation of this Decision

Implementation of decisions subject to appeal pursu-
ant to 36 CFR part 215, may occur on, but not before,
5 business days from the close of the appeal filing pe-
riod.

Right to Appeal

This decision is subject to administrative review (ap-
peal) pursuant to 36 CFR Part 215. Individuals or
organizations who submitted substantive comments
during the comment period specified at 215.6 may
appeal this decision. The notice of appeal must be in
writing, meet the appeal content requirements at
215.14 and be filed with the Appeal Deciding Officer:

Denny Bschor, Regional Forester
USDA Forest Service, Region 10
P.O. Box 021628
Juneau, AK 99802-1628

E-mail: appeals-alaska-regional-office@fs.fed.us

The Notice of Appeal, including attachments, must
be filed (regular mail, fax, e-mail, express delivery or
messenger service) with the Appeal Deciding Officer
at the correct location within 45 calendar days of
publication of notice of this decision in the Juneau
Empire, the newspaper of record for the Tongass Na-
tional Forest. The publication date in the newspaper
of record is the exclusive means for calculating the

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time to file an appeal. Those wishing to appeal this
decision should not rely upon dates or timeframe in-
formation provided by any other source.

Hand delivered appeals will be accepted at the Re-
gional Office in Juneau, Alaska during normal
business hours (8:00 am through 4:30 pm) Monday
through Friday, excluding holidays.

In accordance with 36 CFR Part 215.14, it is the re-
sponsibility of those who appeal a decision to provide
the Appeal Decision Officer sufficient evidence and
rationale to show why the Responsible Official's deci-
sion should be remanded or reversed. The written
notice of appeal filed must meet the following re-
quirements:

1. State the document is a Notice of Appeal filed
pursuant to 36 CFR part 215;

2. List the name, address, and telephone number
of appellant;

3. Identify the decision document by title and
subject, date of the decision, and name and
identify the specific change(s) in the decision
that the appellant seeks or portion of the deci-
sion to which the appellant objects;

4. State how the Responsible Official's decision
fails to consider comments previously pro-
vided, either before or during the comment
period specified in 36 CFR 215.6 and, if appli-
cavle, how the appellant believes the decision
violates law, regulation, or policy.

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Contact Person

Kor additional information concerning this decision
or the Forest Service appeal process, contact

Pete Griffin

Juneau District Ranger

8465 Old Dairy Road

Juneau, Alaska 99801(907) 586-8800

/s/Forrest Cole 12.9.04
FORREST COLE Date

Forest Supervisor

The U.S. Department of Agriculture (USDA) prohibits dis-
crimination in all its programs and activities on the basis of
race, color, national origin, gender, religion, age, disability, po-
litical beliefs, sexual orientation, or marital or family. status.
(Not all prohibited bases apply to all programs.) Persons with
disabilities who require alternative means for communication of
program information (Braille, large print, audiotape, etc.)
should contact USDA's TARGET Center at (202) 720-2600
(voice and TDD). To file a complaint of discrimination, write
USDA, Director, Office of Civil Rights, Room 326-W, Whitten
Building, 14th and Independence Avenue, SW, Washington, DC
20250-9410 or call (202) 720-5964 (voice and TDD). USDA is an
equal opportunity provider and employer.

241la

Appendix I

Non-significant amendment to Forest Plan

242a

SIGNIFICANCE ANALYSIS
FOR A NON-SIGNIFICANT AMENDMENT
TO THE FOREST PLAN

Small Old-Growth Reserve (Habitat) Modifica-
tions in Value Comparison Units 160, 190, and
200 |

During the development of the 1997 Forest Plan Fi-
nal Environmental Impact Statement, a conservation
strategy was designed to ensure that implementation
of the Forest Plan would provide a reasonable assur-
ance of maintaining viable and well-distributed
wildlife populations across the Tongass National
Forest for 100 years. As part of this conservation
strategy, a forest-wide system of large, medium, and
small Old-Growth Habitats or Reserves (OGRs) was
established and a set of standards and guidelines de-
veloped to preserve the integrity of the forest's old-
growth ecosystem. The habitats have been identified
and mapped in the 1997 Forest Plan.

The Old-Growth Habitat land use designation pro-
vides for evaluation and possible adjustment of the
location of the habitats based on site-specific infor-
mation. Where feasible, the boundaries should follow
geographic features so that they can be recognized in
the field. The 1997 Forest Plan Record of Decision
committed the Forest Service to work with the
Alaska Department of Fish and Game (ADG&G) and
the U.S. Fish and Wildlife Service (USFWS) to re-
view the location, size, and suitability of the OGRs
during project-level planning.

As part of the Kensington Gold Project analysis,
three small OGRs were identified within the project
area (Figure 1). Small OGRs require a contiguous
landscape of at least 16 percent of the total Value

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Comparison Unit (VCU) area and 50 percent of this
area must be productive old-growth timber. Along
with the general criteria of size and productivity,
connectivity is also a criterion. The design of each
habitat should be based on wildlife concerns specific
to the area. Criteria commonly used in designing
small habitats include important deer winter range,
probable goshawk nesting habitat, probable marbled
murrelet nesting habitat, large forest blocks, rare
plant associations, and landscape linkages. VCUs are
distinct geographic areas encompassing one or more
large stream systems with boundaries that follow
watershed divides.

The study area includes three VCUs (160, 190, and
200) with a small OGR within each. The Forest Ser-
vice, ADF&G, and USFWS conducted an interagency
review of the existing mapped small OGRs in No-
vember 2003. The review team determined that none
of the mapped small OGRs in the study area met the
requirements for size or the amount of productive old
growth established under the Forest Plan and rec-
ommended non-significant modifications to each of
the small OGRs. The findings and recommendation
of the interagency review team are summarized be-
low by VCU and explained in more detail in
Appendix F of the 2004 Kensington Gold Project
Supplemental Environmental Impact Statement
(SEIS).

VCU 160

Finding: The small OGR in VCU 160 does not meet
Forest Plan standards and guidelines for size. This
small OGR covers 802 acres and is 573 acres short of
the 16 percent of VCU requirement.

Recommendation: Increase the size of the small OGR
in VCU 160. The redrawn boundaries of this OGR

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will border but not include the tailings storage facil-
ity, access roads, pipeline, and maintenance access
facilities.

VCU 190

Finding: The small OGR in VCU 190 does not meet
the Forest Plan standards and guidelines for size nor
percentage of productive old growt

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385015_0065%3A08. Public record. Not legal advice.
