State to U.S. Energy: Start over with the VCUP

…and things will be different next time.

In a January 9 letter, the Colorado Attorney General’s office informed mining company U.S. Energy that the October approval for a Voluntary Clean Up Program (VCUP) has been revoked.

The letter indicated that because of recent discussions between the state and USE, it is expected that the mining company will likely submit an amended VCUP application for remediation of the historic Keystone Mine site. The state outlined certain parameters for a new application, including a much more thorough public process.
USE has aspirations to develop a molybdenum mine on Mt. Emmons. As a result of the company’s current mining rights, it is also responsible for treating contaminated water coming from the old Keystone Mine site. It currently operates a water treatment facility just west of town.
Unbeknownst to any local group, USE had applied for and received permission to start a VCUP that would have plugged the adits at the mine and utilized a passive water treatment plan that they hoped would have been sufficient to close the current treatment facility. That facility costs well over $1 million a year to operate.
Local stakeholders were all pleased by the state’s January 9 decision. The Colorado Department of Public Health and Environment had approved the VCUP application filed by USE in October but after a huge public outcry by local stakeholders—including the town of Crested Butte, the High Country Citizens’ Alliance and the Red Lady Coalition—the state “suspended” that original approval.
After each of the stakeholders submitted comments, the CDPHE concluded last week that the application wasn’t appropriate and has thus informed USE that a more complete application must be made.
The department has not yet received a response from USE.
In the letter to USE from First Assistant Attorney General David Kreutzer, the state told USE that under a new application, only property owned by USE should be included. The original application included the idea of work on land owned by the Forest Service. The current water treatment plant sits on Forest Service land.
The letter makes clear that any new application should also discuss how any work would be impacted with the USE plan of operations to open a molybdenum mine in the area on Mt. Emmons. The state wants to bring the Colorado Division of Reclamation and Mine Safety (DRMS) into the process. The state says a new application should include a monitoring plan and contingency plan in case the VCUP runs into problems. It is also suggesting to USE that “because the site has generated significant interest among local stakeholders, [the state] may request that U.S. Energy hold a public meeting to explain the cleanup plan, the monitoring plan and the contingency plan.”
CDPHE Superfund/ Brownfields unit leader Doug Jamison said the revocation was a somewhat unusual move for the state. “The department handled one site with groundwater concerns that generated significant public interest. However, aside from elevated public interest, that site cannot be compared to the Keystone Mine so the concerns there were very different. In regards to a site like this Keystone Mine the department has not taken this type of action before,” he said.
Jamison said it was not significant that the letter came from the state attorney general’s office, noting, “The attorney general’s office was already involved so the letter coming from it was simply part of the evolution of this particular process and questions raised during this process.”
Bringing DRMS into a future process is meant to help the CDPHE with some of the technical issues that would be involved with sealing the mine adits. “We have partnered with DRMS on a number of VCUP projects in the past,” Jamison explained. “Because DRMS has specific expertise with bulkhead design and installation and underground mine systems, they will provide technical expertise to us by reviewing and commenting on the appropriateness of the bulkhead design. They will also provide input on the development of a monitoring plan. DRMS will act only as a technical consultant to us and will have no authority to approve or disapprove the application.”
HCCA executive director Greg Dyson said the environmental organization is pleased with the direction set from the state. “We are very happy to report that the state listened to ours and the community’s concerns and has put U.S. Energy on notice that any cleanup plan will go through a much stricter review process and will include a contingency plan. Should U.S. Energy continue to pursue a cleanup of the Keystone Mine, the state has made it clear that the plan must protect the community. In our professional opinion, the previous cleanup plan did not protect the community.”
The town is also pleased with the decision by the state to revoke the original VCUP approval. “We view this as a very positive step forward,” commented Crested Butte Mayor Aaron Huckstep. “We anticipate a more public process if this moves forward. In fact, according to the letter, the state may request that U.S. Energy hold a public meeting. If the company doesn’t want to do that, there’s nothing to stop the town from doing it ourselves. Just as we had asked them in September, we hope for a more cooperative effort from U.S. Energy if this moves forward.”
The RLC is on the same page. “The stakeholders in the community worked really well together and we are pleased that the state has taken this action,” said Red Lady Coalition president Bill Ronai. “The decision by the state authorities is good for the broader Crested Butte community. To the extent that there is another application by U.S. Energy, there will be transparency and attention to and assessment of the many elements that need to be addressed. We are very pleased that the state appreciates the breadth of the issues involved.”
Jennifer Bock, HCCA’s water director, was glad to see the state taking the community’s concerns seriously. “A cleanup on Red Lady may be a good idea, but with our clean water at stake, we need to know for sure. The state is now requiring real transparency. U.S. Energy will have to explain how development of a mine could be compatible with a cleanup plan, and there will be meaningful review from technical experts within the state government.”
HCCA was also quick to reiterate in a press release its openness to negotiations with U.S. Energy for a permanent solution to mining Red Lady. “We are glad that the state listened, and now there is lots of work ahead for all parties to figure out a solution that works for everyone,” concluded Dyson.
As of Wednesday, the CDPHE had not received a response from USE on its decision to revoke the initial VCUP approval. E-mails and phone calls from the Crested Butte News to USE executives were not returned.