Crested Butte will ask the state to allow the town to be directly involved in the Colorado Water Quality Control Commission’s proceedings dealing with Coal Creek and temporary modifications currently in place.
The request for so-called “Party Status” comes at the request of the Coal Creek Watershed Coalition (CCWC). Coalition board president Steve Glazer came to the council Monday, September 21 with the request.
Temporary modifications of in-stream water quality standards have been in place for Lower Coal Creek for more than 20 years. Those standards are reviewed every three years by the state.
At the 2012 hearing, the state required U.S. Energy, the mining company responsible for the potential molybdenum mine and current water treatment plant on Mt. Emmons, to develop a study plan to address uncertainty regarding pollution sources impacting Coal Creek. Data collection from the study will culminate this year.
The Water Quality Control Commission is set to review the temporary modifications and evaluate progress on the study. Glazer feels the process will likely be continued into 2016 and may include new rule-making involving new standards for Coal Creek.
Given the town’s inherent interest in the watershed, CCWC felt it appropriate to have the town participate.
“The Water Quality Control Commission required U.S. Energy to develop a water quality monitoring program,” explained Glazer. “U.S. Energy was a year-and-a-half late in establishing a groundwater monitoring well. So we expect the company to ask for a year extension. We are inclined to support that request so we too can analyze the data. We are asking the town to get involved. It is in the best interest of the citizens.”
CCWC’s technical coordinator, Ashley Bembenek, added that the outcome directly affects Crested Butte. “It is definitely in the town’s best interest,” she said. “The thoroughness of the study matters to the town. There are pollution concerns that groundwater could be impacting the town’s drinking water supply. The bottom line is that the town has a stake in Coal Creek with things like recreation and drinking water.”
“Why wouldn’t we do this?” asked councilman Skip Berkshire.
“It buys you a ticket to the dance,” said town public works director Rodney Due.
All seven council members wanted to dance so they agreed to apply for “Party Status” in the proceedings. They anticipate the move will cost the town between $5,000 and $10,000 in legal fees.
U.S. Energy has obligation to environmental and human health
By Adam Broderick
The Gold King mine near Silverton leaked nearly three million gallons of toxic water into the Animas River two weeks ago, and sparked conversations regarding how to prevent something similar from happening elsewhere across the state.
On Tuesday, August 18, Gunnison County Commissioners and the Crested Butte Town Council agreed to send a joint letter to the Colorado Department of Public Health and Environment requesting that the Water Quality Control Division (WQCD) make it possible once again to ensure that area residents and visitors remain safe in the potential event that operations cease at the Water Treatment Plant west of Crested Butte on Mt. Emmons at Coal Creek.
Coal Creek supplies Crested Butte with drinking water and also has agricultural and recreational uses. Drainage from abandoned mines on Mt. Emmons flows into Elk Creek, then into Coal Creek, then through town.
According to the letter, the environmental and human health consequences of any release of untreated mine drainage are beyond our local governments’ response capacity. And since U.S. Energy, the corporation that owns the molybdenum mining rights on Mt. Emmons and is legally obligated to operate the plant, recently released an unhealthy financial report (showing an $11.4 million decrease during the first half of 2015 compared to the first half of 2014), Gunnison County and the town of Crested Butte decided the best bet would be to ask the state to strongly oversee the waste water treatment plant permits issued to U.S. Energy.
The intention is for the WQCD to reopen a permit renewal process for the mine’s discharge permit, which regulates the water treatment plant. As part of that process, WQCD would impose new permit conditions requiring U.S. Energy to satisfy financial and ethical responsibilities should the company no longer be capable of complying with its discharge treatment requirements.
County attorney David Baumgarten explained that a number of years ago the county, together with the town of Crested Butte, requested from the WQCD that there be an addition to the discharge permit.
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“We asked for financial security should there be a lapse in operation. The state said they did not have the authority to do so at the time. That conversation has since been highlighted by what has happened in other locations in Colorado with mine spillage,” Baumgarten said.
According to the letter to WQCD, the financial condition is especially alarming because the treatment plant uses outdated technology and has now exceeded its expected life by almost 20 years.
“We respectfully request that the WQCD reopen the permit renewal process… and also work with other state and federal agencies to impose financial requirements or take other actions to protect the public against the environmental and human health catastrophe that would ensue if U.S. Energy failed to operate the water treatment plant,” the letter read.
“Waiting until the problem rises to the level of CERCLA [the Comprehensive Environmental Response, Compensation, and Liability Act of 1980] enforcement action is an untenable alternative because of the environmental and human health consequences that would precede such an action,” the letter continued.
Baumgarten told the News that state officials responded promptly and diligently to the county’s most recent mine-related request so he trusts they will be equally responsive to this request. “Our trust is that – while the current request by us will have to be discussed internally by the state over a period of time – the state officials will be equally responsive,” he said. Baumgarten believes an internal conversation will begin immediately.
Taking a meandering and relaxed “Anti-Strava” bike ride Sunday it was great to appreciate the deep blue sky, the late-summer yellow wildflowers popping out along the single track, the green still rising on the flanks of the mountains. There’s not much white left, with little snow still covering the surrounding peaks, but based on a morning walk with the dog, it won’t be too long before we see some new high mountain white.
And it’s not just here. Denver Broncos orange is blazing across the state as football season approaches. Colorado Rockies purple was bright as the team actually won a few games last week. Throw in the weird yellow of the Animas River flowing through Durango and you have a Crayola box popping across the Centennial State.
Blue moon. photo by Petar Dopchev
The Bad:
While most of the colors bring joy to one’s heart, the thought of the Slate or the Gunnison Rivers turning yellow strikes more fear in one’s heart than joy. Before I got here in the ’80s, Coal Creek apparently ran orange for basically the same reason the Animas is now running yellow. Mine tailings leaking into the watershed is not benign.
Reading about reaction to this Gold King Mine/Animas River catastrophe, I learned that experts estimate there are 55,000 abandoned mines from Colorado to California and federal and state authorities have struggled to clean them for decades. The feds say 40 percent of the headwaters of Western waterways have been contaminated from mine runoff when abandoned mines fill up with groundwater and snowmelt that becomes tainted with acids and heavy metals from mining veins that can trickle into the region’s waterways.
The Environmental Protection Agency admitted that its mistake let loose three million gallons of toxic water into the watershed near Silverton. That’s one gargantuan oops. That nightmare is now creeping toward Lake Powell.
The EPA is currently working on a similar but not exact mine cleanup situation just a few miles west of Crested Butte at the old Standard Mine. The EPA managers are confident we won’t see a repeat here of last week’s accident in Durango. But as we can obviously see, accidents do happen.
It wasn’t until the 1970s that regulations started coming on line to deal with abandoned mines in Colorado. After all, mining is what made Colorado valuable as a state and for many years it was the driving economic force in the region. Just read Artifactually Speaking, Brian Levine’s history column running in the News, about what mining did for places like Irwin. But it is the remnants of that colorful time in history that could impact us now.
The reason Coal Creek is a refreshing crystal clear color (as opposed to pumpkin orange or mustard yellow) as it flows by the Totem Pole at Third and Maroon is that there is a water treatment plant filtering the water on Mt. Emmons. The owner of the molybdenum deposit, U.S. Energy, is legally required to run that plant, which costs the company about $1.8 million every year. If that plant goes down or U.S. Energy is not able to pay for its operation, Coal Creek will look like a haunted Halloween story.
And that is why it is imperative that the town, the county, groups like HCCA and the Red Lady Coalition should continue to insist that the state and the feds demand a fail-safe surety plan that will guarantee the plant continues to clean up our water. At the very least, that would mean a real bond with real money to insure that U.S. Energy cannot just walk away from the aging plant without leaving funds to make sure it continues to work.
There has been talk about our community institutions joining forces to make the state and the feds aware that if something does happen, the town and county do not have the means to operate the treatment plant. So that would likely mean a state agency responsible for water quality or a federal agency responsible for the plant sitting on its land will have to step in. Therefore it makes common sense that they tag the responsible entity now for an insurance policy. Our representatives are working on the issue.
The ugly:
One reason it might be a little more imperative now than a couple years ago is that U.S. Energy isn’t exactly rolling in the green. The company released its “Second Quarter 2015 Highlights and Selected Financial Results” this week. With the low oil and gas prices, the company is not making money right now. While getting a bounce this week from rising oil prices, the stock price is well below $1 at about 60 cents. Last month it was 40 cents. Last year it was $4.25. Can you say shaky?
With the Gold King Mine catastrophe poisoning the river through Durango and sliming toward the Grand Canyon, it is now easy and clear to see the hidden legacy of old unregulated mining. It lurks in just about every mountain range in Colorado, including ours. Like so much in life, it is important we look at the risks honestly and address them appropriately. At the very least, that means getting some real insurance that Coal Creek and the Slate River doesn’t accidently or purposely bring a new poisoned orange hue to the valley.
After the “catastrophe” last week near Silverton, Colo., when roughly three million gallons of toxic water ran into the Animas River, the question arose whether something similar could happen here in the Upper East River Valley. According to local environmental leaders, the answer is, possibly.
While Environmental Protection Agency (EPA) officials working on the old Standard Mine this summer say such an event isn’t likely, Alli Melton of High Country Conservation Advocates (HCCA) says there is no guarantee that Coal Creek is completely safe from acid mine drainage.
“As headwaters communities, this three million gallon spill is a strong reminder that we’re all downstream,” Melton said.
AP Photo
Regional project manager for the EPA on the Standard Mine Project Christina Progess said that the EPA is very concerned about what’s happened at the Gold King Mine and that the management team at the Standard Mine on Mt. Emmons near Crested Butte has plans in place to help reduce the likelihood of a similar event happening there.
The Animas River is a source for Durango’s drinking water and a hub for recreation in the area. Last Wednesday, August 5, a cleanup team for the EPA accidentally released nearly three million gallons of water contaminated with heavy metals including arsenic, lead, iron, zinc, copper and mercury into the Animas River near the town of Silverton.
Last Sunday, Durango County and La Plata County declared a state of emergency. Officials have been warning residents, farmers and outdoor recreationists to avoid contact with the water.
According to EPA mining engineer Jim Hanley, who is working on the Standard Mine project, “On August 5, 2015, EPA was conducting an investigation of the Gold King Mine. The intent of the investigation was to create access to the mine, assess ongoing water releases from the mine to treat mine water, and assess the feasibility of further mine remediation. The plan was to excavate the loose material that had collapsed into the caved mine entry back to the timbering. During the excavation, the loose material gave way, opening the adit [mine tunnel] and spilling the water stored behind the collapsed material into Cement Creek, a tributary of the Animas River.”
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As of Monday afternoon, the wastewater had reached the San Juan River in New Mexico. The Glen Canyon National Recreation Area had issued a statement saying, “Most river sediments will settle out of the water when the river current slows at Lake Powell.”
As for how long it will take for water closest to the spill site to be safe again, officials say that’s hard to determine because data is always changing as the contaminants make their way through the water. Both Governor Hickenlooper and an EPA administrator visited Durango this week to meet with local officials and survey the cleanup progress, and Hickenlooper issued $500,000 to help businesses and towns directly affected by the spill.
On a local level, Alli Melton of High Country Conservation Advocates (HCCA) told the Crested Butte News this accident demonstrates how challenging it is to clean
up the legacy of acid mine drainage.
“Importantly, it’s not the EPA’s fault alone. Many are just as responsible,” Melton said of the Animas spill. “What we do or fail to do affects millions of people and animals and hundreds of local communities, not just ourselves.
“Over the years, we’ve seen how complicated these efforts often are when working in headwaters, involving complex hydrology between mine workings, ground water, and surface water, as well as seeps and springs, among other things,” Melton continued. “Most unfortunately, it’s the communities and taxpayers that are stuck with the legacy of contamination long after the mining has died out and still in 2015 with no silver bullet to remedy the contamination.”
Melton said although Crested Butte also has a legacy of acid mine drainage, here much of it is being treated by a water treatment plant operated and owned by U.S. Energy. However, no bond has been imposed on the plant, which would be a problem should U.S. Energy ever put operations on hold.
According to Melton, “Without a bond, we have no guarantee that the plant will continue to run without interruption, even though we rely on its continued operation to prevent Coal Creek from having acid mine drainage discharged directly into it.”
Steve Glazer, president of the Coal Creek Watershed Coalition board of directors, noted that in the Gold King Mine, the bulkhead, or dam, had built up mine drainage pressure and failed, releasing the contaminated water.
Glazer said, ‘“In the Standard Mine, there is only juvenile water [current year’s snowmelt] that is contaminated in Level 2 before being discharged at Level 1. The bulkhead planned for installation in Level 1 will have a valve in it and its purpose is only intended to level out the seasonal hydraulic variations and not to build up storage with only minimal pressure behind it.”
Glazer wrote in an email that the water treatment plant (WTP) has a retention pond that can hold one to two days of draining water storage, plus an emergency retention pond that can hold multiple days of discharge. He said if the WTP were to stop operating, after the emergency storage capacity was exceeded, untreated acid mine drainage would contaminate Coal Creek, the Slate River and the East River below their confluences.
“The dilution from the Taylor might be enough to prevent toxic levels in Gunnison (or not). This would have to occur before EPA would step in and take over the WTP. In an emergency, the Town could extend its intake upstream to avoid receiving any contaminated surface overflow,” Glazer wrote.
At the request of the Red Lady Coalition and HCCA, the Crested Butte Town Council agreed at a meeting in late July to go on record that the town needs protection and state and federal agencies will be asked to impose a bond on the plant. A letter is being drafted and an update could be presented at next week’s council meeting.
Progess addressed several differences between the Gold King Mine and the Standard Mine in an email to the News. She said there is a much better understanding of the water levels inside the Standard Mine than at the Gold King Mine because the management team has been inside the Standard Mine and boreholes from the surface have been drilled into the old mine workings so the presence of contaminated water levels and any buildup in pressure can be measured.
Progess noted that the workings within the Standard Mine are not completely full of water.
“We are driving a new tunnel to intercept existing workings behind collapses within the lowest level of the mine,” Progess wrote, pointing out that work at the Standard Mine is proceeding cautiously to ensure contaminated water is contained.
Progess wrote, “We have precautions in place such as containment ponds to trap sediment and water as it flows from the workings, and will be treating this water as it comes out prior to discharging it to Elk Creek. We also have a communication plan set up with the Crested Butte water treatment plant whereby we will notify them if a major release of contaminated water were to occur as a result of our work at Standard. This will allow them to switch to an alternate drinking water source if necessary.”
Carol Worrall, director of public health in Gunnison County, said after seeing what happened to the Animas she also wondered if something similar could happen here. She believes there is a certain amount of “we have the purest water” mentality here in Crested Butte, but we might not be aware of particular metals. She guessed that nearly 70 percent of people in Gunnison County rely on private wells and most people, when testing their wells, test for bacteria. But for cases like these, water needs to be tested for heavy metals, which aren’t as easily detected.
“The responsibility for the private wells lies on the property owners,” Worrall said. “People tend to have their wells tested when they’re initially getting permits, but then go about their lives and don’t do further testing. Most people, when testing their wells, test for bacteria. But when you’re looking at mining, you’re looking at heavy metals.”
Worrall said when she read about the Animas spill, she thought the visuals were pretty shocking and had hopes that maybe the spill would help influence people here to test their own well water. She thinks it would be best for people to test their well water now and then, and if there were some later disturbance, conduct follow-up testing.
According to the Colorado Department of Public Health website, there is no generic water test for everything, so each contaminant must be evaluated individually. However, if you’re buying or building a house and need to have a well tested, a standard test is available and testing supplies are free of charge. Call (303) 692-3048 for more information and to order water tests.
The town of Crested Butte along with Gunnison County will send letters to the Colorado Department of Health and Environment, Water Quality Control Division and the U.S. Forest Service asking them to demand U.S. Energy provide a financial guarantee to ensure that the water treatment plant on Mt. Emmons will continue to operate if something happens to the company.
U.S. Energy, the mining company that owns the molybdenum mineral rights beneath Mt. Emmons, has seen a recent plummeting of its stock price. Some analysts are concerned about the financial health of the company. This has the town, High Country Conservation Advocates (HCCA) and the Red Lady Coalition (RLC) all worried about what would happen to the plant if U.S. Energy defaulted and went bankrupt or was simply not able to fund the $1.8 million it takes every year to operate the water treatment plant.
At a Town Council work session and meeting on Monday, July 20 town attorney John Belkin provided the council with a history of recent actions about the matter. He said an adiministrative judge ruled that the state, which issues the permit for the plant, has the authority to require surety that the plant would operate if the company walked away for some reason. The town in the past had suggested a $2 million bond would be needed. At the time of that ruling however, the court indicated there seemed no reason to require such a financial bond.
Things have changed significantly in the eyes of the town, the county, HCCA and the RLC, so they want to make the state aware of the potential danger. Belkin is recommending a similar letter be sent to the Forest Service since the plant sits on USFS property.
The council also wanted a clear answer on what entity would be responsible for running the plant if U.S. Energy did indeed walk away. Belkin said that wasn’t clear but anticipated it would be up to the state to take control since the state is the permitting agency.
“The obligation of who would step in should be made clear,” said councilman Skip Berkshire. “But we need to be careful not to present ourselves as willing to step in and fix it. Everyone else would back away and we can’t afford it at all.”
“The financial information on the company doesn’t indicate that the abandonment of the plant is probable,” cautioned mayor Aaron Huckstep. “But circumstances are changing.”
“We should know who to call if it happens,” said councilman Jim Schmidt.
“Even by just asking the question, it might put it in the mind of the state that a bond might be a good idea,” said Berkshire.
Huckstep said following up the letter with face-to-face meetings with state and federal officials might be prudent.
“I’d suggest we start with the letters and see how it goes,” said Berkshire. “We don’t want to send the wrong message via engagement and give the impression we’d step in. It seems that maybe HCCA or the RLC could participate as well—entities outside the government.”
“I see if the government follows up after a letter that the message is, the community is expressing great concern,” said councilman Roland Mason.
Belkin said it would be proper to start to communicate concerns with the state and federal staff people and escalate to higher officials if the pressure is needed.
“Another point to mention in the letters is the age of the technology in the plant,” suggested Berkshire. “It won’t last forever and probably needs an upgrade.”
Councilman Glenn Michel suggested the town of Mt. Crested Butte should be approached to see if it would be willing to sign the letters as well. The staff said they would talk to town manager Joe Fitzpatrick and ask for participation but did not want to slow down the process of getting the letters out.
HCCA public lands director Alli Melton was at the meeting and agreed with the approach being taken by the council to address the shifting situation.
Crested Butte mayor Aaron Huckstep will be hitting the books more than the local single tracks this coming June. Huckstep found out last week he had received a substantial Gates Family Foundation Fellowship that will help pay for a three-week class at Harvard’s Kennedy School this summer. Read More »
A half-dozen topics from VRBOs to the mine to special events
Based on a review of stated priorities, the Crested Butte Town Council has about a half dozen primary goals for 2015: shore up the town’s special event permitting process; develop affordable housing strategies; see how things such as short-term rentals like VRBO (Vacation Rentals By Owner) fit into the town mix; decide whether to try again for a sales tax increase earmarked for parks funding; decide whether or not to reach out to U.S. Energy concerning the proposed molybdenum mine on Mt. Emmons; develop an open space strategy; and develop overall integral strategic planning. Read More »
The town of Crested Butte wants to be at the table if and when mining company U.S. Energy goes through the NEPA (National Environmental Policy Act) process to get approval from the Forest Service for a groundwater drilling and analysis project. That groundwater analysis is part of the early steps in moving toward developing a molybdenum mine on Mt. Emmons. Read More »
Making sure the science behind water quality standards is sound
For two years, U.S. Energy has been conducting a study plan in the Coal Creek Watershed to identify sources of heavy metals, determine whether they’re natural or human-caused, and learn whether human-caused sources are reversible. It’s part of an effort to establish site-specific water quality standards for cadmium, copper and zinc in the lower portion of Coal Creek, and two local organizations have been participating in the process to ensure the mutually-agreed-upon plan is implemented and that the data analysis is comprehensive. Read More »
It’s Best of the Butte season and as always, some of the random answers were the best. See the results on page 25. While glancing over the submissions, it got me thinking—about the community’s colors.
Blue “The Blue Light Pole.” That was one suggestion we received in Best of the Butte for Most Important Local Issue. Yessss! Yes it is. That sort of sums up the place. Embodied in that answer is some humor, some underlying conflict and some reflections of tensions that come with every resort town—growth, change and the idea of selling of a soul or just having a good time. Briefly, the blue light pole was located at Third and Elk for about two weeks. After the Bud Light Whatever event this past September, the Town Council chose to leave that one pole painted blue as a sort of tribute to the weekend event that came in and “took over the town” for a Bud Light promotion. While the lead-up to the event was one of the most divisive things I’ve seen in the community, the actual party weekend was spectacular and the council wanted to leave the pole blue as a totem to the event. But the earlier divisiveness made it too much to keep a sly reminder of a good party that came with a lot of flaws as the event approached. Some still go ballistic at the word “Whatever.” Others would bring it all back in a heartbeat. Some saw the event as a town literally selling its soul to cheap beer, while the other side saw it as a new way to bring in revenue and have a party. The blue light pole was a symbol of change that some embraced and others reviled. But that’s what how we sometimes argue here: Over painted light poles. There are worse places to live.
Red So, while Whatever and its spin-offs were voted heavily as one of the most important local issues, the winner as usual, was Red Lady. Red Lady is the mountain overlooking town to the west. It holds within her womb a stash of molybdenum. Various mining companies have coveted the idea of extracting the high-grade moly over the last many decades. The Crested Butte community has persistently, and in a much more unified manner than Whatever, successfully come together and fought that idea. The thought of an industrial mine mixing with a growing tourism economy doesn’t make sense to most of those at the upper end of the valley. Currently U.S. Energy holds the rights to the moly and as usual they are quacking about taking the steps to pursue their moly dream. I have been contending for a while that it is a dream—a pipe dream. Here is why: The price of moly is low. It sits at about $9.50 a pound. That really doesn’t make it feasible to open a new molybdenum mine. There is no shortage of the mineral on the market. Moly tends to be found alongside copper and there is plenty of the stuff being extracted all over the world. The cost of just starting a new mine is in the billions of dollars. The infrastructure of roads and electricity and mine equipment is staggering. New mines in the United States have to go through a rigorous permitting process and these types of mines are more likely to open in Indonesia than in Colorado. Now add to the big picture the fact that U.S. Energy is getting pounded financially. The company shifted gears over the last few years to look less at hard rock mining and more at natural gas and shale oil. While that was a boon to the company originally, its fortunes began to turn when the price of oil started to tank. The stock price of the company touched $5 last April. This week it is closer to $1.40. All these things add up to an unlikely mine anytime soon, if ever. But it also provides opportunity. While I see very little potential of a mine up there in my lifetime, there is value in getting rid of the dark mining dream that has hovered over the town for decades. So perhaps now is the time to again pursue a deal that ends the uncertainty. U.S. Energy must legally operate the wastewater treatment plant on Red Lady and that comes at a cost of seven figures a year. That has to hurt its bottom line. The reality is that U.S. Energy has a liability and not an asset and given current financial realities, the company leaders might finally understand that and be willing to give up the mineral rights and leave a trust to operate that wastewater treatment plant to get this liability off its books.
Green I’m not talking legal pot since that is a whole other editorial. I’m talking money. Another real issue that struck people in Best of the Butte was affordable housing in the valley. People are being priced out of the community. Providing opportunity for affordable housing is important but takes money and/or land. The greenbacks needed to provide a chance for young middle class workers to stay in town are significant. The towns of Crested Butte and Mt. Crested Butte have some projects and some land that help ease some of the pressure, but more is needed. As some of the respondents of Best of the Butte noted, the VRBO (Vacation Rentals By Owner) phenomenon is a factor. Homeowners have discovered they can short-term rent some of their property to make it easier for them to live here instead of renting long-term to seasonal or year-round residents. This pushes people down or out of the valley. This moves the waiters and snow shovelers and volunteers out of town. It makes it more difficult for those who don’t want or need a lot of money to live here. It makes it harder for middle class families to find a home. It changes the community. Let’s be clear. No one deserves a house in Crested Butte. I really hate the sense of entitlement that some have. But a community should look at its overall make-up and provide opportunities for those who work and contribute to the community to have a chance to live here. That takes focus and, frankly, money. There is an opportunity with the current Crested Butte annexation proposal to provide both focus and money. The council should not be afraid to require both in this affordable housing realm. It seems the developers have an understanding of the need.
Grey And there you have it—all sorts of colors and viewpoints. As usual, Crested Butte is a vibrant place made up of shades of grey as opposed to clear-cut black-and-white (or blue and red and green) answers. Change is constant but it is how we change that is the underlying question and really the foundation of the most important local issue in the coming year. Happy 2015, everyone.
The Crested Butte News Serving the Gunnison Valley since 1999
