FEBRUARY 22, 1999

ITEM: 10

SUBJECT: CONSIDERATION OF A PROPOSED RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE STANDARD AGREEMENTS TO PROVIDE TREATMENT OF ACID MINE DRAINAGE AT LEVIATHAN MINE, ALPINE COUNTY

DISCUSSION: Leviathan Mine is an inactive sulfur mine on property presently owned by the State of California and under the jurisdiction of the State Water Resources Control Board (SWRCB). The mine is located in Alpine County, approximately five miles east of Markleeville, California.

Degradation of water quality in Leviathan, Aspen, and Bryant creeks occurs as a result of the discharge of acid mine drainage (AMD) from Leviathan Mine. AMD from Leviathan Mine can be characterized as a dilute sulfuric solution (pH 2-3) containing dissolved heavy metals, including: arsenic, copper, nickel, aluminum, and iron.

In 1984, the State of California acquired ownership of the mine. The Lahontan Regional Water Quality Control Board (LRWQCB) completed the Leviathan Mine Pollution Abatement Project in 1985. The pollution abatement system captures and diverts surface runoff to reduce percolation into site soils, thereby, reducing the volume of AMD generated on site. In addition, the abatement system captures and evaporates AMD from underground mine workings in a series of lined evaporation ponds.

Even with the completion of the 1985 abatement project, AMD continues to discharge from the mine site. Discharge of AMD from the pond system routinely occurs in the Spring when pond inflow exceeds the storage and evaporative capacities of the pond system. Other acidic seeps, not anticipated by the 1985 abatement project, discharge continuously to nearby receiving waters, including Leviathan and Aspen creeks.

The LRWQCB continues to evaluate and implement various means to treat AMD at Leviathan Mine. In 1997, the LRWQCB field tested a treatment process referred to as biphasic neutralization. The LRWQCB's field tests demonstrated that the biphasic treatment system had significant promise as a means to treat (neutralize) AMD held in Leviathan's evaporation ponds, and reduce the volume of hazardous sludge generated by a more conventional treatment process. The reduction in the volume of hazardous sludge could translate to a significant reduction in the overall treatment cost.

In 1998, the LRWQCB completed construction of a biological treatment system referred to as a bioreactor. In both laboratory and field testing, bioreactors have shown great promise as a means to treat AMD. The bioreactor treatment process consists of passing AMD through an artificial, organic-rich pond (bioreactor). Effluent from a properly constructed and operated bioreactor has a near neutral pH, and a substantially reduced toxic heavy metals concentration.

The LRWQCB is required to obtain SWRCB authorization to enter into contracts that exceed $200,000. By means of the proposed Resolution, the LRWQCB is requesting SWRCB authorization to execute two standard agreements for completion of the following tasks:

1. conduct a treatability study, for purposes of refining the biphasic treatment process, and implement the refined system at full-scale to treat AMD in Leviathan's evaporation ponds as a means to prevent pond overflows; and

2. design, and construct a bioreactor system for the treatment of currently uncontrolled acidic seeps.

The estimated contract amount for the biphasic treatability study and full-scale implementation is $1,325,000. The proposed contract for biphasic treatment would encumber $700,000 from the State's fiscal year (FY) 98-99 budget for Leviathan, and $625,000 from the FY 99-00 budget for Leviathan (contingent upon the funds becoming available). The proposed contract for bioreactor design and construction would encumber $250,000 from the FY 98-99 budget for Leviathan.By letter dated February 4, 1999, the United States Environmental Protection Agency (EPA) informed Governor Gray Davis that it is considering placement of the Leviathan Mine Site on the Superfund National Priorities List (NPL) pursuant to its authority under Section 105 of the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), 42 U.S.C. section 9605. The listing, along with other factors, could affect the choice of activities implemented at the site this summer. While remote, there is some possibility that the state will not implement the measures outlined above this summer.

POLICY ISSUE: Should the SWRCB adopt a proposed Resolution that will authorize the Executive Director, or his designee, to execute two standard agreements to accomplish the following tasks:

1. conduct a treatability study, for purposes of refining the biphasic treatment process, and implement the refined system at full-scale to prevent pond overflows (contract amount: $1,325,000); and

2. design, and construct a bioreactor system for the treatment of currently uncontrolled acidic seeps (contract amount: $250,000)?

RWQCB IMPACT: LRWQCB staff shall manage the contracts for the proposed projects

STAFF RECOMMENDATION: That the SWRCB adopt a proposed Resolution that will authorize the Executive Director, or his designee, to execute two standard agreements to:

1. conduct a treatability study, for purposes of refining the biphasic treatment process, and implement the refined system at full-scale to prevent pond overflows (contract amount not to exceed $1,325,000); and

2. design, and construct a bioreactor system for the treatment of currently uncontrolled acidic seeps (contract amount not to exceed $250,000).

DRAFT - FEBRUARY 22, 1999

WHEREAS:

1. Leviathan Mine is an inactive sulfur mine on property presently owned by the State of California and under the jurisdiction of the State Water Resources Control Board (SWRCB). The mine is located in Alpine County, approximately five miles east of Markleeville, California.

2. Degradation of water quality in Leviathan, Aspen, and Bryant creeks occurs as a result of the discharge of acid mine drainage (AMD) from Leviathan Mine. The AMD from Leviathan Mine can be characterized as a dilute sulfuric solution (pH 2-3) containing dissolved heavy metals, including: arsenic, copper, nickel, aluminum, and iron.

3. In 1984, the State of California acquired ownership of the mine. The Lahontan Regional Water Quality Control Board (LRWQCB) completed the Leviathan Mine Pollution Abatement Project in 1985. The pollution abatement system captures and diverts surface runoff to reduce percolation into site soils, thereby, reducing the volume of AMD generated on site. In addition, the abatement system captures and evaporates AMD from underground mine workings in a series of lined evaporation ponds.

4. Even with the completion of the 1985 abatement project, AMD continues to discharge from the mine site. Discharge of AMD from the pond system routinely occurs in the Spring when pond inflow exceeds the storage and evaporative capacities of the pond system. Other acidic seeps, not anticipated by the 1985 abatement project, discharge continuously to nearby receiving waters, including Leviathan and Aspen creeks.

5. The LRWQCB continues to evaluate and implement various means to treat AMD. In 1997, the LRWQCB field tested a treatment process referred to as "biphasic neutralization". The LRWQCB's field tests demonstrated that the biphasic treatment system had significant promise as a means to treat (neutralize) AMD at Leviathan Mine, and reduce the volume of hazardous sludge generated by a more conventional treatment process. The reduction in the volume of hazardous sludge translates to a significant reduction in the overall treatment cost.

6. In 1998, the LRWQCB completed construction of a biological treatment system referred to as a bioreactor. In both laboratory and field testing, bioreactors have shown great promise as a means to treat AMD. The bioreactor treatment process consists of passing AMD through an artificial, organic-rich pond (bioreactor). As AMD passes through a bioreactor, sulfate is reduced to sulfide, and two favorable chemical reactions occur. The first reaction is the consumption of acidity, which raises the pH of the AMD to near neutrality. The second is the reaction of sulfides with toxic metals which produces insoluble metal sulfides. Effluent from a properly constructed and operated bioreactor has a near neutral pH, and a substantially reduced toxic heavy metals concentration (up to 99% reduction for some metals).

7. The LRWQCB is required to obtain SWRCB authorization to enter into contracts that exceed $200,000.

8. The LRWQCB is requesting SWRCB authorization to execute two standard agreements for completion of the following tasks:

(a) conduct a treatability study, for purposes of refining the biphasic treatment process, and implement the refined system at full-scale to treat AMD held in Leviathan's evaporation ponds as a means to prevent pond overflows; and

(b) design, and construct a bioreactor system for the treatment of currently uncontrolled acidic seeps.

9. The estimated contract amount for the biphasic treatability study and full-scale implementation is $1,325,000. The proposed contract for biphasic treatment would encumber $700,000 from the State's fiscal year (FY) 98-99 budget for Leviathan, and $625,000 from the FY 99-00 budget for Leviathan.

10. The proposed contract for bioreactor design and construction would encumber $250,000 from the State's FY 98-99 budget for Leviathan.

11. Execution of agreements during state FY 98-99 to:

(a) conduct a treatability study, for purposes of refining the biphasic treatment process, and implement the refined system at full-scale to treat AMD held in Leviathan's evaporation ponds as a means to prevent pond overflows; and

(b) design, and construct a bioreactor system for the treatment of currently uncontrolled acidic seeps

shall be contingent upon the LRWQCB securing the contract amounts ($1,325,00 for biphasic treatment and $250,000 for bioreactor design and construction) for expenditure during state FY 98-99.

THEREFORE BE IT RESOLVED THAT:

That the SWRCB authorize the Executive Director, or his designee, to execute standard agreements to:

1. conduct a treatability study, for purposes of refining the biphasic treatment process, and implement the refined system at full-scale to prevent pond overflows (contract amount for this project not to exceed $1,325,000); and

2. design, and construct a bioreactor system for the treatment of currently uncontrolled acidic seeps (contract amount not to exceed $250,000).

The undersigned, Administrative Assistant to the Board, does hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the State Water Resources Control Board held on March 18, 1999.

_____________________________

Maureen Marché

Administrative Assistant to the Board