Coeur Alaska

Clarification Letter of Proposal

LAW OFFICES FREEDMAN, LEVY, KROLL & SIMONDS WASHINGTON SQUARE- 1050 CONNECTICUT AVE.,N. W. WASHINGTON, D.C. 20036-5366 (202) 457-5100
KAREN M.WARDZINSKI CABLE "ATTORNEYS"
(202) 457-5118 TELECOPI ER: 202-457-5151

BY TELECOPY

August 23, 1995
Mr. Jon Kessler
XL Director
Office of Policy, Planning and Evaluation
USEPA
West Tower 1013
Mail Code 2111
40l M Street, S.W.
Washington, D.C. 20460
Re: Coeur Alaska, Inc.'s Proposal
for a Facility Based XL Project

Dear Jon:

In recent discussions I have had with several EPA personnel in connection with Coeur Alaska's XL proposal, an issue has been raised that I believe may need some clarification. The issue relates to the mechanism to be used to implement an XL proposal such as Coeur's, which involves a permit.

In EPA's Federal Register notice announcing the XL program, EPA invited applicants to suggest mechanisms to implement the regulatory flexibility sought in their XL application. The notice stated that a variety of administrative and compliance mechanisms would be used by the Agency, specifically identifying the use of enforcement discretion or possible changes in underlying regulations or statutes.

As you know, when Coeur originally submitted its XL proposal, it proposed only that the final permit issued for its Kensington Project reflect the alternative water quality-based limitations it sought for the project. At the request of Region X, Coeur representatives further evaluated possible alternatives for implementing its XL proposal and suggested the possibility of a limited rulemaking to revise the water quality criteria applicable to the proposed discharge point in Sherman Creek.

This rulemaking suggestion was provided in response to the Region's apparent interest in identifying a mechanism that would allow for the issuance of a legally enforceable permit. While we continue to believe that a limited rulemaking is a feasible and beneficial approach for all parties, we also recognize that the use of enforcement discretion is another mechanism that the Agency may wish to consider in the context of Coeur's proposed XL project.

Because it appears there may be some confusion on this point, Coeur wishes to clarify that in putting forth suggested mechanisms for implementing its XL proposal, it did not intend to suggest that these were the only options Coeur would consider. Quite the contrary, Coeur is open to any of the options identified above for implementing its proposal, as well as others that might be put forward in the negotiation process in the event its XL project is chosen for further development.

I hope this adequately clarifies this issue. Please do not hesitate to give me a call if you have any questions about this or any other aspect of Coeur's proposal.

Very truly yours,

Karen M. Wardzinski

cc: XL Docket

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