SFUND RECORDS CTR 2080235

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION IX 75 Hawthorne Street San Francisco, CA 94105

MEMORANDUM

SUBJECT: Request for a Time-Critical Removal Action at the Blue Ledge Mine Site, Rogue River National Forest, Siskiyou County, California

FROM: Harry Allen, On-Scene Coordinator Emergency Response Section (SFD-9-2)

THROUGH: Peter Guria, Chief Emergency Response Section (SFD-9-2)

TO: Daniel Meer, Chief Response, Planning & Assessment Branch (SFD-9)

I. PURPOSE

The purpose of this Action Memorandum is to obtain approval to spend up to $484,302 in total response costs to mitigate threats to human health and the environment posed by the presence of hazardous mine wastes at the Blue Ledge Mine Site, located approximately 3 miles south of Oregon, in Siskiyou County, California (the "Site").

The Action Memorandum would serve as approval for expenditures by EPA, as the technical agency, to take actions described herein to abate the imminent and substantial endangerment posed by hazardous substances at the Site. The proposed removal of hazardous substances would be taken pursuant to Section 104(a)(1) of the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), 42 U.S.C. § 9604(a)(1), and Section 300.415 of the National Oil and Hazardous Substances Pollution Contingency Plan ("NCP"), 40 C.F.R. § 300.415.

II. SITE CONDITIONS AND BACKGROUND

Site Status: Non-NPL Category of Removal: Time-Critical CERCLIS ID: CAN000906063 SITE ID: 09MM A. Site Description

1. Physical Location

The Site is situated on patented private land within the Rogue River National Forest on United States Forest Service ("USFS") Road 1060. It is approximately 35 acres in size.

The geographic coordinates of the Site are 41° 57' 36" N latitude and 123° 07' 51" W longitude in Township 3 S, Range 9 E, on the Dutch Creek, CA (7.5-minute) topographic quadrangle. See Figure 1 for a Site Location Map.

2. Site Characteristics

The Site is approximately 4,800 feet above sea level on a north slope, in close proximity to the summit. The terrain is rugged and precipitous in some places. The mine workings penetrate steep slopes and rock outcroppings and honeycomb the ground beneath surface features. Approximately four residences that comprise the community of Joe Bar, California, are located 1 mile downstream of the Site. See Figure 2 for a Site Map.

The Blue Ledge Mine was one of the largest mining operations ever undertaken in the southwestern Oregon area (Kramer 1999 in Environment International 2002). Over two miles of underground excavations and connections were developed to mine massive sulfide deposits rich in , , gold and silver. Historically, the economic value of the mine lay in extraction of copper and zinc.

Tailings and waste rock have been dumped onto the steep slopes of the Site; the disposal area can be viewed easily from USFS Road 1060. The waste pile may be as deep as 30 feet in some places and is estimated to be between 30,000 and 40,000 cubic yards in volume. Runoff from rainfall and snowmelt is very rapid and the potential for sheet and gully erosion is high. A stream course cuts down the mountainside through the waste pile.

The stream is an unnamed tributary to Joe Creek. The tributary travels approximately 1,200 feet and descends 800 vertical feet to its confluence with Joe Creek. A log tailings dam, approximately 30 feet wide and 6 feet in height, intersects the stream course, preventing the tailings and waste rock from collapsing and blocking the tributary completely. Some waste material has already penetrated the dam. The dam shows signs of significant decay and is in danger of collapse.

Stream flows do bypass the dam and surface water contact with the waste pile has resulted in ("AMD") and acid rock drainage ("ARD") in the tributary. An orange discharge leaches from the pile into the tributary. In addition, precipitate or "yellow boy", and "ferricrete" indicative of AMD can be observed at the " f. J^ . i -t;. -r^-. -| i .,

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100 200 confluence of the tributary and Joe Creek (see Attachment II for the Photograph Log).

3. Removal Site Evaluation

U.S. EPA and the Superfund Technical Assessment and Response Team (START) conducted a Site screening event followed by a removal assessment at the Site. Screening samples were collected on May 4, 2005 to identify contaminants of concern ("COCs") and to determine the probable sample population statistics. Based on the analysis of these samples, START determined that eighteen soil sampling locations, and five locations were necessary to determine the true population mean and upper confidence limit. The primary COCs were identified as lead and .

The assessment took place on July 25, 2005. START divided the pile into two study areas and conducted random systematic soil sampling of the tailings to meet two main objectives. First, the sampling results should determine whether the surficial Site contamination exceeds the action level and the Site specific background concentration. Eight surface soil samples were collected for this purpose. Second, the sampling results should determine if unweathered materials contained significant concentrations of the COCs. Eight subsurface soil samples were collected at 1 to 1.5 feet below ground surface for this purpose. All samples were analyzed for the primary COCs: lead and arsenic. Two surface and 2 subsurface soil samples were also analyzed for secondary COCs: , copper, iron, manganese, mercury, and zinc.

Statistical analysis of sampling results determines whether wastes on the Site are likely to pose an excess health risk based on potential human exposure concentrations. Preliminary analytical data indicated that the mean and 95% upper confidence limit concentration for the sample population significantly exceeded health- based benchmarks (i.e., Region 9 Preliminary Remediation Goals ("PRG")) and background concentrations. Table 3.1 presents these results in brief.

Table 3.1 - Summary of Selected Soil Sampling Results

Mpan Upper Average Roil Confidence FPA Maximum Minimum Limit on Background Contaminant Cone, PRG Concentration Concentration Mean Concentration (mg/kg) (mg/kg) Cone. (mg/kg) (mg/kg)

Lead 2,710 616 1,349 1,634 11.6 400

Arsenic 287 62.4 135 159 7.6 22 Source: ecology&environment, Inc, (START) preliminary sampling results, July 2005. Note: bolded results indicate that measured concentrations exceed applicable health-based benchmarks. EPA PRG - EPA's Preliminary Remediation Goal. 4. Release or Threatened Release into the Environment of a Hazardous Substance, or Pollutant or Contaminant

Releases of waste rock and tailings material from the Site have occurred and are likely to increase significantly when the tailings dam eventually fails. Tailings and waste rock lost due to sheet and gully erosion are likely to contain high concentrations of . Fine grained materials may be entrained by high stream flows and transported off Site by the tributary through Joe Creek, Elliot Creek and ultimately to the Applegate River. In addition, persons passing over contaminated Site soils may transport fine-grained contaminated materials via contact with shoes or clothing. These secondary transport mechanisms pose the threat of release of hazardous substances, albeit at low concentrations.

Surface water sampling conducted by the USFS in September 2000, April 2001, and August 2001 documented releases of heavy metals, including cadmium, copper, iron, lead and zinc to the tributary stream and to Joe Creek. Selected results are presented in Table 4.1. Other heavy metals identified in the 2004 Preliminary Assessment/Site Inspection ("PA/SI") sampling event are also notable. The PA/SI report is included in the Administrative Record for the Site (see Attachment 1).

It is believed that AMD, generated as water infiltrates the waste rock and tailings, has caused these metals to leach from the wastes to surface water. Concentrations of cadmium and copper-exceeded federal and state Maximum Contaminant Levels ("MCLs") both in the tributary and Joe Creek. Copper, iron, and zinc exceeded Federal secondary drinking water standards both in the tributary and Joe Creek. Concentrations of zinc in the tributary exceeded the federal MCL Goal. Concentrations of cadmium, copper, iron and zinc all exceeded applicable background (i.e., upstream) concentrations by greater than 3 times.

Surface water samples collected from Elliott Creek in April 2001 illustrated dramatic increases in copper, and zinc concentrations after the confluence with Joe Creek. Although the measured concentrations do not exceed applicable drinking water standards, the concentrations exceed applicable background concentrations by greater than 3 times. This data suggests that the Site is releasing dissolved heavy metals to the Joe Creek and that these dissolved metals are being transported to Elliott Creek.

Sampling results were also compared to Aquatic Life Criteria ("ALCs"). Cadmium, copper, and zinc concentrations exceeded their respective ALCs, at one or more sampling location, in all of the 3 sampling events. Table 4.1 - Selected Surface Water Sampling Results

Contaminant Date Tributary Joe Creek Highest background MCL MCLG fc/g/L) &/9/L) (A/g/L) fo/9/L) (A/g/L) Cadmium April 2001, 40.3 15.6, 13.4 ND 5 NA August 2001

Copper April 2001, 6,990 2,990, ND 1300 1000 August 2001 1,830 (State) Zinc August 2001 6,800 NA 3.6 NA 5000 Source: Environment International 2002. Note: bolded results exceed benchmarks in lefthand columns. /jg/L - micrograms per liter; MCL - maximum contaminant level; MCLG - maximum contaminant level goal

5. NPL Status

This Site is not on the National Priorities List. In 2004, Weston Solutions, Inc. conducted a PA/SI of the Site for EPA. The PA/SI report utilized the Hazard Ranking System to evaluate the Site. The PA/SI report documents multiple observed releases of hazardous substances from Site sources. Conditions at the Blue Ledge Mine Site pose an imminent and substantial endangerment (see Sections III and IV). The proposed Time-Critical Removal Action will complete all work at the Site.

B. Other Actions to Date

USFS conducted three surface water sampling events (in September 2000, April 2001, and August 2001) to determine if the Site meets regulatory criteria for a natural resource damage assessment stated in 43 C.F.R. § 11.23(e). USFS retained Environment International Ltd. to prepare a Pre-assessment Screen report for the Site.

USFS contacted EPA, first to prepare a PA/SI report described above. In October 2004, USFS contacted the Emergency Response Section to evaluate the opportunity for a more aggressive response to mitigate actual releases of hazardous substances.

C. State and Local Authorities' Roles

1. State and Local Actions to Date

The State of California has not yet provided a written request for EPA's assistance at the Site. The planning team will seek a representative of the state of California to assist in the response process. There is no other state or county involvement with the Site at the present time. III. THREATS TO PUBLIC HEALTH OR WELFARE OR THE ENVIRONMENT, AND STATUTORY AND REGULATORY AUTHORITIES

Current Site conditions pose the threat of potential future releases of hazardous substances. These substances include arsenic, cadmium, copper, lead, and zinc and other heavy metals present within mine tailings and waste rock, contaminated soils and sediments. In addition, AMD generated by tailings and waste rock materials poses potential threats to human health or welfare and observed environmental damage. The likelihood of direct human exposure, via ingestion and/or inhalation of hazardous substances, and the threat of potential future releases and migration of those substances, pose an imminent and substantial endangerment to public health or welfare, or the environment based on the factors set forth in the NCP, 40 C.F.R. § 300.415(b)(2). These factors include:

1. Actual or potential exposure to hazardous substances or pollutants or contaminants by nearby populations or the food chain

As described in Section II.A.4, high concentrations of arsenic and lead have been detected in surface soils on the Site. Much of the contaminated material is very fine-grained and therefore likely to result in human exposure via inhalation or ingestion. Mine wastes containing documented hazardous substances may be entrained in naturally and mechanically generated dust and transported by water, by wind or on the shoes or clothing of persons passing over the Site.

Analytical results indicate that concentrations of arsenic and lead identified in the tailings, exceed background and regulatory levels including EPA's ("PRGs"). Direct human contact with dust containing metals, via inhalation or ingestion, may result in eye, skin, nose or lung irritation. Ingestion of lead may cause organ damage and result in weakness and other neurological impairment. Inhalation of inorganic arsenic can cause throat and lung irritation. In addition, ingestion of arsenic can cause nausea and vomiting, decreased production of red and white blood cells, abnormal heart rhythm, and damage to blood vessels. Direct contact with arsenic may cause redness and swelling of the skin. Prolonged exposure may lead to symptoms such as peripheral neuropathy and hyper pigmentation of the skin. Arsenic exposure also increases the risk of several types of cancer. Exposure to AMD through direct dermal contact may also result in skin, nose, and eye irritation.

Mine tailings and waste rock at the Site are accessible to nearby part-time and full-time residents and other persons that utilize the area for recreational purposes. At least 5 residences are located downstream of the Site. These residences are also believed to receive some of their water supply from an intake on Joe Creek. Persons engaging in recreational activities on or in close proximity to the Site are likely to come into contact with uncontrolled hazardous substances present within the mine wastes. Recreational activities in the vicinity of the Site include biking, fishing, hiking, hunting, use of all-terrain vehicles, and camping. The Pacific Crest National Scenic Trail also crosses the Site. For these reasons the Site may be considered an attractive nuisance because of its unique appearance.

Contamination from the Site has resulted in significant environmental impacts to the tributary stream and to the Joe Creek. Heavy metals including but not limited to cadmium, copper and zinc have been detected in surface water samples. Significant staining of the stream channel has resulted from AMD impacts to the riparian corridor of the unnamed tributary as well.

High concentrations of rnetals in sediments have resulted in significant toxic impacts on aquatic life in the tributary stream and in Joe Creek including an absence of fish and macro invertebrates in portions of these water bodies. It is likely that downstream water bodies are likewise impacted (i.e., Elliott Creek and the Applegate River and Reservoir). Fish and wildlife also may be exposed to hazardous substances in fine-grained tailings and waste rock via the ingestion and inhalation pathways. Terrestrial and aquatic species of special concern (i.e., federal and state listed threatened species) occupy habitat on or near areas impacted by contamination from the Site. Some of the primary and secondary COCs are bioaccumulative and may lead to increased health risk in persons ingesting fish or wildlife. Greater than ten thousand visitors are believed to fish in water bodies downstream of the Site annually.

2. Weather conditions that may cause hazardous substances or pollutants or contaminants to migrate or be released

Tailings and waste rock regularly come into contact with, and are eroded and deposited into surface waters during flow periods. Past investigations have revealed that hazardous substances are migrating from the Site during flow periods. The Site is situated in a transient snow zone where periods of rain-on-snow are likely to occur. Annual precipitation is approximately 138 inches of snow and 33 to 40 inches of rain. Snow-slides also are typical of steep-sloped gullies such as the on-site tributary. All of these factors pose a high risk of erosion and mass wasting of tailings and waste rock. In addition, weather conditions will continue to degrade the integrity of the tailings dam.

3. Threat of fire or explosion

There is no threat of explosion at the Site; however, wildfires are a common occurrence in the region. A nearby fire might exacerbate conditions at the Site. Wildfires may destroy nearby vegetation leading to increased runoff velocity and a greater propensity for erosion. Higher erosion rates would increase the likelihood of tailings deposition into surface water bodies or onto surfaces where persons may more easily come into contact with metals contamination. Further vegetative loss in the area also may increase the likelihood of wind erosion and off-site deposition, thereby increasing the likelihood of exposure. 4. Availability of other appropriate Federal or State response mechanisms to respond to the release

The Site is located on private land. There has been no action at the Site by the state. EPA will continue to collaborate with USFS on mitigation planning. To that end, EPA and USFS have endeavored to combine planning efforts to ameliorate the high cost of engineering expertise, in particular. Ultimately, the team's goal is to determine an innovative mitigation strategy that is available at a reasonable cost. These efforts may result in a Site specific Memorandum of Understanding or Interagency Agreement.

IV. ENDANGERMENT DETERMINATION

Actual and threatened releases of hazardous substances from this Site, if not addressed by implementing a Time-Critical Removal Action may continue to present an imminent and substantial endangerment to public health, or welfare, or the environment. If no action is taken, impacts will continue and eventually worsen due to the imminent structural failure of the tailings dam.

V. PROPOSED ACTIONS AND ESTIMATED COSTS

A. Proposed Actions

1. Proposed action description

EPA proposes to mitigate imminent and substantial threats to human health, welfare, or the environment by taking steps to prevent the release of hazardous substances and AMD from mine tailings and waste rock to Joe Creek, Elliott Creek and their unnamed tributaries and to the surrounding environment where there is a greater likelihood of direct human contact. The removal action will include the following objectives:

A. Stabilize tailings and waste rock on steep slopes using slope stabilization techniques to prevent erosive loss to the unnamed tributary, Joe Creek, and surface water bodies downstream;

B. Provide soil and vegetative cover to tailings and waste rock to reduce the likelihood of direct human contact with contaminants in these materials;

C. Reduce localized AMD impacts to the tributary using a combination of approaches including barriers and drainage systems for water diversion, and potentially passive AMD treatment systems.

2. Contribution to remedial performance

Long term remedial action at the Blue Ledge Mine Site is not currently

8 anticipated. This removal action would complete all clean-up activities at the Site.

The long-term cleanup plan for the site:

It is expected that this removal action will eliminate any threat of direct or indirect contact or inhalation of hazardous substances at the Site. There is no known groundwater contamination at the Site.

Threats that will require attention prior to the start of a long-term cleanup:

There is no long-term cleanup planned for this Site.

The extent to which the removal will ensure that threats are adequately abated:

The removal and/or stabilization of abandoned, above ground hazardous substances will abate the threats posed by the Site.

Consistency with the long-term remedy:

EPA asserts that the Time-Critical Removal proposed for the Site is consistent with addressing mine waste issues within the Joe Creek Watershed.

3. Description of alternative technologies

The use of biosolids is considered to be an alternative technology. Biosolids consist of composted municipal sewage sludge and various soil amendments. Biosolids will be applied to mine tailings and metals-contaminated soils in order to capture and bind metals within the soil structure, thus decreasing human and eco-toxicity. Research conducted by the EPA, the U.S. Department of Agriculture and others has shown that this technology is feasible and cost-effective, and that it will significantly reduce high concentrations of bio-available metals in soil.

4. Applicable or relevant and appropriate requirements ("ARARs")

Section 300.415(j) of the NCP provides that removal actions must attain ARARs to the extent practicable, considering the exigencies of the situation.

Section 300.5 of the NCP defines applicable requirements as cleanup standards, standards of control, and other substantive environmental protection requirements, criteria or limitations promulgated under federal environmental or state environmental or facility siting laws that specifically address a hazardous substance, pollutant, contaminant, remedial action, location or other circumstances at a CERCLA site.

Cleanup standards will be based on the EPA PRGs for lead and arsenic in soil, and based on comparison to background concentrations in the immediate vicinity of the Site. Cleanup goals for the treated area will based on Simulated Precipitation Leaching Procedure target concentrations and/or another bioavailability index for contaminants of concern.

Section 300.5 of the NCP defines relevant and appropriate requirements as cleanup standards, standards of control and other substantive requirements, criteria, or limitations promulgated under federal environmental or state environmental or facility siting laws that, while not "applicable" to a hazardous substance, pollutant, or contaminant, remedial action, location, or other circumstances at a CERCLA site, address problems or situations sufficiently similar to those encountered at the CERCLA site and are well-suited to the particular site.

Because CERCLA on-site response actions do not require permitting, only substantive requirements are considered as possible ARARs. Administrative requirements such as approval of, or consultation with administrative bodies, issuance of permits, documentation, reporting, record keeping, and enforcement are not ARARs for the CERCLA sections confined to the site.

The following ARARs have been identified for the proposed response action. All can be attained.

Federal ARARs: The CERCLA Off-Site Disposal Rule OSWER Directive 9347.3- 8FS; and the U.S. Department of Transportation of Hazardous Materials Regulations 49 C.F.R. Part 171, 172 and 173.

State ARARs: None identified at this time.

5. Project schedule

It is estimated that removal activities will take approximately 25 working days to complete.

B. Estimated Costs

Regional Removal Allowance Costs

Cleanup Contractor $ 200,000

Extramural Costs Not Funded from the Regional Allowance

ERT Support 20,000 START Contractor 45.000

Extramural Subtotal $ 265,000

10 Extramural Contingency (20%) $ 53.000

TOTAL, Removal Action Project Ceiling $ 318,000

VI. EXPECTED CHANGE IN THE SITUATION SHOULD ACTION BE DELAYED OR NOT TAKEN

Given the Site conditions, the nature of the hazardous substances documented on Site, and the potential exposure pathways to nearby populations described in Sections III and IV above, actual or threatened releases of hazardous substances from the Site, if not addressed by implementing the response actions selected in this Action Memorandum, may present an imminent and substantial endangerment to public health, or welfare, or the environment.

VII. OUTSTANDING POLICY ISSUES

There are no outstanding policy issues with the Site identified at this time.

VIII. ENFORCEMENT

Please see the attached Confidential Enforcement Addendum for a discussion regarding potentially responsible parties. In addition to the extramural costs estimated for the proposed action, a cost recovery enforcement action also may recover the following intramural costs:

Intramural Costs1

EPA Direct Costs $ 40,000

EPA Indirect Costs (35.28%) $ 126.302

TOTAL Intramural Costs $ 166,302

The total EPA extramural and intramural costs for this removal action, based on full-cost accounting practices, that will be eligible for cost recovery are estimated to be $484,302.

l. Direct costs include direct extramural costs and direct intramural costs. Indirect costs are calculated based on an estimated indirect cost rate expressed as a percentage of site-specific direct costs, consistent with the full cost accounting methodology effective October 2, 2000. These estimates do not include pre-judgement interest, do not take into account other enforcement costs, including Department of Justice costs, and may be adjusted during the course of a removal action. The estimates are for illustrative purposes only and their use is not intended to create any rights for responsible parties. Neither the lack of a total cost estimate nor deviation of actual costs from this estimate will affect the United States' right to cost recovery. IX. EPA RECOMMENDATION

This decision document represents the selected removal action for the Blue Ledge Mine Site, Siskiyou County, California, developed in accordance with CERCLA and not inconsistent with the NCP. This decision is based on the Administrative Record for the Site.

Because conditions at the Site meet the NCP criteria for a Time-Critical Removal Action, EPA enforcement staff recommend the approval of the removal action proposed in this Action Memorandum. The total project ceiling if approved will be $484,302, of which an estimated $200,000 comes from the Regional Removal Allowance. Approval may be indicated by signing below.

Approve: Daniel Meer, Chief Date Response, Planning and Assessment Branch

Disapprove: Daniel Meer, Chief Date Response, Planning and Assessment Branch

Enforcement Addendum

Attachments:

1. Index to the Administrative Record 2. Photograph Log cc: Dick Sawaya, Regional Environmental Engineer, U.S. Forest Service Pete Jones, Engineer, Rogue River/Siskiyou National Forest Sherry Fielding, EPA, OERR, HQ Pat Port, U.S. Department of Interior bcc: H. Allen, SFD-9-2 A. Helmlinger, ORC-3 C. Reiner, SFD-9-2 C. Temple, SFD-9-2 Site File ATTACHMENT I INDEX TO THE ADMINISTRATIVE RECORD

1. Environment International, 2002. Pre-assessment Screen for the Blue Ledge Mine Site. Prepared for Consideration and Review by Rogue River/Siskiyou National Forests. Prepared by Environment International Ltd. October 28, 2002.

2. Preliminary Assessment/Site Inspection Report, Blue Ledge Mine, Siskiyou County, California. Prepared by: Weston Solutions, Inc. April 2004.

3. Preliminary Removal Assessment sampling results. Provided by ecology & environment Inc. (START). August 2005.

4. State Request Letter ATTACHMENT II PHOTOGRAPH LOG BLUE LEDGE MINE SITE PHOTOGRAPH LOG

Photograph 1. Tailings and rock pile at the top of the steep site slope. The unnamed tributary flows through the pile.

Photograph 2. Ferricrete, tailings and other evidence of AMD present in the tributary below the tailings pile. BLUE LEDGE MINE SITE PHOTOGRAPH LOG

Photograph 3. Evidence of AMD in the Joe Creek at the confluence with the unnamed tributary.

Photograph 4. Tailings pile mounded behind the dilapidated tailings dam.