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10.c 1) Review of 2017 Annual Operating Permit for the Tiller Zavoral Mine Memorandum To: Scandia City Council Reference: Tiller Corporation—2017 Annual Operating Permit Application for the Zavoral Mine Copies To: Neil Soltis, City Administrator Mike Caron, Tiller Corporation Christina Morrison, Tiller Corporation Kirsten Pauley, Sunde Engineering Project No.: 16322.002 From: Sherri Buss, RLA AICP, Planner Routing: Date: February 9, 2017 SUBJECT: Tiller Corporation, Inc. - Annual Operating Permit (AOP) Application for a Mining and Processing Operation MEETING DATE: February 21, 2017 LOCATION: East of the Intersection of State TH 97 and State TH 95 APPLICANT: Tiller Corporation P.O. Box 1480 Maple Grove, Minnesota 55311 60-DAY PERIOD: March 28, 2017 ZONING: Aggregate Mining Overlay District ITEMS REVIEWED: Application, Plans and Related Submittals; monitoring reports and recommendations from City’s subconsultants; comments from agencies; site visit notes DESCRIPTION OF THE REQUEST: The City of Scandia approved a Conditional Use Permit (CUP) for the Zavoral Mine and Reclamation Project on February 19, 2013. The City’s Mining Ordinance requires Tiller to obtain an Annual Operating Permit for the mine in addition to the CUP. Tiller Corporation Scandia City Council Tiller Zavoral Mine 2016 AOP Page 2 February 21, 2017 submitted its application for the 2017 AOP on January 27, 2017. The 114-acre site (Site) is located along St. Croix Trail North (State Trunk Highway [TH] 95), a State Scenic Byway, east of its intersection with Scandia Trail North (State TH 97). The plans approved with the CUP permit mining and reclamation to occur on 64 acres of the Site (the “Project”). No processing or concrete and asphalt recycling activities are proposed as part of the project. The City’s Mining Ordinance specifies an AOP cycle that coincides with the active mining season. Applications are due by January 31 each year, so that permits can be approved before the start of the mining season in that year. This report analyzes Zavoral Mine and Reclamation Project’s compliance with the conditions approved in the CUP, 2016 AOP, and the Amended 2016 AOP that was approved by the City in July, 2016, and recommends conditions for the 2017 AOP. Active mining at the site ended in 2016. Based on the detailed evaluation of activities at the site (Sections I and II below), this report concludes that the mining activities at the site complied with the CUP and AOP conditions for mining operations. The significant issue remaining for the 2017 AOP is the successful completion of the required reclamation of the site, and transition to a new use—the Argo Navis Community Solar Garden (ANCSG). The activities to date and issues for the 2017 AOP are discussed in Section IV in this report. In May 2016, the City approved a CUP for the Argo Navis Community Solar Garden, which will occupy a portion of the area included in the Zavoral Mine and Reclamation Project. The CUP conditions for the Argo Navis project included the requirement the applicant and Tiller work together to revise the Reclamation Plan for the mine project to address berms, screening, a planting plan, seed mix, and site maintenance through the completion of the Mining Project and for the lifetime of the Solar Garden project. The condition specified that final approval of the CUP for ANCSG was contingent upon City Council approval of the revised Reclamation Plan. The Zavoral Amended 2016 AOP included a similar requirement for coordination between the two uses, and noted that when the Development Agreement for the ANCSG is signed, Tiller shall be released from its reclamation obligations for the site. Negotiations have occurred between Tiller, Argo Navis, and the Zavoral property owner in 2016, but no agreement has been reached on a Final Reclamation Plan that addresses the requirements of the CUP for the mine project and manages the transition between the mining project and the community solar garden project. Staff recommend that the City require that the 2017 Zavoral Mine AOP and Argo Navis Development Agreement include conditions that require the successful completion of the Final Reclamation Plan and transition to the new use, and that the Development Agreement for the Argo Navis project be signed and Tiller be released from its obligations only when the reclamation issues have been addressed. EVALUATION OF THE AOP REQUEST The Applicant is requesting an Annual Operating Permit (AOP) for a mining operation. The permit requirements are governed by the City’s Ordinance No. 103, Regulation of Mining and Related Activities, which is Chapter 4 of the Development Code. The Ordinance requires review of the following items for the AOP: Scandia City Council Tiller Zavoral Mine 2016 AOP Page 3 February 21, 2017 1. The operating conditions of the previous year and conditions required by the CUP and AOP. 2. Proposed operating conditions and any variation from the previous year. 3. Results of the annual inspection by the City. The applicant submitted the following materials with the AOP application:  Application Form including Annual Report for activities in 2016, and proposed activities in 2017  Groundwater sampling results  Well Water Use data for 2016  Annual Reclamation Report for 2016  Site Plan—2016 Activity The CUP conditions require that the City complete a variety of monitoring activities and reports that will be used to evaluate the AOP application and develop any conditions for operations in 2017. The monitoring reports that City staff used to evaluate operations at the site include the following:  Zavoral Mine and Reclamation Project—Annual Surface Water Monitoring Report and Closeout, WCD, November 28, 2016  Zavoral/Scandia 2017 AOP Applications—WCD review and comment, January 31 and February 6, 2017  2015 Groundwater Monitoring Summary—Zavoral Aggregate Mining and Reclamation Project, Leggette, Brashears & Graham, Inc (LBG), January 23, 2017  Zavoral Mine Noise Monitoring Results, SBP Associates, Inc., January 16, 2016 I. CUP AND AOP REQUIREMENTS: SUMMARY TABLE The City of Scandia approved a Conditional Use Permit and an Annual Operating Permit for the mining operation and reclamation activities on the Zavoral Site on February 19, 2013. The conditions included the items noted on the table below. Tiller’s performance is also indicated on the table and in the text sections that follow: In the status column, a + indicates that the operator is meeting the requirement, and a – indicates that the requirement has not been met during the 2016 operating year. The symbol * indicates partial completion. Further discussion on the conditions and performance in 2016 is discussed in the text sections that follow the table. The CUP conditions are identified by number in standard text; the AOP conditions are identified by number in Bold text in the first column on the table below. CUP Condition/ AOP Condition in Bold Deadline Specified in CUP/AOP Status Notes 1/1&2. Comply with Project approved by City February 19, 2013 Ongoing + In process--monitored by City staff and consultants. Activities during 2016 were generally consistent with those proposed in the approved AOP. 2. Comply with Rules and Ongoing + In process--monitored by City staff and consultants. No violations of Scandia City Council Tiller Zavoral Mine 2016 AOP Page 4 February 21, 2017 CUP Condition/ AOP Condition in Bold Deadline Specified in CUP/AOP Status Notes Regulations federal, state, or city regulations identified in 2016. 3. Maximum mining depth 840 amsl and 25 separation between mining and groundwater Ongoing + Tiller established a benchmark to monitor the elevation of the mine floor in 2013. City monitoring of groundwater levels by LBG. Maximum mining depth identified by LBG and Tiller in 2016 ranged between 843 and 855 feet above msl, with a maximum depth of 843 feet above msl. That depth is 3-15 feet above the permitted depth and maintains the required 25-ft. separation from the water table. 4. No frac sand minning Ongoing + Depth of mining information and bedrock depth information confirmed that no frac sand mining occurred in 2016. 5. No dewatering Ongoing + No dewatering occurred on the site in 2016, and is not included in the reclamation activity proposed for 2017. 6. & 7. Daily pumping from well shall not exceed 10,000 gallons; annual pumping shall not exceed 1 million gallons; pumping records. Annual + Production well records are being kept by Tiller Corp. and are available to the City. Water use at the site in 2016 was 108,000 gallons for dust control. The DNR Water Appropriation Permit for the site allows up to 1 million gallons to be pumped each year. Pumping records were provided with the AOP application, to the WCD, Washington County Health Dept., and Minnesota DNR as required. 8. Revise groundwater plan 2013 + The revised Groundwater Quality Protection Plan (GWQPP) was submitted to the City in April, 2013 and is on file. 9. Groundwater observation wells Ongoing + Monitoring wells were installed at the site in 2013 and met the CUP requirement. Monitoring equipment was removed in November, 2016 after the end of mining activity. 10 /6. Groundwater data and annual Ongoing + Groundwater samples were analyzed Some seasonal rise and fall in groundwater levels during Scandia City Council Tiller Zavoral Mine 2016 AOP Page 5 February 21, 2017 CUP Condition/ AOP Condition in Bold Deadline Specified in CUP/AOP Status Notes report. Remove monitoring equipment when mining completed. 2016. Ground water levels in November 2016 were approximately 1.5 to 2 feet higher than when mining operations began in 2013. The increase is related to precipitation and recharge to the aquifer. Monitoring equipment removed at end of mining. 11. Review GWQPP Annual + Tiller submitted the revised GWQPP in April, 2013. The plan meets the CUP requirement. 12. Diesel Range Organics (DRO) sampling Annual + Baseline groundwater samples were collected before the start of mining and before a diesel fuel tank was installed at the site. Sampling results for 2016 show no DRO was detected. 13. Fuel storage requirements Ongoing + Tiller installed a portable 500-gallon double-walled diesel fuel tank on the site in October, 2013. The tank was removed in 2016 at the end of mining activity and no further fuel storage is planned at the site. 14. Equipment fueling Ongoing + Tiller installed a hard-surfaced fueling pad in 2013. The fueling pad was removed in 2016 at the end of mining activity. 15. Spill cleanup equipment on site Ongoing + A spill kit was stored on-site when the site was active. 16 Stormwater permit Prior to operations + Applicant obtained required NPDES General Permit (MNG490000) and CMSCWD Stormwater and Erosion and Sediment permits prior to the start of operations. Permits are on file at City. 17. Stormwater Best Management Practices Ongoing * Stormwater BMP’s were installed at the site as required by permits. Inspections completed by CMSCWD twice per month and WCD as required by CUP. Erosion occurred on some reclaimed slopes during a heavy rainfall in 2016. Some slope stabilization was completed in 2016, and final stabilization is anticipated as part of Scandia City Council Tiller Zavoral Mine 2016 AOP Page 6 February 21, 2017 CUP Condition/ AOP Condition in Bold Deadline Specified in CUP/AOP Status Notes reclamation activities in 2017. 18. Air Emissions Permit Prior to operations + MPCA Permit obtained prior to beginning mining operations (Permit no. 05301018-001). 19. Endangered Species Take Permit Prior to operations + Status of Butternut tree changed to endangered in August, 2013. WCD verified the presence of the Butternut tree in 2016. 20. Blanding’s Turtles protection Ongoing + Blanding’s Turtles Plan submitted and WCD verified compliance. No Blanding’s Turtles identified at the site in 2016. 21. Raptor nests inspection Ongoing + Raptor survey conducted prior to tree clearing in 2013. No active nests identified in 2016. 22. Berm on south end of site Prior to operations + Berm was required before Phase 2 mining begins. Berms were removed with City approval after mining operations ended in 2016. 23. Minimize unnecessary equipment; reduce soil tracking Ongoing + City site visit verified that unnecessary equipment was not stored at the site, and that BMP’s including sweeping, watering and paved entrance are being implemented to reduce soil tracking. 24. Monitor equipment for leaks Ongoing + Tiller reported that it monitored equipment for leaks and prohibited “topping off” of tanks. No evidence of leaks observed in site visit. 25 & 26. Location of above-ground storage tanks Ongoing + The 500-gallon double-walled diesel fuel tank was removed in 2016 after mining activity ended. 27. Water quality monitoring and reports Annual + WCD completed water quality monitoring and submitted annual report. No mining impacts identified to surface waters. 28/8. Monitoring point in Zavoral Creek Ongoing + Monitoring station installed at Zavoral Creek in 2015 and WCD completed baseline monitoring in 2016. No negative impacts related to mining identified. Monitoring equipment was removed in July, 2016 after active mining ended at the site. 29/7&8. Monitoring Annual + Monitoring station installed at Scandia City Council Tiller Zavoral Mine 2016 AOP Page 7 February 21, 2017 CUP Condition/ AOP Condition in Bold Deadline Specified in CUP/AOP Status Notes station near Crystal Springs- installation and reporting. Remove stations when mining completed. Crystal Springs, and WCD completed baseline monitoring in 2016. No negative impacts related to mining identified. . Monitoring equipment was removed in July, 2016 after active mining ended at the site. 30/9&10. W etland boundaries delineation Annual + In September 2015 the TEP panel reviewed the wetland boundaries and recommended no additional wetland boundary monitoring for the mine project. 31. Mn/DOT Access Permit Prior to driveway construction + The applicant obtained the required permit (TP 1721) prior to driveway construction completed in 2013. A copy is on file at the City. 32 & 33. Construct new driveway access and right-turn lane Prior to operations + New driveway access and right-turn lane constructed by November, 2013. 34/26-28. Traffic monitoring Annual + No traffic monitoring was completed in 2016 because mining activity at the site ended, and no issues were identified that required monitoring. 35. Truck-hauling records between Zavoral and Scandia mine sites Annual + Approximately 201,200 tons of Class C add-rock were hauled to the Scandia Mine from the Zavoral Mine during 2016, and 5,400 tons were hauled from the Zavoral site to other projects. 36. Traffic maximum levels Ongoing + Hauling occurred on 38 days in 2016, with an average of 432 trips per working day. The peak number of trips per day was 600. The average daily numbers and peak numbers were similar to the range of counts analyzed for Alternative 3 in the EIS (334-400 daily average) and at the Alternative 3 peak (600 per day). 37. Hauling on state, county and local streets Ongoing + The majority of trucks utilized TH 97, TH 95, and CR 91, the existing haul route to Scandia Mine. Truck traffic for projects outside Scandia utilized TH 95 onto westbound TH 97. Scandia City Council Tiller Zavoral Mine 2016 AOP Page 8 February 21, 2017 CUP Condition/ AOP Condition in Bold Deadline Specified in CUP/AOP Status Notes 38. Truck warning signs Prior to traffic operations + Tiller applied to Washington County to install truck warning signs on County Road 91 near the mine entrance, but the County denied the request. This condition is no longer applicable because mining has ended. 39. Parking and circulation Ongoing + All parking occurred within the site. 40. Crash reporting Ongoing + No truck that was hauling for Tiller was involved in a reported crash or cited for a traffic violation in 2016. 41. Fence Prior to mining operations + Fencing located along TH 95 per approved site plan was maintained and in-place prior to start of operations. 42/3. Hours of operation Ongoing + Hours of operation were consistent with the CUP requirement. Tiller did not request extended hours in 2016. 43. Berm removals Project completion + Berm removals were coordinated with the City. Berms in the southwest portion of the site were removed in 2016 after mining was completed. 44/17-19. Dust Control Plan implementation Ongoing + Applicant submitted updated dust control plan to the City as required in April, 2013. The plan is on-file. 45. Dust Control materials Ongoing + Dust control plan includes use of dust control materials required by CUP conditions. Dust control was implemented in 2016 using water, a non-chloride suppressant and sweeping. 46/ 12-16. Dust Control monitoring. Remove equipment when mining completed Annual + Dust control monitoring was not required in 2016 because mining activities ended. Consultant removed monitoring equipment. 47. Review Dust Control procedures Annual + City consultant had no recommendations for changes in procedures for 2017 AOP. 48. Berms and screens Ongoing + Mining is complete, and Tiller coordinated berm removals with the Scandia City Council Tiller Zavoral Mine 2016 AOP Page 9 February 21, 2017 CUP Condition/ AOP Condition in Bold Deadline Specified in CUP/AOP Status Notes City. 49. Truck idling Ongoing + Tiller indicated that trucks are not permitted to idle for more than 30 minutes. No complaints or observations of longer idling during 2016. 50 & 51/21-25. Noise standards and monitoring Ongoing + Noise monitoring completed while active mining was occurring at the site. Noise did not exceed state standards at any of the 5 monitored sites in 2016. 52-54. Broadband alarms and noise control Ongoing + All Tiller equipment is equipped with broadband alarms. Equipment inspected twice weekly during operations and maintenance was completed as needed. 55. Vegetative Clearing Sept.-April + No clearing of trees or brush in 2016. 56. Recycle debris Ongoing + No recycling of trees or brush in 2016. 57. Weed control and site maintenance Ongoing + City inspections in 2016 indicated that site maintenance met CUP requirements. Tiller completed spot-herbicide treatment in 2016 and mowing to control weeds. 58. Sanitary facilities Ongoing + On-site sanitary facilities met CUP and Mine Safety and Health Administration requirements. 59. Waste disposal Ongoing + Waste disposal met CUP requirements in 2016. 60. Updated Reclamation Plan April 19, 2013 + Updated Reclamation Plan provided on April 18, 2013, and a revised plan was submitted in 2014. Reclamation in 2016 was consistent with the approved plan. 61. Reclamation proportional to mining Ongoing + Phase I reclamation completed per mining plan and CUP requirement and monitoring indicates success to date; Phase 2 reclamation in process. Reviewed at site visit in 2016. 62-64./29-30 Reclamation and monitoring Ongoing + Grading, soil placement and seeding generally met CUP requirements. Erosion occurred in some Phase 2 areas in 2016, and Tiller has proposed stabilization Scandia City Council Tiller Zavoral Mine 2016 AOP Page 10 February 21, 2017 CUP Condition/ AOP Condition in Bold Deadline Specified in CUP/AOP Status Notes activities for 2017. 65/31. Tree transplants Ongoing + The revised plan for transplants and transition planting area was approved by the City and implemented in 2014 and 2015. Monitoring indicates that the transplants have survived. 66./10 & 13. Reclamation report Annual * Annual reclamation report for 2016 was submitted with the 2017 AOP Application. Tiller to inform city when reclamation grades are established and complete and erosion issues on areas seeded in 2016 have been addressed. 67. Reclamation monitoring by City Ongoing * City site visit in 2016; areas that were graded and seeded where significant erosion occurred need to be restored in 2017. 68-69. Final reclamation End of project - Final approval of reclamation will occur at end of project. 70. Woodlands outside mining Ongoing + Mining activities did not disturb woodlands outside of mine area limits. 71. Stockpile height Ongoing + The stockpile has been removed, mining is complete, and no additional stockpiling is proposed on the site. 72. Lighting Ongoing + No lighting was added at the site in 2016. 73. Sign permit Before placement + Tiller submitted truck-warning sign permits to Washington County and Mn/DOT as required. No other signage was added to the site in 2016. 74. Pay monitoring costs Ongoing + The applicant has paid the monitoring costs and replenished required escrows to date. 75. Provide site access Ongoing + The applicant provided site access as requested by the City and its consultants. 76. GWQPP Plan April 19, 2013 + The applicant provided a final corrected copy of the GWQPP in April 2013. 77.CUP and Reclamation Agreement March 5, 2013 + Compliance and Reclamation Agreement signed by Applicant and City. Scandia City Council Tiller Zavoral Mine 2016 AOP Page 11 February 21, 2017 CUP Condition/ AOP Condition in Bold Deadline Specified in CUP/AOP Status Notes 78. Additional monitoring Ongoing + No additional monitoring was requested in 2016. 79. Financial guarantee Ongoing + Compliance and Reclamation Agreement included the financial guarantee. 80. AOP Annual + Applicant obtained the 2016 AOP and has applied for the 2017 AOP. 81. Letter of Credit Prior to activity + Applicant provided Letter of Credit as required by CUP. 82. Fees and escrows Ongoing + Applicant paid fees and escrows as required by CUP. 83. Compliance with agreements and permits Ongoing + Applicant complied with agreements and permits in 2016. 2016 Revised AOP Additional Conditions 6 -9. Monitoring equipment removal after mining ends AOP + The City’s consultants removed the groundwater,surface water, and air quality monitoring equipment at the site after mining ended in 2016. Tiller reported that the monitoring well was sealed in early January 2017 by a licensed well driller. 10-12. Tiller to inform city when mining is complete for determination of mining grades AOP * Tiller informed the City when mining was completed, and the City completed its annual site visit to review grading and reclamation activities in the Phase 1 and 2 areas. Work needed to restore areas where erosion noted. 13. Tiller to submit reclamation report within 60 days of the end of mining operations. AOP - Tiller submitted an updated reclamation report with the AOP application. The report needs to be updated to include the erosion issues at the site in 2016. Final report will be due when agreement is reached on final reclamation of areas 3 and 4 with ANCSG. 14. Coordination with ANSCG Solar Garden Plans. AOP - The City has not yet approved final ANSCG plans and developer agreement. Coordination with Mining project discussed in this staff report. 36. Approval of change from AOP + Tiller requested amendments to the 2016 AOP, and the City approved Scandia City Council Tiller Zavoral Mine 2016 AOP Page 12 February 21, 2017 CUP Condition/ AOP Condition in Bold Deadline Specified in CUP/AOP Status Notes requirements an amended AOP in July, 2016. 37. Letter of Credit for Phase 2 Reclamation AOP + Letter of credit has provided to city and is current. II. OPERATING CONDITIONS – DETAILED EVALUATION FOR THE 2017 AOP The sections that follow include an evaluation of the operations at the site in 2016, based on the requirements of the City’s Mining Ordinance and the amended AOP approved in 2016. Site Operations - Background Information 2016 was the fourth and final year of mining at the Zavoral Mine site. Mining operations ended during the summer of 2016, and reclamation activities continued through the end of 2016. Approximately 206,600 tons of mined materials were removed from the site in 2016. 201,200 tons were hauled to the Scandia Mine site, and 5,400 tons of materials were hauled to other projects. Approximately 4,800 tons of Class 5 was brought onto the site for the construction of a private driveway, and 6,800 tons of engineered soil were brought onto the site for topsoil placement for reclamation activities. Reclamation activities included maintenance in the Phase I and 2 area and final grading, seeding and mulching across the rest of the mined area. The City and its consultants monitored activities and impacts at the site while active mining occurred in 2016. The consultants removed monitoring equipment in the second half of 2016, and provided final summary reports for this annual review by January 23, 2017. Reclamation activities will continue at the site after mining is completed. Annual Activity The application generally includes the data required by the ordinance regarding annual activity on the site, as follows: ___2016 ____ The amount of material removed from the site: 206,600 Tons Amount of add-rock brought onto the site: 0 Tons Recycled asphalt and concrete brought to the site: 0 Tons Class 5 material brought to the site for private driveway 4,800 Tons Engineered soil brought to the site for reclamation 6,800 Tons Average number of trips to and from the site each day while mining was occurring: 432 trips/day; the peak number of trips per day was 600 trips. Depth of Excavation The CUP requires that the maximum mining depth shall be 840 feet above mean sea level (amsl), and that the separation between the depth of mining and ground water level shall be 25 feet or more. The City’s groundwater consultant, Leggette, Brashears, and Graham, Inc. (LBG) Scandia City Council Tiller Zavoral Mine 2016 AOP Page 13 February 21, 2017 reviews the mining depth and groundwater separation each year. LBG’s Summary report (January 23, 2017) indicates that the maximum depth of mining in 2016 was 843 feet amsl, and that depths varied across the site from 843 to 855 feet, which is between 3 and 15 feet above the permitted depth of 840 ft-amsl. Tiller maintained the required 25 feet minimum separation distance from the water table under the site as required by the CUP. The activity of the site met the CUP requirements for mining depth and groundwater separation. Silica Sand Mining No silica sand (“frac sand”) mining occurred at the site in 2016. Ground Water Monitoring Plan and Monitoring Issues The CUP and AOP include several conditions related to groundwater monitoring, listed below in italics. The City’s groundwater consultant, Leggette, Brashears, and Graham, Inc. (LBG) reviews the ground water monitoring results each year for the AOP and provides comments to the City. The section below summarizes the findings related to each of the conditions. LBG’s annual report to the City includes the data gathered, complete findings, and recommendations for 2016.  No dewatering is permitted at the site o No dewatering occurred with the mining activities in 2016. None is proposed for 2017.  Daily pumping from the Zavoral Site Well shall not exceed 10,000 gallons at a maximum rate of 1,200 gallons per minute, and annual pumping shall not exceed 1 million gallons. o Tiller pumped the Zavoral Site Well in August and September in 2016 for dust control activities. Tiller pumped a total of 108,000 gallons during 2016. The pumping was within the levels permitted by the CUP and DNR permit. LBG’s memo stated that the pumping did not affect groundwater levels in the uppermost aquifer below the site.  The applicant shall provide records of Zavoral Well pumping that document the daily and annual use, and provide records to several agencies. o The applicant provided records of the Zavoral Well pumping to the City. The records were also provided to reviewing agencies as required. The City received no agency comments regarding the pumping records.  The applicant shall provide a revised Groundwater Monitoring Plan to the City, including the locations of monitoring wells. o The applicant completed the update to the Groundwater Quality Protection Plan (GW QPP) that was required by the CUP, and the updated plan (dated April 2013) is on file at the City.  The applicant shall maintain the groundwater monitoring wells and piezometers and complete required monitoring 2016 AOP condition: The City or its consultant shall remove the ground water monitoring stations and the monitoring station upstream of or near the existing monitoring stations near Crystal Springs and Middle Creek when mining activities have been completed o Tiller installed the monitoring wells and maintained the wells as required. LBG manually measured the water levels and downloaded data at the four observation wells four times during 2016. LBG removed the data loggers from the wells at the end of 2016 after completion of active mining at the site. Scandia City Council Tiller Zavoral Mine 2016 AOP Page 14 February 21, 2017  The City’s consulting hydrologist shall make regular site visits while the mine is operating, download and analyze data, and provide an annual report to the City. o LBG completed site visits in April, May, July and November, 2016, and completed the annual report as required. LBG’s findings and recommendations are summarized below.  The City shall review the GWPP annually and modify the plan as needed. o LBG reviews the GWPP annually and provides recommendations as needed.  Monitoring shall include Diesel Range Organics (DRO’s). o The groundwater analytic results for 2016 show that DRO’s were not detected at or above the method detection limits. LBG Analysis and Recommendations Based on 2016 Monitoring Data  LBG completed site visits on April 21st, May 4th, July 15th, and November 28th, 2016 and monitored water levels.  LBG reviewed the groundwater sample results from the site.  Groundwater levels across the site decreased from approximately 0.4 to 0.6 feet from January through June, 2016, then increased approximately 0.5 to 0.7 feet from July through December 2016. The trends followed the same general patterns observed at the site in previous years, and are typical of seasonal variations caused by variable precipitation and subsequent recharge to the aquifer.  Ground water levels in December 2016 were approximately 1.5 to 2 feet higher than when mining operations begin in 2013. LBG comment that the increase appears to be related to higher precipitation levels and recharge to the aquifer in 2015 and 2016 compared to the previous two years rather than mining activity.  The hydraulic gradient and flow direction were consistent with previous years’ results. Groundwater flow across the site is southeast toward the St. Croix River.  The depth of mining and separation from groundwater levels met the CUP requirements.  The Zavoral Site Well was pumped for dust control at rates and volumes below the maximum allowable limits prescribed in the CUP, and no impacts to the water table aquifer were observed as a result of pumping.  The groundwater levels and groundwater quality parameters remained relatively stable during 2016 during mining operations.  The chemistry results indicate no concerns, and Diesel Range Organics (DRO) were not detected above the method detection limit in any samples.  No impacts to groundwater levels or quality were observed as a result of the 2016 mining operations. Water quality indicators recorded in 2016 are generally in the range of those recorded in 2013 during the pre-Tiller mining period.  LBG’s report concludes that based on the evaluations of the 2015 monitoring data, Tiller’s activities at the Zavoral site met all of the CUP conditions related to groundwater. LBG noted that at this time, considering mining is completed at the site, LBG recommends no further groundwater monitoring. LBG removed the monitoring equipment from the site after mining was completed, and Tiller reported that the sealed the monitoring well in early January of 2017 using a licensed well driller. Scandia City Council Tiller Zavoral Mine 2016 AOP Page 15 February 21, 2017 Surface Water Monitoring The Zavoral Mine CUP and AOP include several conditions related to surface water monitoring, listed below in italics. The Washington Conservation District (WCD) monitored the potential impacts of the mining operation on surface waters on behalf of the City. The following section summarizes the WCD’s findings related to each of the conditions. The complete findings and recommendations for 2016 are presented in the WCD’s annual reports to the City.  The applicant shall obtain the required permits for stormwater management prior to beginning operations at the site. o The applicant obtained the required MPCA and CMSCWD permits prior to beginning operations at the site. Copies of the permits are on file at the City.  The applicant shall implement the Best Management Practices included in the Storm Water Pollution Prevention Plan (SWPPP) and Surface Water Plan. o Mining was completed at the site in 2016. The WCD noted that the site was graded to reclamation grades in 2016, seeded, and mulched, and that a series of heavy precipitation events in late 2016 resulted in gullying within the site that will require repair. The Planner included a proposed condition for the 2017 AOP that the erosion on the site requires repair and inspection by the WCD to determine if it meets the SWPPP and Surface Water Plan requirements.  The City or its consultant shall monitor the potential impacts of mining activities on the water resources of the site, and submit monitoring reports to the CMSCWD, WCD and the Minnesota DNR. (Not required in 2016.) o The WCD monitored the potential impacts of the mining activities on the surface waters at the site during 2015 on behalf of the City, and submitted the required annual report. The City provided the reports to the CMSCWD, WCD (the LBG report), Minnesota DNR and submitted the groundwater report to the Washington County Department of Health. The WCD’s 2016 report concluded that “To date, data results do not indicate any impacts to the stream caused by mining operations.” The WCD submitted a final report including all surface water data and monitoring results collected at the site from June, 12, 2013 through August 2, 2016.  The monitoring station on Zavoral Creek shall be maintained and monitored for the lifetime of the project. (Not included in 2016 AOP.) o The WCD installed stream monitoring equipment on Zavoral Creek in 2013, 2014, and 2015 prior to the start of mining operations to gather baseline data. Monitoring continued through August, 2016, and indicated no impacts to the stream from mining operations. WCD staff removed all monitoring equipment from Zavoral Creek on August 2, 2016 at the completion of mining activity.  The City shall install a monitoring station upstream of or near Crystal Springs, analyze the data, and report at least annually on any impacts. (Not included in 2016 AOP.) o The WCD installed stream monitoring equipment near Crystal Springs. Surface water data were analyzed and included in the WCD’s annual monitoring report to the City. WCD staff removed all monitoring equipment from Crystal Springs on July 21, 2016 at the completion of mining activity. Scandia City Council Tiller Zavoral Mine 2016 AOP Page 16 February 21, 2017  The City shall complete an annual field review of the wetland boundaries of wetlands within the project area and determine any potential impacts. (Not included in 2016 AOP.) o Based on the field review and the Board of Water and Soil Resources (BWSR) concurrence, WCD staff recommended in 2015 that no additional wetland boundary monitoring shall be required for the Zavoral Mine and Reclamation Project.  The City or its consultant shall download the data from the monitoring sites on Zavoral Creek and Crystal Springs at least twice per month while the mine is in operation and after large storm events. The consultant will provide a summary of the data and analysis annually for use in the AOP evaluation. o The WCD gathered baseline and storm event data from the monitoring stations on Zavoral Creek, Crystal Springs and Middle Creek through August 2, 2016. The WCD reported that the data results do not indicate any impacts to the stream caused by the mining operations. The monitoring data included quick, unsustained spikes in turbidity at monitoring stations. The explanation is unknown, but the WCD indicated that it could be due to data logger error, sediment adhering to the sensor, animal activity, or other natural phenomenon, and is not due to mining activity.  The applicant shall provide the wetland boundary delineation data to the City. The City shall monitor any changes to the wetland boundaries. o Tiller provided the boundary delineation data to the City as required.  The City or its subconsultant shall complete twice annual macro-invertebrate monitoring on Zavoral Creek and provide the information to the CMSCWD. o In June 2016, the WCD collected macroinvertebrate samples at the site and provided the results to the Carnelian-Marine St. Croix Watershed District as required. Watershed District Comments The Carnelian-Marine St. Croix Watershed District (CMSCWD) reviewed Tiller’s annual report and monitoring data gathered at the site. District Administrator Jim Shave noted that “The District has no comments on the 2017 AOP Application.” Air Quality Monitoring and Dust Control The Zavoral Mine CUP and AOP include several conditions related to air quality monitoring and dust control, listed below in italics. Indoor Environment Group, Inc. (IEG) monitored the potential impacts of the mining operation on air quality on behalf of the City. IEG’s annual monitoring occurred during October-November of each year of active mining. Because active mining ended in the summer of 2016, IEG did not complete monitoring in 2016. The final air quality monitoring report was submitted in January, 2016.  The applicant shall obtain the required Air Emissions Permit from the MPCA prior to beginning any operations at the site, and provide a copy of the permit to the City. o Tiller obtained the required permit prior to the start of mining operations, and provided a copy of the permit to the City. Scandia City Council Tiller Zavoral Mine 2016 AOP Page 17 February 21, 2017  The applicant shall implement the Dust Control Plan within 60 days of approval of the CUP. o The dust control activities implemented at the site in 2016 complied with the dust control plan.  The applicant shall utilize non-chloride, agriculturally derived organic polymers or naturally-occurring polymers on internal haul roads to control dust. The applicant shall reapply the polymers if they are no longer effective. o A water truck was used to water the unpaved portions of the Site to control dust during mining and hauling operations in 2016. During periods of higher truck activity, dust control on internal unpaved haul roads was completed using a non- chloride dust suppressant in accord with the approved Dust Control Plan.  The City or its consultants shall perform periodic on-site review and monitoring of dust control activities during the months that the mine is in operation to assure compliance with the CUP. o Dust control monitoring ended in 2016 with the completion of active mining activities at the site.  The Dust Control Plan and air monitoring procedures shall be reviewed and updated as necessary on at least an annual basis with the AOP application. o IEG reviewed the Dust Control Plan in 2015 and recommended no changes for 2016.  The City or its consultant shall establish air monitoring stations at a minimum of five locations, and collect samples as prescribed in the AOP. 2016 AOP condition: The City or its consultant shall remove the air monitoring stations at the Zavoral site when mining activities have been completed. o Air monitoring stations were removed after mining activities ended at the site.  The City or its consultant shall analyze and compare the air monitoring results to current State and Federal Ambient Air Quality Standards, and take action as prescribed in the AOP if the results indicate levels that are above the standards. o IEG completed monitoring at the site in 2013-2015 as required and the analysis indicated that emissions at the site for all categories of particulates were below particulate levels and below EPA standards throughout the years of active mining at the site.  The applicant shall water and wash haul roads on the site during active mining operations, in accord with the Dust Control Plan. o Tiller completed the watering of haul roads during active mining and utilized a non-chloride dust suppressant as required in the Dust Control Plan.  The applicant shall wash hauling and loading equipment on a regular basis during active mining operations. o Tiller completed the equipment washing during active mining as required in the Dust Control Plan.  The applicant shall complete sweeping activities as required by the AOP. Scandia City Council Tiller Zavoral Mine 2016 AOP Page 18 February 21, 2017 o IEG observed that Tiller completed regular sweeping as required during its monitoring at the mine from 2013-2015. Noise Monitoring The Zavoral Mine CUP and AOP include several conditions related to noise monitoring, listed below in italics. SBP Associates monitored the noise generated by the mining operation on behalf of the City through January, 2016, while active mining operations occurred at the site.  The project shall comply with the City’s adopted noise standards (the City has adopted the MPCA standards as its standards). The City or its consultant shall complete noise monitoring at the Project site. The monitoring locations, protocols, and methodology shall be specified in the AOP. o SBP chose 5 monitoring locations including sensitive receptors around the mine site perimeter, and mapped the locations in their report. SBP’s report described noise from mining operations as “occasionally just audible” at some sites during testing, and audible throughout the test at other sites. Noise levels were within State standards at each of the monitored locations. In residential areas, for example, the maximum L10 daytime noise limit is 65 decibels (dBA), and the maximum noise level among the five monitoring sites was 55.5.0 dBA. The maximum L50 daytime noise level permitted is 60 dBA, and the maximum level monitored at any of the five sites was 50.5 dBA. Detailed results and explanation of terminology are provided in the SBP report, and are similar to the results of monitoring completed in 2015.  The AOP specifies that monitoring shall include one or two-worst case residential locations for each phase of mining, and conduct at least one hour of monitoring at each location on a quarterly basis during operations in the morning and one hour of monitoring during operations in the afternoon. o SBP’s monitoring locations and duration met the AOP requirements.  Noise monitoring shall include at least one hour of monitoring at a representative location along the St. Croix Scenic Riverway quarterly during mining operations. o SBP’s monitoring included the required monitoring along the St. Croix River.  A noise monitoring event will be conducted within three weeks of the beginning of each mining phase, weather permitting, during a typical haul event. o Monitoring was completed to meet the CUP requirements  The City shall request access to properties as necessary and notify residents. o Access was requested as required.  If the noise levels at the site exceed State standards, the applicant shall stop all work on the site, and the applicant will identify and take corrective actions to bring the noise levels into compliance. o Noise levels at the site did not exceed State standards in 2016. SBP Analysis and Recommendations Based on 2016 Monitoring Data  SBP found that noise levels were within the State Standards at each of the monitoring locations during each of the required monitoring events. Sound from mining operations Scandia City Council Tiller Zavoral Mine 2016 AOP Page 19 February 21, 2017 was intermittently audible at some of the sites, and audible at others, but did not exceed State Standards.  No additional noise monitoring will occur at the site because active mining has ended. Traffic and Monitoring The Zavoral Mine CUP and AOP include several conditions related to traffic and monitoring, listed below in italics. Bolton and Menk monitored traffic generated by the mining operation on behalf of the City through early 2016. No monitoring occurred in 2016 because active mining ended at the site.  The City or its consultant shall complete traffic monitoring of the project. The traffic monitoring protocol and requirements shall be identified in the AOP. (Not required in 2016.) o Bolton and Menk completed the traffic monitoring during active mining operations from 2013 through early 2016 as required.  The applicant shall maintain the traffic generated by the project so that traffic does not exceed the maximum levels analyzed in the EIS for Alternative 3—average 334 to 400 round trips per working day and 600 peak round trips per day. o Tiller reported that hauling occurred on 38 days in 2016, with an average of 432 trips per working day. Tiller reported that the peak number of trips per day was 600 trips. The number is within the maximum levels analyzed in the EIS for Alternative 3.  The AOP requires that the consultant complete a 14-hour video log of the TH 97 and CR 91 (Lofton Avenue) intersection. The consultant shall provide a summary of observations and identify any issues or problems. (Not required in 2016.)  The AOP requires that the consultant complete a 14-hour video log of the TH 95 and TH 97) intersection. The consultant shall provide a summary of observations and identify any issues or problems. (Not required in 2016.)  The applicant shall regularly monitor the entrances and exits to the site, and work with their hauling contractors and truck drivers to improve compliance with traffic laws. (Not required in 2016.)  If the City documents that haul trucks are not complying with traffic regulations at the TH 97 and Lofton Avenue intersection, or entrances and exits from the Scandia Mine, the City may require that trucks cease use of the TH 97 and Lofton intersection, and must use the TH 97 and Manning intersection for haul trips. (Not required in 2016.)  The City shall review the crash records for roadways in the area that will be used for hauling every six months to identify safety issues. (Not required in 2016.)  Traffic generated by the project shall not exceed the maximum levels analyzed in the EIS for Alternative 3 (average 334 to 400 round trips per working day; 600 peak round trips per day.) o Tiller reported that the average number of truck trips hauling per day was 432, and the peak number of trips per day was 600. Traffic generated in 2016 complied with the CUP and AOP conditions. Scandia City Council Tiller Zavoral Mine 2016 AOP Page 20 February 21, 2017 Other Operating Requirements The application materials and City site visit confirmed that the mining project met the other operating requirements in the City’s Mining Ordinance during 2016, including requirements for the following:  Setback  Fencing  Hours of Operation (no extended hours requested during 2016)  Screening  Noise  Site Clearance  Appearance/condition of the site  Sanitary facilities  Waste Disposal  Fuel and Chemical Storage  Contingency response plan  Processing (no processing at this site)  Trucking operations  Signs III. SITE INSPECTION City staff completed site visits to the Zavoral site on November 16, 2016. The site visit reviewed site mining operations in relation to the AOP and CUP conditions. The site visit also reviewed the reclamation activities and included discussion of erosion that occurred in some reclamation areas (discussed below under Reclamation Plan section). The site inspection indicated that Tiller is complying with the conditions of the CUP and AOP. The inspection concurred with the WCD comments that prairie establishment in the Phase 1 Reclamation Area is excellent. The site visit noted that the following reclamation activities have been completed at the site:  Berm removal in the south western portion of the site was completed.  Most of site was graded to final grades and seeded. Some final grading of a small area that contained the electrical box will be needed in the spring of 2017.  Tiller needs to complete some rock check dams or other BMP’s completed along the access road.  The slope areas that were seeded near the access road experienced erosion during heavy rainfall that occurred after the initial seeding. The areas needed to be restored and seeded again in the spring of 2017.  The access road has been graded and will remain for use by the solar garden.  The area proposed for the solar garden has been seeded with a cover crop. The area includes Reclamation Areas 3 and 4 identified on the original reclamation plan for the Scandia City Council Tiller Zavoral Mine 2016 AOP Page 21 February 21, 2017 Zavoral Mine and Reclamation Project. Tiller has assumed that the ANCSG will seed the solar project area to meet the requirements of their CUP, and that the reclamation originally proposed for the Zavoral Mine project will not be completed in these areas.  The areas outside the solar project area were seeded with native prairie seed as required by the Zavoral Mine and Reclamation Project CUP.  Monitoring equipment has been removed. IV. RECLAMATION PLAN AND COORDINATION WITH THE ARGO NAVIS COMMUNITY SOLAR GARDEN (ANCSG) Tiller submitted a detailed Reclamation Plan for the Zavoral Mine site that was approved as part of the CUP, and a revised Reclamation Plan that the City approved in 2014. In 2016, Tiller Corporation requested an amendment to the 2016 AOP. The amended AOP included the following conditions: 1. Requires that Tiller continue to comply with the CUP and 2016 AOP conditions until all mining activities are completed. (Tiller complied with this condition in 2016. 2. Requires that the City and its consultants remove all monitoring equipment after mining activities are completed. (This item is complete.) 3. Tiller shall inform the city when all mining is completed and reclamation grades are established. The City shall review the site to determine compliance with the CUP requirements for ending the project (removal of equipment, final grades, etc.). (The City reviewed the reclamation grades at the site in November, 2016. The review noted that erosion occurred on the areas that were graded and seeded, and that Tiller will repair these areas in 2017. The 2017 AOP includes a condition to address the erosion issues.) 4. Tiller shall submit a final reclamation activity progress report, which shall include reclamation and monitoring for the Phase I area as well as Phases 2-4. 5. Transfer of responsibilities for reclamation in the Phase I area to ANCSG as part of the development agreement for the project. Maintenance and monitoring in this area must continue for five years after completion of the mining project. 6. Release of Tiller Corporation from the reclamation obligations after the City has approved the final reclamation report, final ANCSG plans for its project, and development agreement with ANCSG. Tiller complied with items 1 and 2 during 2016. Item 3 is partially complete, and Tiller indicated it will be completed in 2017. Items 4-6 are not complete, and are included in the proposed conditions for approval of the 2017 AOP. 2016 Reclamation Report The Reclamation Report submitted with the 2017 AOP Application indicated that reclamation activities to date show reclamation success for most of the Phase 1 and 2 areas. The WCD reviewed the reclamation at the site, and also noted that reclamation in the Phase 1 area met the criteria proposed for success in the CUP conditions for the Zavoral Mine and Reclamation Project. Scandia City Council Tiller Zavoral Mine 2016 AOP Page 22 February 21, 2017 However, the 2016 Reclamation Monitoring Report submitted with the application is incomplete. It does not discuss the erosion issues that occurred in the Phase 2 area in late 2016, or the steps that Tiller will take in 2017 to repair these areas. It also does not discuss the Phase 3 and 4 reclamation areas. The application text discusses those issues. The text notes that “The Site has been fully graded to the reclamation grades, with the exception of a small area which contained the electrical supply box. After the Site had been graded, seeded, and mulched, a series of heavy precipitation events in late 2016 resulted in some gullying within the Site that will require repair. It is anticipated that some minor grading near the electrical supply box and additional stabilization measure as necessary will be implemented in the coming year. Maintenance and monitoring of the reclamation areas will continue in accordance with the Reclamation Plan. The text also notes that during 2016 “Reclamation was conducted in accordance with the Reclamation Plan with the exception of an area located within the footprint of a proposed solar garden, which was seeded with a temporary cover crop. This alteration from the Reclamation Plan was approved by the City in July 2016 in order to accommodate the proposed solar garden, which is anticipated as the subsequent use of the site.” Tiller has had discussions with representatives of the ANCSG and site owner in 2016 in order to develop the Final Reclamation Plan for the site, which will address the transition from the mine use to the Community Solar Garden use. The discussions have not yet produced a Final Reclamation Plan. The recommended conditions for the 2017 AOP include the following:  Tiller shall complete site repair, reseeding, and stabilization measures as needed to address the erosion that occurred in the Phase 2 reclamation areas in 2016. The WCD and City shall inspect the repairs and determine if they meet the requirements of the Reclamation Plan, SWPPP and Surface Water Plan for the site.  Tiller shall submit a final reclamation activity progress report, which shall include reclamation and monitoring for Phases 1-4.  Tiller shall work with ANCSG and the site owner to transfer the responsibilities for reclamation and maintenance in the Phase I-4 areas to ANCSG as part of the development agreement for the Community Solar Garden project. Maintenance and monitoring in the entire Zavoral Phase 1-4 areas must continue for five years after completion of the mining project.  The City shall release Tiller Corporation from the reclamation obligations for the Zavoral Mine and Reclamation Project after the City has approved the repairs completed to the Phase 2 area, final reclamation report, final ANCSG plans for its project, and Development Agreement with ANCSG. ACTION REQUESTED: The City Council can: 1. Approve the AOP; 2. Approve the AOP with conditions; Scandia City Council Tiller Zavoral Mine 2016 AOP Page 23 February 21, 2017 3. Deny the application if it is found that the request is not consistent with the Comprehensive Plan, CUP, AOP Criteria, and Mining Ordinance, and is not in the best interest of the community; 4. Table the request if the Council needs additional information to make its decision. PLANNING STAFF RECOMMENDATIONS: The Planner recommends approval of the Tiller Corporation 2017 AOP for the Zavoral Mine and Reclamation Project, with the following conditions: 1. All site operation and reclamation activities shall, in addition to the requirements of the Conditional Use Permit and this Annual Operating Permit, comply with and be governed by the Conditional Use Permit Compliance and Reclamation Agreement between the City, the Applicant and the Owner approved by the City on February 19, 2013, and the updated Reclamation Plan approved in 2014. 2. Site operations in 2017 shall be consistent with the application and plans submitted to the City in November 2012, and as required by the Conditional Use Permit and these conditions. 3. The applicant’s requests for operating hours or haul routes outside those specified in the Conditional Use Permit shall be accompanied by a proposed truck haul route for approval by staff. 4. The applicant shall inform all of its contractors about the following requirements related to trucking operations, and monitor compliance with the requirements by all of its contractors: a. Engine braking is prohibited in Scandia per City Ordinance. b. Lofton Avenue is restricted to daylight hours only as defined in the CUP for the Zavoral Mine and Reclamation Project. c. Haul loads are required to be covered. 5. The City or its consultants shall complete monitoring of reclamation activities on the site on behalf of the City. The applicant shall cooperate with the City as requested to complete the monitoring activities. The City shall inspect the reclamation activities on an as-needed basis. 6. The applicant shall complete site repair, reseeding, and stabilization measures as needed to address the erosion that occurred in the Phase 2 reclamation areas in 2016. The WCD and City shall inspect the repairs and determine if they meet the requirements of the Reclamation Plan, SWPPP, and Surface Water Plan for the site. 7. The applicant shall submit a final reclamation activity progress report, which shall include reclamation and monitoring for Phases 1-4. 8. The applicant shall work with ANCSG and the site owner to transfer the responsibilities for reclamation and maintenance in the Phase 1-4 areas to ANCSG as part of the Development Agreement for the community Solar Garden project. Maintenance and monitoring in the entire Zavoral Mine and Reclamation Project Phase 1-4 areas must continue for five years after the completion of the mining project. Scandia City Council Tiller Zavoral Mine 2016 AOP Page 24 February 21, 2017 9. The City shall release Tiller Corporation from the reclamation obligations for the Zavoral Mine and Reclamation Project after the city has approved the repairs completed to the Phase 2 area, final reclamation report, final ANCSG plans for its project, and the Development Agreement with ANCSG. 10. The applicant shall provide advanced notice to, and shall obtain written approval from the City prior to deviating from any performance requirement contained within the CUP or AOP. Failure to obtain written approval for a deviation from the performance requirements of the CUP or AOP shall be a violation of this AOP. 11. The applicant shall maintain the letter of credit for the Phase 2 reclamation work at the City. 12. This Annual Operating Permit shall expire on March 31, 2018. 13. The applicant shall pay all fees and escrows associated with this application. ACTION REQUESTED: Staff request that the Council review this report and approve the 2017 AOP for the Zavoral Mine and Reclamation Project at the meeting on February 21.