DERR-2024-011315

October 2, 2024
Mr. Randy K. Hunt
Manager
South Valley Industrial Property, LLC
783 Deer Hollow Rd.
Tooele, Utah 84074
Scott L. Soelberg, P.C.
Registered Agent
South Valley Industrial Property, LLC
837 East 1200 South
Orem, Utah 84097
Re: Bauer Tailings Site, Tooele County, Utah
Dear Mr. Hunt:
Thank you for meeting with the U.S. Environmental Protection Agency and the Utah Department of
Environmental Quality (UDEQ) on May 2, 2024, to discuss the property (Tooele County Parcel Numbers
06-017-A-0032; 06-017-C-0029; and 06-017-D-0027) (Property) that South Valley Industrial Property,
LLC (SVIP) recently acquired. At the meeting, you described SVIP’s plans for the Property. As we
discussed, the Property is located within the Bauer Tailings Superfund Site (Site). The purpose of this
letter is to provide you with information that may be relevant to potential Comprehensive
Environmental Response, Compensation, and Liability Act (CERCLA, commonly known as Superfund)
liability at the Property and summarize the relevant information available to EPA about the Site as of
the date of this letter. We hope this information will enable you to make informed decisions as you
move forward with plans regarding the Property.
Property Status
Interested parties can find information on sites that are, or potentially are, contaminated and may
warrant action under Superfund, including site-specific documents and fact sheets, in the Superfund
Enterprise Management System (SEMS).1 The Property is situated within the Site, and information
about the Site can be found in SEMS. Information is also available on the EPA Response Website at
1 SEMS is available at: https://cumulis.epa.gov/supercpad/cursites/srchsites.cfm.

2

https://response.epa.gov/site/site_profile.aspx?site_id=15313. The Site is not on the National
Priorities List. For the reasons stated below, the EPA addressed the Site under Superfund removal
authority.

History of the Site

The Site is located between the communities of Tooele and Stockton, in Tooele County, Utah. The Site
was the location of a historic facility that milled and processed lead and silver ores. The operation left
behind tailings and waste covering approximately 160 acres, and fine deposits with no vegetative cover
migrated across the landscape to create dunes of contamination. Investigations found that the
deposits were in excess of 15 feet deep and commonly exceeded 10,000 mg/kg for lead and 8,000
mg/kg for arsenic. Levels as high as 30,000 mg/kg of lead and 8,000 mg/kg of arsenic were reported.
Access to the Site was previously unrestricted and frequented by trespassers. The EPA concluded that
conditions at the Site presented a threat to public health or welfare or the environment and met the
criteria for initiating a removal action under the National Contingency Plan, 40 C.F.R. 300.415(b). The
EPA conducted a time-critical removal action at the Site beginning in November 2021 to regrade and
cap the contaminated waste. Over the course of the response action, the EPA constructed a cap with
an average depth of 10 feet, using over 376,475 cubic yards of cover material hauled in by 8,504
truckloads from a nearby quarry. Extensive areas of surface contamination remain in previously
vegetated areas at the milling facility as well as downwind of the milling facility. Security fencing and
gates were installed to limit access to the Site, and warning signs were placed along the perimeter of
the Site.

Reuse of the Property

Based on the information provided, the EPA understands that SVIP’s plans for the Property may include
industrial or other non-residential development. Please note that, to ensure the remedy remains
protective of human health and the environment, any development must be compatible with the EPA
cleanup actions and institutional controls designed to protect the remedy and prevent unacceptable
exposure to residual contamination. As your plans develop further, please continue to discuss the
plans with the EPA and UDEQ to ensure any project is compatible with potential EPA cleanup actions
and property restrictions.

The following steps should be taken related to management of the hazardous substance contamination
found at the Site:

(1) Sign and notarize the attached Environmental Covenant. Within 14 days after the date of the
final signature required on the Environmental Covenant, record the Environmental Covenant
with the Tooele County Recorder/Surveyor.
(2) Comply with the Environmental Covenant, including the activity and use limitations.
(3) Fill any exploratory holes that have been excavated on the Site. Cap and reseed all disturbed
areas with at least 12 inches of clean fill material and an appropriate seed mix.
(4) Comply with all Federal, State, and local regulatory requirements.

3

State Actions

We can only provide you with information about federal Superfund actions at the Site, federal law and
regulations, and EPA guidance. For information about potential State actions and liability issues, please
contact UDEQ’s Division of Environmental Response and Remediation.

Conclusion

The EPA remains dedicated to facilitating the cleanup and beneficial reuse of contaminated properties
and hopes the information contained in this letter is useful to you. You may find it helpful to consult
with your own environmental professional, legal counsel, and your state, tribal, or local environmental
protection agency before taking any action to clean up or redevelop the Property. These consultations
may help you obtain a greater level of comfort about the compatibility of the proposed use and ensure
compliance with any applicable federal, state, local, and/or tribal laws or requirements. If you have
questions or wish to discuss this letter, please feel free to contact me at [phone]. Legal
questions can be directed to Paige Wright, EPA Site Attorney, at [phone] or
[e-mail].

Sincerely,

Martin McComb
On-Scene Coordinator
U.S. Environmental Protection Agency, Region 8

Attachments
1. Environmental Covenant

cc: Paige Wright, EPA Region 8 Site Attorney
Tom Daniels, Utah Department of Environmental Quality
Kimberlee McEwan, Utah Assistant Attorney General
MARTIN
MCCOMB
Digitally signed by
MARTIN MCCOMB
Date: 2024.10.03
13:36:48 -06'00'
After recording, return to:

Mr. Randall Hunt
South Valley Industrial Property, LLC
783 Deer Hollow Rd.
Tooele, Utah 84074

With copy to:

Site Assessment and Emergency Response Section Manager, Bauer Tailings Site
Division of Environmental Response and Remediation
Utah Department of Environmental Quality
P.O. Box 144840
Salt Lake City, UT 84114-4840
Re: Bauer Tailings Site, Tooele County, UT
And:

Martin McComb
On-Scene Coordinator, Bauer Tailings Site
SEMD-Site Assessment and Removal Section
U.S. Environmental Protection Agency, Region 8
1595 Wynkoop Street
Denver, CO 80202-1129
Re: Bauer Tailings Site, Tooele County, UT
[e-mail]

ENVIRONMENTAL COVENANT

Pursuant to the Utah Uniform Environmental Covenants Act (Utah Code § 57-25-101 et seq.),
South Valley Industrial Property, LLC, as grantor (“Grantor”), makes and imposes this Environmental
Covenant upon the real property located in Tooele County, Utah (“Property”) more particularly
described on Attachment A (“Property Description”) which is affixed hereto and by this reference made
a part hereof hereby, subject to the terms and conditions stated herein.

1. Notice. Notice is hereby given that the Property is or may be contaminated with a contaminant
as defined in Utah Code § 19-8-102(5) and explained in more detail herein. This Environmental
Covenant is imposed to mitigate the risk to the public health, safety and/or the environment.

2. Environmental Response Project. Elevated levels of arsenic, lead and other metals have been
found in the soil and mill waste in the Bauer Tailings Site. On August 26, 2021, the U.S.
Environmental Protection Agency (“EPA”) issued an Action Memorandum to conduct a removal
action (“Removal Action”) pursuant to the Comprehensive Environmental Response,
Compensation, and Liability Act, 42 U.S.C. § 9601 et seq (“CERCLA”), to address the
contamination by removing tailings impoundments and capping unvegetated areas of tailings and
waste. Residual lead, arsenic and other contaminants were left in place and capped with at least 10
inches of cover material.

3. Grantor. Grantor is the Owner of the Property as defined in Paragraph 4.
4. Owner. South Valley Industrial Property, LLC is the current Owner of the Property. An
“Owner” of the Property means a person who controls, occupies, or holds an interest (other than this
Environmental Covenant) in the Property at any given time. Because this Environmental Covenant runs
with the Property, the obligations of the Owner are transferred to assigns, successors-in-interest,
including without limitation to future Owners of an interest in fee simple, mortgagees, lenders,
easement holders, lessees, and any other person or entity who acquires any interest whatsoever in the
Property, or any portion thereof, whether or not any reference to this Environmental Covenant or its
provisions are contained in the deed or other conveyance instrument, or other agreements by which
such person or entity acquires its interest in the Property or any portion thereof (“Transferees”). Upon
transfer of an Owner's interest in the Property, the Transferee has all obligations hereunder as an Owner
and the transferor (the prior Owner) has no further rights or obligations hereunder as an Owner.
Notwithstanding the foregoing, nothing herein relieves an Owner during the time Owner holds an
interest in the Property of Owner’s responsibilities to comply with the terms hereof and all other
provisions of applicable law or of responsibility for Owner’s failure to comply during the time Owner
held an interest in the Property.

5. Holder. South Valley Industrial Property, LLC is also the Holder of this Environmental
Covenant as defined in Utah Code Sections 57-25-102(6), 103(1), 103(3)(b). Any Holder may
enforce this Environmental Covenant. A Holder's obligations hereunder are limited to the specific
provisions and the limited purposes described herein. A Holder may be removed and replaced
through an amendment to this Environmental Covenant as described in paragraph 11. Subject to
the provisions hereof, a Holder's rights and obligations survive the transfer of the Property.

6. Agency. The EPA and the Utah Department of Environmental Quality (“UDEQ”) are each an
Agency for the purposes of this Environmental Covenant as that term is defined in the Utah Uniform
Environmental Covenants Act. The Agencies may enforce this Environmental Covenant. Neither the
EPA nor the UDEQ assume any affirmative obligation through the execution of this Environmental
Covenant.

7. Administrative Record. The Administrative Record supporting EPA’s response action is
available at https://response.epa.gov/site/doc_list.aspx?site_id=15313.

8. Activity and Use Limitations. As part of the environmental response project described above,
the following activity and use limitations are imposed on the Property:

a. Construction Limitations:
i. Restriction on Cap Disturbance. No new construction or disturbance of any
kind that disrupts or may have the potential to disrupt the capped mill waste
is allowed except as authorized specifically and expressly in writing by
UDEQ with written concurrence by EPA.

ii. Restriction on Disturbance of Uncapped Materials. No new construction or
disturbance of uncapped areas is allowed except as authorized specifically
and expressly in writing by UDEQ with written concurrence by EPA.

iii. Restriction on fences, gates, and other barriers. No actions that would
negatively impact any fences, gates and/or other barriers installed during the
Removal Action are allowed, except as authorized specifically and
expressly in writing by UDEQ with written concurrence by EPA.
b. Use Limitations:

i. Use of the Property. Use of the Property shall not in any way interfere
with the capped tailings, mine waste and fences, gates and other barriers
erected by EPA during the Removal Action. If any use of the Property is
expected to interfere with the Removal Action in any way, Owner must
obtain express written authorization from UDEQ with written
concurrence by EPA prior to such use. In order to obtain authorization,
Owner must submit to the Agencies a Sampling and Analysis Plan, a Site
Management Plan, and any other documents required by the Agencies.

ii. Groundwater. The Property is known to have deposits of mill tailings,
primarily in the capped tailings impoundments, though significant surface
contamination has been identified in other areas of the Property. The total
depth of mill tailings has not been fully characterized. Mine tailings are
known to contain concentrations of arsenic, and lead in concentrations that
prohibit unlimited use/unlimited exposure. Due to the fine nature of mill
tailings, the depth of contamination, low pH associated with the milling
process, and leachability of mill contaminants, as of the date of this
Environmental Covenant, the underlying shallow and deep groundwater
aquifers may have been influenced by mill related wastes. In the event that
Owner elects to access the underlying aquifers for the extraction of
groundwater, prior to the implementation and use of the groundwater, the
Owner shall assess and present to the UDEQ representative data that
documents compliance with an applicable action level for the intended use
of the groundwater. This effort will be performed with oversight by the
UDEQ.

c. Owner Obligations: Owner shall maintain and repair any fencing, gates and
other barriers erected by EPA during the Removal Action.
9. Access. EPA, UDEQ and their designees shall have an irrevocable, permanent and
continuing right of access at all reasonable times to the Property for purposes of:

a. Verifying any data or information submitted to EPA and UDEQ;
b. Verifying that no action is being taken on the Property in violation of the terms of
this Environmental Covenant; CERCLA and the National Oil and Hazardous
Substances Pollution Contingency Plan, 40 CFR Part 300; or the Utah Hazardous
Substances Mitigation Act, U.C.A. § 19-6-301 et seq.;
c. Monitoring response actions on the Property and conducting investigations relating
to contamination on or near the Property, including, without limitation, sampling of
air, water, sediments, soils, and specifically, without limitation, obtaining split or
duplicate samples;
d. Conducting periodic reviews of the Removal Action, including but not limited to,
any review required by applicable statutes and/or regulations;
e. Implementing additional or new response actions pursuant to CERCLA section 104 if
EPA or UDEQ, in their sole discretion, determine that such actions are necessary to
protect human health or the environment; and
f. Implementing or enforcing this Environmental Covenant.

10. Environmental Covenant Running with the Property. As provided for in the Utah Uniform
Environmental Covenants Act, Utah Code § 57-25-109, this Environmental Covenant shall be
maintained in perpetuity and shall run with the land and be binding on Transferees and all successors
in interest of the Owner during each of their period of control, occupation, or ownership interest,
unless or until it is modified or terminated as provided for Utah Code § 57-25-110, or as otherwise
provided for in this Environmental Covenant.

11. Modification or Termination. This Environmental Covenant can be modified or terminated
as provided for in the Utah Code § 57-25-110. South Valley Industrial Property, LLC waives the
right to consent to amendment and termination and also consents to the recording of any instrument
related thereto if South Valley Industrial Property, LLC is not the current Owner at the time of the
amendment or termination.

12. Compliance Enforcement. This Environmental Covenant may be enforced pursuant to the
Utah Act. Failure to timely enforce compliance with this Environmental Covenant or the activity
and use limitations contained herein does not bar subsequent enforcement and is not a waiver of a
right to take subsequent action to enforce compliance. Nothing in this Environmental Covenant
restricts the Agencies from exercising any authority under applicable law.

13. Notice. Any document or communication required by this Environmental Covenant shall
be submitted to the parties at the addresses provided below unless a party provides written notice
of its new address to the other parties.

To EPA at:

On-Scene Coordinator, Bauer Tailings Site
SEMD-Site Assessment and Removal Section
U.S. Environmental Protection Agency, Region 8
1595 Wynkoop Street
Denver, CO 80202-1129
Re: Bauer Tailings Site, Tooele County, UT
To UDEQ at:
Site Assessment and Emergency Response Section Manager, Bauer Tailings Site
Division of Environmental Response and Remediation
Utah Department of Environmental Quality
P.O. Box 144840
Salt Lake City, UT 84114-4840
Re: Bauer Tailings Site, Tooele County, UT
And to South Valley Industrial Property, LLC at:
South Valley Industrial Property, LLC
783 Deer Hollow Rd.
Tooele, Utah 84074

14. Notice Upon Conveyance. Owner shall notify the Agencies and each Holder within twenty
(20) days after each conveyance of ownership of all or any portion of the Property. Owner's notice to
the Agencies and each Holder shall include the name, address and telephone number of the
Transferee, a copy of the deed or other documentation evidencing the conveyance, and an unsurveyed
plat that shows the boundaries of the Property being transferred. Instruments that convey any interest
in the Property (fee, leasehold, easement, encumbrance, etc.) shall include a notification to the person
or entity who acquires the interest that the Property is subject to this Environmental Covenant and
shall identify the date, entry no., book and page number at which this document is recorded in the
records of the Tooele County Recorder in the State of Utah. Failure to provide the notification shall
have no effect upon the enforceability and duty to comply with this Environmental Covenant.

15. Representations and Warranties. Grantor hereby represents and warrants to the
other signatories hereto:

a. that it is the sole fee simple owner of the Property;

b. that it has the power and authority to enter into this Environmental Covenant, to
grant the rights and interests herein provided and to carry out all obligations
hereunder;

c. that it has identified all other persons that own an interest in or hold an
encumbrance on the Property, has notified such persons of its intention to enter
into this Environmental Covenant, and has notified the Agencies of the names and
contact information of any persons holding such encumbrances; and

d. that this Environmental Covenant will not materially violate or contravene or
constitute a material default under any other agreement, document, or instrument to
which it is a party or by which it may be bound or affected.

16. Governmental Immunity. In executing this Environmental Covenant, neither the UDEQ nor
EPA waives governmental immunity afforded by law. The Grantor, Owner, and each Holder, for
themselves and their successors, assigns, and Transferees, hereby fully and irrevocably release and
covenants not to sue the State of Utah, EPA, their agencies, successors, departments, agents, and
employees from any and all claims, damages, or causes of action arising from, or on account of the
activities carried out pursuant to this Environmental Covenant except for an action to amend or
terminate the Environmental Covenant pursuant to Utah Code §§ 57-25-109 and 57-25-110 or for a
claim against the State arising directly or indirectly from or out of actions of employees of the State
of Utah that would result in (i) liability to the State of Utah under Section 63G-7-301 of the
Governmental Immunity Act of Utah, Utah Code Ann. Section 63G-7-101 et seq. or (ii) individual
liability for actions not covered by the Governmental Immunity Act as indicated in Utah Code Ann.
Sections 63G-7-202 and -902 as determined in a court of law.

17. Effective Date, Severability and Governing Law. The effective date of this
Environmental Covenant is the date upon which the fully executed Environmental Covenant is
recorded as a document of record for the Property with the Tooele County Recorder. If any
provision of this Environmental Covenant is found to be unenforceable in any respect, the
validity, legality, and enforceability of the remaining provisions will not in any way be affected
or impaired. This Environmental Covenant is governed by and interpreted in accordance with the
laws of the State of Utah.

18. Recordation and Distribution of Environmental Covenant. Within fourteen (14) days
after the date of the final required signature upon this Environmental Covenant, Grantor
shall file this Environmental Covenant for recording in the same manner as a deed to the
Property with the Tooele County Recorder’s Office. Grantor shall distribute to the Agencies
a file-and- date-stamped copy of the recorded Environmental Covenant.

19. Payment of UDEQ’s Costs. Any Owner shall reimburse UDEQ for technical reviews,
inspections and other actions performed by UDEQ pursuant to the enforcement of this
Environmental Covenant or performed at the request of the Owner. Costs may be invoiced based on
actual costs incurred by the Agency or on the fee schedule approved by the legislature, or both, as
applicable.

20. Reservation of Rights. Nothing in this Environmental Covenant shall restrict EPA or UDEQ
from exercising any authority under applicable law.

21. Compliance Reporting. Upon request, Owner shall submit written documentation to UDEQ
and EPA to demonstrate compliance with the Activity and Use Restrictions in Paragraph 8. Owner
shall inform EPA and UDEQ in writing of any change in Owner’s contact information.

The undersigned representative of South Valley Industrial Property, LLC, Grantor, Owner and Holder
herein, represents and that it is authorized to execute this Environmental Covenant.
IT IS SO AGREED:
South Valley Industrial Property, LLC,
As Grantor, Owner and Holder:

By: Date:

Name:
Title:

STATE OF UTAH )
): ss.
COUNTY OF ___________ ______ )

On this day of , 202__, appeared before me,
of South Valley Industrial Property, LLC, the Grantor, Owner and Holder herein, who, his/her
identity and position having been satisfactorily established to me, affirmed to me upon oath that
South Valley Industrial Property, LLC, authorized him/her to execute the foregoing
Environmental Covenant, and did duly acknowledge before me having executed the same for the
purposes stated herein.

NOTARY PUBLIC
The Utah Department of Environmental Quality authorized representative identified below hereby
approves the foregoing Environmental Covenant pursuant to Utah Code Sections 57-25-102(2) and 57-
25-104(1)(e).
Utah Department of Environmental Quality

By:
Name: Brent H. Everett, Director Date
Division of Environmental
Response and Remediation

STATE OF UTAH )
): ss.
COUNTY OF SALT LAKE )
Before me, a notary public, in and for said county and state, personally appeared Brent H. Everett, an
authorized representative of the Utah Department of Environmental Quality, who acknowledged to me
that she did execute the foregoing instrument this day of , 2024.

NOTARY PUBLIC

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

By:
Name: Aaron Urdiales, Director Date
Superfund and Emergency Management Division
U.S. EPA Region 8

STATE OF COLORADO )
): ss.
COUNTY OF DENVER )

On this day of , 202_ appeared before me ,
an authorized representative of the United States Environmental Protection Agency,
personally known to me, or whose identity has been satisfactorily established to me, who
acknowledged before me that she or he executed the foregoing Environmental Covenant.

NOTARY PUBLIC
ATTACHMENT A

Tooele County Parcel Number:
06-017-A-0032
Tooele County Legal Description:
BEG AT THE SE COR OF SEC 11, T4S, R5W, SLB&M, AND RUN ALG THE S LI OF SD
SEC S 89°17'17" W 655.39 FT TO THE E LI OF PPTY CONVEYED TO ARCHIE POARCH
IN BK 401 PG 379 OF OFFICIAL RECORDS; TH ALG SD PPTY THE FOLLOWING
THREE COURSES; 1) N 1469.88 FT, 2) W 1700 FT, 3) S 1491.01 FT M/L TO THE S LI OF
SD SEC; TH S 89°17'17" W 2106.30 FT M/L TO THE E LI OF AGREEMENT RECORDED
AS ENTRY #305976 IN BK 130 PG 402-405 OF OFFICIAL RECORDS; TH ALG SD E LI N
09° W 2310.70 FT TO THE S LI OF PPTY CONVEYED TO RANCH 77 LC IN BK 414 PG
589 OF OFFICIAL RECORDS; TH ALG SD S LI N 89°42'56" E 4842.09 FT TO THE E LI OF
SD SEC; TH S 00°29'08" W 2250.94 FT TO THE SE COR OF SD SEC AND POB. (NEW
PARCEL # FOR 2008 YR) 184.38 AC---LESS 119.562 AC CONVEYEDTO RULON
HARPER WD ENTRY #352784. BALANCE OF 6-17-A-29 AFTER 6-17-A-31 FOR 2012
YEAR. 64.818 AC
Tooele County Parcel Number:
06-017-C-0029
Tooele County Legal Description:
PART OF SE 1/4 OF SEC 11, & PART OF E 1/2 OF SEC 14 & PART OF W 1/2 OF SEC 13,
ALL IN T4S, R5W, SLB&M. THE SAME BEING DEEDED & FURTHER DESC IN WD BK
234 PG 427-429. ALSO MILL TAILINGS. LESS 22.68 ACRES TO TOOELE COUNTY 6-17-
16 485/319 FOR 98 YR (NEW PARCEL # FOR 2008 YR) 349.32 AC ------------ LESS 1.65 AC
TO BAUER RD AS PER DEDICATION PLAT ENTRY# 357038. OUT OF 6-17-C-11 FOR
2012 YEAR. 347.67 AC
Tooele County Parcel Number:
06-017-D-0027
Tooele County Legal Description:
BEG AT THE NE COR OF SEC 14, T4S, R5W, SLB&M, AND RUN THE S 00°14'16" E ALG
THE E LI OF SEC 838.27 FT TO A PT ON THE N LI OF PPTY CONVEYED TO ARCHIE
POARCH IN BK 401 PG 379 OF OFFICIAL RECORDS, TH ALG SD PPTY THE
FOLLOWING TWO COURSES; 1) W 658.82 FT, 2) N 830.12 FT TO THE N LI OF SEC 14,
TH N 89°17'17" E 655.39 FT TO POB. (NEW PARCEL # FOR 2008 YR) 12.58 AC