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ChmaxMolybdenum <br />A Freeport- McMoRan Company <br />Sent by Certified Mail <br />March 3, 2014 <br />Eric Scott <br />Environmental Protection Specialist <br />Division of Reclamation, Mining and Safety <br />Department of Natural Resources <br />1313 Sherman St. Room 215 <br />Denver, Colorado 80203 <br />Climax Mine <br />Hwy 91 — Fremont Pass <br />Climax, CO 80429 <br />Phone (719) 486 -2150 <br />Fax (719) 486 -2251 <br />Re: 2013 Annual Report, Climax Molybdenum Company - Climax Mine, Permit No. M- <br />1977 -493 <br />Dear Mr. Scott: <br />Enclosed please find the 2013 Annual Reclamation Report for Climax Molybdenum Company — <br />Climax Mine (Climax) and a check to the Division of Reclamation, Mining, and Safety (DRMS) <br />for the annual fee of $1,150.00. The enclosed Annual Report and attachments follow the format <br />of the questionnaire we received in the Annual Fee Invoice and Report Request letter dated <br />February 3, 2014. The report describes 2013 reclamation and disturbance activities, estimated <br />reclamation and disturbance activities planned for 2014, and provides information on water <br />quality monitoring and weed control. <br />Climax has collected sufficient data at the Point of Compliance (POC) wells, with the exception <br />of well ARK- MW -001D, to propose Numeric Protection Levels (NPLs) for the Indicator <br />Parameter list specified in the Water Quality Monitoring Plan (WQMP). Two POC wells <br />(ARwell and GWM -2) had previously established NPLs, while the other POC wells have been <br />compared to the Colorado Water Quality Control Commission Basic Standards for Groundwater <br />(CBSG) until enough data were collected to calculate NPLs according to the methods in the <br />WQMP. With the exception of dissolved manganese at wells EVMW -3S, EVMW -3D and TM- <br />MW-002D, and dissolved manganese and dissolved iron at well EV -MW -004, the proposed <br />NPLs reflect the CBSG. Due to seasonal variability in groundwater concentrations from these <br />wells for dissolved manganese and dissolved iron, further monitoring is needed to characterize <br />conditions and establish NPLs. As we discussed previously with you, Climax has begun <br />monthly monitoring at EVMW -3S, EVMW -3D, TM- MW -002D, and EV -MW -004 and the <br />results will be reviewed at the end of 2014 to established appropriate NPLs for manganese and <br />iron. <br />Climax also has reevaluated the way that disturbed and reclaimed acreage were previously <br />surveyed and mapped by its consultants and has made several corrections to the 2013 Annual <br />Report due to overlapping survey results. In addition, Climax has reevaluated the way land is <br />classified for purposes of annual reporting to DRMS. Beginning in this 2013 Annual Report, <br />land classified per the DRMS questionnaire under item 12 will equate to areas where reclamation <br />is in progress and where reclamation performance bond has not been released. This includes all <br />