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PERMIT #: M-1977-342 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: April 29, 2015 <br />OBSERVATIONS <br />The Henderson Mine was inspected by Peter Hays with the Division of Reclamation, Mining and Safety <br />(Division) as part of the Division's monitoring inspection program. Mr. Miguel Hamarat, Mr. Tim Haynes and <br />Mrs. Amber Moran with Climax Molybdenum - Henderson Operations (Henderson) were present during the <br />inspection. <br />The inspection began with a meeting to discuss the ongoing permitting items at the site. The following topics <br />were discussed: Nokes Building Caustic Spill from February 11 and 12, 2015, Fire Water Line Incident from <br />April 16, 2015, memo from the Division dated April 14, 2015 in response to the 5 -Quarter Water Quality Data <br />and Baseline Parameters Report dated May 29, 2014, status of the self bonding process for the financial <br />warranty and status of the outstanding as -built drawings and engineering certification for TR -22, TR -23 and <br />TR -24. <br />Nokes Building Spills <br />The Nokes Building was observed from the outside during the inspection. The building was not operational <br />due to a building ventilation improvement project and repairs to the secondary containment. The secondary <br />containment, the concrete floor and stem wall, will be covered with a urethane liner to seal the foundation. <br />The Nokes building repairs are expected to be completed in July 2015. A premixed solution is being used while <br />the building is repaired. The two spill areas were observed and the path of the spills was followed to the <br />storm drain located approximately 100 feet north of the Nokes building. <br />Fire Water Line Incident <br />The Fire Water Line leak was observed during the inspection. The source of the leak has not been determined. <br />Henderson is waiting to receive a replacement hydrant before excavating the area to determine the cause of <br />the leak. The hydrant is shut down until the repairs are completed. The path of the leak was followed to the <br />storm drain located northwest of the hydrant. <br />As -built drawings and engineering certification <br />The as -built drawings and engineering certification for TR -22, TR -23 and TR -24 are completed and being <br />reviewed by Henderson staff. Henderson expects to send the drawings and certification for the TDL rehab and <br />Phase 1 of the Ute Park extraction well in the next few weeks. <br />Financial Warranty <br />Freeport-McMoRan Company has decided not continue to peruse the self bonding option for the financial <br />warranty at the Henderson site. Henderson staff and the Division will arrange a meeting to discuss the <br />financial warranty in the near future. <br />Division memo dated April 14, 2015 in response to the 5 -Quarter Water Quality Data and Baseline Parameters <br />Report dated May 29, 2014 <br />Several issues were discussed regarding the memo from the Division regarding Water Data and Baseline <br />Parameters for the Henderson site. <br />• The Division memo approved the proposed NPL for pH at the Mine Site at MNGW-1 at 5.9-8.5. The <br />Baseline Parameters Report dated May 28, 2014 did not request the change in pH values from the <br />values set in TR -16 — Groundwater Management Plan. Henderson is still evaluating the pH levels at the <br />Mine and may request a change in the pH values in the future. <br />Page 2 of 4 <br />