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PERMIT#: M-1977-342 <br /> INSPECTOR'S INITIALS: MAC <br /> INSPECTION DATE: July 1,2016 <br /> OBSERVATIONS <br /> The Henderson Mine was inspected by Michael Cunningham of the Division of Reclamation, Mining and Safety <br /> (Division) as part of the Division's monitoring program. Mr. Miguel Hamarat, Mr. Tim Haynes and Mr. Alex <br /> Ungers with Climax Molybdenum - Henderson Operations (Henderson) were present during the inspection. <br /> Weather conditions on the day of the inspection included intermittent rain, it was not raining at the time of <br /> the inspection. <br /> The inspection commenced with a meeting during which the following topics were discussed: the surface and <br /> storm water control features at the Henderson Mine, the pending inspection of the surface and storm water <br /> control features at the Henderson Mill, the internal inspections of surface and storm water controls which are <br /> conducted by Henderson on a biannual basis, and the financial warranty increase. <br /> Henderson Surety Increase (SI-03) <br /> On June 6, 2016 the Division mailed the Notice of Financial Warranty Increase (SI-03)to Henderson. The <br /> increased financial warranty is due on or before August 5, 2016. The Division and Henderson had previously <br /> discussed using water rights and land for a portion of the required financial warranty. Henderson staff <br /> inquired if the Division had determined the specific criteria necessary for performing the valuation of water <br /> rights and land. The Division informed Henderson that a subsequent meeting would need to be scheduled to <br /> discuss the valuation process. The financial warranty due on August 5, 2016 will not include water rights or <br /> land as a component of the increase. <br /> Surface and Storm Water Control <br /> The Henderson staff completed the biannual inspection of the surface and storm water facilities at the <br /> Henderson Mine in June 2016. The Henderson staff inspections consist of a review of all disturbed areas, areas <br /> used for material storage or handling that are exposed to precipitation and other areas with potential sources <br /> of pollution. In addition, Henderson staff inspects all water diversion structures, outfalls, sediment and erosion <br /> control structures and other Best Management Practices (BMPs) identified in the Storm Water Management <br /> Plan. <br /> The Henderson Mine facilities are constructed primarily on waste rock from the development of the mine and <br /> include approximately 121 acres of disturbance. The disturbance at the Henderson Mine is fairly static and all <br /> potential sources of pollution have been well documented. The surface water features at the mine include <br /> Butler Gulch which flows through the affected area, the West Fork of Clear Creek which fo►lows the northern <br /> permit boundary, and No Name Gulch which is diverted around the south and east sides of the affected area. <br /> The Henderson Mine includes a diversion ditch south of the mine office which diverts water around industrial <br /> activities and the primary parking area to the east end of the affected area. Water which flows onto the <br /> affected area from the south is captured by a diversion ditch which either routes water to the west and into <br /> Butler Gulch or to the east and into the West Fork of Clear Creek. The Diversion ditches were flowing at the <br /> time of the inspection. The BMPs used to prevent erosion within the ditches include minimizing impacts to <br /> existing vegetation as well as rock check dams. Water channels which are designed for flows in excess of 2 feet <br /> per second contain a suitable bedding 6" in depth. All surface and storm water diversions were free of <br /> obstructions and the BMPs were functioning as designed. In addition, the Division and Henderson staff also <br /> visited the fifteen outfalls at the mine. All of the outfalls were free of obstructions. <br /> Page 2 of 6 <br />