2024-05-17_REVISION - M1977493 (4)

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be used for industrial purposes throughout the year on a generally constant basis. G-6.2 Arkansas Well Water Right The water right for the Arkansas Well is separate from the water rights discussed above because this water source is located near the headwaters of the East Fork Arkansas River, on the eastern side of the Continental Divide. The senior water right for the Arkansas Well allows water to be pumped on a constant year-round basis for a maximum total of 786 acre-feet per year. This water may be used for industrial purposes at the Climax Mine and fully consumed in evaporative or other consumptive processes. G-6.3 Storke Area Augmentation Plan The Climax Readjudication Decree did not include impacted water pumped at the Storke Pumps to the Tenmile Creek basin,which is an out-of-priority diversion from the Arkansas basin. Case No. 12CW124 was decreed in 2015 to provide an augmentation and exchange plan to provide replacement water into the Arkansas River basin to coverthese depletions.Sources of replacement water include 50 to 125 acre-feet per year under a long-term lease from the Pueblo Board of Water Works(PBWW),water released under Climax interests in the Columbine Ditch, and water pumped over Fremont Pass from Chalk Mountain Reservoir.The base Pueblo lease amount is 50 acre-feet, but that can be increased by an additional 75 acre-feet if Climax provides notice to PBWW. The lease extends through 2035. The decree in Case No. 12CW124 includes requirements for detailed accounting of daily pumping at the Storke Pumps and the replacement sources,with the reports submitted monthly. Water from the Storke Pumps can be used in the Tenmile Creek basin for mining and milling purposes, and such water use has also been incorporated into the site water rights accounting. G-6.4 PDWTP Augmentation Plan The Climax Readjudication Decree did not include water used in the treatment process at the PDWTP or the large-scale use of water for dust suppression across the Climax property. In addition, the new Mayflower Tunnel is considered to be a horizontal well under Colorado water law because it inadvertently intercepts groundwater. Therefore, a separate augmentation plan was developed for these purposes in Case No. 12CW032 and Water Court approval was granted in October 2019 (Appendix E). Accounting forms were amended to include these operations, including diversions from wells used to support the Metals Plant and Moly Plant operations at the PDWTP,groundwater discharge from the Mayflower Tunnel, and water used for dust suppression. The decree also requires a daily check to confirm that sufficient water was flowing throughout the month to fulfill the CWCB instream flow water right at the USGS gage for Tenmile Creek at Frisco. The decree in Case No. 12CW032 requires an annual report to the five parties in that case to provide the updated area of tanks and open water surfaces at the PDWTP, and an update of the average water content to be used in the calculation of the water content of the sludge. G-6.5 Water Rights Accounting In accordance with the decrees, streamflow depletions associated with water use at Climax are quantified each month using a detailed accounting form that is submitted to the water rights administration personnel of the Colorado Division of Water Resources. These accounting forms also quantify the volume of water that is diverted to storage or discharged from storage each month. Exhibit G G-22 May 2024