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4 / <br />`~I~esPpl~se <br /> <br />/%/Yl ~ S <br />~r <br />Climax Molybdenum <br />A Phelps Oodge Compan y <br />RECEL!!ED ~ <br />j/IUL 2 6 2006 <br />July 18, 2006 <br />Division of Minerals and Geology <br />Via Hand Delivery <br />nn .c^~~'" <br />f~ ' ~/ <br />/Henderson Mine <br />P.O. Box 68 <br />Empire, CO 80438 <br />Phone (303) 569-3221 <br />Fax (303) 569-2830 <br />Debra Campbell, Director <br />Grand County Department of Planning-and Zoning ---- -- -- - - - --- - <br />308 Beyers Ave., P.O. Box 239 <br />Hot Sulfur Springs, CO 80451 <br />RE: Grand County Planning and Zoning Department letter of June 21, 2006 to the Colorado <br />Division of Minerals and Geology concerning Amendment AM-O5, Permit Number M-77• <br />342 <br />Dear Ms. Campbell: <br />On behalf of Climax Molybdenum Company ("Climax"), this is in response to Grand County's <br />("County') June 21, 2006 letter to Mr. Alien Sorenson of the Colorado Division of Minerals and <br />Geology (DMG) regarding the proposed amendment AM-OS ("Amendment") to the reclamation <br />permit for the Henderson Mine and Mill. <br />We would first note that the second paragraph of the County's letter discusses a possible life-of- <br />mine water treatment facility at the Henderson Mill. Because this facility is not within the scope of <br />the Amendment, the points made in the second paragraph of the County's letter are irrelevant. <br />However, for the record, Climax disagrees with Grand County's assertion of its authority over this <br />possible facility under the County's Regulations for Areas and Activities Designated as Matters of <br />State Interest. Pursuant to C.R.S. §34-32-109(6), only the Mined Land Reclamation Board has <br />authority to establish reclamation standards, and pursuant to C.R.S. §25-8-102(4), only the Water <br />Quality Control Division has authority to issue discharge permits for water treatment facilities. <br />Other than permitting to ensure compliance with building construction standards, there is no <br />remaining authority for the Cdunty tb assert. <br />With regards to the subject of the third paragraph of your letter -the construction of the ultimate <br />interceptor canal - a few background facts are first in order. The purpose of an interceptor canal <br />is to intercept stream flow and run-off, and to route the water around the Henderson tailings pond <br />to the Williams Fork River. Due to ongoing production, the Henderson failings pond grows over <br />time. Growth in the pond eventually results in the inundation of the existing interceptor canal, <br />which requires construction of a new interceptor canal. The "ultimate interceptor canal" <br />contemplated by the original permit and referenced in the Amendment is designed to bypass <br />water around the expected dimensions for the tailing pond at the end of the I'rfe of the Henderson <br />Mine, and is expected to be the last interceptor canal that will be constructed. <br />It was understood from the beginning of permitting for the Henderson Mill that the cycle of <br />interceptor canal construction, tailing pond growth, interceptor canal inundation, and new canal <br />construction, would occur through the life of the Henderson Mine. Attached as Attachment 1 are <br />Pages 6-35 though -37 from the application for Henderson's original 1977 Mined Land <br />