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JUN-24-96 MON 13 28 HEN~SON MINE EAST FAX N0, 3092829 <br />P. 04 <br />STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Depanmenr of n'alural Resourr:es <br />1313 Sherman Sl., Room 21.5 <br />Uereer, Colorado A0203 <br />Phone: (303) 86t.3Sb7 <br />FAX; !3(137 A32-810ti <br />May 31, 1996 <br />Ms. Anne Beierle Roe Romer <br />Climax Molybdenum Company eo+en,ar <br />lames 5. LochhNd <br />P.O. SOX 68 k.e~urive Direcror <br />Empire, CO 80438 Mich.,r•16. Long <br />Diviciro, Dircaor <br />RE: Rater Treatment Bacility in the Arad Valleys 8enderson <br />Hine, Amendment AM-o2, Permit No. M-77-342 <br />Dear Ms. Beierle: <br />This letter is intended to respond to your request for a determination <br />that the proposed water treatment plant at Urad is not subject to the <br />requirements of a reclamation permit. The Division of Minerals and <br />Geology has determined that the proposed water treatment facility in the <br />Urad Valley does not need to be incorporated into Henderson Reclamation <br />Permit No. M-77-342, as long as the following conditions are met: <br />1. climax Molybdenum Company (CMC) must maintain water treatment <br />facilities at the Henderson Mine site that are adequate to assure <br />compliance with the applicable CDPS Permits for the Henderson Mine, or, <br />alternatively, CMC must post financial warranty sufficient to construct <br />new facilities, modify existing facilities, or resurrect decommissioned <br />facilities at the Henderson Mine that will be adequate to assure <br />compliance with CDPS Permits during the period of reclamation. <br />2. CMC must post financial warranty sufficient to allow the Division to <br />operate the Henderson Mine water treatment facilities during the period <br />of reclamation in the event of permit revocation and bond forfeiture. CMC <br />must provide a plan for reclamation that could be followed by the Division <br />in the event of bond forfeiture that would eliminate or minimize the need <br />for pumping and treating Henderson Mine water. The reclamation plan <br />provided need not be the primary plan to be implemented by CMC at the time <br />of mine closure, but could be an. alternate plan. that could be implemented <br />by the Division in the unlikely. event that the Division reclaims the site. <br />3. The commitments and financial warranties necessary to implement items <br />no. 1 and 2 above, must be incorporated into Reclamation Permit No. M-77- <br />3a2 through the technical revision process. <br />4. The application for amendment AM-002 to Permit No. M-77-342 will be <br />withdrawn by CMC. <br />5. The technical revision discussed in item no. 3 above must be <br />submitted to the Division within 6D days after amendment application AM- <br />