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<br />Climax Mol ybdenum <br />A Phelps Dodge Company <br />July 6, 2006 <br />Mr. Allen Sorenson <br />Division of Minerals and Geology -- <br />1313 Sherman Street, Room 215 <br />Denver CO 80203 <br />RECE80~ E~ <br />/JUL 18 2006 <br />Y pivision of Minerals and Geola6Y <br />COLORADO OPERATIONS <br />Henderson Operations <br />P.O. Box 68 <br />Empire, CO 80438 <br />Phone (303) 569-3221 <br />Fax (303) 569-2829 <br />Re: Henderson Operations, Amendment AM-O5, Permit No. M-1977.342 <br />Dear Mr. Sorenson: <br />On behalf of Climax Molybdenum Company ("Climax'), this is in response to the June 26, 2006 letter from <br />John P. Dolan regarding Henderson's Amendment AM-06 ("Amendment"). Mr. Dolan contends that: 1) <br />publication of the Amendment should have been made in newspapers of record in Grand County, 2) the <br />information provided to the Grand County planning and zoning department regarding the Amendment <br />"differs materially" from the notice of the Amendment published in the Clear Creek Courant, and 3) the <br />time for consideration of the Amendment be extended in order to "establish with the Grand County <br />commissioners a time and place for public input from the citizens of Grand County." Mr. Dolan's <br />assertions are addressed in order below. <br />1) Publication of notice in Grand County newspapers is not required. <br />Climax's publication of notice of Amendment AM-OS only in Clear Creek County is supported by the <br />Department of Minerals and Geology's regulations and forms and by direction from Division staff. Rule <br />1.6.2(d) requires publication of notice "in a newspaper of general circulation in the locality of the proposed <br />mining operation." Section nine of the "Reclamation Permit Application Form" for "Regular (112(d)) <br />Designated Mining Operation(s)" defines the "location" of a mining operation as "the center of the area <br />where the majority of mining will occur lies." As was stated in the AM-06 application, this is ClearCreek <br />County, not Grand Cqunty. -In The Division's adequacy review letter dated May 3, 2006, Climax was <br />asked to use information from the original permit documents showing the Henderson Mine in the Location <br />Information (Item 9) of the application. <br />This position is corroborated by a comparison of C.R.S. §34-32-112(10)(b), which only requires <br />publication "in a newspaper of general circulation in the locality of the proposed mining operation," <br />with C.R.S. §34-32-112(10)(a), which requires filing a copy of the application at "the office of the county <br />clerk and recorder of the county in which the affected land is located." If the legislature had intended <br />to require publication in all counties in which there would be affected lands, it would have used the same <br />language from subsection -112(10)(a) in subsection -112(10)(b). <br />This interpretation of the applicable statutes, regulations and DMG forms is consistent with actions by <br />DMG staff during the Amendment AM=06 adequacy review process. During the adequacy review <br />process, Climax's permitting consultant asked the DMG staff representative whether publication of notice <br />of the amendment should occur in both Grand and Clear Creek counties. He was told that publication <br />should occur only in Clear Creek County. This was consistent with DMG staff's required revisions of the <br />AM-OS application documents during the adequacy review process. These revisions, referenced in the <br />May 3, 2006 letter from the Division to Climax, emphasized that from a reclamation permitting perspective <br />