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exhaustion. If profits were to decline, this could occur sooner than mine exhaustion. When the <br />Company purchased the Henderson Mme and Mill operation, the original 1977 reclamation permit <br />was attached to the purchase. Acknowledging that there have been profitable and non-profitable <br />years, the approved Reclamation Plan and its financial consequences aze a reality and a cost of <br />doing business. With ore extraction comes negative impacts to natural resources (air, water, soil, <br />vegetation). The implementation of post mining reclamation requirements are intended, at their <br />core, to restore natural landscapes and to protect the public and their environments after cessation <br />of mining operations. The State has many old mining sites that were not properly reclaimed or <br />closed and the environmental and financial impacts to the State and its citizens aze immeasurable. <br />EXECUTIVE SUMMARY <br />The Climax Molybdenum Company, a Subsidiary of Phelps Dodge Corporation (the "Company"), <br />Henderson Mme and Mdl has applied for an Amendment to its approved 1977 Reclamation <br />Permit, which includes the following: (1) Deletion of Area 23; (2) Change in General Post-Mining <br />Land Use; (3) Change in Post-Mining Land Use at the Mine Site -Building Retention; and (4) <br />Change in Reclamation Plan and Post-Mining Land Use at the Tailings Impoundment, which <br />includes a conceptual alternative, alternative conceptual plan and rationale for the new alternative. <br />Lastly, two (2) technical revisions, TR-04 and TR-12, remain under review by the Colorado <br />Division of Minerals and Geology. TR-12 is of significant importance to Grand County as it <br />proposes the use of an existing .17 acre landfill and development of a new 7.5 acre landfill as part <br />of the Reclamation Plan. The nexus of the amendment is merely the desire of the Company to <br />reduce the Financial Warranty as it relates to the required reclamation. Financial Warranty is a <br />significant part of the Company's reclamation as it is an amount sufficient to assure completion of <br />reclamation. Nonetheless, reclamation must ensure that all environmental and safety issues are <br />mitigated upon complete cessation of the mine and mill. The reclamation of this mine and mill <br />must not cause environmental impacts or problems for the County or the State as a whole. To that <br />end, the County, local state and federal agencies, and a group of ranchers met with the Company <br />to present our concerns, problems and issues with the proposed amendment and begin to address <br />the issues of reclamation, particularly this proposed amendment. As a result the of the workshop <br />the following identifies the position of Grand County and the Company pertaining to the proposed <br />amendment: <br />Amendment one (1) considers deletion of Area 23 (Lost Creek Reservoir) from <br />Permit No. M-77-342. The Company and Grand County aze in agreement as <br />Amendment one (1) is proposed because this azea has not been affected by mill <br />operations. <br />Amendment two (2) considered a general change in post mining land use from <br />"Open Forest" to "Rangeland." The Company has agreed with the County's <br />assessment of Amendment two (2) and that the trees and shrubs stocking rate of <br />Page 7 of 9 <br />