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Exponent <br />May 29, 2001 <br />Mr. Bryce Romig <br />Climax Molybdenum Company <br />Climax Mine <br />Climax, Colorado 80429 <br />Subject: Survey Data Evaluation for Eagle Park Reservoir, <br />Climax Mine, Climax, Colorado <br />Dear Bryce: <br />Exponen[ <br />4940 Pead Eas[ Circle <br />Suice 300 <br />Boulder, CO So3o~ <br />telephone ;o3-q4q-7z9o <br />facsimile 303-444-758 <br />www.exponent.com <br />This letter presents the results of our evaluation of the survey data concerning the slope stability <br />of Eagle Park Reservoir. Included in this letter are a brief project background, and a summary <br />of our evaluation of the data. <br />Project Background <br />On November 13, 1997, the Climax Molybdenum Company (CMC) submitted the Eagle Park <br />Reservoir Final Analytical Summary (Summary) as a request for partial reclamation <br />responsibility release. The State of Colorado, Division of Minerals and Geology (DMC) <br />reviewed the Summary and listed issues that needed to be addressed in a letter from Allen C. <br />Sorenson, DMG, to Bryce Romig, CMC, dated January 9, 1998. One of these issues included <br />an area of potential instability at the southeast shore of Eagle Park Reservoir. <br />In the January 9, 1998 letter, DMG suggested the following monitoring and reporting plan be <br />incorporated into the request for surety release, 002: <br />a. Conduct two to three baseline surveys of the movement monuments prior to <br />reservoir filling above the outlet works elevation. <br />b. Begin semimonthly surveys of the movement monuments during reservoir filling <br />in the spring of 1998, and continue until it can be demonstrated to [he DMG's <br />satisfaction that no movement, or only nominal movement, is occurring. The <br />results of the semimonthly surveys are to be provided to the DMG once CMC <br />believes the data justify less frequent monitoring, as discussed in item c below, <br />unless movement of greater than 0.2 feet is detected at any of the monuments, in <br />which case, the survey results must be reported to the DMG within one week of <br />the survey date. <br />8601981.00261616661 MM61 <br />