2007-03-08_REPORT - M1977342 - Laserfiche WebLink

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112d-3 Annual Report Henderson Mine and Mil1(Permit No. M-77-342) Henderson completed the closure of the Decant and Mill Water Return Line systems which were previously associated with recycling water, until the Barge Pump back System was commissioned. The historic decant and spillway lines were conduits for recycled water which ran through the No. 1 Tailing Dam at Henderson and were considered a liability. Both lines were closed by pumping a structural, low-slump concrete plug on the lower 500-600'. Above the structural cement, several thousand feet oflow-density cellular grout was added to the line to fill the void. The mill water return line running along Grand County Road 3 from the "I-70" gate to the north entrance to the mill was also grouted closed using an identical method. The Henderson Mill continues to utilize two logging companies. One logger continued focusing his efforts on removing timber on the west side of East Branch Reservoir, while the other concentrated on the west side of the tailings impoundment and in the Lost Creek area on the northern edge of the property. The increased levels of die-off in the area have caused Henderson to focus one logger's efforts on protecting the infrastructure, mainly power lines. Henderson's goal for 2006 was to harvest up to 500 acres of timber. By early October of 2006, Henderson loggers had successfully harvested 200 acres of timber. Henderson estimates that approximately 150 more acres were harvested by year end for a total of nearly 350. Logging of steeper ground has also caused the harvest to slow considerably. The property remains under agricultural status, as certified by the Colorado State Forest Service(?). Henderson continues to ground treat, plant, thin as designated by the Forest Agriculture Plan approved by the Colorado State Forest Service. For your reference, please find enclosed a copy of a third party letter from W.W. Wheeler and Associates, [nc. The letter provides an update of the market value of Climax Molybdenum Company water rights owned by the Phelps Dodge Corporation which are collateralized as part of the Henderson Mine and Mill financial assurance. As stated in the letter there have been no substantial changes in the amount of water represented by the Henderson Mill water rights or in the unit value of the water rights. Therefore, the analyses and concussions set forth in the September 2002 report entitled, "Valuation of Henderson Mill Water Rights" continue to be reasonably accurate and representative of fair market value as of March 2007. Please contact me at (303) 569-3221, ext. 1539 if I can be of further assistance Sincerely, William Katz Environmental Coordinator Henderson Mill cc: Bryce Romig, Henderson Mine Tim Haynes, Henderson Mill Kevin Knoll, Henderson Mine