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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />May 16, 2008 ~ <br />l/ <br />Mr. Ken Kloska <br />Climax Molybdenum Company ~ <br />Climax, CO 80429 ~ <br />- ~ ~ <br />RE: Review of Technical Revision TR 14, Climax Mine, Permit No. M-1977-493 <br />Dear Mr. Kloska: <br />COLORADO <br />DIVISION O F <br />RECLAMATION <br />MINING <br />- &- <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />The Division of Reclamation, Mining, and Safety (DBMS) has reviewed the application for TR-14, and has <br />identified the following issues to be addressed prior to approval or to be stipulated at the time of approval. <br />1. The following figures included with the TR-14 application are not sufficiently legible for DBMS to <br />review, and must be replaced with legible and preferably larger scale figures. <br />a. Climax Site Plan. <br />b. Tenmile Tunnel Conceptual Plan. <br />c. Robinson Lake Pump Station General Plan. <br />d. Crushing and Mill Layout Plan. <br />2. Provide a figure showing the entire alignment of the proposed pipeline from the Robison Lake Pump <br />Station to the proposed Mill Water Storage Tanks. <br />3. The amount of reclamation bond requires adjustment considering the cost to demolish the proposed new <br />mill and accessory buildings and the proposed new tailing delivery line. Estimated costs for this <br />demolition work must be provided for DBMS review. Given the large amount of demolition and other <br />reclamation work that has been completed at Climax since the last bond adjustment, and the need for <br />TR-14 approval to maintain the Climax 2010 construction schedule, DBMS is willing to defer provision <br />of the estimate to later in 2008 if you so chose. A stipulation to provide this information would then be <br />incorporated into the approval of TR-14. <br />4. In accordance with Hard/Rock Metal Mining Rule 7.4, DBMS intends to incorporate an inspection <br />schedule into TR-14 approval for the extensive Environmental Protection Facility construction work that <br />will take place at Climax during 2008. In order to schedule inspections of the proposed Robinson Lake <br />pipeline, please describe the pipeline burial schedule. In particular, will the pipeline be tested and <br />buried in phased sections as construction progresses, or will the entire pipeline be installed and tested <br />prior to commencement of burial? <br />5. With the construction of the proposed new mill, and in particular the new reagent building, a detailed <br />Emergency Response Plan for Designated Chemicals is required in accordance with Rule 8.3. DBMS is <br />willing to defer provision of the plan to a later time if you so chose. A stipulation to provide this <br />Office of Office of <br />Mined Land Reclamation Denver Grand )unction Durango Active and Inactive Mines <br />~I - <br />