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Climax Molybdenum <br />A Freeport-McMoRan Company <br />March 15, 2010 <br />CERTIFIED MAIL: 7002 2410 0005 5659 4927 <br />Allen Sorenson <br />State of Colorado <br />Division of Reclamation, Mining and Safety <br />1313 Sherman Street, Room 215 <br />Denver, CO 80203 <br />WNYM <br />MAR 1 2010 <br />Divi`ien of Reclana O"' <br />Mining and Sa" <br />RE: Upset Condition Involving the Leak of Process Water from the Barge Pump Station <br />Pipeline, Permit No. M-1977-342 <br />Mr. Sorenson: <br />Henderson Mill is providing this follow-up notice pursuant to Rule 8.2.3 of the DRMS Rules and <br />Regulations. Verbal notification was delivered to the voicemail of Allen Sorenson at <br />approximately 12:30 pm on February 3, 2010. <br />This notice is regarding the leak of process water from the Barge Pump Station pipeline, which <br />was brought to the attention of Henderson environmental staff on February 2, 2010 at 2:30pm. <br />The upset was caused by the unseating of a gasket in the first flanged connection of the pipeline, <br />approximately 425 feet up-gradient from the barge pump station. This caused an undetermined <br />volume of water to flow from the pipe to the surface and sheet flow across the ground and into the <br />lower interceptor canal associated with the Henderson tailing impoundment. The water stayed <br />within the lower interceptor canal and within the Henderson property boundary. <br />The following paragraphs correspond to the required elements of the follow-up written notice <br />requirement set forth in Rule 8.2.3, paragraphs (a) through (e), of the DRMS Rules and <br />Regulations: <br />(a) The barge pump which supplies water to the pipeline was disabled and the line <br />was drained back into the tailing impoundment at 3:30pm on February 2nd. This <br />stopped the flow appearing at the ground surface. Next, a diversion structure in <br />the lower interceptor canal was opened downstream of the upset area to divert <br />any water in the canal into the tailing impoundment. A coffer dam was also <br />placed across the canal channel immediately below the diversion structure to <br />ensure all potentially impacted waters would be routed back into Henderson's <br />process water system. <br />(b) Henderson does not anticipate that the released water will adversely impact <br />human health, property or the environment. This is based on the known <br />chemistry of the process water. At no time did any portion of this spill leave, or <br />come close to, the Henderson property boundary.