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® Climax Molybdenum <br />A Freeport-McMoRan Company <br />September 9, 2010 <br />COLORADO OPERATIONS <br />Henderson Mill <br />P.O. Box 68 <br />Empire, CO 80438 <br />Phone (303) 569-3221 <br />Fax (303) 569-2830 <br />RECEIVED <br />SEP 10 2010 <br />Via Email and UPS Tracking #: 1Z 804 847 03 6470 6958 Divislon of Reclamatlan, <br />Mlning & Safety <br />Mr. Allen C. Sorenson <br />Division of Reclamation, Mining and Safety <br />1313 Sherman St., Rm. 215 <br />Denver, CO 80203 <br />Re: Follow-up Notice for Overflow of Process Water from Mill Water Supply Pipeline, Permit <br />No. M-1977,342 <br />Dear Mr. Sorenson: <br />Henderson Mill is providing this written follow-up notice to a phone call made to you on August 15, 2010 <br />pursuant to Rule 8.2.3 of the DRMS Rules and Regulations. <br />This notice is regarding an overflow of process water from the partially-constructed, replacement mill <br />process water supply pipeline (PWSP), which occurred on August 15th, 2010 at 2:10am. The PWSP is <br />an Environmental Protection Facility at the Henderson Mill. An undetermined volume of process water <br />was observed at the surface of an excavation for the new mill PWSP up gradient of the East Branch <br />Pump Station, which was still under construction. The water was flowing from the east shoulder of Grand <br />County Road 3, across the pavement and back onto Henderson Mill property where it entered the upper <br />end of the tailing impoundment. <br />(a) After discovering the issue, Henderson employees began investigating where the water <br />was coming from. Since there are several lines in the vicinity of the leak (process water, <br />raw water and domestic sewer), several different lines had to be investigated. This was <br />done by turning off the various pumps at the East Branch Pumphouse to monitor flow <br />changes at the surface. When it was determined that mill process water was leaking, a <br />trench was constructed to route water from the excavation into East Branch Reservoir. <br />The project manager contacted the pipeline contractor to have them mobilize to the site <br />to begin repair. By 8pm the same day (August 15, 2010), the line had been repaired and <br />all flows stopped. <br />(b) Henderson does not believe that the water spilled will adversely impact human health, <br />property or the environment. This is based on the fact that the process water flowed from <br />Mill property, across a paved surface, then back onto Mill property and into the tailing <br />system, where water of this nature is designed to be stored. All overflow water remained <br />within Henderson's closed process water loop throughout the event. <br />(c) The operator contact person for this event is: <br />1. Miguel Hamarat <br />2. 19302 County Road 3, Parshall, CO 80468