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Climax ®Molybdenum <br />A Freeport-McMoRan Company <br />March 22, 2010 LIZ <br />&e--V <br />Hand Delivered <br />Mr. Allen C. Sorenson / <br />Division of Reclamation Mining and Safety i/ <br />1313 Sherman St., Rm. 215 <br />Denver, CO 80203 <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 />Re: Permit M-1977-342, R-14 Submittal of Final Tailing Pond Hydrology Report and -Barge_ <br />System Project Reports <br />Dear Mr. Sorenson: <br />Climax Molybdenum Company (CMC) is pleased to submit the following documents related to Technical <br />Revision JR) 14 of the Henderson Reclamation Permit: <br />Final Tailing Pond Hydrology Report dated February 2005. This fulfills Stipulation No. 1 to TR-14; <br />and <br />Final Project Reports for the Barge System. This fulfills the requirement for a Final Project Report <br />in a letter to Mr. Tim Haynes of CMC from Allen Sorenson dated January 27, 2006. <br />Stipulation No. 1 was placed on the Henderson Reclamation Permit M-1977-342 on March 11, 2004 at <br />the time of TR-14 conditional approval, and reads as follows: <br />The DMG [DRMS] will require an analysis of the tailing impoundment considering occurrence of a 100- <br />year storm event followed four days later by the probable maximum precipitation event. It must be <br />assumed in this analysis that power to the mill will be unavailable during the days b/w (between) the two <br />flood events. Based on the results of this analysis, DMG may require an adjustment to the minimum <br />required flood storage capacity in the tailing impoundment such that overtopping of the dam will not occur <br />in the event of the sequence of storms under consideration. Implementation of adjustment to the <br />minimum required flood storage capacity, if determined to be necessary, will not be required until the <br />existing decant system is plugged and abandoned. <br />The January 27, 2006 letter accompanied the DRMS certification of the new barge and pipeline system <br />and allowed them to be put in to use but also required a Final Project Report and as-builts which are <br />included in this submittal. <br />The new mill water return pipeline (terminology used in TR-14 and in the approval letter of March 11, <br />2004) is now called the Barge Return Pipeline to avoid any confusion with the now abandoned Mill Return <br />Pipeline. The abandoned Mill Return Pipeline was fed by the Ute Park Pump Station and returned seep <br />water directly to the mill facility. The Ute Park Pump Station now feeds the Seepwater Return Pipeline <br />which returns seep water directly to the tailing impoundment. <br />CMC believes that this submittal will fulfill the requirements included in the TR-14 approval letter. <br />Submittal of the twice annual flood storage capacity analyses in Stipulation No. 2 is an ongoing