Laserfiche WebLink
iZ A <br />Climax Molybdenum <br />A Freeport-McMoRan Company <br />Climax Mine <br />Hwy. 91 <br />Climax, CO 80429 <br />Phone (719) 486-2150 <br />Fax (719) 486-2251 <br />March 4, 2011 RECEIVED <br />? <br />Mr. Eric Scott <br />AO <br />R 08 tall <br />Environmental Protection Specialist <br />Colorado Division of Reclamation Mining and Safety <br />.1 D'VIelon of Reclatn? <br />7 <br /> <br />1313 Sherman Street; Room 215 , <br />` <br />' Mining & 8.* <br />Denver, CO 80203 <br />P <br />Re: July 8, 201.YLetters to DRMS from Eagle Park Reservoir Company and the Eagle River Water <br />and Sanitation District and Upper Eagle Regional Water Authority Regarding Climax Mine <br />Amendment to Permit NL- 1977-493 <br />Dear Mr. Scott, <br />This letter is to respond to the July 8, 2010 letters filed by the Eagle Park Reservoir Company (the <br />"Reservoir Company"), and the Eagle River Water and Sanitation District and Upper Eagle Regional <br />Water Authority (collectively, the "Eagle Enti?tiel") seeking party status for those entities in the permit <br />amendment application process for the AM-06amendment to permit M-1977-493, filed by Climax <br />Molybdenum Company ("CMC") and ca e complete for review on August 24, 2010 by the Division of <br />Reclamation, Mining and Safety ("DRMS"). <br />The Reservoir Company owns the Eagle Park Reservoir; the Eagle Entities are shareholders in the <br />Reservoir Company. CMC conveyed the land and water for the Eagle Park Reservoir to the Reservoir <br />Company via a June 17, 1998 Purchase and Sale Agreement. As part of the agreement, CMC committed <br />that it would not operate in a manner that could impair the water quantity or water quality in facilities <br />conveying water across CMC property to Eagle Park Reservoir, or in the Reservoir itself. <br />In their July 8, 2010 requests for party status, the Reservoir Company and the Eagle Entities have raised <br />concerns that overlap with the agreement. They state broadly that they are concerned that CMC's <br />proposed activities under AM-06 will adversely affect the water supply and water quality of Eagle Park <br />Reservoir. Ultimately, the issues raised by the Reservoir Company and the Eagle Entities relate to <br />CMC's obligations under the 1998 agreement. <br />CMC believes the proper forum for resolution of these issues is under the covenants of the agreement and <br />outside the permitting proc evertheless, because the Reservoir Company and Eagle Entities have <br />raised these issues in th AM-06 ermit application process, CMC submits the following responses to <br />those parties' issues fort ord in advance of the formal hearing before DRMS. <br />Since receiving notice of the July 8, 2010 letters from the Reservoir Company and the Eagle Entities, <br />CMC has been working directly with these entities, in good faith, to understand and address their <br />concerns. Representatives from CMC met with the engineer for the Reservoir Companies and the Eagle <br />Entities, and with their legal counsel, in November 2010 and January 2011 to understand the parties' <br />concerns more specifically. <br />From its meetings and other communications with the Reservoir Company and Eagle Entities, CMC <br />understands those parties' specific concerns to be as follows: