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<br />CMC Response: There is a partition in place at the toe of McNulty OSF to divert clean runoff water from <br />the north end of the valley from the impacted water from the OSF. Clean runoff water from the north end <br />of McNulty Gulch is collected in the East Interceptor Ditch and passed through Clinton Gulch Reservoir <br />(this runoff water is not decreed to Clinton). Impacted water from McNulty OSF is conveyed separately <br />to the water treatment plant for treatment and is not delivered to Clinton Gulch Reservoir. <br />In addition to the current management of runoff from OSFs and other environmental protection measures <br />described in the Climax Environmental Protection Plan, a Water Quality Monitoring Plan is currently in <br />place as part of TR-08. CMC recognizes that refinement of the Groundwater Monitoring Program will be <br />addressed in a future submittal for review and approval by DRMS before full-scale mining and milling <br />operations resume. Although no impacts are expected to Clinton Gulch Reservoir, CMC will continue to <br />visually monitor the area of concern before and during mining operations and will incorporate into the <br />Groundwater Monitoring Program any additional monitoring measures deemed necessary by CMC to <br />provide further protection of surface water. <br />2. Impacts to the quantity of water in the Clinton Gulch Reservoir watershed: Clinton also <br />expressed concern that future operations at Climax may impact the quantity of water in the Clinton Gulch <br />Reservoir watershed. <br />CMC Response: CMC acknowledges that any of its water use in the Clinton drainage will be pursuant to <br />decreed water rights and should not affect the quantity of water available to Clinton under its decreed <br />rights. <br />Although CMC and Clinton have been in discussions to resolve the concerns raised in the July 8, 2010 <br />letter, Clinton has not withdrawn its request for party status in the AM-06 approval process. Therefore, <br />although CMC believes the issues raised by Clinton are properly addressed under the 1992 agreement and <br />outside of this permitting process, CMC provides the above responses to Clinton's July 8, 2010 letter in <br />preparation for a formal hearing before DRMS regarding the AM-06 application. <br />Sincerely, <br />2 <br />Environmental Manager