2011-03-31_REVISION - M1977493 (3)

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CLIMAX PRE-FEARING STATEMENT AM-06 APPLICATION, PERMIT No. M-1977-493 MARCH 31, 2011 The comments filed by objectors in this matter- the Clinton Ditch and Reservoir Company, and the Eagle Park Resevoir Company along with its shareholders the Eagle River Water and Sanitation District and the Upper Eagle River Water Authority (collectively, "Objectors") - are not ripe for consideration by the Board at this time. The Objectors' comments to AM-06 relate to concerns about water quality and water quantity in Eagle Park and Clinton Gulch Reservoirs. These concerns are relevant to Climax's environmental protection plan (EPP) and water quality management plan (WQMP). Climax has long had these plans in place, which are protective of water quality and quantity. Nevertheless, Climax is committed to working with the Division, and Climax and the Division have agreed that Climax will review the current EPP and WQMP and submit technical revisions (TRs) that will allow these plans to be reviewed by the Division. The review will occur separately from, and subsequent to, this proceeding. The appropriate time for consideration of Objectors' water quality and water quantity concerns will be at the time the WQMP and EPP are before the Division, not now. The stipulations to the Division's recommendation for approval of AM-06 address the future submittal of the EPP and WQMP documents for Division review and approval! Climax did not include a revised WQMP in its AM-06 application; instead, it noted that the WQMP, also known as the Groundwater Monitoring Program, was beyond the scope of this amendment and will be addressed in future submittals.2 Climax submitted an EPP as part of its application, but Climax and the Division jointly concluded that the EPP should be addressed separately as well.3 The Eagle Park Reservoir and the Clinton Reservoir are protected from water quality or quantity upsets by existing and extensive environmental protection facilities ("EPFs") already in place at the Climax mine and approved by the Division under Climax's existing permit. The approved EPFs currently in place are protective of the reservoirs now and after full scale operations resume. Further, the objector reservoir companies acquired the Clinton Gulch Reservoir and Eagle Park Reservoir from Climax, and they are protected by agreed-upon 1 See Ex. 59, March 7, 2011 DRMS Rationale for Recommendation for Approval Over Objections Regular 112d(3) Permit Amendment Application Climax Molybdenum Company Climax Mine File No. M-1977- 493. 2 See Ex. 1, AM-06 Application, Ex. 1 at p. T-23, CM0000495. Climax Exhibits 1-82 were provided to DRMS, the Board, and the Objectors at the March 14, 2011 pre-hearing conference. Exhibits 83-100 are provided with this Pre-Hearing Statement. All exhibits referenced are provided by Climax unless otherwise noted as "Objectors' Exhibit " 3 See Ex. 9, March 1, 2011 Letter from Climax to the Division re: Response to DRMS Preliminary Review of a 112d Metals Reclamation Permit Amendment Application Package AM-06, Climax Mine, Permit No. M-1788-493 (Adequacy Determination Letter), at 9, 12, CM0000654, 657. 2