2011-03-31_REVISION - M1977493 (3)

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CLIMAX PRE-NEARING STATEMENT AM-06 APPLICATION, PERMIT No. M-1977-493 MARCH 31, 2011 manner that impairs the water quantity or water quality in facilities conveying water to Eagle Park Reservoir, or in the Reservoir itself.20 Objectors filed their comment letters seeking party status in this AM-06 application on July 8, 2010. Climax first met with the Objectors to discuss their concerns in November 2010; the parties met again in January 2011. By the January 2011 timeframe, it became clear to Climax that Objectors' water quality and quantity concerns arose mainly from concerns about future mining operations, thus directly invoking Climax's contractual obligations under the 1992 and 1998 purchase agreements. Although Climax believed Objectors' issues were appropriately addressed under the contracts and outside of the permitting process, Climax nevertheless attempted to address the Objectors' concerns within this permit amendment process. In February, Climax proposed draft letters to the Objectors that essentially tracked the eventual letter from Climax to the Division regarding Objectors' letters.2 In short, Climax acknowledged Objectors' concerns regarding water quality and agreed to re-examine the hydrologic areas of concern identified by the Objectors and incorporate monitoring activities, to the extent they were technically warranted, as part of Climax's review of the WQMP with the Division. On February 11, 2011, Objectors responded with a proposed contract between Eagle Park Reservoir Company and Climax that essentially tracked the substance of the hydrologic examination and potential monitoring that Climax had proposed, but also interjected different and substantially more expansive remedies than those available under the Eagle Park Reservoir and Clinton Reservoir purchase agreements.22 Climax recognizes its obligations under the 1992 and 1998 agreements with Objectors and the remedies therein. However, Climax is unwilling to re-open those agreements and re- negotiate remedies, either as part of discussions with Objectors or in response to Objectors' comments in this proceeding. This permit amendment process is not the appropriate venue to seek to re-negotiate these contracts. C. The reservoirs are protected by environmental protection facilities in In ace. Climax takes its environmental and reclamation responsibilities very seriously and is committed to working with the Division to meet its obligations. Climax has multiple, permitted EPFs in place to protect water quality and quantity in the two 20 See Ex. 18 at 11, CM0000890. 21 See Ex. 10, 3/4/11 Itr from Climax to Division re: July 8, 2011 [sic] Letters to DRMS from Eagle Park Reservoir Company and the Eagle River Water and Sanitation District and Upper Eagle Regional Water Authority Regarding Climax Mine Amendment to Permit M-1977-493 and 3/4/11 ltr from Climax to Division re: July 8, 2011 [sic] Letter to DRMS from Clinton Ditch & Reservoir Company Regarding Climax Mine Amendment to Permit M-1977-493 22 See Objectors' Exhibits 3 and 4. 8