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Permit Amendment (AM-06) - Climax Mine <br />• T-1 Introduction <br />CM0000473 <br />T-1.1 Purpose and Objectives <br />In April 1994, the Colorado Mined Land Reclamation Board (Board) approved and promulgated <br />amendments to the Mineral Rules and Regulations under the Colorado Mined Land Reclamation Act <br />(Act). The most important of these changes was the classification and definition of a "Designated Mining <br />Operation" and the addition of Section 6.4.20 Exhibit T - Designated Mining Operation Environmental <br />Protection Plan in Rule 6. <br />A "Designated Mining Operation" (DMO) is defined as a mining operation where: <br />¦ "designated chemicals used in metallurgical processing are present on-site; or <br />¦ toxic or acid-forming materials will be exposed or disturbed as a result of mining operations; or <br />¦ acid mine drainage occurs or has the potential to occur due to mining or reclamation activities." <br />The Colorado Division of Reclamation, Mining and Safety (DRMS - formerly "Division of Minerals and <br />Geology" or DMG), the agency that administers the Mineral Rules and Regulations, formally notified the <br />Climax Mine that it was a DMO on August 3, 1994 (letter to Mr. Frank Zancanella). The Climax Mine <br />concurred with the designation on August 31, 1994 (letter to Mr. Bruce Humphries, DRMS). <br />Briefly, the purpose of the Environmental Protection Plan (EPP) is to define how the DMO operator will <br />protect those areas that potentially could be affected or impacted by "designated chemicals, toxic or acid- <br />forming materials or acid mine drainage." "Designated Chemicals" are defined in Rule 1, Section 1.1 (11) <br />as "toxic or acidic chemicals used within the permit area in extractive metallurgical processing, the use of <br />which, at certain concentrations, represents a potential threat to human health, property or the <br />environment." DRMS has jurisdiction over the designated chemicals used in mineral production <br />processes. <br />The Climax Mine EPP was submitted as Technical Revision 7 (TR-07) to its existing Regular (112) Mining <br />and Reclamation Permit (Number M-1977-493; "Permit") on August 11, 1995. The objective of this <br />document is to update the EPP to reflect current conditions. <br />For purposes of the record, the Climax Mine is wholly owned and operated by the Climax Molybdenum <br />Company (CIVIC), a wholly owned subsidiary of Freeport-McMoRan Copper and Gold, Inc. with <br />headquarters in Phoenix, Arizona. <br />T-1.1.1 Reference and Indexing <br />Since the Climax Mine is considered by DRMS to be an active operation with an approved life-of-mine <br />Permit, much of the information and data required for the EPP has been developed previously. In order <br />to create an EPP document that encompasses the current elements of the original EPP and amendments <br />and revisions, this document is designed to supersede the existing EPP. In cases where previously <br />submitted information is not included in this EPP, but is part of the public record and official Permit files, <br />that information is specifically referenced. <br />T-1.1.2 Changes in Referenced Information and Documents <br />Changes in the reclamation plan can trigger the need for submittal of a formal Amendment, Technical <br />Revision, or Modification depending upon the type of change as defined in the Rules. Because the EPP <br />references numerous public record documents and information on file with the DRMS and other state <br />regulatory agencies, notification relative to changes, particularly minor ones, can rapidly become unwieldy <br />for both Climax and the DRMS. Therefore, Climax proposes to handle minor changes in referenced <br />documents and information by establishing a central file for the reclamation plan and associated EPP <br />information and documents at the Climax Mine environmental office. Climax will conduct periodic reviews <br />of the EPP to identify where major changes have occurred and where major changes may occur during <br />subsequent years. <br />Exhibit T T-1 May 2010