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CM0001279 <br />Findings of Fact, Conclusions of Law, Judgment and Decree <br />Case Nos. 92CW233 and 92CW336 - Page 5 10 <br />War H. A major expansion of mining at the Climax Mine occurred in response to this demand, <br />and continued until Word War lI ended in 1945. Post-World War H economic growth, led in <br />particular by the demand for steel by the growing automobile industry, resulted in yet another <br />surge of mining at the Climax Mine which essentially lasted until the late 1970's. <br />In the early 1980's, the combination of an overall decline in steel production and the <br />discovery and development of new molybdenum ore bodies throughout the world, including <br />Applicant's own Henderson Mine, led to a substantial decline in mining at the Climax Mine. <br />Nevertheless, the Climax Mine remains the largest known body of molybdenum ore in the world. <br />2.2 Historic Development of the Climax Mine Water Rights. Water is an essential <br />component in the process of milling molybdenum. In addition, some consumption of water also <br />occurs as a result of mining itself. The increase in production at the Climax Mine from <br />approximately 1918 through 1980 led to various appropriations and acquisitions of water rights <br />for use at the Climax Mine. The Upper Tenmile Creek System was largely developed during <br />1918 through 1932. The Middle Tenmile Creek and Upper Eagle River System was <br />predominantly initiated during the 1930's and subsequently developed through the early 1960's, <br />concurrent with increases in molybdenum production and milling. Finally, the Miscellaneous <br />Climax Water Rights were existing water rights acquired by Applicant from other parties in <br />conjunction with the development of the Middle Tenmile Creek and Upper Eagle River System. <br />The below-described water rights associated with the Upper Tenmile Creek System, the Middle <br />Tenmile Creek and Upper Eagle River System, and the Miscellaneous Climax Water Rights are <br />hereinafter collectively referred to as "Applicant's Water Rights," or "the Subject Water Rights," <br />or some variation thereof. Additionally, the portion of the Subject Water Rights that is tributary <br />56642.WPD:5