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CMC001597 <br />• <br />STATE OF COLORADO <br />DIVISION OF MINERALS AND GEOLOGY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866.3567 <br />FAX: (303) 832 -8106 <br />June 17, 2003 <br />Mr. Bryce Romig <br />Climax Molybdenum Company <br />Climax Mine <br />Climax, CO 80429 <br />RE: Surety Reduction Revision SR -02, Climax Mine, Permit No. M- 1977 -493 <br />COLORADO <br />DIVISION OF <br />MIN <br />GEOLOGY <br />RECLAMATION-MINING <br />SAFETY-SCIENCE <br />Bill Owens <br />Governor <br />Greg E. Walcher <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />Dear Mr. Romig: <br />• <br />The Division of Minerals and Geology (DMG) has completed a review of the water quality data <br />collected from the Eagle Park Reservoir and from the East Fork of the Eagle River both during <br />filling of the reservoir and during the first three years of reservoir operation. DMG has also <br />reviewed the analysis of the data contained in May 2001 report prepared by Exponent for Climax <br />titled "Eagle Park Reservoir Surface Water Quality and Antidegradation Analysis." Also reviewed <br />was the Exponent letter report dated May 29, 2001 titled "Survey Data Evaluation for Eagle Park <br />Reservoir." Through this review combined with review of the entire SR -02 file, DMG has <br />determined that conditions numbered one and two to the approval of SR -02 have been satisfied. <br />Condition number three to SR -02 was previously satisfied by Climax as of the DMG's September <br />17, 1998 inspection of the Eagle Park Reservoir. The data clearly show the excellent quality of the <br />water impounded in the reservoir and the water released from the reservoir. The data further <br />demonstrate that releases from the reservoir, once the long dormant outlet channel was flushed and <br />seasoned, have no adverse impact on the quality of the highly sensitive East Fork of the Eagle <br />River. In fact, as the Exponent Antidegradation Report states, releases from the reservoir benefit <br />the stream by boosting flows during traditional low flow periods and by contributing food sources <br />to the stream. <br />With the satisfaction of the conditions placed on the SR -02 approval, Climax has demonstrated that <br />Eagle Park Reservoir has been successfully put to the beneficial post mining land use of developed <br />water resources. As a result, and by this letter, Climax is released from reclamation responsibility <br />for the reservoir with the following limitations: <br />1. Climax will continue to be responsible for revegetation of disturbed land around the <br />reservoir under the terms of the reclamation permit. <br />2. Climax will continue to be responsible for management of 4 -Dam seepage under the terms <br />of the reclamation permit. <br />• <br />Finalization of the approval of SR -02 does not result in any changes to the permit acreage or to the <br />acreage of affected land under the reclamation permit. Through finalization of SR -02, the Dam <br />Safety Section of the Office of the State Engineer is now the sole State Dam Safety Official with <br />authority over 4 -Dam. <br />Office of Office of <br />Mined Land Reclamation Active and inactive Mines <br />Colorado <br />Geological Survey <br />