2011-03-14_REVISION - M1977493 (62)

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CM0001652 • CLIMAX MOLYBDENUM COMPANY Climax Mine A Division of Cyprus Climax Msab Co. Huey. 91 Climax. Colorado 90249 (7191486.2150 Fax (7191486-2251 April 15, 1997 Allen Sorenson Environmental Protection Specialist Division of Minerals and Geology 1313 Sherman Street, Room 215 Denver, CO 80203 Dear Mr. Sorenson: • Enclosed with this letter is a summary of analytical activity in Eagle Park Reservoir. The data included are from the sampling events conducted under a Sampling and Analysis Plan (SAP) developed between April and June 1996 to confirm reservoir conversion to fresh water through sediment and water sampling. The SAP was designed as a third-party sampling program with third-parry analytical work for quality control and quality assurance purposes. The SAP was developed at a time when project completion timelines were targeted for mid-summer of 1996. As such, you will note that there have been some changes in scope in consideration of tailing removal completion in October and a lack of water in the reservoir in late fall of 1996. As part of the scope change, Climax conducted screening samples in June and July of 1996 to identify the meaningful parameters to monitor. These samples were taken at a time when tailing remained in the reservoir. Sediment sampling conducted in November of 1996 as part of the SAP followed topsoil capture in the reservoir and tailing removal. These samples are representative of current conditions. The SAP protocol provided for archive of samples should additional analytical work be required. In keeping with the objectives of the SAP, Climax has targeted a schedule of surface water sampling to coincide with the anticipated filling of the reservoir. This schedule was initiated in March, 1997, intensifies during spring runoff, and will conclude in late July. Climax will agree to summarize and share this information on a monthly basis as the reservoir is filled. Current projections of snowpack indicate that a total deliverable volume into the reservoir is approximately 1,600 ac-ft of the total 3,148 ac-ft of storage capacity. This puts the potential storage capability of the reservoir in 1997 at 2 feet above the newly constructed outlet works. The Office of the State Engineer has approved storage in the impoundment to the outlet works elevation (correspondence attached). Climax will not have direct control of surface water input into the reservoir from the interior basin (below interceptors), but will control water delivery from the interceptors during runoff. Climax intends to fill the reservoir during the spring runoff of 1997. As we have discussed, plumbing work from the 4-D21711 Seep Return System, spillway improvements, • Exhibit 69