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4- <br />Climax Molybdenum <br />A Freeport-McMoRan Company <br />April 26, 2011 <br />Via Email and Certified Mail #: 7006 0100 0003 4665 7335 <br />'&or. Peter Hays <br />Division of Reclamation, Mining and Safety <br />1313 Sherman St., Rm. 215 <br />Denver, CO 80203 <br />Re: Follow-up Notice fo Flow of Tailing Slurry from <br />ermi o. 1977-342 <br />Dear Mr. Hays: <br />COLORADO OPERATIONS <br />Henderson Mill <br />P.O. Box 68 <br />Empire, CO 80438 <br />Phone (303) 569-3221 <br />Fax (303) 569-2830 <br />eEJVLVD <br />bi?i?ldh t3f 1?eels?rlatl0h <br />? 1NORO A.8afbty <br />ne. Drop T <br />Henderson Mill is providing this written follow-up notice to a phone call made to you on April 18, 2011 <br />pursuant to Rule 8.1(b) and 8.2.3, respectively, of the DRMS Rules and Regulations. <br />This notice is regarding a flow of tailing slurry from the base of Drop Tower 7, an energy/flow dissipation <br />structure on the tailing delivery line (TDL), which occurred on April 15th, 2011 at -7:00am. The TDL <br />associated with the issue is listed as an environmental protection facility. An undetermined volume of <br />tailing slurry was observed running down the road directly adjacent to the tailing discharge line. Initial <br />assessments showed that a flow of tailing slurry was coming from the base of Drop Tower 7 in the TDL, <br />flowing through an underpass for the TDL (under Grand County Road 3), down a road adjacent to the <br />TDL and into a shallow valley (Bearpaw Gulch) which is isolated and tributary only to Henderson's tailing <br />impoundment. <br />(a) After discovering the issue, Henderson employees determined that the slurry was <br />originating from the base of Drop Tower 7. The operator immediately switched from the <br />TDL to the emergency cutout line (ECL), which bypasses the TDL into the tailing <br />impoundment. After switching to the ECL, the slurry flow from the base of Drop Tower 7 <br />ceased. <br />(b) Henderson is confident that the slurry flow will not adversely impact human health, <br />property or the environment. This is based on the fact that all of the slurry coming from <br />the pipe flowed only into areas captured by Henderson's tailing impoundment. <br />(c) The operator contact person for this event is: <br />Tim Haynes <br />19302 County Road 3, Parshall, CO 80468 <br />phone: 303-569-3221 ext. 2284 <br />• fax: 970-725-0038 <br />(d) No monitoring or analyses were performed for this situation.