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(e) The investigation following the incident included excavating a section of the seepwater <br />return line to determine the source of the leak. After unearthing a flange-set on the line a <br />crack directly up-gradient was noticed. Personnel conducting the investigation concluded <br />that freeze-thaw cycles in conjunction with settling of the down-gradient pipeline put an <br />uncharacteristic amount of strain on the piping adjacent to the flange, causing the breach <br />(see Images # 1 - 4). <br />As of April 29th, Henderson had developed a plan to pour an anchor-block structure <br />around the affected area to secure and stop any future leaks from this section of piping. <br />The breach in the piping was covered with a bitumen coating and then, on May 3rd, the <br />anchor block was poured around it to alleviate stress and to permanently repair the leak. <br />This piping, in general, is designed to be sectioned-back and elevated as the tailing pond <br />level increases. This repair will not affect future functionality of this structure. <br />If you have any additional questions or concerns, please feel free to contact me at 303-569-3221, ext. <br />2284. <br />Sincerely, <br />.L 17, _/ - <br />Tim Haynes <br />Sr. Environmental Engineer <br />Climax Molybdenum Company <br />Henderson Operations <br />CC (via email only): <br />B. Romig, Climax <br />T. Haynes, Climax <br />S. Deely, Freeport-McMoRan <br />J. Roose, Freeport-McMoRan <br />N. Hall, Freeport-McMoRan <br />Attachments: Images 1 - 5 (photographs of incident location) <br />Page 2