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DIVISION OF RECLAMATION, MINING AND SAFETY <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 />September 30, 2011 <br />Mr. Miguel Hamarat <br />Climax Molybdenum Company <br />Henderson Mill <br />P.O. Box 68 <br />Empire, CO 80438 <br />Re: Climax Molybdenum Company, Henderson Mine, Permit No. M- 1977 -342 <br />Technical Revision No. TR -14 Approval <br />Dear Mr. Hamarat: <br />As requested by the Division of Reclamation, Mining and Safety (Division /DRMS) during the August <br />23, 2011 meeting at the Henderson Mill, Climax Molybdenum Company (CMC) provided an <br />additional copy of the following documents related to Technical Revision No. 14 (TR -14) of the <br />Henderson Reclamation Permit. <br />Office of Office of <br />Mined Land Reclamation <br />STATE OF COLORADO <br />Stipulation No. 1–Technical Revision 14 <br />The DMG (DBMS) will require an analysis of the tailing impoundment considering <br />occurrence of a 100 -year storm event followed four days later by the probable <br />maximum precipitation event. It must be assumed in this analysis that power to the <br />mill will be unavailable during the days between the two flood events. Based on the <br />results of this analysis, DMG may require an adjustment to the minimum required <br />flood storage capacity in the tailing impoundment such that overtopping of the dam <br />will not occur in the event of the sequence of storms under consideration. <br />Implementation of adjustment to the minimum required flood storage capacity, if <br />determined to be necessary, will not be required until the existing decant system is <br />plugged and abandoned. Until that time the existing flood management system <br />that uses the decant system as a floodwater spillway will continue as the approved <br />dam safety and environmental protection facility. <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta Pineda <br />Director <br />• Final Tailing Pond Hydrology Report dated February 2005, which fulfills Stipulation No. 1 to <br />TR -14 <br />• Final Project Reports for the Barge System, which fulfills the requirement for a Final Project <br />Report in a letter to Mr. Tim Haynes of CMC from Allen Sorenson dated January 27, 2006 <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />