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September 30, 2011 <br />Mr. Dick Wolfe, P.E., State Engineer <br />Colorado Division of Water Resources <br />1313 Sherman Street, Room 818 <br />Denver, CO 80203 <br />) W. W. Wheeler and Associates, Inc. <br />1 Water Resources Engineers <br />01 a6 2011 <br />Division of Reclamation, <br />Mining and Safety <br />Re: #1070.06 Climax Molybdenum Company — Henderson Operations <br />Fe nderson MiII Gravel Pit <br />ell Permit Application <br />Division 5, District 51 <br />Dear Dick: <br />On behalf of the Climax Molybdenum Company (Climax), W. W. Wheeler and <br />Associates, Inc. (Wheeler) is submitting the enclosed application for a gravel pit well <br />permit for the Henderson Mill Gravel Pit located in Grand County south of Parshall, <br />Colorado. The Henderson Mill Gravel Pit is an existing sand and gravel facility that was <br />first developed in the early 1970's as part of the construction of the Henderson Mill <br />facility. The pit is located at the Henderson Operations — Henderson Mill and is entirely <br />within the affected land boundary specified in the Colorado Division of Reclamation, <br />Mining and Safety Reclamation Permit for the Henderson Operations (Permit No. M -77- <br />342). A partial copy of the latest amendment to this permit is enclosed. The entire set of <br />documents that make up the permit is quite voluminous, but can be provided if <br />necessary. Also enclosed is map showing the current limits of the Affected Land <br />Boundary for Permit No. M-77-342. The general location of the gravel pit is labeled on <br />this map. Figure 1 is a general location map of the gravel pit using USGS quadrangle <br />maps as the base mapping. <br />Currently, the Henderson Mill Gravel Pit is used occasionally for sand and gravel <br />materials required for the continued operation and maintenance of the Henderson Mill <br />facilities. It is anticipated that any future production from the pit will be from areas above <br />the water table. There is currently exposed groundwater within the Henderson Mill Pit. <br />As shown on Figure 2, the surface area of the water pool is approximately 2.3 acres as <br />measured from a 2010 aerial photo of the mill site. There has been production activity <br />within the gravel pit since January 1, 1981. However, as indicated by the enclosed <br />3700 South Inca Street Englewood, Colorado 80110 303 -761 -4130 FAX 303 - 761 -2802 www.wwwheeler.com <br />