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December 16, 2011 <br />Via Email and Certified Mail #: 7006 2150 0001 8831 6772 <br />Mr. Peter Hays <br />y o Division of Reclamation, Mining and Safety <br />1313 Sherman St., Rm. 215 <br />Denver, CO 80203 <br />Re: up Notice for See water Return Line Leak, Permit No. M- 1977 -342 <br />Dear Mr. Hays: <br />Henderson Mill is providing this written follow -up notice to a phone call made to you on December 10th, <br />2011 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 process water originating from the tailing delivery line (TDL), which <br />occurred on December 9th, 2011 at — 3:30pm. The TDL is listed as an environmental protection facility. <br />Based on a review of TDL line pressures, the leak developed around 3:30pm and was discovered by the <br />tailing pond operator on -duty later that evening. <br />(a) <br />(b) <br />(c) <br />(d) <br />(e) <br />Climax Molybdenum <br />A Freeport - McMoRan Company <br />The 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 />COLORADO OPERATIONS <br />Henderson Mill <br />19302 County Road 3 <br />Parshall, CO 80468 <br />Phone (303) 569 -3221 <br />Fax (970) 725 -0038 <br />4 C 1 g 2011 <br />After discovering the issue, Henderson employees determined that the flow was from the <br />TDL and promptly diverted the flow to the leadoff pipe prior to the breach. This diversion <br />routed the water onto the 3 -Dam beach area. After diverting the flow into the leadoff, the <br />flow of process water from the breech promptly subsided. <br />Henderson is confident that the process water flow did not adversely impact human <br />health, property or the environment. This is based on the fact that all of the process <br />water coming from the pipe flowed directly into the 3 -Dam groin drain, which flows to the <br />seepwater collection system, where process - related water is designed to flow. <br />No monitoring or analyses were performed for this situation since process water never <br />flowed beyond the control of the Henderson Mill process water circuit. <br />The investigation following the incident determined that the breach in the line was <br />primarily due to fusing in this section while the pipe was warm (mid- summer effort). The <br />resulting conditions left minimal allowance for contraction of the pipe when exposed to <br />cold conditions. This particular section was also exposed (sitting on the dam crest <br />