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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 />October 18, 2012 <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, File No. M- 1977 -342 <br />Technical Revision No. 18 (TR -18) Adequacy Review <br />Dear Mr. Hamarat, <br />Mined Land Reclamation <br />STATE OF COLORADO <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />SAF ETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta Pineda <br />Director <br />The Division of Reclamation, Mining and Safety (Division) has reviewed the content of the Climax <br />Molybdenum Company Environmental Protection Plan (EPP) technical revision for the Henderson <br />Mine, File No. M- 1977 -342, and submits the following comments. The Division is required to make <br />an approval or denial decision no later than November 5, 2012 therefore; a response to the <br />following adequacy review concerns should be submitted to the Division as soon as possible. <br />1. On Page 2 of the EPP, the Operator states, "Please refer to Appendix C and D for a list of Permit <br />Amendments and Technical Revisions in place or in progress for the site." Based on the Division <br />review, it appears the Operator intended to reference Appendix D and E. Please review the <br />statement and the EPP submittal and correct the item as required. <br />2. On Page 6 of the EPP, the Operator indicates the Colorado State Engineer regulates dam <br />stability at the site. Rule 17.2 of the Rules and Regulations for Dam Safety and Dam <br />Construction states mill tailing impoundments which are permitted under the Colorado Mined <br />Land Reclamation Act are exempt from the Colorado State Engineer's Rules. Please review the <br />statement and revise or clarify the reference as required. <br />3. The Operator has included the Mine EPF 1.2 — Storm Water Diversion System into the EPP. The <br />Division was informed recently by the Operator that EPF 1.2 has no longer required and was <br />planned to be decommissioned. Please verify the Operator intended to include EPF 1.2 in the <br />EPP and revise the EPP as required. <br />4. On Page 19 of the EPP, the Operator does not include the 3 -Dam Seep Water Collection Area in <br />the monitoring plan. Please revise the monitoring plan for Mill — EPF 1.5 — Seep Water <br />Collection and Return System to include the area. <br />Office of Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />