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999 <br /> STATE, OF COLORADO <br /> DIVISION OF MINERALS AND GEOLOGY <br /> Department of Natural Resources ��.- coto�� <br /> He o <br /> 1313 Sherman St.,Room 215 . • <br /> Denver,CO 80203 * " <br /> �876 <br /> Phone:(303)866-3567 <br /> « <br /> FAX:(303)832-8106 <br /> Roy Romer <br /> Governor <br /> Michael B Long <br /> Division Director <br /> January 7, 1994 <br /> Mr. Frank Zancanella <br /> Climax Molybdenum Company <br /> Climax Mine <br /> Climax, CO 80429 <br /> Re: Technical Revision TR-005 (Moly-Oxide Pond Converted to Water <br /> Storage) , Climax Mine, File No. M-77-493 <br /> Dear Mr. Zancanella: <br /> The Division has reviewed the TR-005 submittal and has identified <br /> the following issues as requiring clarification: <br /> 1. Bonding for reclamation of the Moly-Oxide Pond as a water <br /> storage reservoir. <br /> You have estimated that the cost to complete the initial phase of <br /> the Eagle Park Reservoir project will be $3, 000, 000.00. Appendix <br /> D to the 1989 amendment to the Climax Permit, which is the cost <br /> worksheet upon which the present bond is predicated, shows a zero <br /> cost for reclamation of the Moly-Oxide Pond. The Division believes <br /> that the Eagle Park Reservoir project must be properly bonded since <br /> the approved end land use of Developed Water Resources cannot be <br /> attained without removal of the tailings. This is because the <br /> oxide tailings have been characterized as having a high acid <br /> producing potential. <br /> Since the Division and Climax have entered into a process of re- <br /> evaluation for all aspects of reclamation costs and appropriate <br /> bonding, and since Climax has completed extensive reclamation on <br /> No. 1 Dam and elsewhere since the time of the 1989 amendment, we <br /> feel that a bond adjustment is not a necessary component for <br /> approval of TR-005. The Division will require that Climax commit <br /> to an understanding that bonding for Moly-Oxide Pond reclamation <br /> will be included in the over-all bond review that is currently <br /> under-way (the Divsion is awaiting information from Climax <br /> necessary for reclamation cost estimation: due date for requested <br /> information is 4/1/94) . <br /> 2 . Surface water impact prevention during the tailing relocation <br /> process. <br /> You have indicated that the interceptor canals and other "Waters of <br /> the State" have been isolated from potential impacts during the <br /> tailings relocation process by installation of ditches and <br />