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Mr. Peter Hays, DRMS <br />January 10, 2013 <br />into the 12 -inch URAD water line came apart, allowing for water to backflow out of the <br />condensate line. <br />Immediately following the incident, the condensate lines were exposed, cut -off near the <br />joint with the URAD lines, and capped. The caps were tested under pressure, and <br />pumping of underground water resumed. Standpipes were then placed on top of the <br />caps and the area was backfilled to prevent freezing. The standpipes will be monitored <br />to assure that no leaks develop during the winter, and until a permanent fix to the <br />condensate line can be completed. <br />A complete investigation of the engineering and construction of the condensate collection <br />system is being completed, and based on these results, the system design will be <br />improved and modifications will be implemented. Potential options include changing to <br />steel piping and adding backflow prevention valves directly at the connection between the <br />URAD water lines and the condensate lines. <br />If you have any additional questions or concerns, please feel free to contact me at 303 - 569 -3221, ext. <br />1233 or Bryce Romig at ext. 1204. <br />Sincerely. <br />Miguel Hamarat <br />Chief Environmental Engineer <br />Climax Molybdenum Company <br />Henderson Operations <br />CC (via email): <br />B. Romig, Climax <br />S. Deely, Freeport- McMoRan <br />N. Hall, Freeport- McMoRan <br />L. Decker, Gallagher & Kennedy <br />Attachments: Photos # 1 -6 <br />Page 2 <br />