2001-02-22_REVISION - M1977493

• Permit No: M1977493
• IBM Index Class Name: REVISION
• Doc Date: 2/22/2001
• Doc Name: Approval
• From: DMG
• To: Climax
• Type & Sequence: SR3
• Media Type: D
• Archive: No

Letter to Bryce Romig 5 February 22 2001
• Reduction in bond for capping Robinson Pond based on a percentage of the tailing surface that has
been capped is inappropriate since the current $52, 434,637.00 bond is based on the amount of
capping remaining to be completed as of April 1994, which is after significant progress had already
been made on the Robinson capping project. Instead, DMG's year 2001 re-estimate includes a cost
for geogrid installation and capping of the 219 acres remaining to be reclaimed in Robinson Pond
based on current conditions and the capping thickness required under the approved reclamation plan
(see individual reclamation task estimating worksheets numbered 074 and 075 enclosed).
Additional Bond Related Issues
In accordance with discussions during and subsequent to the meeting between CMC and DMG held on
3/14/00, costs for reclamation of Robinson Lake have been included into DMG's year 2001 re-estimate.
However, no direct cost for relocation of Robinson Lake sediments has been determined due to lack of
information on the volume of sediments in the lake. Once again, for the sake of efficiency it would be
convenient to include the sediment relocation cost into the re-estimate and adjust the bond only once in
conjunction with the approval of SR-03. If CMC can provide an estimate of the lake sediment volume,
DMG will include the direct and indirect sediment relocation costs into the working year 2001 estimate
and determine a new total for the amount of bond to be required.
DMG has reviewed the draft water treatment equipment certification for the Climax Mine provided
with a letter dated 9/5/00 and agrees with the format for the certification proposed in that draft. Critical
to DMG's acceptance of the certification is our belief and confidence that water treatment equipment
required for environmental protection can be protected from attachment by creditors in a bond forfeiture
situation. This confidence is based on DMG's direct experience at bond forfeiture sites, but is only
valid if CMC continues to own the critical treatment equipment free and clear. For this reason, DMG
will require that CMC include language into the certification document that DMG will be immediately
notified of encumbrance or attempts to encumber the water treatment equipment by any third party.
This will be in addition to the requirement to certify CMC's continued free and clear ownership of the
water treatment equipment in each annual reclamation report.
The DMG's year 2001 re-estimate of reclamation costs for the Climax Mine does not include funds for
removal of PCB from any of the mine property facilities. Please provide a statement that the presence
of PCB on the mine site has been thoroughly evaluated and that all known PCB has been removed from
the site. Any documentation that the site is free of PCB would be helpful in this regard and would
validate the zero cost for PCB removal in the amount of bond to be required.
With the approval of amendment AM-03 to the Climax Mine reclamation permit, 1,267 so-called buffer
acres were included into the area of permitted affected lands and were bonded at a fixed reclamation
cost on a per acre basis. In a letter dated 2/8/99, CMC requested that the buffer acreage be reduced to
550 acres, and the DMG year 2001 reclamation cost re-estimate is based upon no more than 550 buffer
acres being affected or disturbed. In previous discussions, DMG had taken the position that an acreage