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CLIMAX MOLYBDENUM COMPANY climax (wine <br /> A Subsidiary of Phelps Dodge Mining Company Hwy. 91 <br /> Climax, Colorado 80429 <br /> (719) 486-2150 <br /> Fax(719) 486-2251 <br /> Certified Mail No. 7099 3220 0008 7294 2985 <br /> January 29, 2001 RECEIVED <br /> Mr.Allen Sorenson <br /> Environmental Protection Specialist JAN 3 1 2001 <br /> Colorado Division of Minerals and Geology <br /> 1313 Sherman Street, Rm. 215 Division of Minerals and Geology <br /> Denver, Colorado 80203 <br /> Re: Climax Mine SR-003; Permit M-77-493. <br /> Dear Mr. Sorenson: <br /> Climax Molybdenum Company's Climax Mine (Climax) submitted a request for surety reduction (SR-003) <br /> to the Colorado Division of Minerals and Geology on September 12, 2000 per Rule 4.16 of the Hard <br /> Rock/Metal Mining Rules and Regulations as amended January 2000. On September 26, 2000 you <br /> conducted an inspection of the sites in the petition as per Rule 4.16.1 (5). Two specific building <br /> demolition sites in SR-003 (Section 3.8), the Precon Building and the No.3 Thickener, were not inspected <br /> on September 26. Thus, a second inspection of these two sites including you and Mr. Bruce Humphries <br /> was conducted on October 24, 2000. Climax has not heard from your office since these dates, nor has <br /> the field inspection report been received. <br /> Rule 4.16.1 (6) states that "If the Office fails to conduct an inspection within the time specified, or fails to <br /> advise the Operator of deficiencies within the time specified (emphasis added), then all Financial <br /> Warranties applicable to reclamation described in the notice shall be deemed released as a matter of <br /> law". The specified time limit in Rule 4.16.5 is 60 days from the date of inspection. The 60-day limit for <br /> the first inspection expired on November 27. The 60-day limit for the second inspection expired on <br /> December 23. <br /> As stated in the Rules and as a matter of law, Climax considers the surety reduction as defined in SR-003 <br /> to be approved by the Division. The total financial warranty will be modified accordingly at Climax's <br /> anniversary date in March 2001. <br /> Please contact me at this address and number should you have any questions. <br /> Since ely, <br /> Bryce R. Romig <br /> Climax Molybdenum Company <br /> Climax Mine and Mill <br /> Cc: J. Fenn <br /> R. Mohr <br /> J. Cupp <br />