2000-09-13_REVISION - M1977493 (3)

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Petition for Partial Rele f Financial Warranty Climax Molybdenum Co„wavy Permit #M-77 493 September 1, 1999 During conversion of the oxide tailings area to the Eagle Park Reservoir, one of these interim reclamation areas, C14, was graded and contoured and seeded (Figure 1). Tubeling aspens also were planted. Figure 28 shows this site in July 1999. C 14, along with the other small areas in the upper Eagle Valley, is bonded under the present financial warranty (Section 4.12, page 70). Since grading has been completed at C 14, Climax seeks a reduction in warranty for this site of. $2517• The remaining seven borrow areas will be reclaimed in the future. Therefore, the warranty for those sites remains unchanged. 3.7 Other Reclamation and Closure Costs - No. 7 Shaft Sealing No. 7 shaft is located in the Storke Complex along the north edge of the area (Figure 1). During underground operations at Climax, No. 7 shaft was the principal vent shaft for the underground workings. The shaft opening is circular and 28' in diameter. Beginning July 1, 1996, and ending September 30, 1996, Climax sealed this shaft with an engineered concrete cap. Prior to the capping operation, the hoist building, No. 7 shaft fan building, shaft turning vanes, and the compressor buildings were demolished and removed. The No. 7 shaft cap consists of steel I-beam supported pre-cast concrete panels with a poured-in- place finished slab. Over 89 cubic yards of concrete were used to close the shaft. The cap was designed and constructed by Ram Engineering of Miami, Arizona, in accordance with the DMG guidelines (General Bid Specifications, Colorado Inactive Mine Reclamation Program). Figure 29 is the as-built drawing of the cap. Figure 30 shows photos pertinent to sealing the shaft. Figure 31 show the shaft as of summer 1999. An inspection of the area by DMG (9/4/97) found the shaft to be sealed and in compliance with amended permit conditions. The current financial warranty for sealing the No. 7 Shaft is $30,750 (Section 6.0, page 90). Since this task has been completed, Climax seeks a reduction in warranty for this element of. $30,750. 3.8 Buildings Demolition Climax has been removing or demolishing buildings and structures at the site in accordance with the permit and the 1989 Amendment (AM-002) for many years. The large number of buildings that remain are individually bonded for removal/demolition and reclamation in the present warranty document. Section 5.0 of the document presents a compendium of buildings and structures that have yet to be demolished or removed. With the exception of two structures, this list is accurate. During the construction season of 1999. two additional buildings/structures were demolished and removed at Climax. Building 918 (Section 5.1. page 76), the Precon building, and Building #44 (Section 5.1, page 79), the No. 3 Thickener were demolished in August 1999. All of the 100419/Climax/Report.doc 10