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_Pv` <br />Climax Molybdenum <br />A Freeport-McMoRan Company <br />April 30, 2011 <br />,fiony Waldron <br />Division of Reclamation, Mining and Safety <br />Department of Natural Resources <br />1313 Sherman St. 'Room 215 <br />Denver, Colorado 80203 <br />COLORADO OPERATIONS <br />Henderson Mill <br />P.O. Box 68 <br />Empire, CO 80438 <br />Phone (303) 569-3221 <br />Fax (303) 569-2830 <br />RFCFIW <br />N Y Cl ?n11 <br />LI'?ISiorf t, : ;?t??tlit?ldh; <br />?CNinitig gh? ?i <br />Re: Climax Molybdenum Company, Henderson Operations, MLRB Permit Number M-1977-342, <br />,,Mining Operation with Exposed Groundwater <br />Dear Mr. Waldron: <br />This letter addresses the DRMS letter of April 30, 2010 requesting those sand and gravel mining <br />operations having exposed groundwater contact the Division with an approach to managing replacement <br />of depletions from sand and gravel mining. Climax Molybdenum Company, Henderson Operations, <br />administers, under the above permit number, an aggregate operation adjacent to the Henderson Mill that <br />appears to meet the criteria upon which the September 2009 SEO guidance for replacement of depletions <br />and the requirement to obtain a well permit would apply. <br />Under the four alternatives presented by the Division to address exposed groundwater in the aggregate <br />operation at the Henderson Mill, Climax will pursue augmentation of the depletions through exercise of its <br />existing water rights located in the Williams Fork Valley. This exercise will be coupled with the application <br />for a well permit to account for depletions associated with the existing water pool in the pit. Climax <br />commits to updating the Division on progress toward both instruments by no later than September 30, <br />2011. <br />We will alternatively and concurrently evaluate a post-mining configurations and associated costs for <br />backfill of the Henderson Mine aggregate operation. We look forward to discussing this item during your <br />pending visit to the Henderson Mill. <br />Please contact me at (303) 569-3221 if you have any questions regarding this information. <br />Sincerely, <br />r? <br />Bryce Romig <br />Environmental Manager <br />Climax olybdenum Company <br />cc: Peter Hays, DRMS