2001-03-09_REVISION - M1977493

• Permit No: M1977493
• IBM Index Class Name: REVISION
• Doc Date: 3/9/2001
• Doc Name: Hearing Request
• From: Climax
• To: DMG
• Type & Sequence: SR3
• Media Type: D
• Archive: No

CLIMAX MOLYBDENUM COMPANY Climax Mine
A Subsidiary of Phelps Dodge Mining Company Hwy 91
Climax, Colorado 80429
(7191 486-2150
Fax[phone]
March 8, 2001 RECEIVED
Via Hand Delivery MAR 0 9 2001
Mr. Allen Sorenson
Division of Minerals and Geology Division of Minerals and Geology
1313 Sherman Street, Room 215
Denver, CO 80203
RE: Partial Reclamation Liability Release and Financial Warranty Adjustment, Climax
Mine, Permit No M-1977-493
Dear Mr. Sorenson:
The Climax Molybdenum Company, Climax Mine("Climax")is in receipt of the Division of
Minerals and Geology's("DMG")letter of February 22,2001 concerning status of Revision No.
Z.�-03 for the above referenced permit. Climax has conducted a cursory review of the letter and
the additional bond calculation material that you provided. As we discussed on the phone on
March 1, the correspondence was confusing in that the surety reduction response was coupled to
a 60-day Office Notice including a recalculation and a substantial increase in the bonded amount
for the Climax Mine.
Climax, in accordance with Rule 4.18 of the Hard Rock/Metal Mining Rules and Regulations
("Rules"), appeals the DMG decision by letter dated February 22, 2001 regarding Climax's
request for a partial reduction in its Financial Warranty. The February 22, 2001 letter limits and
appears to partially disapprove of Climax's Surety Reduction Request. That Request was
submitted to DMG by letter dated September 12, 2000 and designated by DMG as Revision SR-
03. Climax requests a hearing before the Mined Land Reclamation Board regarding this appeal.
Attached is a Statement of Factual and Legal Issues for this appeal as specified in Rule 4.18.
Climax reserves the right to supplement this list of issues prior to the hearing as further
information is obtained.
Climax also requests a hearing before the Mined Land Reclamation Board regarding DMG's
request for Climax to increase its Financial Warranty to the total amount of$63,037,575, as set
forth in the February 22, 2001 letter, in accordance with Rule 4.2.1(2). Rule 4.2.1(2)states that if
the Operator disagrees with the Office Notice to Increase the Financial Warranty,the Office shall
schedule the matter for a hearing before the Board. Climax disagrees with the amount of the
Financial Warranty as proposed in DMG's February 22, 2001 letter. Climax is still reviewing the
new amount of the Financial Warranty as proposed by DMG, which is very complex. Because
these two matters are closely related, Climax requests that they be combined for hearing.
While this letter is intended to preserve our right to appeal DMG's actions before the Board,
Climax believes that the opportunity exists to discuss the concerns raised in DMG's February 22,
2001 correspondence and to reach agreement concerning the final surety amount. Assuming
that DMG and Climax can reach consensus on the issues prior to an established hearing date,
Climax is more than willing to hold this request in abeyance. Climax is also willing to address the
concerns raised by DMG outside of the context of SR-03.
Climax has identified that the 60-day time frame for completing the submittal of an increased
bond amount is April 21, 2001. Based on the complexity of the Climax Reclamation Bond, Climax
would like to meet with DMG to discuss and attempt to resolve these matters, if possible, prior to
a hearing. To provide sufficient time for these discussions, Climax proposes that these matters