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f <br />Page 2 <br />Platte water users on two other occasions, with Jeff and various attorneys representing <br />concerned water users separately, and finally with the gravel industry again. In the last <br />meeting, the State Engineer presented the following proposed procedure to the gavel <br />industry. The State Engineer's staff had previously discussed this proposal with the <br />water user representatives, who indicated that it would probably be acceptable. <br />Proposed Procedure <br />1. The SEO will process gravel pit SWSPs as historically done (see above), if the <br />re lacement water utilized in the plan is fully consumable or decreed for <br />augmentation. <br />2. The SEO considers water removed in the product to be a part of evaporative <br />los e . <br />3.�the proposed SWSP utilizes water rights other than fully consumable or decreed <br />for augmentation, the SEO will require that the owner /operator file with the <br />appropriate water court an right pursuant to § 37- <br />92- 308(4). Once the owner /operator files the change in water right application, <br />the SEO may utilize the consumptive ust value of that water right in the pending <br />SWSP, so long as the 308 provisions are complied with. The SEO would then <br />issue a 137(l 1) plan and a 308(4) plan for the same operation. <br />The gravel industry expressed the following concerns about the proposed procedure. <br />First, the proposed procedure does not allow for flexibility in the operation of the gravel <br />pit. Second, once the change of water right is before the water court, numerous parties, <br />some of whom have no water rights, cause delays in the proceedings. Lastly, the gravel <br />industry already submits it's engineering to the SEO and the SEO already has two outside <br />engineering consultants review the consumptive use data. With the proposed procedure <br />the gravel industry is now going to have to convince a court that may not have the <br />engineering expertise, which will expensive. <br />After considering the gravel industry's concerns described above, the State Engineer <br />proposes that, to maintain the maximum flexibility desired by the gravel industry while at <br />the same time requiring the gravel pit owner /operator to apply to water court for changes <br />in water rights, that a SWSP would allow the gravel pit owner /operator the ability to <br />utilize the replacement water along the entire stretch of a stream (i.e. Poudre or St. <br />Vrain), and would support the incorporation of some flexibility into the decree for the <br />duration of the changed use. <br />4 <br />