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ir Mr. Pete Foster Page 2 of 4 October 21, 2013 Depletions The uses of water for the Simmons Pit during this approval period are expected to consist of 1.41 acre -foot of net evaporation from a water surface area not to exceed 0.49 acres (surface water diverted into the two on- channel ponds, no groundwater exposure)(See attached Appendix A) and 0.51 acre -feet for dust suppression. Under Colorado statutory law, ET credit can be utilized to offset the exposure of ground water only for streambed reservoirs and gravel pit ponds. Total consumptive use from the pit operation is expected to be 1.92 acre -feet with 1.17 acre -feet (See attached Table 1) occurring when the Carpenter and Mitchell Ditch is diverting and 0.75 acre -feet of uses occurring when there is no call. Replacement Water The mining operation is located on lands historically irrigated by the Carpenter and Mitchell Ditch. Simmons owns 2 cfs out of 2.33 cfs decreed to the M -13 water right (Case No. CA -1993) from Chicken Creek, a tributary to Mancos River. This water historically irrigated 85 acres and provides 0.99 AF /acre of historical consumptive use based on water physically available when in priority. The area to be mined is 32 acres of the northern part of the Simmons property. For this plan period, 32 acres in the northwest portion of the property (See Figure 1) will be dried -up and mined, and the historical consumptive use credits (HCU) (31.61 acre -feet, 30.2 acre -feet after pond evaporation) will be used for the mining operation. There are times when the M -13 water right will be out of priority. When this occurs FMC will haul water from Mancos or haul M &I water from Jackson Gulch Reservoir. The HCU credits will be measured in a 6 -inch Parshall flume, which was installed on August 29, 2012, and is fed by a pipe that delivers water to the north side of the Simmons property from the Carpenter & Mitchell Ditch. It is placed in a turnout so that it can be measured separately from the water that will be used for irrigation. After being measured, the water, along with a 10% transit loss and historical groundwater return flow obligations will be delivered to two ponds onsite near the gravel operation. The groundwater return flow obligation will lag back to the stream system at the same rate that had historically occurred under irrigation where the mining now occurs. Water placed into the ponds is expected to infiltrate quickly due to gravely nature of the soils. The surface return flow obligation of the dry-up area will be delivered to the stream via a surface drainage that runs through the property to Mud Creek, a tributary to Mancos River, or allowed to remain in Chicken Creek as needed for water administration as determined by the Colorado Division of Water Resources. Conditions of Approval I hereby approve the proposed substitute water supply plan in accordance with Section 37 -92- 308(5), C.R.S., subject to the following conditions: 1. This SWSP shall be valid for the period of August 25, 2013 through August 24, 2014, unless otherwise revoked, modified, or superseded by decree. Should an additional SWSP be requested, the provisions of § 37- 92- 308(5)(b), C.R.S., shall apply. The statutory fee of $300 will be required pursuant to § 37 -92- 308(8), C.R.S. 2. In accordance with § 37 -92- 308(5), C.R.S., this SWSP cannot be renewed or approved for more than five years. This approval is for the fourth year of operation.