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Nelson Mining Resource SWSP <br />November 12, 2013 <br />Long Term Augmentation <br />Page 3 of 6 <br />In accordance with the letter dated April 30, 2010 from the Colorado Division of Reclamation, <br />Mining, and Safety ( "DRMS "), all sand and gravel mining operators must comply with the requirements <br />of the Colorado Reclamation Act and the Mineral Rules and Regulations for the protection of water <br />resources. The April 30, 2010 letter from DRMS requires that you provide information to DRMS to <br />demonstrate you can replace long term injurious stream depletions that result from mining related <br />exposure of ground water. In accordance with approach number 1, Asphalt Specialties Co. has <br />submitted a financial warranty in the amount of $186,814.00 for the Nelson Mining Resource operation, <br />which the Mined Land Reclamation Board has determined equals the estimated costs of reclamation. <br />The reclamation plan for the Nelson Pit is to place a compacted clay liner around the interior of the <br />mine slopes for the purpose of preventing groundwater seepage from entering the pit. <br />This bond is for reclamation requirements under the current permit but may not be <br />sufficient for lining or backfilling the pit to ensure that depletions from groundwater <br />evaporation do not occur in the unforeseen event or events that would lead to the abandonment <br />of the Pit. Future SWSPs for this site will not authorize any additional use of ground water until <br />the Applicant provides documentation that a bond sufficient to cover lining or backfilling of the <br />pit has been obtained. <br />In addition, according to the information provided you indicated that the land owner Mr. Howard <br />Nelson has entered into a lease agreement with the applicant, which states that Lessor will grant to <br />Lessee the water rights associated with the property for processing and augmentation during the term <br />of the lease. The term of the lease is for a period of 20 years from the date entered into the agreement, <br />which was April 18, 2001. Upon termination of the lease, the Lessee shall continue to be liable for the <br />completion of reclamation plans. <br />Conditions of Approval <br />I hereby approve the proposed substitute water supply plan in accordance with §37 -90- 137(11), <br />C.R.S. subject to the following conditions: <br />The SWSP shall be valid for the period of November 1, 2013 through October 31, 2014, unless <br />otherwise revoked, modified, or superseded by decree. If this plan will not be made absolute by <br />a water court action by the plan's expiration date, a renewal request must be submitted to this <br />office with the statutory fee (currently $257) no later than August 1, 2014. <br />2. Well permit no. 76171 -F was obtained for the current use and exposed water surface area of <br />the gravel pit in accordance with § 37 -90- 137(2) and (11), C.R.S. <br />3. The total surface area of the groundwater exposed at the Nelson Pit site must not exceed 12.6 <br />acres, which results in a maximum evaporative annual loss of 30.75 acre -feet. <br />4. Total consumption at the Nelson Pit site must not exceed these aforementioned amounts unless <br />an amendment is made to this plan. <br />5. Approval of this plan is for the purposes as stated herein. This office must first approve any <br />additional uses for the water. Any future additional historic consumptive use credit given (e.g., <br />agricultural water transfer) for this site must consider all previous credits given. <br />6. The water attributable to 0.434 shares of the Last Chance Ditch must continue to be diverted in <br />priority at the ditch and reservoir then measured back to the St. Wain Creek in the vicinity of the <br />