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Nelson Mining Resource SWSP November 12, 2013 Page 4 of 6 Nelson Pit. Adequate measuring devices acceptable to the water commissioner must be installed. 7. The Applicant is required to maintain the historical return flow obligations that are associated with the use of the 0.434 shares of Last Chance Ditch water used for replacement purposes in this plan. 8. The replacement water that is the subject of this plan cannot be sold or leased to any other entity. As a condition of subsequent renewals of this substitute water supply plan, the replacement water must be appurtenant to this site until a plan for augmentation is obtained. All replacement water must be concurrent with depletions in quantity, timing, and locations. 9. Adequate accounting of depletions and replacements must be provided to the division engineer in Greeley (Div1Accounting(cD-state.co.us) and the water commissioner (Shera Sumerford at Shera.Sumerford(aD-state.co.us) on a monthly basis or other interval acceptable to both of them. The accounting form provided with your application is subject to modification and approval by the division engineer. Submitted accounting shall conform to the Administration Protocol "Augmentation Plan Accounting, Division One — South Platte River" (attached). In addition, the Applicant shall verify that the City of Longmont ( "Longmont ") has submitted a report to the Division Engineer that includes an accounting of all replacement water controlled by Longmont, showing the total volume of water under its control and the amount committed to each of the recipients of the water, including the water committed to this plan. 10. The name, mailing address, and phone number of the contact person who will be responsible for operation and accounting of this plan must be provided on the accounting forms to the division engineer and water commissioner. 11. The approval of this substitute water supply plan does not relieve the Applicant and /or landowner of the requirement to obtain a Water Court decree approving a permanent plan for augmentation or mitigation to ensure the permanent replacement of all depletions, including long -term evaporation losses and lagged depletions after gravel mining operations have ceased. If reclamation of the mine site will produce a permanent water surface exposing groundwater to evaporation, an application for a plan for augmentation must be filed with the Division 1 Water Court at least three (3) years prior to the completion of mining to include, but not be limited to, long -term evaporation losses and lagged depletions. If a lined pond results after reclamation, replacement of lagged depletions shall continue until there is no longer an effect on stream flow. 12. In accordance with the letter dated April 30, 2010 (copy attached) from the Colorado Division of Reclamation, Mining, and Safety ( "DRMS "), all sand and gravel mining operators must comply with the requirements of the Colorado Reclamation Act and the Mineral Rules and Regulations for the protection of water resources. The April 30, 2010 letter from DRMS requires that you provide information to DRMS to demonstrate you can replace long term injurious stream depletions that result from mining related exposure of ground water. The DRMS letter identifies four approaches to satisfy this requirement. If the information you are providing to DRMS is included under the approaches numbered 1 — 3, a copy of that information needs to also be provided to this office (the Division of Water Resources). In accordance with approach nos. 1 and 3, you have indicated that a bond has been obtained for $186,814.00 through the Division of Reclamation, Mining, and Safety ( "DRMS "). This bond is for reclamation requirements under the current permit but may not be sufficient for lining or backfilling the pit to ensure that depletions from groundwater evaporation do not occur in the unforeseen event or events that would lead