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Stephen Buechner, Applegate Group Page 5 <br /> October 20, 2014 <br /> 11. In accordance with the letter dated April 30, 2010 (copy attached) from the <br /> Colorado Division of Reclamation, Mining, and Safety ("DRMS"), all sand and <br /> gravel mining operators must comply with the requirements of the Colorado <br /> 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 <br /> information to DRMS to demonstrate you can replace long term injurious stream <br /> depletions that result from mining related exposure of ground water. <br /> In accordance with approach nos. 1 and 3, you have indicated that a bond has <br /> been obtained for $1,174,724 through the Division of Reclamation, Mining, and <br /> Safety ("DRMS") to assure that depletions from groundwater evaporation do not <br /> occur in the unforeseen event, or events, that would lead to the abandonment of <br /> the Pit. In addition, Front Range Aggregates owns and has dedicated five shares <br /> of Twin Lakes Reservoir and Canal Company to cover these potential long term <br /> depletions. Front Range Aggregates must continue to commit those shares to this <br /> plan until such time as the State Engineer authorizes the release of this <br /> commitment. <br /> 12. This substitute water supply plan may be revoked or modified at any time should it be <br /> determined that injury to other vested water rights has or will occur as a result of this <br /> plan. Should this substitute water supply plan expire without renewal or be revoked prior <br /> to adjudication of a permanent plan for augmentation all use of water at the pit must <br /> cease immediately. <br /> 13. In accordance with amendments to §25-8-202(7), C.R.S., and "Senate Bill 89-181 <br /> Rules and Regulations" adopted on February 4, 1992, the State Engineer shall <br /> determine if this substitute water supply plan is of a quality to meet requirements of <br /> use to which the senior appropriation receiving the substitute supply has normally <br /> been put. As such, water quality data or analyses may be requested at any time to <br /> determine if the requirement of use of the senior appropriator is met. <br /> 14. The decision of the State Engineer shall have no precedential or evidentiary force, <br /> shall not create any presumptions, shift the burden of proof, or serve as a defense <br /> in any water court case or any other legal action that may be initiated concerning <br /> the substitute water supply plan. This decision shall not bind the State Engineer to <br /> act in a similar manner in any other applications involving other plans or in any <br /> proposed renewal of this plan, and shall not imply concurrence with any findings of <br /> fact or conclusions of law contained herein, or with the engineering methodologies <br /> used by the Applicant. <br /> Should you have any questions, please contact Caleb Foy of this office or Charlie <br /> DiDomenico, Augmentation Coordinator, in our Division 2 office in Pueblo at (719) 542-3368. <br />