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Nelson Mining Resource SWSP Page 4 of 8 <br />February 3, 2015 <br />Nelson Mining Resource operation, which the Mined Land Reclamation Board has determined equals <br />the estimated costs of reclamation. The reclamation plan for the Nelson Pit is to place a compacted <br />clay liner around the interior of the mine slopes for the purpose of preventing groundwater seepage <br />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 evaporation <br />do not occur in the unforeseen event or events that would lead to the abandonment of the Pit. <br />Future SWSPs for this site will not authorize any additional use of ground water until the <br />Applicant provides documentation that a bond sufficient to cover lining or backfilling of the pit <br />has been obtained. <br />In addition, according to the information provided you indicated that the land owner Mr. <br />Howard Nelson has entered into a lease agreement with the applicant, which states that Lessor will <br />grant to Lessee the water rights associated with the property for processing and augmentation during <br />the term of the lease. The term of the lease is for a period of 20 years from the date entered into <br />the agreement, which was April 18, 2001. Upon termination of the lease, the Lessee shall continue <br />to be liable for the completion of reclamation plans. <br />Conditions of Approval <br />I hereby approve the proposed substitute water supply plan in accordance with §37 -90- <br />137(11), C.R.S. subject to the following conditions: <br />1. This SWSP shall be valid for the period of November 1, 2014 through March 31, 2015, unless <br />otherwise revoked, modified, or superceded by decree. The plan will be extended until <br />October 31, 2015 if the necessary measuring and recording devices to measure the <br />changed Last Chance Ditch water proposed to be used as a replacement water source are <br />installed and approved by the water commissioner by April 1, 2015. If this plan will not be <br />made absolute by a water court action by the plan's expiration date, a renewal request must <br />be submitted to this office with the statutory fee (currently $257) by February 28, 2015 or <br />August 15, 2015. <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 S 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 7.5 <br />acres, which results in a maximum evaporative annual loss of 17.69 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. By the next renewal request the Applicant must demonstrate that the acres claimed in <br />the HCU analysis located on the east side of the Nelson Farm (specifically 12.28 acres in <br />