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Based on preliminary calculations, the unappropriated water from the San Juan River appears to be adequate for <br />water used for mining purposes. <br />Colorado soil management and conservation rules will be implemented to protect surface and ground water quality <br />and improve watershed management. <br />Colorado water law is based on the prior appropriation doctrine, which states that the first appropriator in time has <br />the first priority to take and apply water to beneficial use without waste. The right to divert the unappropriated waters <br />of any natural stream to beneficial uses is never to be denied under Colorado's constitution; the Colorado water <br />courts grant decrees to use water and set priorities. The Colorado State Engineer and the Division of Water <br />Resources administer the water rights according to the priorities, measure flows, and record the use of water. <br />Colorado's compact apportionment can be derived from many river sources, including the San Juan River. <br />Numerous water rights exist in Colorado on the San Juan River mainstem upstream of Navajo Dam and on <br />tributaries to the San Juan River. <br />The original Ute Indian reservations were carved out of the historical Ute homelands in 1868. The present lands of <br />the Ute Mountain Ute and Southern Ute Indian Tribes are in southwestern Colorado and northwestern New Mexico. <br />The Ute Mountain Ute lands include 890 square miles in Colorado and New Mexico. Southern Ute Indian trust lands <br />include 470 square miles within the Tribe's 1,250 square miles of checkerboard reservation. Seven rivers in <br />southwestern Colorado flow through the Southern Ute Indian and Ute Mountain Ute reservations. The Colorado Ute <br />Indian Water Rights Final Settlement Agreement was signed on December 10, 1986, and quantified the Colorado <br />Ute Tribes' water rights. <br />C &J Gravel Products, Inc. Page 34 01 JAN 2015 <br />Application for Permit: Two Rivers Pit M -2015- C &J- TRP -V5 -001 <br />