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Mr. Paul Bruss July 29, 2015 Page 3 Table 2. The 55.2 acres provide an annual stream depletion credit of 136.38 acre-feet (150.27 acre-feet credit during April through October and a return flow obligation of 13.89 acre-feet during winter months). 60 shares of Twin Lakes Reservoir water will be used to supply the replacement water for the winter months. Transit Mix will require Twin Lakes release of approximately 44.26 acre-feet in 2015 and 48.86 acre-feet in 2016. This water is subject to a 7.81 percent transit loss (0.07% per mile for 111.6 miles) for delivery to the Grisenti site. The proposed replacement schedule for this SWSP's approval period is shown in the attached Table 3. LONG TERM AUGMENTATION 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. Approach nos. 1 and 3 require bonding to ensure the pit can be backfilled or lined. The 4"' approach requires documentation to identify what water rights or other permanent water source will be dedicated to the SWSP to assure that all permanent depletions from either an unforeseen abandonment of the site by the Applicant or as a result of long term ground water exposure after completion of mining and reclamation will be replaced so as to prevent injury to other water rights In accordance with approach nos. 1 and 3, a bond for $115,000 has been obtained through DRMS. It is our understanding that this may be used for backfilling of the sediment pond and water basin, but is not adequate for backfilling of the Phase 2 mining pit. Therefore, in accordance with approach no. 4, you have indicated that the mineral lease between the Applicant and the landowner provides for the Applicant's use of the Lester-Attebery water rights in connection with the mining operation. You have indicated that the Applicant intends to fully utilize the Lester- Attebery Ditch rights as the sole replacement supply for a long-term augmentation plan for the Grisenti Pit. For the purposes of this SWSP, the lease agreement will be accepted for the dedication of the subject water rights; however, if the State Engineer determines that a different dedication process is necessary to assure proper dedication of water rights, additional information may be required prior to future SWSP approvals. CONDITIONS OF APPROVAL This SWSP is hereby approved pursuant to § 37-90-137(11), C.R.S., subject to the following conditions: 1. This plan shall be valid for the period of February 1, 2015 through January 31, 2017, unless otherwise revoked, modified, or superseded by decree. If this plan will not be made absolute by a water court action by the plan's expiration date, a renewal request must be submitted to this office with the statutory fee of $257 no later than December 15, 2016. 2. The total surface area of the ground water exposed after December 31, 1980 shall not exceed 37.1 acres for the period of February 2015 through January 2016 and shall not exceed 42.1 acres for the period of February 2016 through January 2017. Should the total surface area exposed exceed those amounts, an amendment to this plan shall be filed with this office.