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I ) OI <br />1876, <br />DEPARTMENT OF NATURAL RESOURCES <br />DIVISION OF WATER RESOURCES <br />August 11, 2015 <br />Mr. Jonathan M. Kelly <br />Wright Water Engineers, Inc. <br />818 Colorado Avenue, Suite 307, P.O. Box 219 <br />Glenwood Springs, Colorado 81602 <br />Re: Gypsum Ranch Pit, Substitute Water Supply Plan 1-1 <br />DRMS File No. M-1998-014 -- <br />N11/2 Section 3 and the NE1/4 Section 4, T5S, R85W, 6th PM <br />Water Division 5, Water District 37 <br />Approval Period: October 1, 2014 to September 30, 2015 <br />Contact Phone Number for Mr. Kelly: 970-945-7755 <br />Dear Mr.Kelly: <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Dick Wolfe, P.E. <br />Director/State Engineer <br />RECEIVE® <br />--AUG 21 2015 <br />DIVISION OF RECLAMATION, <br />MINING AND SAFETY <br />. We have reviewed your letter dated December 26, 2014 in which you requested <br />approval of a substitute water supply plan ("SWSP") pursuant to § 37-92-308(5), C.R.S., for the <br />replacement of stream depletions associated with the expansion of use at Gypsum Ranch Pit, <br />now operated by United Companies as of July 2013 ("United") in Eagle County. An application <br />for approval of a plan for augmentation has not been filed with the water court and the <br />depletions associated with the proposed water uses will not exceed five years, therefore this <br />request has been submitted pursuant to § 37-92-308(5), C.R.S. Notice was sent to all parties <br />who have subscribed to the SWSP notification list for Water Division 5. That notice was sent on <br />December 26, 2014 and the State Engineer's Office ("SEO") did not receive any comments <br />during the statutory 35 -day comment period. The $300 filing fee has been received (receipt no. <br />3667804). <br />SWSP Operations <br />The Gypsum Ranch Pit is located in the N '/z of Section 3 and the NE '/4 of Section 4, <br />Township 5 South, Range 85 West of the 6th P.M. in Eagle County. Groundwater is not <br />exposed at this site. The Gypsum Ranch Pit is currently operated pursuant to a plan for <br />augmentation decreed in Division 5 Water Court Case No. 2002CW211. This SWSP has been <br />requested to allow United to expand mining and water uses beyond the decreed amounts <br />outlined in Case No. 2002CW211. United will continue to operate the augmentation plan <br />decreed in Case No. 2002CW211 and this SWSP will replace out -of -priority depletions resulting <br />from the expanded mining operations only. <br />The existing water supply for the mining operation at this site is provided by a direct <br />diversion from the Eagle River known as the Gypsum Ranch Pipeline. The augmentation plan <br />decreed in Case No. 2002CW211 utilizes historical consumptive use credits from the dry -up of <br />15 acres of the C M Stremme and Gates Ditch to augment irrigation season depletions. The <br />depletions during the non -irrigation season are being replaced by two 40 -year leases with the <br />Office of the State Engineer <br />1313 Sherman Street, Suite 818 • Denver, CO 80203 • Phone: 303-866-3581 • Fax: 303-866-3589 <br />http://water.state.co.us <br />