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Ms. Angela Aldred <br />November 25, 2015 <br />Page 2 of 5 <br />In accordance with the letter dated April 30, 2010 from the Colorado Division of Reclamation, <br />Mining, and Safety ("DRMS"), all sand and gravel mining operators must comply with the <br />requirements of the Colorado Reclamation Act and the Mineral Rules and Regulations for the <br />protection of water 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 depletions <br />that result from mining related exposure of ground water. According to the renewal request, <br />the long term plan for the site is to construct reservoir liners adequate to prevent the <br />infiltration of tributary ground water. Therefore, please provide an explanation and/or <br />documentation that a financial warranty sufficient to cover the cost of installing a clay <br />liner or slurry wall that meets the Division of Water Resources requirements for <br />preventing ground water exposure has been filed, in accordance with approach no. 3 of <br />the April 30, 2010 letter from DRMS, with the next SWSP renewal request. <br />DEPLETIONS <br />Well permit no. 54064-F (WDID 1406561) was obtained to expose water in this pit. Depletions <br />under this plan consist of evaporation from 3.5 acres of exposed ground water within Phase (- <br />Parcel 4 of the mine site. The total of 3.5 acres of exposed ground water will result in 12.07 <br />acre-feet of evaporative loss (see attached Table 1) under this SWSP. <br />A Glover analysis was utilized to determine lagged depletions to the stream from exposure of <br />3.5 acres of ground water. The Glover analysis utilized the following parameters: <br />• Transmissivity - 100,000 gallons/day/foot <br />• Storage Coefficient - 0.20 <br />• Distance to the Stream - 2,400 feet <br />• Distance to No -Flow Boundary - 5,000 feet <br />Based on the lagging described above and as shown in Table 3, attached, lagged stream <br />depletions occurring during this SWSP plan year were determined to total 9.18 acre-feet. <br />Projected post -2015 plan year depletions are calculated to be 2.89 acre-feet. Explanation <br />and/or documentation for the distance to the stream and the distance to no -flow <br />boundary parameters utilized in the above -referenced Glover analysis must be included <br />with any renewal request for this SWSP. <br />REPLACEMENT <br />During April 2015 through March 2016, 15 acre-feet of fully consumable replacement credits <br />from the Arkansas Groundwater Users Association ("AGUA") available pursuant to a 1 -year lease <br />(April 1, 2015 - March 31, 2016), will be provided to cover mining depletions. The credits will be <br />generated through the delivery of fully consumable water available to AGUA from the Board of <br />Water Works of Pueblo, from the City of Aurora, or from the Pueblo West Metropolitan District, <br />to AGUA's Excelsior Recharge Ponds located immediately west of Chico Creek. The lease <br />provides that AGUA will deliver up to 15 acre-feet to the Arkansas River by means of recharge <br />ponds on the Excelsior Ditch. Attached Table 3 shows the proposed monthly replacement <br />schedule for the 2015 - 2016 plan year. Projected post plan depletions will be replaced with 2.9 <br />acre-feet of fully consumable water from AGUA. According to the renewal request, "AGUA has <br />1313 Sherman Street, Room 821, Denver, CO 80203 P 303.866.3581 F 303.866.3589 www.water.state.co.us <br />