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Kauffman No. 1 SWSP Page 3 of 6 December 21, 2015 Under the terms of the lease, replacements can be made using a variety of water owned by Loveland including, but not limited to, Windy Gap reusable effluent, water stored in Loveland Storage Reservoir (commonly known as Green Ridge Glade Reservoir) (WDID 0403659) as decreed in case no. 82CW202A, and Colorado Big Thompson Project ("C-BT") water. In the event that Loveland plans to use C-BT water as a replacement source, Loveland shall comply with the Interim Rule issued by the Northern Colorado Water Conservancy District ("Northern District") in May 2005, regarding the use of Colorado-Big Thompson ("CBT") Project water in substitute water supply plans. Prior to such use of C-BT Project water, Loveland is required to notify this office, the division engineer and the water commissioner of the amount of C-BT Project water dedicated to this plan and provide a copy of the Northern District's approval letter as required by paragraph I(g) of the Northern District's May, 2005 Interim Rule. The monthly depletions and replacement requirements are indicated on the attached Table 4. A four (4) percent transit loss from Green Ridge Glade Reservoir to the Kauffman No. 1 Pit has been applied to the required replacement water deliveries. Long Term Augmentation In accordance with the attached letter dated April 30, 2010 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. Unlined ponds will create long term injurious stream depletions unless otherwise augmented. 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 #4 is to obtain approval from the Division of Water Resources that acknowledges compliance with the SEO's requirements pursuant to S 37-90-137(11), C.R.S. Since the operator has backfilled the site so that only pre-81 groundwater areas remain, there are no Long terms injurious stream depletions from mining related exposure of groundwater, and the operator is considered to be in compliance with the SEO's requirements. In addition, there is currently a surety bond outstanding for this project in the amount of $84,440.00 to assure the reclamation of the site is completed as currently proposed. Conditions of Approval I hereby approve the proposed substitute water supply plan in accordance with S 37-90- 137(11), C.R.S., subject to the following conditions: 1. This plan is approved with the effective date of January 1, 2016 and shall be valid through December 31, 2016 unless otherwise revoked or modified. If depletions (lagged or projected) will extend beyond the plan's expiration date, a renewal request must be submitted to this office with the statutory fee (currently $257) no later than November 15, 2016. According to the projection shown in the attached Table 3, lagged depletions will extend through January 2019. 2. Well permit no. 42901-F was obtained for this gravel pit in accordance with S 37-90-137(2) and (11), C.R.S. On April 6, 2010 the location of this permit was amended in accordance with the Policy Memorandum 93-1 to reflect the actual location of the gravel pit. The permit allows ground water use for dewatering, evaporation, water lost in mined product, gravel washing, and dust control. The permit allows a maximum annual appropriation of 43.38 acre-feet, and