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Wagner/Kaufmann No. 3 SWSP Page 3 of 6 <br />December 21, 2015 <br />Kauffman No. 1 Pit (M-1978-327, WDID 0403009). A total of 4.54 acre-feet of water has been <br />dedicated to the Kauffman No. 1 Pit SWSP (WDID 0402530) during this plan period. The duration of <br />the lease is from January 1, 2015 through December 31, 2018. <br />Under the terms of the lease, replacements can be made using a variety of water owned by <br />Loveland including, but not limited to, Windy Gap reusable effluent, water stored in Loveland <br />Storage Reservoir (commonly known as Green Ridge Glade Reservoir) (WDID 0403659) as decreed in <br />case no. 82CW202A, and Colorado Big Thompson Project ("C -BT") water. In the event that Loveland <br />plans to use C -BT water as a replacement source, Loveland shall comply with the Interim Rule issued <br />by the Northern Colorado Water Conservancy District ("Northern District") in May 2005, regarding the <br />use of Colorado -Big Thompson ("CBT") Project water in substitute watersupply plans. Prior to such <br />use of C -BT Project water, Loveland is required to notify this office, the division engineer and <br />the water commissioner of the amount of C -BT Project water dedicated to this plan and provide <br />a copy of the Northern District's approval letter as required by paragraph 1(g) of the Northern <br />District's May, 2005 Interim Rule. <br />The monthly depletions and replacement requirements are indicated on the attached Table 5. <br />A four (4) percent transit loss from Green Ridge Glade Reservoir to the W -K #3 Pit has been applied <br />to the required replacement water deliveries. <br />Long Term Augmentation <br />In accordance with the attached letter dated April 30, 2010 from the Colorado Division of <br />Reclamation, Mining, and Safety ("DRMS"), all sand and gravel mining operators must comply with <br />the 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 that <br />result from mining related exposure of ground water. The DRMS letter identifies four approaches to <br />satisfy this requirement. Approach #3 is to file a financial warranty to cover the cost of installing a <br />liner. There is currently a surety bond outstanding for this project in the amount of $570,000 to <br />assure the reclamation of the site is completed as currently proposed. <br />Conditions of Approval <br />I hereby approve the proposed substitute water supply plan in accordance with §37-90- <br />137(11), C.R.S., subject to the following conditions: <br />1. This plan is approved with the effective date of January 1, 2016 and shall be valid <br />through December 31, 2016 unless otherwise revoked or modified. If either lagged or <br />projected depletions will extend beyond the plan's expiration date, a renewal request <br />must be submitted to this office with the statutory fee (currently $257) no later than <br />November 15, 2016. According to the projection shown in the attached Table 4, <br />lagged depletions will extend through December 2017. <br />2. A well permit was obtained for the current use and exposed pond surface area of the <br />gravel pit in accordance with 5 37-90-137(2) and (11), C.R.S., permit no. 65258-F. <br />3. The total surface area of the groundwater exposed after December 31, 1980 must not exceed <br />0.03 acres, which results in a maximum evaporative annual loss at the Wagner/Kauffman No. <br />3 Pit of 0.071 acre-feet. <br />4. If it is determined that the water in the lined pit includes ground water, then this SWSP must <br />