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Cynthia L. Schmid and <br />Michael G. Erker <br />Case No. 11CW269 <br />Page 3 of 5 <br />c. Source. South Platte River and its tributaries. <br />d. Appropriation Date. January 27, 1987 <br />e. Amount. 17 acre-feet, absolute, for piscatorial and recreation purposes; and 3.1 <br />acre-feet, absolute, and 13.9 acre-feet, conditional, for the beneficial use of the <br />extraction of sand and gravel; as decreed in Case No. 98CW437 (May 27, 1999). <br />8. Activities Performed Toward Completion of Appropriation and Application of Water to <br />Beneficial Use as Conditionally Decreed. In support of the Application, Applicants <br />maintained an active mining permit and paid annual fees to the Colorado Department of <br />Natural Resources, Division of Reclamation, Mining and Safety in accordance with <br />C.R.S. § 34-32.5-116. They have posted a Financial Warranty/Letter of Credit with the <br />Colorado Division of Minerals & Geology to allow for continuation of mining operations <br />under the mining permit. <br />Consistent with the augmentation plan approved in Case No. 87CW011, Applicants <br />replaced all out -of -priority depletions associated with the recreational use of the gravel <br />pit on the property during the diligence period, and communicated with a Division <br />of Water Resources representative concerning the frequency of accounting and reporting <br />under that plan. <br />Applicants continue to explore opportunities for selling or leasing gravel at Erker Gravel <br />Pit. Due to economic conditions, Applicants were not able to put additional amounts of <br />the conditional portion of their water right to the beneficial use of the extraction of sand <br />and gravel during the diligence period. Applicants expect to resume gravel mining, and <br />have maintained the legal right to do so in the future. <br />9. Finding of Diligence. In support of the Application, Applicants provided a detailed <br />outline of work performed and expenditures made during the diligence period toward <br />development of Erker Gravel Pit. The Referee finds that the work and expenditures <br />described in the Application constitute reasonable diligence in the development of the <br />conditional portions of the subject water right and the Application should be granted. <br />CONCLUSIONS OF LAW <br />1. The foregoing Findings of Fact are incorporated herein to the extent they constitute <br />conclusions of law. <br />2. The Application filed in this case is complete, covering all applicable matters required <br />under C.R.S. §37-92-301(4). <br />3. Timely and adequate notice of the application was given in the manner required by law, <br />