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Journey Ventures Pit SWSP Page 2 of 6 <br />March 21, 2017 <br /> <br />reservoir through the construction of a slurry wall around the mining area. The surface area of the <br />reservoir at the completion of mining is expected to be between 33 acres to 38 acres. <br />In accordance with the letter dated April 30, 2010 (copy attached) from the Colorado <br />Division of Reclamation, Mining, and Safety (“DRMS”), all sand and gravel mining operators <br />must comply with the requirements of the Colorado Reclamation Act and the Mineral Rules and <br />Regulations for the protection of water resources. The April 30, 2010 letter from DRMS <br />requires that you provide information to DRMS to demonstrate you can replace long term <br />injurious stream depletions that result from mining related exposure of ground water. The <br />DRMS letter identifies four approaches to satisfy this requirement. <br /> <br />In accordance with approach nos. 1 and 3, of the DRMS April 30, 2010 letter the <br />Applicant obtained a bond for $487,550 through the DRMS for phases 1, 2, 7 and 11a of this site <br />to assure that depletions from groundwater evaporation do not occur in the unforeseen event, <br />or events, that would lead to the abandonment of the Pit. <br /> <br />Depletions <br /> The anticipated net depletions for this SWSP are 61.78 acre-feet. A total of 2.15 acres of <br />water surface is exposed at the site in settling/recharge ponds for wash water and a sump for <br />pumping water to the batch plant. Gross annual evaporation at the gravel pit location is estimated <br />to be 46.0 inches per year and the monthly distribution is as depicted on the attached Table 1. Net <br />evaporation is defined as gross evaporation less the consumptive use of water by vegetation that <br />naturally occurred at the site prior to construction of the pit. The historical consumptive use was <br />assumed to be equal to the effective precipitation, which was estimated based on the data from <br />the Kersey weather station. The net evaporation for the exposed water surface is 38.4 inches per <br />year, with a monthly distribution as shown on the attached Table 1 and using the estimated <br />exposed water surface area of 2.15 acres, the total annual stream depletion resulting from the <br />exposure of groundwater is estimated to be 6.89 acre-feet. <br />You have provided a monthly breakdown of the annual depletions, which include 6.89 acre- <br />feet of net evaporative loss, 22.81 acre-feet of water lost with the mined product (which <br />represents 775,000 tons of mined product), 4.08 acre-feet of water used for dust control (based on <br />an estimated maximum amount of 4,000 gallons per day), and 28.0 acre-feet of water usage at the <br />batch plant (Table 2). <br />The IDS AWAS stream depletion model was used to determine the lagged depletions from <br />evaporation and operational losses to the South Platte River. The model in the previous SWSP used <br />the SDF effective mode, with a stream depletion factor (“SDF”) of 120 obtained from Plate-6 of <br />Hydrogeologic characteristics of the valley-fill aquifer in the Greeley reach of the South Platte <br />River valley, Colorado (Hurr and Schneider, 1973, USGS Open-File Report: 73-124). As requested in <br />the previous SWSP the IDS AWAS model was modified to use the alluvial aquifer option. The <br />following parameters were used in the model: transmissivity (T) = 100,000 gallons per day per foot, <br />distance (X) from the centroid of the surface of the exposed ground water to the river = 4,766 feet, <br />distance (W) from the aquifer boundary through the exposed ground water to the river channel = <br />9,500 feet, and specific yield (SY) = 0.2. The lagged depletions due to mining operations during the <br />SWSP period are shown in Table 3 and are estimated to total 39.14 acre-feet during this approval <br />period. <br />