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<br />Mr. Paul Bruss, P.E. June 20, 2017 <br /> Page 2 of 4 <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. The DRMS letter identifies four <br />approaches to satisfy this requirement. Approach nos. 1 and 3 require bonding to ensure the <br />pit can be backfilled or lined. The 2nd approach requires making application to the Division 2 <br />Water Court for a plan for augmentation to replace long term stream depletions that result <br />from exposure of ground water. The 4th approach requires documentation to identify what <br />water rights or other permanent water source will be dedicated to the SWSP to assure that all <br />permanent depletions from either an unforeseen abandonment of the site by the Applicant or <br />as a result of long term ground water exposure after completion of mining and reclamation <br />will be replaced so as to prevent injury to other water rights. Accordingly, South Forty has <br />made application for approval of a plan for augmentation with the Division 2 Water Court in <br />case no. 17CW3021. <br /> <br />DEPLETIONS <br /> <br />The Canon City East pit is presently undergoing reclamation in accordance with the DRMS <br />permit. The only depletions covered under this SWSP are evaporative depletions from onsite <br />gravel pits shown in Figure 1. Evaporative depletions were calculated using the maximum <br />surface area of the pit, which is 22.6 acres (7.2 acres of post-1981 exposed ground water). <br />Therefore, based upon net annual evaporation of 3.1 feet per year, the maximum total <br />annual evaporative depletion will be 22.32 acre-feet (see Table 1, attached). <br /> <br />Depletions have been lagged back to the Arkansas River using a Glover analysis with the <br />following parameters (as shown in the attached Table 2): <br /> <br /> Distance from river: 510 ft <br /> Distance from alluvial boundary: 1,730 ft <br /> Transmissivity: 26,000 gpd/ft <br /> Specific yield: 0.2 <br /> <br />As shown on that attached Table 3a, you have calculated the total lagged depletions to be <br />22.32 acre-feet from June 1, 2017 through May 31, 2018 (“Year 1”) and 22.32 acre-feet from <br />June 1, 2018 through May 31, 2019 (“Year 2”). <br /> <br />REPLACEMENTS <br /> <br />South Forty will use a 30-year Municipal Water User Agreement with Canon City for 18-41 <br />acre-feet/year of fully consumable water. Additionally, South Forty has negotiated a 5-year <br />water lease with the UAWCD for 5-10 acre-feet/year of fully consumable water. A copy of <br />the UAWCD Water Lease Agreement, dated February 8, 2017, and the Canon City Municipal <br />Water User Agreement, dated December 19, 2016, are attached. The 26 shares of the Cañon <br />City and Oil Creek Ditch conveyed with the property previously used for augmentation will not <br />be utilized during the period of this SWSP. <br /> <br />CONDITIONS OF APPROVAL <br /> <br />This substitute water supply plan is hereby approved pursuant to Section 37-90-137(11), <br />C.R.S., subject to the following conditions: