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Mr. Jared Dains, P.E. Page 5 of 9 <br /> May 7, 2015 <br /> City of Aurora Lease <br /> A lease of 26.1 acre-feet of fully consumable water provided by the City of Aurora ("Aurora") <br /> will be used to make replacements during the period of November 2015 through March 2016. The <br /> releases will be made from the Metro Waste Water Reclamation Facility (WDID 0200700) located in <br /> Denver on the South Platte River approximately 66 miles upstream from the Cache la Poudre <br /> confluence. Therefore a 16.5% (0.25% per mile) river transit loss will be assessed on all deliveries, <br /> unless otherwise determined by the Water Commissioner for District 2. During the months of <br /> November through March, it is possible for a call to be placed at the Evans Number 2 Ditch headgate <br /> for Milton Reservoir, or a call at the Western Ditch, or the Union Ditch to fill Lower Latham <br /> Reservoir, any of which could potentially sweep the river. It is the Applicant's responsibility to track <br /> the daily call and make arrangements as necessary to ensure this water is bypassed or otherwise <br /> delivered to the Cache la Poudre and South Platte River confluence. The District 3 Water <br /> Commissioner has confirmed there is no call in the winter for the stretch of the Cache la Poudre <br /> River between the Greeley Pit and the confluence with the South Platte River. Therefore, as long as <br /> a diversion structure is not sweeping the South Platte River, the Aurora lease is able to provide <br /> replacement water on behalf of the Greeley Pit. <br /> Additional Sources <br /> Supplemental leases will be obtained in the event that the above-described sources are <br /> insufficient to replace all depletions from the Greeley Pit. Such supplemental leases may be <br /> obtained from any authorized augmentation source contained in a gravel pit approved pursuant to § <br /> 37-90-137(11) that is capable of making replacements at the most upstream calling right impacted by <br /> the Greeley Pit depletions. <br /> The Applicant has requested permission to lease out any of its excess replacement credit to <br /> other gravel pit SWSPs approved pursuant to § 37-90-137(11), C.R.S., to the extent such excess <br /> replacement credit exists. The Applicant must provide written notice to the Division Engineer and <br /> Water Commissioner at least 30 days in advance of the desired commencement of use of the excess <br /> replacement credits, which must include the specific plan in which the credits will be used, the <br /> provision in the plan that allows an unnamed source to be added for credit, the annual and monthly <br /> amount of excess replacement credit available, the location at which the water will be delivered to <br /> the stream, and a copy of a lease agreement between the Applicant and the purchaser of the excess <br /> replacement credits if the additional plan is not owned by the Applicant. The Applicant cannot <br /> claim credit for the use of the excess replacement credits in any other plan until they have <br /> received written approval from the Division Engineer or Water Commissioner. Any use of any <br /> such excess replacement credits must continue to be directly related to the mining of sand and <br /> gravel. <br /> Long Term Augmentation <br /> The final reclamation plan for the mining site is to create four unlined lakes with a total <br /> surface area of 95 acres. These lakes will expose ground water to evaporation and as such will <br /> create a long term augmentation obligation. In accordance with the letter dated April 30, 2010 <br /> (copy attached) from the Colorado Division of Reclamation, Mining, and Safety ("DRMS"), all sand <br /> and gravel mining operators must comply with the requirements of the Colorado Reclamation Act and <br /> the Mineral Rules and Regulations for the protection of water resources. The April 30, 2010 letter <br /> from DRMS 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 DRMS <br /> letter identifies four approaches to satisfy this requirement. In accordance with approach no. 4, you <br /> have provided an affidavit dated February 12, 2013 that dedicates 3.0 shares of the Applicant's GIC <br /> water as replacement water solely for this SWSP for as long as there are depletions at this gravel pit <br />