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  <br />Mr. Paul Bruss, P.E.  <br />April 12, 2018  <br />Page 2 of 6  <br />  <br />ditches (31.0 acres in Phase 1,1.0 acre in Phase 2,and 5.0 acres in Phase 7),dust control,                    <br />and water removed with the mining product.   <br />  <br />Well permit no.80662-F corresponds to Phases 1 and 2 and limits that portion of the                 <br />operation to evaporation from 31.0 acres of exposed water and 150.7 acre-feet annually (21.4               <br />acre-feet annually corresponds to dust control).Well Permit No.75997-F corresponds to             <br />Phase 7 and limits that portion of the operation to evaporation from 5.0 acres of exposed                 <br />water and 29.4 acre-feet annually (4%water content by weight of 1,000,000 tons)of water                <br />removed from mined material (or the amounts covered under a Water Court approved plan for                <br />augmentation or SWSP approved by the State Engineer, whichever is more restrictive).   <br />  <br />In accordance with the letter dated April 30,2010 from the Colorado Division of Reclamation,                <br />Mining,and Safety (“DRMS”),all sand and gravel mining operators must comply with the               <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.According to the renewal request,               <br />the long term plan for the site is for a storage reservoir in Phase 2,which already has an                    <br />approved slurry wall,and to backfill Phases 1 and 7 to a ground surface elevation at least two                   <br />feet higher than the ground water table.Accordingly,a bond has been obtained for               <br />$2,288,004 through DRMS, an amount sufficient to backfill Phases 1 and 7.  <br />  <br />DEPLETIONS  <br />  <br />Annual site depletions consist of 154.3 acre-feet of gross evaporative losses,11.0 acre-feet of               <br />pumping for dust control,and 7.4 acre-feet of water removed in the mining product,for a                 <br />total depletion of 172.7 acre-feet for each of the plan years (February 1,2018 through                <br />January 31,2019 and February 1,2019 through January 31,2020).The monthly distribution               <br />of the values and the lagged effects on the Arkansas River,are detailed on your Tables 1-4,                  <br />which are attached.The lagged depletions were calculated individually for each Phase of the               <br />operation based on the characteristics below.  <br />  <br />  <br />  <br />Lagging factors for each of the Phases were calculated using the Glover Method,normalized               <br />to the number of months required for 95%of depletions to affect the river,and are provided                  <br />in the following table.  <br />