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Derr Pit SWSP August 1, 2018 Plan ID 5240 Page 3 of 6 Replacements The source of replacement water for this SWSP is the City of Greeley ("Greeley") pursuant to a rental agreement with Broken Arrow. A copy of the rental agreement, dated May 11, 2018, is attached. For this plan period, Greeley will provide a total of 7.90 acre-feet of fully consumable water that has been changed for augmentation use. Greeley anticipates delivering the replacement water to the Cache la Poudre River at Greeley's wastewater treatment plant (WDID 0302312) located approximately 0.8 miles upstream of the Derr Pit. The delivery schedule incorporates a transit loss of 0.20% based on the currently assessed rate of 0.25% per mile. Greeley may also make deliveries at the outlet of Flatiron Reservoir Nos. 1-5 (aka Poudre Ponds at Greeley), delivery stations from the Greeley Canal No. 3, or other points available to Greeley. The point of depletion for the Derr Pit is assumed to be on the Cache la Poudre River perpendicular to the pit. This point is just downstream of the headgate of the Ogilvy Ditch (WDID 0300937). Replacement water can be delivered past the Ogilvy Ditch headgate using the Central Colorado Water Conservancy District's ("Central") augmentation station located at the headgate of the Ogilvy Ditch. Greeley has an agreement with Central that allows for the delivery of Greeley water supplies through the bypass structure at the Ogilvy Ditch headgate. Greeley can also make replacement releases from its Lone Tree wastewater treatment plant (WDID 0102342). If effluent from the Lone Tree wastewater treatment plant is used for replacement purposes, Central's augmentation station would not be required to deliver replacement water. Any releases by Greeley at a location other than its wastewater treatment plant (WDID 0302312) must be coordinated with the water commissioner to insure the proper transit losses are applied and that no intervening water rights are injured. In addition, if a different transit loss is determined by the division engineer or water commissioner, the Applicant must modify their accounting and replacements as necessary to be consistent with the determined transit loss. The monthly depletions and replacement requirements are found on the attached Table 3. Long Term Augmentation In accordance with the letter dated April 30, 2010 from the Colorado Division of Reclamation, Mining, and Safety ("DRMS"), all sand and gravel mining operators must comply with the requirements of the Colorado Reclamation Act and the Mineral Rules and Regulations for the protection of water resources. The April 30, 2010 letter from DRMS requires that you provide information to DRMS to demonstrate you can replace long term injurious stream depletions that result from mining related exposure of groundwater. In accordance with approach number 3, a total bond amount of$1,362,889, which includes the cost of installing a slurry wall, has been set. DRMS approved a phased mining plan operation which allows the bond to be posted in phases. Prior to opening a new phase the operator will submit an increased financial warranty so as to hold enough bond at any given time to construct a slurry wall around the actively mined phases. The current bond amount is $215,400, which covers dry mining in Phases 1-4 of the original permit area and Phase 5A of the amendment area. Prior to exposing of groundwater or disturbing additional surface areas, the Applicant is required to notify DRMS in so that the reclamation bond may be adjusted appropriately. Proof that such a bond has been obtained and the requirements of the April 30, 2010 letter from DRMS have been satisfied must be provided to this office (the Division of Water Resources). Conditions of Approval I hereby approve the proposed SWSP in accordance with § 37-90-137(11), C.R.S. subject to the following conditions: