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August 30, 2018 <br />Caleb Foy, P.E. <br />Division of Water Resources <br />1313 Sherman St., Suite 821 <br />Denver, CO 80203 <br />RE: Dedication of Water Supplies to Satisfy Long -Term Augmentation Requirement <br />for Deep Cut, LLC's 22 West Pit (M-2017-032) <br />Dear Caleb: <br />This letter is to provide information intended to satisfy the requirements of the April 30, <br />2010 letter from the Division of Reclamation Mining and Safety (DRMS) and Section 16 <br />of the General Guidelines for Substitute Water Supply Plans for Sand and Gravel Pits <br />(Guidelines) pertaining to the long-term replacement of depletions at Deep Cut, LLC's <br />(Deep Cut) 22 West Pit (M-2017-032). This letter supersedes the letter provided on August <br />23, 2018. <br />Section 16 of the Guidelines requires that "If the proposed final reclamation of the mining <br />operation, as approved in the DRMS permit, does not include backfilling or lining to <br />eliminate all ground water exposed within the mining boundaries, sufficient replacement <br />water must be dedicated to the plan, or financial assurance that would allow purchase of <br />replacement water to cover the expected depletions that would occur at the site. " <br />Based on the net evaporation rate of 3.85 feet and the maximum exposed ground water <br />surface area of 15 acres presented in the pending substitute water supply plan, approximately <br />57.75 acre-feet must be covered by the water right dedication. <br />For the purposes of satisfying the requirements of Section 16 of the Guidelines, Deep Cut <br />will dedicate the following water rights for long-term replacement of evaporative depletions <br />resulting from the exposure of ground water at the 22 West Pit: <br />2 shares in the Rocky Ford Ditch Company <br />17.45 shares in the Twin Lakes Reservoir and Canal Company <br />15 shares in the Catlin Canal Company <br />