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Nelson Mining Resources SWSP <br /> November 25, 2024 <br /> Page 5 of 11 <br /> Replacements <br /> Out-of-priority depletions associated with the mining operation at this site will be <br /> replaced using fully consumable municipal return flows leased from the City of <br /> Longmont ("Longmont"). A copy of the lease with Longmont for the November 2024 <br /> through October 2025 period was provided to this office on November 18, 2024 and is <br /> attached to this letter. In accordance with the lease, Longmont will provide a total of <br /> 27.5 acre-feet of fully consumable water during the period of November 2024 through <br /> October 2025. The Longmont wastewater treatment plant is located approximately <br /> 10.5 miles upstream of this mining operation. A 0.25 percent per mile transit loss <br /> (2.63 percent overall loss) has been accounted for in the amount of replacement <br /> water obtained from Longmont. <br /> The monthly depletions and replacement requirements are found on the attached <br /> Table 6. <br /> Long Term Augmentation <br /> In accordance with the letter dated April 30, 2010 from the Colorado Division of <br /> Reclamation, Mining, and Safety ("DRMS"), all sand and gravel mining operators must <br /> comply with the requirements of the Colorado Reclamation Act and the Mineral Rules <br /> and Regulations for the protection of water resources. The April 30, 2010 letter from <br /> DRMS requires that you provide information to DRMS to demonstrate you can replace <br /> long term injurious stream depletions that result from mining related exposure of <br /> groundwater. The DRMS letter identifies four approaches to satisfy this requirement. <br /> In accordance with approach nos. 1 and 3, you have indicated that a bond has been <br /> obtained for $1,097,165.51 through the DRMS for lining of this site to assure that <br /> depletions from groundwater evaporation do not occur in the unforeseen event or <br /> events that would lead to the abandonment of the Pit. <br />