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covers the augmentation requirements for a number of the ponds that have been created at <br />this site. <br />United Companies believes that it has been diligently attempting to comply with the SB <br />120 requirements in the Phase II and Phase III azeas. A water augmentation plan has been <br />in the hands of the Court for over a year awaiting a decision. As stated in the Amendment <br />application for this permit, United Companies has posted a bond that covers the cost of <br />backfilling the affected area in Phase II. <br />Questions may remain about this site, concerning the requirements of SB 120. First, <br />which water surface areas remain that need to have water augmentation plans put in <br />place? Second, certain water rights accompanied the land acquisitions that comprise the <br />permit azea. These water rights may have value in meeting the requirements of an <br />augmentation plan depending on their seniority. This remains to be evaluated. Third, after <br />the water augmentation plan for the Phase II and Phase III areas is approved, United <br />Companies expects to have excess consumptive use credits available. At that time United <br />Companies will be able to use these credits for additional water augmentation planning at <br />the MMM/Chambers Pit, if necessary, and at other United Companies pits with water <br />augmentation plan needs. Fourth, based on a planned gravel pit development, located on <br />the south side of the Colorado River near the existing MMM/Chambers permit area, <br />United Companies expects to be in a position of relative abundance with respect to water <br />rights and consumptive use credits. These are assets that can be available for off site <br />water augmentation planning. <br />Water augmentation plans aze not simple things to devise. All aspects of a plan are based <br />on estimates, for instance: the actual amount of water lost toevaporation from a water <br />body's surface, the consumptive use of different plant species, the mix of plant species <br />that was present at the site 40 years ago or the value (in consumptive use terms) of land <br />that is now part of Interstate Highway 70. A water augmentation plan, for a gravel pit that <br />exposes ground water, attempts to balance the estimated losses of with water removed <br />from imgation, dry up credits for not irrigating crop land, credits for eliminating <br />phreatophyte losses or outright purchase of water. There are a number of tools or water <br />assets that can be used to offset the evaporative losses from a gravel mining operation. <br />United Companies has inherited a fairly complicated situation at the MMM/Chambers <br />Pit. We believe that the Ruling of the Referee in 87CW279 provides for evaporative <br />losses at some of the existing ponds at the site. We believe that we are close to having a <br />water augmentation plan in place for the Phase II and Phase III areas of the permit. If that <br />plan and Ruling of the Referee in 87CW279 do not completely address the need for a <br />water augmentation plan for the MMM/Chambers Pit, then we need to determine which <br />water surfaces remain to be covered by an augmentation plan and proceed to get a plan in <br />place. <br />I'm afraid that this response sounds like a stall. It is not. I believe that valid questions <br />remain to be answered in determining the amount of water augmentation that remains to <br />be provided for this site. If it is determined that additional water augmentation is required <br />