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Application of Bowie Resources, Limited Case No. 99 CW 263 Ruling of Referee and Decree Page 7 I • iii. The evaporationlossesfromtheBowieSedimentationPondswillbereplaced by releases from Applicant's leased interest in the East Beckwith No. 1 Reservoir. Applicant's 25% interest in the East Beckwith No. 1 Reservoir entitles it to 95.75 AF ofwater stored in the Reservoir. In Case No. W-3106, District Court, Water Division No. 4, 74 AF ofwater under Applicant's 25% interest in the East Beckwith No. 1 Reservoir were changed to industrial use at the Orchazd Valley Wells, located neaz the Bowie Mine No. 2. iv. The Division Engineer has determined that a transit loss of 10% and an efficiency factor of 46% should be applied to releases from the East Beckwith No. 1 Reservoir. The transit loss factor is based upon a study recently conducted by Wright Water Engineers, Inc. for Applicant and others (the "WWE Transit Loss Study"), which Study has been reviewed and approved by the Division Engineer. Application of the above transit loss and efficiency factors results in a credit of 0.41 AF for every 1.0 AF of water released from the Reservoir. Accordingly, a total of 4.59 AF of water must be released from Applicant's interest in the East Beckwith No. 1 Reservoir to replace evaporation losses from the Bowie Sedimentation Ponds. Thus, under this plan for augmentation, Applicant will release up to 4.59 AF of water from its leased interest in the East Beckwith No. 1 Reservoir to replace evaporation losses from the Bowie Sedimentation Ponds, at times and in amounts as directed by the Division Engineer for Water Division No. 4. Pursuant to Sections 37-83-101, 37-83-104, and 37-87-102(4), C.R.S., the Division Engineer may adjust the transit losses ifnecessazy to prevent injury to vested senior water rights. However, because the W WE Transit Loss Study conducted in 2002 and 2003 determined the appropriate loss from the Reservoir to Somerset with present conditions, an adjustment to the transit loss shall not be made unless there is a substantial change in stream conditions, or unless a subsequent transit loss study conclusively determines that a different transit loss factor should be used. Prior to adjusting the transit losses, the Division Engineer shall notify the Applicant and provide the Applicant the opportunity to offer data and other input regarding whether the transit loss factor should be adjusted. C. Augmentation of Depletions to Hubbard and Terror Creeks. Mining at the Bowie Mine No. 2 could impact some or all of the Bowie Resources Springs. Such impact would consist of an interception or alteration of the flow of the Springs, in one of three ways: (1) the Springs could be intercepted by the mining activities, in which case the water will be collected and returned to the North Fork of the Gunnison River; (2) the Springs may surface as spring flows at other places; or (3) the Springs may become groundwater tributary to the North Fork of the Gunnison River basin. Thus, in any event, the interception or alteration of flow of the Springs in the mining process will cause no net depletions to the overall North Fork of the Gunnison River basin. However, since the Springs aze tributary to Terror and Hubbard Creeks, the interception or alteration of flow of the Springs could cause depletions to each of these creeks. During the irrigation season, both of these creeks can be on call. The depletions to these creeks will be augmented and replaced as follows: