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Mr. Thomas Donkle May 25, 2005 Page 2 supply plans will need to be obtained and approved to cover those post-mining effects on the river. The proposed source of replacement for this pit is 3.0 shares of the B. H. Eaton Ditch, which were historically used to irrigate approximately 17.7 acres. There are 192 outstanding shares in the B.H. Eaton Ditch. A ditch wide historical consumptive use analysis was performed for the 192 shares of the B.H. Eaton Ditch as support for the change of water right application in case no. 2002GW390. The average yearly historical consumptive use for the 192 shares was found to be 2,035 acre-feet per year resulting in a per share historical consumptive use of 10.6 acre-feet per year. Thus, the consumptive use associated with the 3.0 shares totals 31.8 acre- feet per year. This amount is more than adequate to offset the depletions to the Cache La Poudre River created by this operation during the estimated 2Yz years of active mining at this site. The average yearly historical surface water return flow and subsurface water return flow for the 192 shares of the B. H. Eaton Ditch was determined to be 2,444 acre-feet per year resulting in a per share average of 12.78 acre-feet per year. Accordingly the return flow obligations for the 3 shares of the B.H. Eaton Ditch is 38.18 acre-feet per year. Excess irrigation season dry-up credits will be stored in Eagle Lake {a previously mined and lined gravel pit near the Raindance River Pit) and released as needed to replace non-irrigation season depletions and maintain historical irrigation retum flows. The monthly depletions and replacement requirements for the approval period of this operation (April 1, 2005-April 1, 2007) can be found on the attached Tables 1.1, 1.2 and 1.3. The required return flow obligations are shown on the attached accounting tables for 2005-2007. As required by Section 8 of Senate Bill 89-120, this substitute water supply plan has been provided to an outside consultant for review. The consultant has recommended approval of the plan byway of a draft of this letter. Based upon statutory requirements and the recommendations of the consultant, I hereby approve this substitute water supply plan in accordance with Section §37-90-137(11), C.R.S., subject to the following conditions: Unless otherwise revoked or modified, this plan shall be valid for the period of April 1, 2005 through April 1, 2007. If this plan will not be made absolute by a water court action by the plan's expiration date, a renewal request must be submitted to this office with the statutory fee of $217 no later than February 15, 2007. Note that although mining at this site is estimated to last only about 2% years, pursuant to Section §37-90-137(11)(e)(If), C.R.S., this approval is limited to a period of two years. 2. A well permit must be issued for the gravel pit in accordance with Section §37-90-137(2) and (11), C.R.S prior to the exposure or use of groundwater. A well permit application was submitted to this office under receipt no. 534654 and this application is pending evaluation. Until a gravel pit well permit is approved, consumptive use and exposure of groundwater on this site is prohibited. The provisions of §37-90-137(2) C.R.S. prohibits the issuance of a permit for a well to be located within 600 feet of any existing well, unless the State Engineer finds that circumstances so warrant after a hearing held in accordance with the procedural rules in 2CCR402-5. This hearing may be waived if you are able to obtain statements from the owners of all wells within 600 feet, verifying that they have no objection to your use of the proposed well. Should a new well permit be denied for reasons of 600 foot spacing, or any other legitimate reason, approval of this substitute supply plan will be cancelled.