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Mr. Don West, P.E. Re: Substitute Water Supply Plan for the Jesse Lee Pit M-84-043 October 30, 2006 Page 3 of 4 • The transmissivity was assumed as 50,000 gaUday/ft. Due to the lack of transmissivity data for the area, the value of 50,000 gaUday/ft was chosen to best represent average aquifer conditions. • The specific yield was assumed to be 0.2, which is typical for an alluvial aquifer. ~ The location of the parallel impermeable boundary was assumed to be a distance of 2,300 feet from the live stream. Source: The extent of the alluvial aquifer as shown in Colorado's Decision Support System online map viewer. Monthly lagged stream depletions are based on actual stream depletions during the term of this plan renewal. Total depletions at the river during the remainder of Water Year 2007 operations are estimated at 0.8 acre-feet. Total depletions at the river during the 2008 Water Yeaz operations aze estimated at 5.23- acre-feet. REPLACEMENT WATER The proposed source of replacement water is a 15 month lease (expires March 2008) of 0.82 acre-feet for the remainder of the 2007 Water Yeaz and 5.36 acre-feeC For Water Yeaz 2008 for fully consumable water from the BWW. A lease agreement will be forwarded to the State Engineer's Office as soon as it is finalized: BWW will release water from upstream storage at Clear Creek Reservoir, Turquoise Reservoir or Twin Lakes Reservoir. Turquoise Reservoir, located approximately 37 river miles from the Jesse Lee Pit, is the furthest reservoir from the Jesse Lee Pit. Iri order to provide a conservative estimate, ditch loss was calculated using the distance from Turquoise Lake. Releases from any of the three reservoirs.include a 0.07% ditch loss for 37 river miles from the reservoirs to the Jesse Lee Pit mining site. The monthly replacement requirements are found on the attached Table-3. OPERATION OF PLAN The areas and volumes used for calculation in this plan were based on estimated full-scale operation conditions. The exposed water surface aeeas, dust control, and aggregate productions could vary from the numbers used for calculations in this plan. Appendix B contains the accounting form that will be used for the Jesse Lee Pit. The form includes sand and gravel production, moisture loss in material, dust control, exposed water surface area, evaporation, net stream depletions, and deliveries from BWW used as a replacement source. LONG-TERM AUGMENTATION Pelino will maintain a SWSP until mining is completed. If reclamation of the mine site will produce a permanent water surface exposing groundwater to evaporation, an application for a plan for augmentation will be filed with the Division 2 Water Court at least three years prior to the completion of mining. If a lined pond results after reclamation, replacement of lagged depletions from mining and dewatering shall continue until there is no longer an effect on stream flow. The Jesse Lee Pit mining operation possesses a corporate surety bond in the amount of $16,000. This amount is available to cover the cost to line or backfill. the pit in the unlikely event the operator abandons the project and/or allows the dewatering operation to discontinue.