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Peter Wayland August 2, 2006 Page 2 The operator has provided a bond to the Division of Minerals and Geology to cover the cost to line the pit in the event the operator walks away from the project. Depletions You have provided a monthly breakdown of the annual depletions at this site in your attached Table AI.S. Consumptive use of water at the property consists of 2.1 acre-feet of evaporation from the 0.86 acres of post-1980 exposed pond area, 10,9 acre-feet of water lost in product (4% moisture of 371,000 tons of raw material), and 1.2 acre-feet for on site dust control (Total 14.2 acre-feet). The total monthly depletions are shown in attached Table AI.2. The depletions from the mining operation will be lagged to the stream system using a Glover model and assuming a stream depletion factor of 125 days. Replacements The proposed source of replacement water for this pit is fully consumable effluent provided by the City of Louisville. The applicant is currently in the process of obtaining a signed lease agreement. A copy of a completed agreement between the applicant and the City of Louisville must be provided to this office prior to exposing water at the site. The agreement must commit Louisville to provide water in the amount and according to the schedule in your Table AI.5. A 15 percent transmission loss will be applied to all deliveries as specified in your Table AI.5. Conditions of Approval As required by Section 8 of Senate Bill 89-120, this substitute water supply plan has been provided to an outside consultant for review. I hereby approve the proposed substitute water supply plan in accordance with §37-90-137(11), C.R.S. subject to the following conditions: This plan shall be valid for the period of August 1, 2006 through July 31, 2007, unless otherwise revoked or modified. This plan will be extended until July 31, 2008, if the applicant submits a lease from the City of Louisville for the period of August 1, 2007 through July 31, 2008 prior to July 31, 2007. This extension is subject to the requirement of condition 2 below to obtain a well permit for the gravel pit. 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 by May 31, 2007 (May 31, 2008 if extended). 2. A well permit must be obtained for the gravel pit in accordance with §37-90-137(2) and (11), C.R.S. The provisions of §37-90-137(2) prohibit 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 in accordance with the procedural rules in 2CCR402-5. The hearing will 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 the 600 foot spacing, or any other legitimate reason, approval of this amendment will be canceled. The losses associated with this mining operation must not exceed a total of 14.2 acre-feet annually for the duration of this approval. These losses include 2.1 acre- feet of evaporation from the proposed exposure of 0.86 acres of groundwater, 10.9 acre-feet of water lost in 371,000 tons of mined aggregate and 1.2 acre-feet used for dust suppression. Should the annual losses at the site exceed 14.2 acre-feet prior to the expiration of this plan, an amendment will need to be filed.