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Jeffrey A. Clark Page c <br />August 7, 2007 <br />Rocky Ford Oitch credits will first be applied to depletions at the Rocky Ford Pit, with excess credits carried <br />down stream and applied to depletions at the Lamar East Pit site if advanced arrangements have been made to allow <br />pass-through of these credits through John Martin Reservoir to the point of depletion for the Lamar East Pit. <br />Replacement using LAWMA shares will be first applied at the Lamar East Pit site. Depletions at each site that cannot <br />be covered by ditch credits or LAWMA shares, and depletions caused by elimination of return flows due to dry-up <br />under the 2 ditches, will be replaced using releases of the Pueblo water from Clear Creek Reservoir (or from another <br />reservoir delivered as if released from Clear Creek Reservoir). The operational scenario giving monthly depletions and <br />replacements is detailed on your attached table. Depletions at the Lamar East Pit site from November through March <br />shall be added to the Post-1985 depletions LAWMA is responsible for at the stateline. PBWW water that meets the <br />criteria for delivery to the Offset Account in John Martin Reservoir can by provided to compensate LAWMA for the <br />additional winter depletion replacement as necessary. <br />Valco has requested that it be allowed to de-water excavations at each of these pits as operations require. At <br />the Rocky Ford East pit, water pumped from the de-watered excavation will be discharged into another excavation <br />resulting in ground water recharge. Both the excavation that is being de-watered and the excavation that serves as <br />recharge are within the MLRD permit boundary for the Rocky Ford East pit and are located similar distances from the <br />Arkansas River, resulting in no net affect on the river. Water pumped from excavations within the Canon City East and <br />Lamar East pits will be routed through an adjacent excavation, but will reach the river as surface flow, You contend <br />that the excavations being de-watered at these two sites are sufficiently close to the Arkansas River that lagged <br />stream depletions are not of concern. We believe that this will be the case so long as the de-watered pits are within <br />100 feet of the river. Valco must track total exposed surface area from all areas of exposed ground water and ground <br />water recharge pits and must account for all evaporative losses accordingly. <br />The State and Division Engineers have reviewed the plan and the adequacy of each source of water provided <br />for use as augmentation water, including, where necessary, the historical consumptive use of each water right, and <br />return flows from diversion of waters imported into the Arkansas River Basin or other fully consumable waters <br />proposed for use as augmentation water. In accordance with Section 25-8-202(7), C.R.S. and Senate Bill 89-181 <br />Rules and Regulations adopted on February 4, 1992, the State Engineer has determined that subject to the terms and <br />conditions below, the replacement supply is of a quality to meet the requirements of use to senior appropriators. <br />This substitute water supply plan is hereby approved pursuant to Section 37-90-137(11), C.R.S., subject to the <br />following conditions: <br />1. This SWSP shall be valid for the period of June 1, 2007 through May 31, 2009, unless otherwise revoked, <br />modified, or superseded by decree. Should an additional SWSP be requested, such renewal request must be <br />submitted to this office with the statutory fee of $257 at least 45 days prior to the expiration date of this plan. <br />Operation of this plan since the date of the last approval letter is also adopted by this plan approval. <br />2. No more than 30.1 acres (14.7 acres of post-1981 exposure) of ground water may be exposed at the Canon <br />City East Pit, nor more than 47.3 acres (29.9 acres of post-1981 exposure) of ground water may be exposed <br />at the Rocky Ford East Pi! nor more than 35.4 acres (22.2 acres of post-1981 exposure) may be exposed at <br />the Lamar East Pit during this plan year without first obtaining an amendment to the plan. The above acreage <br />totals include any surface areas in ponds to which de-watering water is delivered. Documentation of pond sizes <br />may be required by the Division Engineer in the form of an aerial photo evaluation or survey by a Professional <br />Land Surveyor during the plan year or in years covered by subsequent renewals of this plan. <br />3. All diversions for concrete botching and any dust suppression done at the sites must be measured in accordance <br />with the "Amendments to Rules Governing the Measurement of Tributary Ground Water Diversions Located in <br />the Arkansas River Basin". Monthly meter readings from Well Id 1205640 and 1705985 are to be provided to <br />the Division Engineer (e-mail to Div2Ground.WaterCdtstate.co.usl. Reported readings from Valco should <br />include the Welt td, each recording digit and the meter multiplier. <br />4. Subject to approval by the Division Engineer, the Applicant may lease or purchase additional replacement <br />water from the sources approved in this plan. The Applicant must provide a copy of a tease/purchase <br />agreement to the State Engineer's Office and the Division Engineer for use of such additional replacement <br />water. Should any of the leases expire prior to the expiration of this plan, lease renewals must be obtained <br />and submitted within 2 weeks of their expiration. <br />5. Approval of this SWSP is for the purposes stated herein. The State Engineer's Office must first approve any <br />additional uses for which the water may be used. The replacement water, which is the subject of this SWSP, <br />