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Mark McLean <br />August 16, 2006 <br />REPLACEMENT <br />Page <br />Replacement water will be provided by the Board of Water Works of Pueblo. The new <br />operator and the Board are currently negotiating the terms of the new lease. A letter from the <br />Board has been provided which obligates the Board to provide replacement water for this calendar <br />year. The new operator also holds a bond with the Division of Reclamation, Mining and Safety in <br />the amount of $50,000, which is sufficient to backfill up to 50 acres of exposed surface. <br />The State and Division Engineers have reviewed the plan and the adequacy of each source <br />of water provided for use as augmentation water, including, where necessary, the historical <br />consumptive use of each water right, and return flows from diversion of waters imported into the <br />Arkansas River Basin or other fully consumable waters proposed for use as augmentation water. <br />CONDITIONS OF APPROVAL <br />This substitute water supply plan is hereby approved pursuant to Section 37-90-137(11), <br />C.R.S., subject to the following conditions: <br />1. This plan shall be valid through March 31, 2007, unless othenxise revoked or modified. The <br />operator shall provide a copy of the lease agreement with the Board which shows the lease <br />agreement extends beyond the end of this calendar year. Should this letter not be provided, <br />this plan will terminate on December 31, 2006. <br />2. Active mining of the site shall ndt exceed 50 acres unless an amendment to this plan has been <br />approved. <br />3. The mined cell must be maintained in a de-watered state. <br />4. The actual allowed water surface exposure may not exceed 0.5 acres. Documentation of water <br />surface area may be required by the Division Engineer in the form of an aerial photo evaluation <br />or survey by a Professional Land Surveyor during the plan year or in years covered by <br />subsequent renewals of this plan. <br />5. The consumption associated with this mining operation is limited to evaporation, dust <br />suppression, and water lost in product not to exceed a total of 17.09 acre-feet during the plan <br />year. All diversions for dust suppression must be metered in compliance with the "Amended <br />Rules Governing the Measurement of Tributary Ground Water Diversions Located in the <br />Arkansas River Basin." <br />6. Releases of water by the Board pursuant to this plan shalt be under the approval of the Division <br />Engineer and the Augmentation Coordinator and shall equal or exceed the depletions to be <br />replaced on a monthly basis. <br />Accounting of water in this plan, including excavated area, area of actual ground water <br />exposure, pumping, stream depletions, and replacement water deliveries must be provided to <br />the Water Commissioner and Division Engineer on forms and at times acceptable to them. <br />Said accounting must be received by the 10t" of the month following the month being reported. <br />The name, mailing address, and phone number of the contact person who is responsible for <br />operation and accounting of this plan must be provided on the accounting forms. <br />8. The approval of this substitute water supply does not relieve the applicant and/or landowner of <br />the requirement to obtain a Water Court decree approving a permanent plan for augmentation or <br />mitigation to ensure the permanent replacement of all depletions, including long-term evaporation <br />