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Ms. Kimberly Edwards <br />June 25, 2007 <br />Page 3 <br />7. Applicant shall replace the net evaporation depletions from the exposed ground water <br />surface area that may occur during the assumed ice cover period (November through March) <br />for any time that the exposed ground water in the pit is not completely covered by ice. <br />8. The replacement source for the depletions accruing to the Middle Fork of the South Platte <br />River resulting from this mining operation is a lease agreement with Upper South Platte <br />Water Conservancy District. A copy of the executed lease agreement with the District was <br />submitted to this office with the plan request and is attached to this letter. <br />9. The replacement water that is the subject of this plan cannot be sold or leased to any other <br />entity. As a condition of subsequent renewals of this SWSP, the replacement water must be <br />appurtenant to this site until a plan for augmentation is obtained. A copy of this approval <br />letter should be recorded with the County Clerk and Recorder. All replacement water must be <br />concurrent with depletions in quantity, timing and locations. <br />10. Adequate accounting of depletions and replacements must be provided to the division engineer <br />and water commissioner on a monthly basis or other interval acceptable to both of them. The <br />accounting provided with your application is subject to modification and approval by the division <br />engineer. All amounts shall be in acre-feet. <br />11. The name, mailing address, and phone number of the contact person who will be responsible <br />for operation and accounting of this plan must be provided on the accounting forms to the <br />division engineer and water commissioner. <br />12. If reclamation of the mine site will produce a permanent water surface exposing groundwater to <br />evaporation, an application for a plan for augmentation must be filed with the Division 1 Water <br />Court at least three years prior to the completion of mining to include, but not be limited to, <br />long-term evaporation losses. If a lined pond results after reclamation, replacement of lagged <br />depletions shall continue until there is no longer an effect on stream flow. Granting of this plan <br />does not imply approval by this office of any such court application(s) <br />13. This plan may be revoked or modified at any time should it be determined that injury to other <br />water rights has or will occur as a result of this plan. Should this plan expire without renewal or <br />be revoked prior to adjudication of a permanent plan for augmentation, all excavation of <br />product from below the water table, and all other use of water at the pit, must cease <br />immediately. <br />14. In accordance with amendments to Section §25-8-202(7), C.R.S. and "Senate Bill 89-181 Rules <br />and Regulations" adopted on February 4, 1992, the State Engineer shall determine whether the <br />substitute water supply plan is of a quality to meet requirements of use to senior appropriations. <br />As such, water quality data or analyses may be requested at any time to determine if the water <br />quality is appropriate for downstream water users. <br />15. The decision of the State Engineer shall have no precedential of evidentiary force, shall not <br />create any presumptions, shift the burden of proof, or serve as a defense in any pending water <br />court case or any other legal action that may be initiated concerning this plan. This decision <br />shall not bind the State Engineer to act in a similar manner in any other applications involving <br />other plans, or in any proposed renewal of this plan, and shall not imply concurrence with any <br />finding of fact or conclusions of law contained herein, or with the engineering methodologies <br />used by the Applicant. <br />