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Mr. Steve Nguyen October 27. 2006 Page 2 You have provided a monthly breakdown of the maximum annual consumptive use totaling 4.6 acre-feet of evaporative loss from a maximum of 1.6 acres of exposed groundwater, 6.2 acre-feet for dust control and 11.77 acre-feet of water lost with the 400,000 tons of mined product. Depletions were lagged to the stream using a Glover analysis and assuming a distance to the stream of 3,300 feet, transmisswity of 150,000 gpolft, specific yield of 0.2 and no-flow boundary of 5,000 feet. The lagged depletions include depletions resulting from past uses at the site and are shown on attached Table 5. Replacements The sources of replacement water are 3 shares of Lupton Meadows Ditch Company ("LMDC"), 13.28 acre-feet of fully consumable water leased from Greeley and 17.62 acre-feet of fully consumable water leased from Consolidated. The 3 shares of LMDC historically irigated 11 acres of pasture grass at the NCCI Pit site. The LMDC owns shares in several ditch systems including the Lupton Bottom Ditch, Slate Ditch. Meadow Island Ditch #1, Meadow Island Ditch #2 and the Ellwood Right. The amount and source of water available for the LMDC shareholders depends on the physical location of the property under the ditch system. The NCCI property has always been irrigated with only the Lupton Bottom Ditch portion of the LMDC nght, therefore, the consumptive use was calculated for the Lupton Bottom Ditch. According to the plan, and based on information from the water commissioner, the first 48 cfs of the Lupton Bottom Ditch diversions benefit all Lupton Bottom shareholders. The LMDC owns 43 shares of the 82.5 shares in the Lupton Bottom ditch, therefore, LMDC receives 52.1% of the first 48 ds. The next 10 ds benefit the Lupton Meadows shareholders. Any amount delivered beyond the first 58 cis Is credited bade to the Lupton Bottom shareholders, prorated like the first 48 cfs. Assuming a 10% ditch loss, a 55% irigation efficiency, and return flows of 20% surface and 80% subsurface, the dry-year consumptive use of the 3 shares of LMDC was determined to be 3.7 acre-feet. The subsurface return Oows were lagged to the stream system using the Glover method. The AppllCant assumed a distance of the well to the stream of 3.000 feet, a transmissivity of 150.000 gal/daylft, a specific yield of 0.2 and a distance to the impermeable boundary of 5.000 feet. Leased water from Consolidated Mutual and Greeley will t>e used to replace lagged depletions and return flows that are not replaced by the 3 shares of LMDC. The leased water from Consolidated will be released from Maple Grove Reservoir. A 0.5% per mile transit loss was used for the 38 miles between the Maple Grove Reservoir and the point of depletion. Conditions of Approval I hereby approve the proposed substitute water supply plan rn accordance with Section 37-90-137(11), C.R.S ,subject to the following condihans 1. This SWSP shall be valid for the period of September 14, 2006 through December 31, 2007, unless otherwise revoked, modified, or superseded by decree. It 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 November 1, 2007.