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Michelle L. Hatcher <br />Juty 12, 2007 <br />REPLACEMENTS <br />Page 2 <br />The proposed sources of replacement water for this pit are a ten year lease (expires April <br />1, 2011) of 50 acre-feet per year of fully consumable water from the Board of Water Works of <br />Pueblo, Colorado, and approximately 3.5 acre-feet of water yielded by the applicant's ownership <br />of five shares of Twin Lakes Reservoir and Canal Company stock. The Pueblo water will be <br />provided at the City of Pueblo wastewater treatment plant located east of Pueblo when adequate <br />exchange potential exists to make that replacement water available at the Parkdale site. When <br />there is insufficient exchange potential to utilize reusable effluent, Pueblo will release water from <br />upstream storage at Clear Creek Reservoir or Twin Lakes Reservoir, or the applicant may <br />release water from Twin Lakes Reservoir. Upstream reservoir releases will be subject to a 0.07 <br />percent`per mile river transit loss, or approximately 6.3 percent from Clear Creek Reservoir to <br />Parkdale, and 6.5 percent from Twin Lakes to Parkdale. Front Range Aggregates also has an <br />additional backup supply for this project from a 50 acre-foot lease with Canon City Water <br />Department tlaatwiA only be used in the event that the other sources become inadequate. The <br />Cahoir Cityrleas'2 is valid until January 2035. The monthly depletions and replacement <br />requirements are provided on the attached Table 3. <br />The Parkdale Project mining operation possesses a corporate surety bond in the amount <br />of $276,700 held with the Division of Reclamation, Mining, and Safety. The amount is available <br />to cover the cost to line or backfill the pit in the event the operator abandons the project and/or <br />allows the dewatering operation to discontinue. <br />CONDITIONS OF APPROVAL <br />I hereby approve the proposed substitute water supply plan in accordance with §37-90- <br />137(11), C.R.S., subject to the following conditions: <br />1. This plan shall be valid through September 30, 2008 unless otherwise revoked or <br />modified. If this plan will not be made absolute by a water court action by the plan's <br />expiration date, a renewal request must be submitted to this office with the statutory fee <br />(currently $257) by August 16, 2007. <br />2. The water consumption and depletions associated with this mining operation must not <br />exceed those as listed on the attached tables 1, 2, and 3. <br />3. An amendment to this plan must be approved prior to mining below the water table. <br />4. Approval of this plan is for the purposes as stated herein. Any additional uses of this <br />water must first be approved by this office. <br />5. The water lease from Canon City Water Department must be submitted to this office and <br />the Division 2 Office within 3 weeks of receipt of this letter and must detail the type(s) of <br />fully consumable water that Canon City would make available for this purpose. <br />6. All pumping for product washing and dust control shall be measured in a manner <br />