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Mr. Jeffrey Clark September 11, 2007 Page 2 2,290 feet, and the distance from the centroid of the exposed surface water areas to the Big Thompson River is approximately 720 feet. Lagging of both depletions and accretions have been accounted for at the gravel pit and the settling pond, respectively. Because this is a new proposed mining operation, no groundwater was exposed at this location prior to January 1, 1981. You have provided a monthly breakdown of the maximum annual depletions totaling 0.37 acre-feet of evaporative loss from a maximum of 0.16 acres of exposed groundwater at a settling pond and 5.89 acre-feet of water losses associated with the extractioh of an estimated 200,000 tons of aggregate from below the water table. Dust suppression on the site will be met by water imported from another location. No phreatophyte credit has been applied to this plan. Replacements The operator proposes to provide replacement water for the actual operational depletions from a portion of a 200 acre-foot lease agreement with the City of Loveland. This 25-year lease was originated in January 1998 and extends through December 31, 2022. The fully consumable water that is offered by the City of Loveland includes, but is not limited to, native water from the Big Thompson River basin as stored within the City's reservoir system, Windy Gap Water, or any water subsequently acquired by the City. A transit loss of 1.8% will be charged for the delivery of this water to the subject site. This agreement with the City extends beyond the approval period of this SWSP. The monthly evaporative and operational losses and proposed monthly replacement requirements for the approved year of depletions at this gravel pit can be found on the attached Tables 2, 4 and 5. The City of Loveland lease is also used for the Green/Croissant Pit and Baer Pit. As required by Section 8 of Senate Bill 89-120, this substitute water supply plan has been provided to an outside consultant for review. The consultant has recommended approval of the plan by way of a draft of this letter. Based upon statutory requirements and the recommendations of the consultant, I hereby approve the proposed substitute water supply plan in accordance with C.R.S. § 37-90-137(11), subject to the following cdnditions: Conditions of Approval 1. This substitute water supply plan shall be valid for the period of September 1, 2007 through August 31, 2008, unless othervvise revoked, modified, or superseded by decree. This plan will be extended until August 31, 2009, if the applicant provides updated tables with the current depletions at the site and confirmation to this office, the water commissioner and the division office by August 31, 2008 that the City of Loveland has adequate physical water supplies available to cover the 2008-2009 gravel pit depletions. 2. If 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 (currently $257) no later than July 16, 2008 or July 16, 2009, subject to the requirements of condition 1 above. 3. A well permit must be issued for the gravel pit in accordance with C.R.S. § 37-90-137(2) and (11), prior to the exposure or use of groundwater. A well permit application has been submitted to this office (receipt no. 3613225) and this application is currently pehding evaluation. The provisions of C.R.S. § 37-90-137(2) prohibit the issuance of a permit for a well to be located within 600 feet of any existing well, unless the State Engineer finds that circumstances so warrant after a hearing held in accordance with the procedural rules in 2CCR402-5. This hearing may be waived if you are able to obtain statements from the owners of all wells within 600 feet, verifying that they have no objection to your use of the proposed well. Should a new