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Frank C. Healy January 4, 2006 REPLACEMENT Page 2 The source of replacement water to cover the plan's depletions is from Lower Arkansas Water Management Association (LAWMA). LAWMA will provide 18.81 acre-feet of replacement water, and in return All-Rite Paving will assign to LAW MA the use of 50 shares of Fort Bent Ditch Company stock. All-Rite Paving is willing to dedicate 50 shares of Fort Bent Ditch as a long-term source of replacement supply that you estimate will yield 48.6 acre-feet annually on average, and 34.4 acre-feet annually in a dry year. The State and Division Engineers have reviewed the plan and the adequacy of each source of water provided for use as augmentation water, including, where necessary, the historical consumptive use of each water right, and return flows from diversion of waters imported into the Arkansas River Basin or other fully consumable waters proposed for use as augmentation water. CONDITIONS OF APPROVAL This substitute water supply plan is hereby approved pursuant to Section 37-80-120, C.R.S., subject to the following conditions: The operation of this plan for July 2004 through November 2005 is formally approved by this letter. This plan shall be valid through March 31, 2006, unless otherwise revoked or modified. 2. Total surface area of exposed ground water in the pit may not exceed 4.6 acres with evaporative loss not to exceed 18.73 acre-feet and evaporative loss from 2 small concrete lined ponds not to exceed 0.08 acre-foot. Before initiating any mining or ground water pumping prior notice must be submitted to this office, the division engineer, and water commissioner. Such notice must include monthly and annual estimates of the amounts of product that will be produced and water consumed. Well ID 6705953 is not currently in compliance with the Amended Measurement Rules and must be brought into compliance by no later than February 15, 2005. 3. Total water consumption at the pit may not exceed 18.8 acre-feet annually without an amendment to the plan. 4. Fort Bent Canal water attributable to the 50 shares associated with this plan must be released to the Arkansas River through an augmentation station approved by the Division Engineer. 5. Accounting of water in this plan, including acres of ground water exposure, amount of mined product, total consumption, stream depletions, and replacement water deliveries must be provided to the Water Commissioner and Division Engineer on forms and at times acceptable to them. 6. LAWMA is a reliable source of replacement water and has agreed to provide the Division 2 office with reports of replacement water released on behalf of All Rite. LAWMA must provide a letter to this office and the Division 2 office within 2 weeks of receipt of this letter stating that LAW MA will provide replacement water to cover depletions under this plan until