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Michelle Mafthews Page 2 <br />April 6, 2005 <br />The proposed mining operations will create a situation causing permanent groundwater <br />exposure and permanent evaporation losses. RBK should explore options for how to provide <br />permanent replacement of depletions. To provide assurance that, prior to obtaining a permanent <br />decreed plan for augmentation, evaporation losses can be stopped, RBK has posted a bond with the <br />Division of Minerals and Geology for $14,530, an amount sufficient to back fill up to 4.0 acres of <br />excavation. <br />The State and Division Engineers have reviewed the plan and the adequacy of each source of <br />water provided for use as augmentation water, including, where necessary, the historical consumptive <br />use of each water right, and return flows from diversion of waters imported into the Arkansas River <br />Basin or other fully consumable waters proposed for use as augmentation water. In accordance with <br />Section 25-8-202{7), C.R.S. and Senate Bill 89-181 Rules and Regulations adopted on February 4, <br />1992, the State Engineer has determined that subject to the terms and conditions below, the <br />replacement supply is of a quality to meet the requirements of use to senior appropriators. <br />This approval acknowledges the operations of the Baxter Road Pit and the replacement of <br />depletions with Pueblo Board of Water Works fully consumable water during the 2004 plan year. <br />CONDITIONS OF APPROVAL <br />I hereby approve the proposed substitute water supply plan in accordance with Section 37-92- <br />137(11), C.R.S., subject to the following conditions: <br />1. The operation of this plan for 2005 is formally approved by this letter. This plan shall be valid <br />through March 31, 2006, unless otherwise revoked or modified. <br />2. The actual allowed water surface exposure may not exceed 4.0 aces at any given time. <br />3. The consumption associated with this mining operation must not exceed the evaporative loss of <br />14.4 acre-feet during this plan year. No mining, washing, or any other use of water is authorized <br />unless an amendment to this plan is approved. <br />4. Releases of water by Lower Arkansas Valley Water Conservancy District pursuant. to this plan shall <br />be under the approval of the Division Engineer and the Augmentation Coordinator and shall equal <br />or exceed the depletions to be replaced on a monthly basis. <br />5. Accounting of water in this plan, including excavating area, area of actual groundwater exposure, <br />pumping, sVeam depletions, and replacement water deliveries must be provided to the Water <br />Commissioner and Division Engineer on forms and at times acceptable to them. Said accounting <br />must be received by the 10'~ of the month following the month being reported. The name, mailing <br />address, and phone number of the contact person who is responsible for operation and accounting <br />of this plan must be provided on the accounting forms. <br />6. The approval of this substitute water supply does not relieve the applicant and/or landowner of the <br />requirement to obtain a Water Court decree approving a permanent plan for augmentation or <br />mitigation to ensure the permanent replacement of ail depletions, including long-term evaporation <br />losses after the gravel mining operations have ceased. Application for a decree should be made <br />three years prior to the completion of mining with the intent of obtaining a decreed plan by the <br />completion of mining. Approval of this substitute supply plan does not imply a position by this office <br />on any related litigation. <br />7. The request for renewal of this plan must include a description of progress made toward obtaining a <br />permanent source of replacement water or developing permanent mitigation. <br />