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Jason M. Brothers <br />August 17, 2006 <br />Page 2 <br />Conservancy District of Larkspur Ditch water released form storage in Pueblo Reservoir <br />and administered by AGUA. <br />The mining operations have caused permanent ground water exposure and <br />perpetual evaporation losses from the pit. To provide assurance that the evaporation <br />can be stopped, RBK has posted a bond with the Division of Reclamation, Mining, and <br />Safety (DRMS) for $14,530, an amount sufficient to backfill up to 4.0 acres of <br />excavation. RBK should explore options to provide permanent replacements and a <br />decreed plan for augmentation. Until such plan for augmentation is decreed, RBK must <br />continue to maintain the bond with DRMS. <br />The State and Division Engineers have reviewed the plan and the adequacy of <br />each source of water provided for use as augmentation water, including, where <br />necessary, the historical consumptive use of each water right, and return flows from <br />diversion of water imported into the Arkansas River Basin or other fully consumable <br />waters proposed for use as augmentation water. In accordance with Section 25-8- <br />207(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, <br />the replacement supply is of a quality to meet the requirements of use to senior <br />appropriators. <br />CONDITIONS OF APPROVAL <br />I hereby approve the proposed substitute water supply plan in accordance with <br />Section 37-90-137(11), C.R.S., subject to the following conditions: <br />This plan shall be valid through March 31, 2007 unless otherwise revoked or <br />modified. <br />2. A request for renewal of this plan must be submitted with the statutory fee then in <br />effect at least 45 days prior to the date of expiration (by February 15, 2007). <br />3. The water consumption associated with this mining operation must not exceed <br />the evaporative loss of 14.4 acre-feet during this plan year. The water surface <br />area may not exceed 4.0 acres. <br />4. Approval of this plan is for the purposes as stated herein. No mining, washing, or <br />any other use of water is authorized unless an amendment to this plan is <br />approved. <br />5. Releases of water by Board of Water Works of Pueblo pursuant to this plan shall <br />be under the approval of the Division Engineer and the Augmentation <br />Coordinator and shall equal or exceed the depletions to be replaced on a <br />monthly basis. <br />6. Accounting of water in this plan, including excavated area, area of actual <br />groundwater exposure, pumping, stream depletions, and replacement water <br />deliveries must be provided to the Water Commissioner and Division Engineer on <br />forms and at times acceptable to them. Said accounting must be received by the <br />10'" of the month following the month being reported. The name, mailing <br />