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4.0 Water Budget Accounting 1 Monthly accounting shall be required as Tong as the liner continues to meet the Design Standard. Weekly accounting (or more frequent if required by the Division Engineer} shall be required for liners which do not meet the Design Standard but continue to meet the Performance Standard. Evidence of I compliance with the standards shall be established through a mass balance analysis accounting for inflows, outflows, and change in storage. If the State or Division Engineer determines that the ground water inflow (leakage rate} into the reservoir is greater than the Performance Standard, the applicant shall be required to calculate the inflow to or outflow from the reservoir by means of amass-balance analysis on a 48-hour basis, and return to the stream system such inflows to the pit within 48 hours, without such water being used by applicant in any manner. This 48-hour accounting shall only be for the entire period specified under the Liner Failure During Operation Section (see below) and shall not be done permanently. 5.0 Liner Failure During Operation In the event that the average daily unregulated ground water inflow to the reservoir exceeds the Performance Standard for two consecutive months, as evidenced by accounting (see above), the applicant or their successor and the State Engineer's Office shall begin to consult.regarding the probable cause of the unregulated ground water inflow, and the appropriate actions to be taken in response thereto. If the State or Division Engineer and the applicant cannot reach an agreement on the appropriate actions to reduce the unregulated ground water inflow to less than the Performance Standard within nine months of the beginning of the consultations, the State or Division Engineer shall provide written notice to the applicant of their determination to correct this problem. The 48-hour i accounting shall begin following the two consecutive months that the Performance Standard is exceeded and shall continue until the applicant has demonstrated that the Performance Standard has been met. Applicant shall have two (2) years from the date of such written notice of liner failure to repair the liner to an inflow less than the Performance Standard. If satisfactory repairs are not completed within the two year period, no new water shall be stored in the reservoir until either: 1) the repair is made; 2) the issue is decided by the Water CouA under retained jurisdiction, or; 3) the State Engineers Office otherwise grants permission for storage to continue. The State or Division Engineer may declare the reservoir a well requiring a well permit. 1 6.0 Legal Storage of Water Water shall not be impounded in the reservoir except pursuant to lawful diversions allowed by statute or decree. At all other times, all inflow of water into the reservoir from any source, including precipitation and ground water inflows shall be removed by the applicant. The water can be removed by draining, pumping, or other means, and released to the stream system, without use by the applicant in any manner. The applicant shall install the necessary measuring devices, including but not limited to, staff gauges in the reservoir and account an a monthly basis (or more frequently if required) for inflow and outflow, evaporation, precipitation, change in storage and any seepage. Prior to making any storage right absolute, the applicant shall develop and submit to the Division Engineer graphs showing height- storage relationships. Under no circumstance may the applicant withdraw more water from the reservoir than the measured inflow with appropriate evaporation and seepage losses being deducted. 7.0 Retained Jurisdiction The Water Court shall retain jurisdiction to address injury to water rights caused by failure of the liner that results in ground water inflow exceeding the Performance Standard. Upon a prima facie showing by the State or Division Engineer or the party invoking the retained jurisdiction that such exceedence of the Performance Standard is occurring, and that reasonable efforts to correct the problem have been ' unsuccessful, and that injury to water rights is being caused thereby, the Water Court will proceed to hear evidence regarding the additional terms and conditions, or limitations and restrictions, that should be imposed upon the operation of the pit.