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.~ Jason M. Brothers Page 2 September 17, 2007 Conservancy District of Larkspur Ditch water released form storage in Pueblo Reservoir and administered by MAGUA. The mining operations have caused permanent ground water exposure and perpetual evaporation losses from the pit. To provide assurance that the evaporation can be stopped, RBK has posted a bond with the Division of Reclamation, Mining, and Safety (DRMS) for $14,530, an amount sufficient to backfill up to 4.0 acres of excavation. RBK should explore options to provide permanent replacements and a decreed plan for augmentation. Until such plan for augmentation is' decreed, RBK must continue to maintain the bond with DRMS. i 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 water imported into the Arkansas River Basin or other fully consumable waters proposed for use as augmentation water. In accordance with Section 25-13- 207(7), C.R.S. and Senate Bill 89-181 Rules and Regulations adopted on February 4, 1992, the State Engineer has determined that subject to the terms and conditions below, the replacement supply is of a quality to meet the requirements of use to senior appropriators. CONDITIONS OF APPROVAL I hereby approve the proposed substitute water supply plan in accordance with Section 37-90-137(11), C.R.S., subject to the following conditions: . This plan shall be valid through March 31, 2009 unless otherwise revoked or modified. 2. A request for renewal of this plan must be submitted with the statutory fee then in effect at least 45 days prior to the date of expiration (by February 15, 2009). 3. The water consumption associated with this mining operation must not exceed the evaporative loss of 14.4 acre-feet during this plan year. The water surface area may not exceed 4.0 acres. 4. Approval of this plan is for the purposes as stated herein. No mining, washing, or any other use of water is authorized unless an amendment to this plan is approved. 5. Releases of water by Lower Arkansas Valley Water Conservancy District pursuant to this plan shall be under the approval of the Division Engineer and as directed by the Augmentation Coordinator and shall equal or exceed the depletions to be replaced on a monthly basis. 6. Accounting of water in this plan as shown in Table 1 of the plan application shall be assumed unless the plan is amended. 7. The approval of this substitute water supply does not relieve the applicant and/or landowner of the requirement to obtain a Water Court decree approving a permanent plan for augmentation or mitigation to ensure the permanent replacement of all depletions, including long-term evaporation losses after the