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Mr. Peter Wayland M1985-026, Challenger Pit June 19, 2006 Page 2 those depletions and return flow obligations not replaced by the credit from Hill & Brush Ditch water rights, up to 34.53 acre-feet of water leased from the City of Loveland ('Loveland") will be used for replacement purposes. Coulson Excavating Company entered into atwenty-five year lease with Loveland on January 13, 1998 for 100 acre-feet of fully consumable water, which is currently used for replacement purposes for four gravel pits, including the Challenger Pit. A 2 percent transit loss is included in the amount of replacement provided by Loveland. The monthly depletions and replacement requirements are found on the attached Table I. I hereby approve the proposed substitute water supply plan in accordance with C.R.S. § 37-90- 137(11), subject to the following conditions: 1. This plan shall be valid for the period of January 1, 2006 through December 31, 2006, unless otherwise revoked or modified. This plan will be extended until December 31, 2007, if the applicant provides information that an application for a plan for augmentation was filed with the water court prior to December 31, 2006. This extension is subject to the requirement of condition 3 below to obtain a well permit for the gravel pit. 2. If this plan will not be made absolute by a water court action by the plan's expiration date, a renewal request must be submitted to this office with the statutory fee (currently $217) no later than November 15, 2006 or November 15, 2007, subject to the requirements of condition 1 above. 3. A well permit must be obtained for the gravel pit in accordance with §37-90-137(2) and (11 ), C.R.S. in conjunction with this plan. A well permit application was submitted to this office under receipt no. 437309, and this application was returned to the Applicant in January of 1999 for 600 foot spacing issues. Applicant is required to resubmit the permit application and obtain a well permit by the above expiration date of December 31, 2006, or this plan will be cancelled. The provisions of Colorado Revised Statute § 37-90-137(2) prohibit the issuance of a permit for a well to be located within 600 feet of any existing well, unless the state engineer finds that circumstances so warrant after a hearing held in accordance with the procedural rules in 2CCR402-5. This hearing may be waived if you are able to obtain statements from the owners of all wells within 600 feet, verifying that they have no objection to your use of the proposed well. Should a new well permit be denied for reasons of 600 foot spacing, or any other legitimate reason, approval of this substitute supply plan will be cancelled. 4. The total surface area of the groundwater exposed at the Challenger Pit site after December 31, 1980 must not exceed 20 acres resulting in 47.34 acre-feet per year of evaporative loss. Total consumption at the pit(s) must not exceed the aforementioned amount unless an amendment is made to this plan. 5. Approval of this plan is for the purposes as stated herein. This office must first approve any additional uses for which the water may be used. Any future additional historic consumptive use credit given (e.g., agricultural water transfer) for this site must consider all previous credits given. 6. All releases of replacement water must be sufficient to cover all out-of-priority depletions in time, place, and amount and must be made under the direction and/or the approval of the water commissioner. The release of replacement water may be aggregated to maximize beneficial use. The water commissioner and/or the division engineer shall determine the rate and timing of an aggregated release.