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• • 10 <br />approach. After all, it is in everyone's interest to see the system <br />proactively and practically. <br />The Master Plan focus will be on 'Applied' replenishment and return o as much <br />substitute water as early as is feasible to its traditional use. The ex Biting of <br />extraction and construction of a lined reservoir on each area of impac will go a <br />long way toward advancing this objective. It seems probable while w iting this, <br />that if it will simplify matters, at some point a round table meeting with all Contacts <br />might prove helpful and time saving, and the need should become self- vident at <br />some point following everyone's review of this Letter. <br />• INITIAL STEPS: •• <br />By mutual agreement below, the following actions will occur: <br />1 <br />2. <br />The Division of Water Resources [OSE] will correspond to the olorado <br />Division of Minerals and Geology and identify that Varra Compa ies, Inc. <br />is constructively in compliance with SB 120 and has by this Lette of Intent <br />provided satisfactory evidence of substitute water. <br />Varra Companies, Inc., will coordinate its Contacts through the office of <br />Dick Wolfe, Colorado Division of Water Resources, to effect: <br />a. a designated trustee for the management of water in tru t [Water <br />Bank]. <br />b. a final draft of a Master Temporary Substitute Supply Pla for final <br />approval by the State Engineer. <br />3. Allow for the uninterrupted extraction of lands by Varra Compa ies, Inc. <br />as permitted by the DMG, not to exceed 200 surface acres of exposed <br />ground water prior to the actual approval of the Master Substitut Supply <br />Plan by the State Engineer. <br />Since this is a process, the foundation to permit the development of Master <br />Plan is dependent upon approval of the elements of this Letter of Inte t. Initial <br />details of the Master Plan will not be crafted in a vacuum, but by int nt, draw <br />upon the intellectual resources of all the Contacts who will play a majori y role in <br />its application in the real world. <br />Varra Companies, Inc., is grateful to everyone involved for thei willing <br />participation and kind assistance in the initial phase of this project. We are <br />genuinely hopeful this project will serve to benefit everyone, while rel ing the <br />very difficult elements of the burden of time that any substitute sup ly plan <br />entails. <br />Wednesday 5 March 1997 Letter of Intent to Form a Master Temporary Substitute Supply Plan for <br />the Colorado Office of the State Engineer and Varra Companies, Inc. <br />