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i~ Mr. Forrest Leaf, P.E. Nissen Pit M2003-001 April 10, 2007 Page 2 Total estimated annual consumptive use for the alluvial well during this plan is 3.33 acre-feet for dust control and the lagged stream depletions from this well is 2.79 acre-feet (Table 2b). The water withdrawn from the alluvial well is considered 100% consumptive. You have provided a monthly breakdown of the annual net depletions consisting of 12.11 acre-feet of evaporative loss, 7.34 acre-feet of water lost with mining of up to 250,000 tons of aggregate per year, and 3.33 acre-feet of losses from water used for dust control for a total of 22.78 acre-feet. Total lagged depletions for 2007 are 19.38 acre-feet. The proposed source of replacement water for this pit is a lease of excess recharge accretions from the Town of Milliken ("Town"). The Town has filed for a plan for augmentation in Division 1, Water Courtin case no. 2002CW339. In accordance with Section 37-92-308(4), C.R.S., on March 12, 2007, the State Engineer's Office approved a temporary substitute water supply plan for the Town. The Town has generated excess recharge accretions credits from 9.5 shares of Consolidated Hillsborough Ditch. A copy of the water lease agreement for 2007 was submitted to this office on March 26, 2007 and is attached to this letter. The monthly replacement water also includes a 7.5 percent transit loss (0.50% per mile from the Town to the Nissen Pit). The monthly depletions and replacement requirements are found on the attached Table 1. I hereby approve the proposed substitute water supply plan in accordance with §37-90-137(11), C.R.S., subject to the following conditions: 1. This plan is approved with the effective date of January 1, 2007 and shall be valid through December 31, 2007 unless otherwise revoked, modified or superseded by decree. If this SWSP 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 $257j no later than November 15, 2007. 2. Well permit no. 61679-F, was obtained for the current use and exposed pond surface area of the gravel pit in accordance with §37-90-137(2) and (11), C.R.S., however since no groundwaterwas exposed at the site in 2006, this permit expired and a new well permit must be obtained for the current use and exposed pond surface area of the gravel pit in accordance with §37-90-137(2) and (11), C.R.S. The provisions of Colorado Revised Statute 37-90-137(2) prohibits 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. 3. The total surface area of the groundwater exposed at the Nissen Pit site after December 31, 1980 must not exceed 4.2 acres resulting in 12.11 acre-feet of evaporative loss per year for the approval period of this plan. 4. The total amount used for dust control and proposed to be withdrawn from well permit no. 61691-F shall not exceed 3.33 acre-feet and the total product mined at the Nissen Pit site shall not exceed 250,000 tons per year resulting in 7.34 acre-feet of water lost with the product. 5..Total consumption at the pit(s) during this approval period must not exceed 22.78 acre-feet unless an amendment is made to this plan.