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Mr. Joe Tom Wood, Ms. Carrie Spritzer January 9, 2006 Page 2 Depletions You have provided monthly breakdowns of the annual depletions at this site, including 5.7 acre-feet of evaporative loss resulting from the 2 acres of exposed groundwater and 3.53 acre-feet of water lost with mined product (600,000 tons). This plan accounts for water lost in product through March 31, 2006, the date that it is predicted that the pit liner will be approved. Depletions resulting from evaporation and water lost in product were lagged to the stream system based on a Glover analysis and assuming a Stream Depletion Factor of 165 days. The lagged depletions shown in attached Table 2 account for lagged depletions resulting from previous operations at the site. Replacements The proposed source of replacement for this pit is fully consumable wastewater leased from Consolidated Mutual Water Company. The replacement water includes a 15 percent transit fosses. The monthly depletions and replacement requirements are found on the attached Table 2. Beginning in June 2006 the applicant will obtain water through leased shares in the Fulton Ditch. At this time, additional engineering must be performed to determine the historical use of the Fulton Ditch shares, therefore, this plan is only requested through May 31, 2006. Conditions of Approval I hereby approve this substitute water supply plan, in accordance with Section 37-90- 137(11), C.R.S., subject to the following conditions: This SWSP shall be valid for the period of January 1, 2006 through May 31, 2006, unless otherwise revoked, modified, or superceded by decree. 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) by April 15, 2006. 2. A well permit must be obtained to expand the use of well no. 10899-RR in accordance with Section §37-90-137(2) C.R.S, and the decree granted in case no. 02CW335, priorto using the well for dust suppression purposes. The provisions of §37-90-137(2) C.R.S. 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 well 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, oranyother legitimate reason, approval of this substitute supply plan will be cancelled. 3. The losses associated with this mining operation must not exceed a total of 9.2 acre-feet for the duration of this plan approval. The losses include 5.7 acre-feet of evaporative loss resulting from the 2 acres of exposed groundwater and 3.53 acre-feet of water lost with mined product (600,000 tons).