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Division of Minerals and Geology <br />July 16, 2003 <br />Page 2 <br />C. Current Substitute Supply Plan. Before the Reservoir is completed and covered <br />under the 83CW361 augmentation plan, it is covered under a temporary substitute supply plan that <br />was obtained by Mountain Aggregates. This plan covers water consumed by not only evaporation, <br />but also by dust suppression and the mining operation itself. A copy of the recently renewed plan <br />approved by the SEO is attached. Thus, the reservoir site is covered both under the augmentation <br />plan in 83CW361 and, in the short term, by an approved water supply plan. <br />The replacement water for the substitute water supply plan aze the sources under 83CW361 <br />that are provided by Golden. For your information, attached is a copy of augmentation accounting <br />by Golden showing the summary of depletions and replacement for the mining site. <br />2. Well Permit. The SEO also notes the Applicant needs to File for and obtain a well permit <br />for the storage facility. That issue was likewise addressed by the Water Court in Case No. <br />82CW469. In that decree, the Water Court held that the SEO had not acted on the well permit <br />applications that were already filed and ordered that when the Applicant is prepared to complete <br />construction of the reservoirs and impound the water, it simply needs to request the permit in <br />writing and "the State Engineer is directed to issue the well permit immediately." (Decree ¶ 14). <br />Thus, unlike a new gravel pit, the well permit issue was resolved by the Court as part of the <br />82CW469 decree. When final stages of construction are proceeding, Golden will again put its <br />request in writing and the SEO has already been ordered by the Court to issue the permit <br />immediately. <br />Accordingly, for the reasons stated above, each of the issues raised by the SEO has already <br />been addressed and we do not believe anything more is required at this Ume. The reservoir has <br />long been the intended reclamation plan for the site and the amendment is simply intended to <br />accommodate the final design plans of the reservoir. If you have any questions, do not hesitate to <br />contact me. <br />Sincerely, <br />PORZAK OWNING & BUSHONG LLP <br />Steve Bushong <br />Special Counsel for the City of Golden <br />Enclosures <br />cc: Mike Bestor, Golden City Manager (w/o enc]) <br />Dan Hartman, Golden Director of Public Works (w/o encl) <br />Leroy Marquez, Mountain Aggregates, Ina (w/ encl) <br />Paul Banks, Banks & Gesso LLC (w/ encl) <br />Iona Comaniciu, State Engineers Office (w/encl) <br />