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3. The Referee conducted an informal conference on site with the applicant aad the <br />Opposers on September 13, 2006, and concluded from such inspection that the water at BB Seep <br />is surface water from seeps originating in the hillside west of the seep, which hillside has been <br />mined for coal in the past. Some of the water reaching BB Seep appears to be drainage from a <br />coal mine portal located above BB Seep. The owner of the mine property has occasionally <br />pumped water from the mine into a drainage tributary to BB Seep. Applicant's appropriation is <br />not dependent upon pumping of water from within the coal mine shafr, which pumped water is <br />deternuned to be ground water, and Applicant is not entitled to pump water from the coal mine <br />portal as part of its appropriation. Applicant's appropriation does include natural drainage and <br />seepage from the mine workings once the water surfaces outside the mine portal. <br />4. Applicant's appropriation was initiated March 2, 2006, by forming the intent to <br />divert water by pump from BB Seep and retention of a water consultant to provide services to <br />develop an"augmentation piari for the replacement of depletions. Water from BB Seep has not <br />been put to the beneficial use sought by Applicant and Applicant seeks a conditional decree. <br />BB Seep is located at the following location in Delta County, Colorado: <br />A point in the NE E'/<NE'/<of Section 14, Township 13 South, Range 95 West, 6"' P.M. <br />460 feet west oft a east line of said section 14 and 390 south of the north line of said <br />Section 14. <br />6. BB Seep derives water from sotuces tributary to Ward Creek, a tributary of <br />Tongue Creek, a tributary of the Gunnison River, in Water District No. 40. <br />7. Applicant claims right to divert 3.47 gallons per minute (0.007 c.f.s). Total <br />maximum annual diversions from BB Seep will be 1.532 acre feet. <br />8. Applicant proposes to divert water for industrial use by pumping water from BB <br />Seep to sprinkle on nearby gravel quarries for dust suppression to comply with regulatory <br />permitting requirements. <br />9. Applicant has leased 1.75 acre foot of water annually from the Grand Mesa Water <br />Conservancy District (hereinafter GMWCD) for replacement ofout-of-priority diversions from <br />BB Seep used for rock quarry dust suppression. The water leased from Grand Mesa-Water <br />Conservancy District is stored in Upper Bggleston Lake and Arch Slough under a decree in Case <br />No. 97 CW 131, District Court, Water Division No. 4, approving changes of point of storage and <br />changes of sources of supply for the Grand Mesa Project decree originally entered January 31, <br />1964, in Case No. 4808, Delta County District Court; amended by decree entered December 13, <br />1972 in Case No. W-586, District Court, Water Division No. 4. The GMWCD exchange water <br />is decreed for storage and diversion and use for irrigation, fishing, recreation, municipal, <br />.domestic, and stockwater, with releases to Wazd Creek and IGset Creek, tributaries to Surface <br />Creek. <br />