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txHIBIT MUD WATER INFORMATION Southwest Ready-Mix has purchased over 1000 acres of formerly irrigated farmland including the pit area and several parcels adjacent to the pit area. This land has various wells and ditch rights included with the land. Most of this land re- mains in irrigation at the present time. Southwest Ready-Mix has been working with the State Engineer and the Southeastern Water Conservance District to develop an augmentation plan satisfactory to all parties. Attached is a copy of the draft agreement to provide for permanently drying up 45 acres of historically irrigated land in order to provide 100 acre-feet of water for the sole purpose of replacing depletions from gravel pit operations. The State Engineer has determined that evaporation loss from the exposed ground water is 3 acre-feet per acre per year. This agreement means Southwest Ready-Mix can expose approximately 31.1 acres of ground water under this augmentation plan. Southwest Ready-Mix is a member of the Southeastern Colorado Water Conservance District and operates all their wells as a member of the Arkansas Ground Water Users Association. We have been attempting to clear up the water rights situa- tion with the State Engineer's office since 1985, in fact we still have a case pending that was filed in 1987. The State Engineer has evidently already concluded, however, that we will not win that case. We have had a consultant working for us since 1985 trying to clear up this matter; we now believe we have what should be a strong case for obtaining 100 acre feet of water for dedication to permanent evaporation losses. We can continue tp purchase water for consumptive uses at the plant itself from the City of Pueblo, which we intend to do. In an effort to insure we have adequate water rights, we have purchased approximately 1000 acres of farmland containing numberous wells and ditch rights. It appears that the way the State Engineer's Office functions together with the Water Court, that it might take at least several more years to settle this matter. Attached are copies of various copies of correspondence con- cerning the water issues. We have filed a temporary augmentation plan as required by the State Engineer and have spent a great deal of money on this issue, and quite frankly, do not know if we are any closer to resolving this issue than we were in 1985. We think our record speaks for itself in this matter, and we have made and will continue to make a sincere effort to satisfy the State Engineer. We also think that in view of the fact that we have had a court case pend- ing for eight years, that it is unlikely that this manner can be resolved quickly. We would, therefore, request that the Board not withhold approval of this permit due to settlement of water rights issues.