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Conversion Applicafion OI (CN-01) <br />Objection by Sleeping Lion Ranch, LLC <br />Court - "Angus Investment LLC acknowledges that it will ultimately need Water Court <br />approval of a change of water rights or plan for augmentation to provide full, legal water <br />supply for its expanded gravel operation." (Letter from Jay Montgomery to Paul Gesso <br />and Maureen Jacoby dated March 8, 2005, a copy of which is enclosed (the <br />"Montgomery Letter"). This is nothing short of an admission that no legal water supply <br />exists. <br />The only senior, and therefore reliable, water right that King has under lease in <br />the vicinity of the proposed mine is the Morse Ditch. The Morse Ditch, whose source is <br />Egeria Creek, is decreed for 1 c.fs for irrigation purposes only. Absent approval from <br />the Water Court, King has no legal right to use this, or any of its other water rights, for <br />industrial, mining or dust suppression purposes. The Water Court will not permit a <br />change in the point of diversion, the type of use, the location of use, or the season of use <br />of an existing water right if those changes will injuriously affect the owner of a vested <br />water right. § 37-92-305(3) C.R.S. (2006). <br />"One of the basic tenets of Colorado water law is that junior appropriators are <br />entitled to maintenance of stream conditions existing at the time of their respective <br />appropriations. Accordingly, the right to make a change in point of diversion or place or <br />type of use, is limited in time and quantity to historic use." ~lliarns v. Midway <br />Ranches Property Owners Assoc., Inc., 938 P.2d 515 (Colo. 1997). The change of water <br />rights that King admits will be necessary "to provide full,,legal water supply" would <br />necessarily injure Sleeping Lion. 'Thus, Sleeping Lion will actively oppose any attempt <br />by King to change its water rights. <br />Changing the place of use would alter the amount and location of historic return <br />flows. Moving the point of diversion upstream, into a tributary of Egeria Creek (Smith <br />Creek), would injure intervening water rights. Changing the type of use, from irrigation <br />to dust suppression would adversely impact the quality of return flows. All of King's <br />water rights have historically been used during the summer months only. Changes are <br />limited in time to their historical use. Therefore, even if the Water Court were to approve <br />a change in place and type of use, and a change in the point of diversion, Colorado law <br />does not permit a change in the time of use. King's water rights, in their present or <br />changed form, will never be available for use outside the historical irrigation season. <br />King states - in a disingenuous and highly misleading fashion -- in Exhibit G to <br />the Application "There are no expected impacts on water resources by this proposed <br />operation." Yet it is abundantly cleaz that King would need Water Court approval to <br />change its water rights, which by definition would impact water resources in the vicinity. <br />In violation of Rule 6.4.7, King has not stated how the operation is expected to affect <br />surface or groundwater systems. King has not submitted maps of tributary water courses, <br />wells, springs, stock water ponds, and ditches on the affected land and on adjacent lands. <br />King has not submitted a statement showing how it will protect against pollution of <br />surface and groundwater as a result of its dust suppression and runoff from disturbed <br />areas. In violation of Rule 6.4.7(3) King has not provided an estimate of flow rates and <br />annual volumes for the development, mining and reclamation phases of the project. Most <br />loala 2 <br />