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Chris Weber Page 2 1 September 29, 2003 evaporation, water retained on product, and dust control, with all hatching and truck washing water to be provided from city water supply. The replacement water is proposed to be from 2 sources. The first is Transit Mix's ownership of 2.92 cfs of the Hamp-Bell ditch that historically irrigated 67 acres and is estimated to yield 170.3 acre-feet annually in an average year and 153.9 acre-feet annually in a dry year. The second is consumable water leased from the Pueblo Board of Water Works. Transit Mix currently has a lease with Pueblo that will provide 106 acre-feet of totally consumable water annually through September 30, 2007. Hamp-Bell ditch credits will first be applied to depletions at the Pueblo West pit, with excess credits carried down stream and applied to depletions at the Pueblo East pit site. Depletions at each site that cannot be covered by ditch credits, and depletions caused by elimination of return flows due to dry-up under the ditch, will be replaced using releases of the Pueblo water (from Pueblo reservoir or other equivalent source such as Clear Creek reservoir). The operational scenario giving monthly depletions and replacements is detailed on your Table 5, which is attached. Transit Mix commits 2 sources of long-term renewable water for aback-up supply to cover the 92.0 acre-feet of depletions covered by the Pueblo water, should the Pueblo water become unavailable in the future. The first is the 50.2 acre-feet of excess Hamp-Bell ditch credits (identified on Table 5). The second is the required amount out of the 46.8 acre-feet per year firm yield of the 60 shares of Twin Lakes Reservoir and Canal Company stock it owns. Areas within the Pueblo West pit, in excess of the 96.1 acres of exposed ground water indicated above, are being dewatered. Transit Mix has a bond deposited with the Division of Minerals and Geology (DMG) to provide for a lined berm around the dewatered area so a source of long-term renewable replacement water is not needed for that area. You indicate that Transit Mix desires to excavate and dewater area at the Pueblo East pit greater than the 12 acres of exposed ground water indicated above, and that a bond with DMG to provide for an enclosing slurry wall is planned. Until such a bond has been accepted by DMG the total combined area of actual ground water exposure plus excavated and dewatered area that would expose ground water if dewatering stops is limited to 12 acres. Once such a bond has been accepted a request to amend this plan may be submitted. The state and division engineers have reviewed the plan and the adequacy of each source of water provided for use as augmentation water, including, where necessary, the historical consumptive use of each water right, and return flows from diversion of waters imported into the Arkansas River basin or other fully consumable waters proposed for use as augmentation water. In accordance with Section 25-8-202(7), C.R.S. and Senate Bill 89-181 Rules and Regulations adopted on February 4, 1992, the state engineer has determined that subject to the terms and conditions below, the replacement supply is of a quality to meet the requirements of use to senior appropriators. This substitute water supply plan is hereby approved pursuant to Section 37-80-137(11), C.R.S., subject to the following conditions: 1. The total surface area of exposed ground water and total consumption at each pit may not exceed the amounts given in the attached tables.