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The applicant shall demonstrate that during a 90-day test period the unregulated ground water inflow to the pit does not exceed the Performance Standard. Demonstration of inflows less than the Performance Standard shall be sufficient cause far a determination that the applicant has constructed a lined reservoir and is entitled to store water. If the unregulated ground water inflow to the reservoir exceeds the Performance Standard, the State Engineer shall require the reservoir to be dewatered until satisfactory changes have been made to the liner to conduct another initial liner test. 1.0_4__ Water Budget Accountin Monthly accounting shall be required as long as the liner continues to meet the Design Standard. Weekly accounting (or more frequent if required by the Division Engineer) shall be required for liners which do not meet the Design Standard but continue to meet the Performance Standard. Evidence of compliance with the standards shall be established through a mass balance analysis accounting for inflows, outflows, and change in storage. If the State or Division Engineer determines that the ground water inflow (leakage rate) into the reservoir Is greater than the Performance Standard, the applicant shall be required to calculate the inflow to or outflow from the reservoir by means of amass-balance analysis on a 48-hour basis, and return to the stream system such inflows to the pit within 48 hours, without such water being used by applicant in any manner. This 48-hour accounting shall only be for the entire period specified under the Liner Failure During Operation Section (see below) and shall not be done pertnanen0y. 1.05 Liner Failure During Operation In the event that the average daily unregulated ground water inflow to the reservoir exceeds the Performance Standard for two consecutive months, as evidenced by accounting (see above), the applicant or their successor and the State Engineers Office shall begin to consult regarding the probable cause of the unregulated ground water inflow, and the appropriate actions to be taken in response thereto. If the State or Division Engineer and the applicant cannot reach an agreement on the appropriate actions to reduce the unregulated ground water inflow to less than the Performance Standard within nine months of the beginning of the consultations, the State or Division Engineer shall provide written notice to the applicant of their determination to correct this problem. The 48-hour accounting shall begin following the two consecutive months that the Performance Standard is exceeded and shall continue until the applicant has demonstrated that the Performance Standard has been met Applicant shall have two (2) years from the date of such written notice of liner failure to repair the liner to an inflow Less than the Performance Standard. If satisfactory repairs are not completed within the two year period, no new water shall be stored in the reservoir until either. 1) the repair Is made; 2) the Issue is decided by the Water Court under retained jurisdiction, or, 3) the State Engineer's Office otherwise grants permission for storage to continue. The State or Division Engineer may declare the reservoir a well requiring a well permit 1.06 Legal Storaoe of Water Water shall not be impounded in the reservoir except pursuant to lawful diversions allowed by statute or decree. At all other times, all inflow of water into the reservoir from any source, including precipitation and ground water inflows shall be removed by the applicant The water can be removed by draining, pumping, or other means, and released to the stream system, without use by the applicant in any manner. The applicant shall install the necessary measuring devices, Including but not limited to, staff gauges In the reservoir and account on a monthly basis (or more frequently if required) for Inflow and outflow, Page 2 of 3