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n <br />PRiVII.EGED AND CONFIDENTIAL <br />ATTORNEY WORK PRODIICT AND <br />MEMARANDUM <br />TO: Murari Shrestha, P.E. <br />Western Fuels-Colorado, LLC <br />FROM: Timothy ]..Beaton, Esq. <br />Gabriel D. Getter, Esq. I <br />Moses, Wittemyer, Harrison & Woodntff, P.C. <br />~RE: Amending the Augmentation Plan Decreed in Case No. SSCWO55 <br />DATE: December 28, 2001 <br />• <br />IF Westem Fuels-Colorado, LLC ("Westem Fuels'? seeks a new well permit for the <br />minvtg pi[ at New Horizon Mine 2 ("NH-2"), it is likety that the State and Division <br />Engineers (`Yhe State")will question whetherthe'existingaugmentation plan decrcedin Case <br />No. 88CW055 covers the additional depletions associated with the new well penni[. If the <br />augmentation play cannot be wnstrued to cover such additional depletions, anappGcation <br />will need to be Sled with the Water Court to amend the augmentation plan, which may also <br />require that Westem Fuels change additional water rights for use as an augmentation source <br />for the increased NH-2 depletions. <br />This memorandum explores the question ofwhether the augmentation decree can be <br />reasonablyreadwcovectbeadditionalanticipa[eddepletionsassociatedwithNA-Z. Copies <br />of the decree in Case No. 88CW055 and the underlying engineering report are attached <br />hereto. Followingis a discussion ofthe augmentation plan es decreed inCaseNo.88CW055 <br />and arguments both for and against the need to amend the augmentation plan to expressly <br />rover the additional NH-2 water depletions. <br />I. OVERVIEW OF THE AUGMENTATION PLAN <br />The decree in Case No. 88CW055 adjudicated two matters: (A) it changed the <br />historical consumptive use associated with certain agricultural water righB in the High Line <br />Canal for augmentation use of the mines; and (B) it approved a plan for sugnentation [o <br />• <br />REVISED MARCH 2006 Attachment 2.05.3(3)-16-10 <br />