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Construction of portions of the banks between the permanent ponds began in 2004 and <br />continued in 2005 as planned, in the area near the saved oak tree, which again leafed <br />out this spring. <br />Operations will continue in the 2006 permit year with mining of up to 2.3 acres (6.6 <br />acres (total), but no stripping of additional land is planned, although some stripping was <br />done in 2005 to accommodate larger stockpile areas while protecting topsoil. CDWR <br />has approved the past years' substitute water supply plan, and we have again applied <br />for an additional year's implementation of the SWSP. Despite high spring water levels <br />in 2005, it was unnecessary to draw down the water level, but plans and materials are <br />available both for that and for continuing to improve the Home Ditch (irrigation ditch) to <br />meet CDWR requirements. Drawdown of water in the pit may be necessary later this <br />season, based on sand and gravel demand. The applications are being filed with the <br />Water Court for permanent augmentation for reclamation as proposed, as well as <br />continued use of water for mining; although no comments were received from CDWR in <br />more than 18 months; CDWR did require providing additional dry-up of_irrigated land <br />(3.0 acres) to meet anticipated requirements this year; since the anticipated <br />requirements were based on much larger ponds than now in place or anticipated, <br />additional water will be stored via a new permanent agreement with MVIC for release <br />during shoulder months to replace depletions. By the end of the 2006-2007 period, <br />ponds will be at 4.8 acres surface, with no drawdown, and might be as small as 2.0 <br />acres with drawdown. <br />Based on expected demand, most work originally planned for 2004 will instead be <br />performed in 2006, although demand will of course drive operations. We continue to <br />keep the Montezuma County Commissioners aware of this situation, as well as ensure <br />that we have all necessary approvals for all operations from state and county offices. <br />If there are any questions, please call me at (970) 565-3388, or contact our <br />environmental engineer, Nathan Barton, at (970) 564-1380. <br />rely, <br />Aryol6 mley _- ---- - -=1-~----- __ ----_ .- - - <br />Manager <br />Four States Aggregates LLC <br />CF: <br />Colorado Division of Minerals and Geology, Durango Office <br />701 Camino del Rio <br />Durango, CO 81301 VIA FAX 970-237-5104 <br />