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Mr. William Blatchley <br />June 17, 2008 <br />Page 4 <br />12. If reclamation of the mine site will produce a permanent water surface exposing groundwater to <br />evaporation, an application for a plan for augmentation must be filed with the Division 1 Water <br />Court at least three years prior to the completion of mining to include, but not be limited to, long- <br />term evaporation losses. If a lined pond results after reclamation, replacement of lagged <br />depletions shall continue until there is no longer an effect on stream flow. Granting of this plan <br />does not imply approval by this office of any such court application(s). <br />13. To assure that depletions from groundwater evaporation do not occur in the unforeseen event, <br />or events, that would lead to the abandonment of the pit, a bond for $5000.00 through DRMS <br />for lining or backfilling of the pit has been obtained. Therefore, in case of abandonment the <br />bond can finance the completion'of the lining of the pit or the backfilling, thus preventing <br />depletions to the stream system. <br />14. This SWSP may be revoked or modified at any time should it be determined that injury to other <br />water rights has or will occur as a result of this plan. Should this SWSP expire without renewal or <br />be revoked prior to adjudication of a permanent plan for augmentation, all excavation of product <br />from below the water table, and all other use of water at the pit, must cease immediately. <br />15. In accordance with amendments to § 25-8-202(7), C.R.S., and "Senate Bill 89-181 Rules and <br />Regulations" adopted on February 4, 1992, the State Engineer shall determine whether the <br />substitute water supply plan is of a quality to meet requirements of use to senior appropriations. <br />As such, water quality data or analyses may be requested at any time to determine if the water <br />quality is appropriate for downstream water users. <br />16. The decision of the State Engineer shall have no precedential of evidentiary force, shall not create <br />any presumptions, shift the burden of proof, or serve as a defense in any pending water court <br />case or any other legal action that may be initiated concerning this plan. This decision shall not <br />bind the State Engineer to act in a similar manner in any other applications involving other plans, <br />or in any proposed renewal of this plan, and shall not imply concurrence with any finding of fact or <br />conclusions of law contained herein, or with the engineering methodologies used by the Applicant. <br />Please contact loana Comaniciu in Denver at (303) 866-3581, or Dave Nettles in Greeley at <br />(970) 352-8712, if you have any questions concerning this approval. <br />Sincerely, <br />Jeff Deatherage, P.E. <br />Water Resource Engineer <br />Attachments: Table I <br />Affidavit from Harold E. Clare II <br />Lease Agreement with MMRC <br />cc: David Nettles, Assistant Division Engineer (810 9t' Street, Ste. 200, Greeley, CO 80631, (970) <br />352-8712) <br />Garver Brown, Water Commissioner District 23 (P.O. Box 1949, Fairplay, Co 80440, (719) 836- <br />1509) <br />Division of Reclamation, Mining and Safety