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Mr. Richard Raines <br />July 2, 2008 <br />Page 2 <br />discharged into the settling ponds and will percolate into the ground. The IDS AWAS stream depletion <br />model was used to determine the lagged depletions to the Cache La Poudre River. The following <br />parameters were used in the model: transmissivity (T) = 45,000 gallons per day per foot, specific yield <br />(SY) = 0.2, the distance from the Cache La Poudre River to the edge of the alluvium = 4,300 feet, and <br />the distance from the centroid of the exposed surface water areas to the Cache La Poudre River is <br />approximately 600 feet. Because this is a new proposed mining operation, no ground water was <br />exposed at this location prior to January 1, 1981. The stream depletion model shows that the Applicant <br />must replace 7.5 acre-feet for the period of August 2008 though July 2009 and 8.9 acre-feet from <br />August 2009 through July 2010. <br />You have provided a monthly breakdown of the maximum annual depletions totaling 1.2 acre-feet <br />of evaporative loss from a maximum of 0.49 acres of exposed ground water at the settling ponds and <br />dewatering trenches, 2.0 acre-feet of water loss due to dust suppression, and 6.0 acre-feet of water <br />losses associated with the extraction of an estimated 202,500 tons of aggregate from below the water <br />table. No phreatophyte credit has been applied to this plan. <br />Replacements <br />In the Future, Connell Resources, Inc. plans to utilize two shares of the New Cache La Poudre <br />Irrigation Company ("New Cache") to make replacement for depletions caused by the SerFer Pit mining <br />operation, and the Applicant is currently working with the Town of Windsor to trade the New Cache <br />shares for augmentation credits. Until an agreement is reached between Connell Resources and the <br />Town of Windsor, the operator proposes to provide replacement for the actual operational depletions <br />from excess credits associated with a recharge project involving 2.0 shares of the Box Elder Ditch as <br />previously approved for replacement use in conjunction with the Applicant's other gravel pit operations <br />including the Stute Pit (M-81-007), Timnath-Connell Pit (M-99-050) and a newly proposed SWETS Pit <br />(Unknown DRMS No.). The shares will be diverted into a recharge pit located on the Timnath-Connell <br />site. The evaporation losses for the recharge pond are covered by the combined plan for the Stute Pit <br />(M-81-007) and Timnath-Connell Pit (M-99-050). In 2008 and 2009, two shares will be diverted into the <br />recharge pond to provide replacement water for the combined plan (Stute Pit and Timnath-Connell Pit) <br />and SWETS Pit and this plan. <br />Connell Resources, Inc. owns 4.0 shares in the Box Elder Ditch that were historically used to <br />irrigate the property known as the John Weitzel Farm, which is the site of the Timnath-Connell Pit. Connell <br />Resources also owns 0.5 shares of the 3.5 shares Box Elder Ditch shares that were historically used to <br />irrigate the property known as the Robert Weitzel Farm, which is now divided into two mining sites (Stute <br />Pit and Weitzel Pit). <br />The historical consumptive use of 4 Box Elder Ditch shares used on the John Weitzel property is <br />estimated to be 170.72 acre-feet and the return flow obligations for 4 shares for October through April is <br />89.52 acre-feet. This quantification is based on the average headgate diversions for the Box Elder Ditch for <br />the years 1950 to 2004 assuming 10% ditch loss and 55% field efficiency. <br />The pro-rata historical consumptive use credit for the two shares is 85.36 acre-feet and the pro-rata <br />return flow obligation for the two shares for October through April is 44.76 acre-feet. The 85.36 acre-feet <br />was determined as the lesser number from the water available for crop consumption (diversion available at <br />the farm headgate multiplied by the 55% field efficiency) and the potential crop consumptive use values <br />determined from the South Platte Consumptive Use Model (see Table 3A). A total of 246.64 acre-feet were <br />diverted into the recharge site between April 18 and July 5, 2007. Connell Resource will divert the full farm