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Mr. Richard Raines <br />July 2, 2008 <br />Page 3 <br />headgate delivery of the two shares starting in April 2008. Accordingly, the monthly timing of 192.59 acre- <br />feet (historical full farm headgate delivery of the 2 shares) was used in the recharge model to determine <br />the recharge accretion credits for 2008 and 2009. The pro-rata portion of the summer and winter return <br />flow obligations attributable to the recharge accretions from the two Box Elder Ditch shares utilized by this <br />plan will be maintained by this SWSP. <br />The Box Elder recharge project is located upstream of the SerFer Pit location. Recharge credits <br />are therefore expected to return to the Cache La Poudre River approximately 4 miles upstream of the <br />point of injury created by the SerFer Pit operations. As such, a transit loss of 1.0% (i.e., 0.25% per mile) <br />is accounted for relative to the delivery of this water to the subject site. The monthly evaporative and <br />operational losses and proposed monthly replacement requirements for the approval period of this plan <br />can be found on applicant's Tables 3 and 4 and Appendix B. <br />As required by Section 8 of Senate Bill 89-120, this SWSP has been provided to an outside <br />consultant for review. The consultant has recommended approval of the plan by way of a draft of this <br />letter. Based upon statutory requirements and the recommendations of the consultant, I hereby approve <br />the proposed substitute water supply plan in accordance with Section §37-90-137(11), C.R.S., subject to <br />the following conditions: <br />Conditions of Approval <br />1. This SWSP shall be valid for the period of August 1, 2008 through July 31, 2010, unless otherwise <br />revoked, modified, or superseded by decree. If the slurry wall construction and testing described <br />in this plan will not be completed by the plan's expiration date and/or if any lagged depletions will <br />still have an effect on the stream flow at the plan's expiration date a renewal request must be <br />submitted to this office with the statutory fee (currently $257) by June 16, 2010. <br />2. A well permit must be issued for the gravel pit in accordance with §37-90-137(2) and (11), C.R.S. <br />prior to the exposure or use of ground water. A well permit application was submitted to this office <br />under receipt no. 3629347 and.this application is pending evaluation. The provisions of Section <br />§37-90-137(2), C.R.S. prohibits the issuance of a permit for a well to be located within 600 feet of <br />any existing well, unless the State Engineer finds that circumstances so warrant after a hearing <br />held in accordance with the procedural rules in 2CCR402-5. This hearing may be waived if you <br />are able to obtain statements from the owners of all wells within 600 feet, verifying that they have <br />no objection to your use of the proposed well. Should a new well permit be denied for reasons of <br />600 foot spacing, or any other legitimate reason, approval of this SWSP will be cancelled. <br />3. The total surface area of the ground water exposed after January 1, 1981 at the SerFer Pit must <br />not exceed 0.49 acres during the approval period of this SWSP resulting in an annual evaporative <br />loss of 1.2 acre-feet. <br />4. The annual amount of water used at the operation shall not exceed 2.00 acre-feet for dust control <br />and the total product mined shall not exceed 202,500 tons per year below the ground water <br />surface resulting in 6 acre-feet of water lost with the product. <br />5. Total consumption at the SerFer Pit must not exceed the aforementioned amounts unless an <br />amendment is made to this plan.