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KC Hallett, Applegate Group <br />October 14, 2008 <br />Page 2 <br />depletions are estimated to be 39.8 acre-feet and for the period April 2009 - March 2010 the <br />lagged stream depletions are estimated to be 43.6 acre-feet. These estimates are based upon <br />evaporative losses from settling ponds, a gravel washing pond, water removed in the mined <br />product, material washing, and dust control. (See attached Tables 1 and 2.) During this plan <br />approval period, no ground water will be exposed in a dewatering system, used for reclamation, <br />concrete batching, or any other purpose. <br />REPLACEMENTS <br />The proposed sources of replacement water for this pit are a ten year lease (expires April <br />11, 2011) of 50 acre-feet per year of fully consumable water from the Board of Water Works of <br />Pueblo (PBWW), and the applicant's ownership of five shares of Twin Lakes Reservoir and <br />Canal Company stock, yielding approximately 3.5 acre-feet of water. The PBWW water will be <br />provided at the City of Pueblo wastewater treatment plant located east of Pueblo when adequate <br />exchange potential exists to make that replacement water available at the Parkdale Project site. <br />When there is insufficient exchange potential to utilize reusable effluent, the PBWW will release <br />water from upstream storage at Clear Creek Reservoir or Twin Lakes Reservoir, or the applicant <br />may release water from Twin Lakes Reservoir. Upstream reservoir releases will be subject to a <br />0.07 percent per mile river transit loss, or approximately 6.3 percent from Clear Creek Reservoir <br />to Parkdale, and 6.5 percent from Twin Lakes to Parkdale. Front Range Aggregates also has an <br />additional backup supply for this project from a 50 acre-foot lease with the Canon City Water <br />Department that will only be used in the event that the other sources become inadequate. The <br />Canon City lease, a copy of which was provided to this office on September 12, 2008, is valid <br />until January 2035. The monthly depletions and replacement requirements are provided on the <br />attached Table 3. <br />The Parkdale Project mining operation possesses a corporate surety bond in the amount <br />of $276,700 held with the Division of Reclamation, Mining, and Safety. The amount is available <br />to cover the cost to line or backfill the pit in the event the operator abandons the project and/or <br />allows the dewatering operation to discontinue. <br />CONDITIONS OF APPROVAL <br />I hereby approve the proposed substitute water supply plan in accordance with §37-90- <br />137(11), C.R.S., subject to the following conditions: <br />1. This plan shall be valid through September 30, 2009 unless otherwise revoked or <br />modified. If this plan will not be made absolute by a water court action by the plan's <br />expiration date, a renewal request must be submitted to this office with the statutory fee <br />(currently $257) by August 16, 2009. <br />2. The water consumption and depletions associated with this mining operation must not <br />exceed those as listed on the attached Tables 1, 2, and 3. <br />3. Approval of this plan is for the purposes as stated herein. Any additional uses of this <br />water must first be approved by this office.