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Ms. Cheryl Signs <br />Durham Pit M1978-056 <br />July 10, 2003 <br />Page 2 <br />for the historical use credits of the five shares of Greeley Canal No. 3 and Fossil Creek <br />Reservoir were prorated from the historical use analysis values decreed for the Greeley <br />Irrigation Company in case no. 96CW658. Based on the 2002 mining production and the <br />proposed expansion of use of the mining area there will be a total demand of 245.08 acre-feet <br />per year if dewatering ceased. This includes the return flow obligations of 2 acre-feet per year <br />from Fossil Creek Reservoir and the 44.6 acre-feet per year from the Greeley Canal No. 3. <br />Applying the 98.1 acre-feet of historical irrigation credits during the irrigation season, there will <br />be 146.98 acre-feet of uncompensated depletions if dewatering on the site ceased. <br />Replacement for depletions during the non-irrigation season and during months with <br />.insufficient credits will be made by releases of irrigation season credits from four shares in the <br />Rural Ditch Company. Varra Companies Inc. (Varra) is proposing a storage program in a lined <br />pit using the Rural Ditch diversions. An application for a storage water right in the 112-lined <br />pond was filed with the Water Court in case no. 2001 CW274. The return flow obligations of the <br />Rural Ditch shares will be met by a portion of the Hayseed Ditch controlled by the applicant. The <br />historical use analysis of the Hayseed Ditch was presented in the proposed decree in case no. <br />90CW174. If the Hayseed Ditch credits are not sufficient, releases from the 112-lined pond will <br />be made to meet the required return flow obligations. In addition releases from the 112-lined <br />pond will be made to meet Varra's other obligations to the stream system. These obligations are <br />the net evaporation from the Del Camino facility (M-74-052), the non-irrigation season from the <br />Kurtz Ranch Resource Recovery (M-99-006) and Hayseed Ditch non-irrigation season return <br />flow obligations. <br />The monthly depletions and replacement requirements are found on the attached table. <br />As required by Senate Bill 89-120 in Section 8, this substitute water supply plan has <br />been sent to an outside consultant for review. Until such time that the consultant has <br />recommended approval of the plan the State Engineer has evaluated the plan for conditional <br />approval by way of this letter. Based upon statutory requirements, I hereby approve the <br />proposed substitute water supply plan in accordance with §37-90-137(11), C.R.S. subject to the <br />following conditions: <br />1: This plan is conditionally approved until October 31, 2003. The State Engineer will allow <br />for permanent approval of this plan subject to the approval by the consultant. After <br />reviewing the consultant's approval, the State Engineer may modify any portion of this <br />approval. Approval of this plan is also subject to the requirement that the applicant must <br />submit renewal and amendment request for substitute water supply plans with the <br />appropriate fee for the Del Camino Facility (M-74-052) and Kurtz Ranch Resource <br />Recovery (M-99-006) by October 31, 2003. <br />2. Subject to Condition of Approval 1 and pursuant to §37-90-137(11), C.R.S. this plan is <br />, - <br />approved until July 31, 2005. If this plan will not be made absolute by a water, court <br />action by the plan's expiration date, a renewal request must be submitted to this office <br />with the statutory fee (currently $217) no later than June 15, 2005.