2009-05-26_REVISION - M1993041 (3)

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PETROS & WHITELLC ATTORNEYS AT LAW 1999 BROADWAY, SUITE 3200 DENVER, COLORADO 80202 T)ELEPrioN-q (303) 825-1980 FACSr1M2 (303) 825-I983 May 8, 2009 Vm a-mail and U.S. Mail Mr. Dave Nettles Assistant Division Engineer, Division 1 Ms. Shera Somerford Water Commissioner, District 5 810 9" Street Greeley CO, 80631 Re: Dowe Flats Surface Water Exchange Dear Mr. Nettles and Ms. Somerford: On behalf of our client, Centex, Inc., and in accordance with our telephone conversation on April 16, 2009, we are writing to request that you administer an exchange of surface water ("Exchange") in substitution of surface water runoff captured and stored at the Dowe Flats limestone quarries. Cemex owns and operates a cement plant on property near Lyons, Colorado. Certain property near the plant known as "Dowe Flats" contains limestone and shales which Cemex mines and uses as raw materials in the manufacture of cement. The mining of the limestone creates hardrock quarry pits that collect precipitation nnioff tributary to St. Vrain Creek ("the St. Vrain"). In 1995, Cemex obtained a permit for the dewatering of these quarry pits, Well Permit No. 045501. The permit required Cemex to maintaui the total surface acreage of these pools at less than 0.25 acres by pumping water in excess of that amount out of the pits and into the St. Vrain or its drainages. About January 2006, Cemex ceased pumping operations, allowing water to collect in the quarry pits. Cemex utilizes this stored water for dust suppression in addition to its Colorado Big Thompson Project water ("C-BT water"). On November 13, 2008, the Colorado Division of Reclamation Mining and Safety ("DBMS") conducted a routine inspection at Dowe Flats. The subsequent inspection report issued by DRMS on December 5, 2008, requires Cemex to either comply with the dewatering permit or apply for a plan of exchange or substitution by May 26, 2009. This Exchange is intended to replace by substitution any water captured out-of-priority and currently stored in the quarry pits with C-BT water. A plan of substitution and exchange is also proposed for the remaining life of the mine - mining operations are to end in 2021 and