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DEPARTMENT OF NATURAL RESOURCES <br />DIVISION OF WATER RESOURCES <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Dick Wolfe, P.E. <br />Director/State Engineer <br />James R. Hall, P.E. <br />Division Engineer <br />May 28, 2009 <br />Via e-mail and U. S. Mail <br />Nicole L. Johnson <br />Raymond L. Petros, Jr. <br />Petros & White LLC <br />1999 Broadway, Suite 3200 <br />Denver, CO 80202 <br />Re: Dowe Flats Surface Water Exchange <br />Dear Ms. Johnson and Mr. Petros: <br />This letter is in response to your letters of May 8 and 24, 2009 related to the proposed operation of the <br />Dowe Flats limestone quarries operated by your client, Cemex, Inc. near Lyons, Colorado. Conditional <br />water storage rights were decreed to these quarries in case 83CW374 as the Southdown Reservoir(s) <br />(WDID 0504357). Evidence suggests that little, if any, groundwater is exposed in these quarries. <br />A dewatering well permit (no. 45501-F) was obtained in 1995 to remove any precipitation captured by <br />the quarries and discharge it to St. Wain Creek. However, in 2006 Cemex stopped dewatering the <br />quarries and began to use that water, in addition to 457 CBT units, for dust suppression. This change <br />was discovered by the Colorado Division of Reclamation Mining and Safety during a routine inspection <br />in November 2008 and Cemex was required to either resume dewatering or apply for a plan of <br />exchange or substitution by May 26, 2009. <br />While Cemex is retaining the option of resuming dewatering operations at some point in the future, your <br />current proposal is to use both the "upstream storage statute" (Section 37-80-120(1) C.R.S.) and a one- <br />for-one exchange of CBT units as a substitute supply for any captured out-of-priority inflows. Basically, <br />your plan would operate as follows: <br />1. The amount of any tributary water inflows to the quarries between November 1 and June 15 <br />would be recorded; <br />2. To the extent any of this water was stored out-of-priority against a senior storage call that did <br />not fill, an equal amount of CBT water would be provided to the Water Commissioner for release <br />to St. Wain Creek; <br />3. From June 15 to October 31, CBT water would be provided to the Water Commissioner as a <br />substitute supply for a real time exchange to allow retention and use of any captured <br />precipitation; <br />4. The life of this exchange plan would be until final reclamation of this site, currently anticipated to <br />be in 2024. <br />Water Division 1 • Greeley <br />810 91h Street, Suite 200 • Greeley, CO 80631 • Phone: 970-352-8712 • Fax; 970-392-1816 <br />www. wa ter, state, co.us