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Mr. Jared Dains, E.I. Page 3 <br />February 19, 2010 <br />for cooling purposes in connection with its Rawhide Energy Facility. Pursuant to the decree in case no. <br />W-9332-78, if PRPA does not require the water for its own purposes, PRPA, Fort Collins, or other water <br />users may utilize the w:ter for any other beneficial purpose including augmentation. In addition, PRPA <br />has entered into an Agreement with the North Poudre Irrigation Company ("North Poudre") dated <br />November 15, 1979 which grants PRPA to right to store surplus water (which is surplus water beyond the <br />needs of the Rawhide Energy Facility) in Fossil Creek Reservoir and lease such water to others who can <br />use such water from Fossil Creek Reservoir through direct delivery. As required by the Agreement, North <br />Poudre and the water commissioner were informed by the PRPA lease with Star Ready Mix, Inc. In <br />addition, according to the Agreement, releases of leased water to others shall be made in the months of <br />September, October, November, February or March. Since the existing lease will also make <br />replacements for months other than the months listed above, PRPA and North Poudre mutually agreed to <br />lease the water for December 2009 and January 2010 and the water commissioner agreed to make the <br />releases during those months. The releases will be made from Fossil Creek Reservoir to the Cache La <br />Poudre River approximately 24.6 miles upstream of the estimated point of depletions from the Feit Pit. A <br />6.15 percent (0.25 percent per mile for 26.9 miles) river transit loss is included in the 16.12 acre-feet <br />amount. The subject lease was signed on September 22, 2009 and a copy of the lease is attached to <br />this letter. <br />The Applicant has also obtained a lease from the Graham Drainage Ditch Company for 82.94 <br />acre-feet of replacement water from the Graham Seepage & Drainage Canal water.right. This water right <br />was decreed in case no. W-7818 as developed water, not tributary to the South Platte River. The Court <br />found that 2,800 acre-feet of water was developed by the construction, development, and operation of the <br />Graham Seepage & Drainage Canal; however, historically, only 1,330 acre-feet were consumptively <br />used, with 1,470 acre-feet discharged as waste water to the Cache La Poudre River and its tributaries. In <br />the decree entered in case no. W-7818, the Court indicated that it considered the Supreme Court <br />decisions in the cases-of Southeastern Colorado Water Conservancy District et al v Shelton Farms and <br />Southeastern Colorado Water Conservancy District v Colorado-New Mexico Land Co Inc 187 Colo. <br />181, 529 P.2d 13212 (1974). Based on the above, this SWSP will only recognize 1,330 acre-feet per <br />year of consumable water. The current lease for the Graham Seepage & Drainage Canal water is for the <br />period of April 2010 through October 2010 and a copy is attached to this letter. Deliveries to the Cache <br />La Poudre are measured at a flume located approximately 380 feet from the mouth of the ditch and are <br />made downstream of the estimated point of depletions from the Feit Pit, therefore no transit losses were <br />assessed. <br />The monthly depletions and replacement requirements are found on the attached Table 4. <br />Conditions of Approval <br />I hereby approve the proposed substitute water supply plan in accordance with § 37-90-137(11), <br />C.R.S., subject to the following conditions: <br />1. This plan is approved with the effective date of November 1, 2009 and shall be valid through <br />October 31, 2010 unless otherwise revoked or modified. If this plan will not be made absolute by a <br />water court action by the plan's expiration date, a renewal request must be submitted to this office <br />with the statutory fee (currently $257) no later than September 15, 2010. <br />2. Well permit no. 54916-F was obtained for the current use and exposed pond surface area of the <br />gravel pit in accordance with §37-90-137(2) and (11), C.R.S. On April 25, 2005, well permit no. <br />54916-F was amended to include dewatering as a use at this site. <br />3. The total surface area of the groundwater exposed at the Feit Pit after December 31, 1980 must