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Sira Sartori <br />March 8, 2010 <br />Replacements <br />Page 2 <br />Replacement water for this pit will continue to be made available throughout the year from a lease <br />of 65 acre-feet of fully consumable water from the City of Loveland ("Loveland"). This lease also applies to <br />losses at another gravel pit, Kauffman Pit DRMS M 78-327. A copy of the lease associated with the <br />mining operation was provided to the State Engineer's Office with the plan request and a copy of the <br />lease is attached to this letter. The duration of the lease is from January 1, 2010 through December 31, <br />2012. A 4 percent transit loss from Green Ridge Glade Reservoir to Wagner/Kauffman Pit No. 3 has been <br />applied to the delivery of the replacement water. <br />Under the terms of the lease, replacements can be made using a variety of water owned by <br />Loveland including, but not limited to, Windy Gap reusable effluent, Loveland Storage Reservoir water as <br />decreed in case no. 82CW202A, and Colorado Big Thompson Project ("C-BT") water. In the event that <br />the City plans to use C-BT water as a replacement source, the City shall comply with the Interim <br />Rule issued by the Northern Colorado Water Conservancy District ("Northern District") in May <br />2005, regarding the use of Colorado-Big Thompson ("CBT") Project water in substitute water <br />supply plans. Prior to the use of C-BT Project water, the City is required to notify this office, the division <br />engineer and the water commissioner of the amount of C-BT Project water dedicated to this plan and <br />provide a copy of the.Northern District's approval letter as required by paragraph I(g) of the Northern <br />District's May, 2005 Interim Rule. <br />Additionally, please note that as a matter of law, the Division 1 Water Court determined in <br />an Order dated November 25, 2009, in case no. 02CW392, that the 82CW202A decree did not grant <br />Loveland any right to reuse or make successive use of the Barnes and Chubbuck Ditch inches. <br />Accordingly, this plan does not approve the use of replacement water consisting of the Barnes and <br />Chubbuck Ditch inches. For the purposes of this plan, the Applicant is required to provide accounting to <br />demonstrate that the source of the replacement water leased from Loveland does not include water <br />consisting of the Barnes and Chubbuck Ditch inches. <br />The monthly depletion and replacement requirements are indicated on the attached Table 3. <br />Conditions of Approval <br />I hereby approve the proposed substitute waiver 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 January 1, 2010 and shall be valid through <br />December 31, 2010 unless otherwise revoked or modified. If this plan will not be made <br />absolute by a water court action by the plan's expiration date, a renewal request must be <br />submitted to this office with the statutory fee (currently $257) no later than November 15, <br />2010. <br />3. Well permit no. 65258-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. <br />4. The total surface area of the groundwater exposed at the Wagner/Kauffman Pit No. 3 must not <br />exceed 2.6 acres resulting in 6 acre-feet per year of evaporative loss. <br />5. The total amount of product mined at the Wagner/Kauffman Pit No. 3 shall not exceed 350,000 <br />tons per year, which results in 10.3 acre-feet of water lost with the mined product. <br /> <br />