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Mr. Jared Dains, E.I. Page 4 of 7 <br />November 2, 2010 <br />users may utilize the water 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 and amended on September 10, 2009, which grants PRPA to right to store surplus <br />water (which is surplus water beyond the needs of the Rawhide Energy Facility) in Fossil Creek <br />Reservoir and lease such water to others who can use such water from Fossil Creek Reservoir through <br />direct delivery. According to the Agreement, releases of leased water to others shall be made in the <br />months of September, October, November, February or March. The releases will be made from Fossil <br />Creek Reservoir to the Cache La Poudre River approximately 26.6 miles upstream of the estimated point <br />of depletion from the Greeley Pit. A 0.25 percent per mile river transit loss for 26.6 miles results in 15.31 <br />acre-feet of water available for augmentation, which is sufficient to cover all depletions during the <br />November through March timeframe. The amended lease was signed on August 2, 2010 and a copy is <br />attached to this letter. <br />SWSP Conditions of Approval <br />I hereby approve the proposed substitute water supply plan in accordance with § 37-90- <br />137(11), C.R.S. subject to the following conditions: <br />1. This plan is approved with the effective date of May 1, 2010 and shall be valid through March 31, <br />2011 unless otherwise revoked or modified. If this plan will not be made absolute by a water <br />court action by the plan's expiration date, a renewal request must be submitted to this office with <br />the statutory fee of $257 no later than March 1, 2011. <br />2. An application for a new gravel pit well permit for the current use and exposed pond surface <br />area of the Greeley Pit is currently pending with receipt no. 3645746. The provisions of § 37- <br />90-137(2), C.R.S., prohibit the issuance of a permit for a well to be located within 600 feet of <br />any existing well, unless the State Engineer finds that circumstances so warrant after a hearing <br />held in accordance with the procedural rules in 2CCR402-5. This hearing may be waived if <br />you are able to obtain statements from the owners of all wells within 600 feet, verifying that <br />they have no objection to your use of the proposed well. Should a new well permit be denied <br />for reasons of 600 foot spacing, or any other legitimate reason, approval of this substitute <br />supply plan will be canceled. <br />3. The total surface area of the ground water exposed at the Greeley Pit after December 31, 1980 <br />must not exceed 27.4 acres resulting in 70.11 acre-feet of evaporative loss for this plan period. <br />4. The annual water used at the Greeley Pit for dust control shall not exceed 0.90 acre-feet and <br />the product must be mined above the ground water table and cannot be washed using ground <br />water at the site. Since ground water will not be consumed in the mining of the 90,000 tons of <br />material, the resulting operational losses for this plan period shall not exceed 0.9 acre-feet. <br />5. Total consumption at the Greeley Pit must not exceed these aforementioned amounts unless <br />an amendment is made to this plan. <br />6. Approval of this plan is for the purposes as stated herein. Any additional uses for which the <br />water may be used will be allowed only if a new SWSP is approved for those additional uses. <br />7. Applicant shall replace the net evaporative depletions from the exposed ground water surface <br />area that may occur during the assumed ice covered period (December and January) for any <br />time that the exposed ground water in the pit is not completely covered by ice. <br />8. All releases of replacement water must be sufficient to cover all out-of-priority depletions in <br />time, place, and amount and must be made under the direction and/or the approval of the