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Ms. Kim Frick <br />November 12, 2010 <br />Page 5 <br />14. In accordance with the letter dated April 30, 2010 (copy attached) from DRMS, all <br />sand and gravel mining operators must comply with the requirements of the <br />Colorado Reclamation Act and the Mineral Rules and Regulations for the <br />protection of water resources. The April 30, 2010 letter from DRMS requires that <br />you provide information to DRMS to demonstrate you can replace long term <br />injurious stream depletions that result from mining related exposure of ground <br />water. The DRMS letter identifies four approaches to satisfy this requirement. <br />For the Derr Pit, it is our understanding that approach no. 1 or no. 3 will be <br />utilized as evidenced by the Applicant's proposal to obtain a bond in the amount <br />of $1,362,889 prior to the exposure of ground water at the Derr Pit. No <br />groundwater shall be exposed on the subject property until such time as the <br />applicant provides proof to this office (the Division of Water Resources) that <br />such a bond has been obtained and the requirements of the April 30, 2010 letter <br />from DRMS have been satisfied. This information is required to assure that all <br />permanent depletions from either an unforeseen abandonment of the site by the <br />Applicant or as a result of long term ground water exposure after completion of <br />mining and reclamation will be replaced so as to prevent injury to other water <br />rights. <br />15. This SWSP may be revoked or modified at any time should it be determined that injury to <br />other water rights has or will occur as a result of this SWSP. Should this SWSP expire <br />without renewal or be revoked prior to adjudication of a permanent plan for <br />augmentation, all excavation of the product from below the water table, and all other <br />use of water at the pit, must cease immediately. <br />16. In accordance with amendments to §25-8-202(7), C.R.S., and Senate Bill- 89-181 Rules <br />and Regulations adopted on February 4, 1992, the state engineer shall determine <br />whether the substitute supply is of a quality to meet requirements of use to senior <br />appropriators. As such, water quality data or analysis may be requested at any time to <br />determine if the water quality is appropriate for downstream water users. <br />17. The decision of the State Engineer shall have no precedential or evidentiary force, shall <br />not create any presumptions, shift the burden of proof, or serve as a defense in any water <br />court case or any other legal action that may be initiated concerning the SWSP. This <br />decision shall not bind the State Engineer to act in a similar manner in any other <br />applications involving other SWSPs or in any proposed renewal of this SWSP, and shall <br />not imply concurrence with any findings of fact or conclusions of law contained herein, or <br />with the engineering methodologies used by the Applicant.