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DEPARTMENT OF NATURAL RESOURCES ecs <br />DIVISION OF WATER RESOURCES <br />Mr. Tom Hatton <br />Applegate Grog, Inc. <br />1499 West 120 Avenue, Suite 200 <br />Denver, CO 80234-2759 <br /> <br />December 9, 2010 <br />RE: Substitute Water Supply Plan, Wagner/Kauffman Pit #3 (WDID 0402529) <br />DRMS Ao-M99-069 <br />Section 17, 20. and 21, T5N, R68W, 6th P.M. <br />Water Division 1, Water District 4, Larimer County <br />Approval Period: January 1,-2011 through December 31, 2011 <br />Contact Phone Number for Mr. Tom Hatton: 303-452-6611 <br />Dear Mr. Hatton: <br />Bill Ritter, Jr. <br />Governor <br />Mike ?? <br />Bxecutive%rector <br />Dick Wolfe, P.B. <br />Director/State Engineer <br />We have reviewed your letter of October 26, 2010 requesting renewal of the above referenced <br />substitute water supply plan for a sand and gravel pit. The required fee of $257.00 for the renewal of this <br />substitute supply plan has been submitted (receipt no. 3647807). The original supply plan was approved <br />on December 16, 1999 and it was most recently approved in a letter dated March 8, 2010. <br />SWSP Operations <br />This plan seeks to replace depletions resulting from mining operations at the Wagner/Kauffman <br />Pit #3 (WDID 0403008). The mine is located in Larimer County in Sections 17, 20 and 21, Township 5 <br />North, Range 68 West of the 6"' P.M. In the previous SWSP it was anticipated that mining would be <br />completed in 2009 and the reclamation will begin in 2010. Due to recent economic conditions, mining <br />continued through 2010 and reclamation is anticipated to begin in 2011. The depletions that result from <br />the mining operation are evaporation and water lost in the mined product. This SWSP will cover the <br />replacement of the projected depletions of 16.3 acre-feet from January 1, 2011 through December 31, <br />2011. The replacement will be made using a lease from the City of Loveland. Lined storage is planned <br />after reclamation for a portion of the site. The remaining mining area will be backfilled above the ground <br />water table as required in the reclamation plan. <br />In accordance with the letter dated April 30, 2010 (copy attached) from the Colorado <br />Division of Reclamation, Mining, and Safety ("DRMS"), all sand and gravel mining operators <br />must comply with the requirements of the Colorado Reclamation Act and the Mineral Rules and <br />Regulations for the protection of water resources. The April 30, 2010 letter from DRMS requires <br />that you provide information to DRMS to demonstrate you can replace long term injurious <br />stream depletions that result from mining related exposure of ground water. The DRMS letter <br />identifies four approaches to satisfy this requirement If the information you are providing to <br />DRMS is included under the approaches numbered 1- 3, a copy of that information needs to <br />also be provided to this office (the Division of Water Resources). <br />Office 40the State Engineer RECP:11 pr% <br />1313 Sherman Street, Suite 818 • Denver, CO 80203 • Phone: 303-866-3581 • Fax: 303-866-3589 <br />www.water.state.co.us , BEC 14 2010 <br />Dirliion of Itl3GoilwUW t, <br />or** and safety