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y <br />Application for Finding of Reasonable Diligence <br />Grand Junction Concrete Pipe Company <br />Case No. 06CW 140, Ruling of Referee and Decree <br />Page 3 <br />expanded operations at the Arcuby Pit. The new well permit is Well Permit <br />No. 057114-F. <br />4. Applicant has provided a detailed outline in the Application of the work that has been <br />done toward or for completion of the appropriation of the Water Right during the diligence period <br />immediately preceding the filing of the Application (the "Current Diligence Period"). That work <br />includes the following: <br />A. Applicant is mining sand, gravel and related products from the Arcuby gravel <br />pit and from the property on which it is located. The property is located near the Colorado <br />River. When mining is completed, two lakes with a combined maximum surface area of 36.5 <br />acres will be left on the property. The Water Right was adjudicated in connection with the <br />Applicant's mining and related activities at the Arcuby gravel pit. <br />B. During this diligence period, Applicant negotiated anew lease with the owner <br />of the property on which the Arcuby gravel pit is located. This new lease extended the term <br />of the original lease and made other modifications to the provisions contained in the original <br />lease with the owner. <br />C. During this diligence period, Applicant modified its mining plans for the <br />Arcuby gravel pit. In order to allow its modified plans to be implemented, Applicant applied <br />for and obtained a new well permit for the Arcuby gravel pit. The new permit is Well Permit <br />No. 057114-F. The new well permit covers some of the operations originally anticipated at <br />the Arcuby gravel pit and expanded operations anticipated under Applicant's modified <br />mining plans. <br />D. At the time the last diligence application was filed for the Arcuby Pit in Case <br />No.99CW57, Applicant's mining activities had exposed approximately 14 surface acres of <br />groundwater to the atmosphere. Due to lack of demand, Applicant did not mine any <br />additional substantial amounts ofgravel again until 2005, when Applicant recommenced full <br />scale operations at the Arcuby gravel pit. (A small amount of mining was conducted at the <br />Arcuby gravel pit in early 2004.) Applicant has moved substantial amounts of equipment <br />on to the property to conduct its mining activities, and plans to continue its mining activities <br />at the Arcuby gravel pit. <br />E. In this diligence period, Applicant has expended approximately $255,000 in <br />connection with its mining activities at the Arcuby gravel pit and in the development of the <br />Water Right.