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DEPARTMENT OF NATURAL RESOURCES <br />DIVISION OF WATER RESOURCES <br />Mr. Corey Hansen <br />Lafarge North America, Inc. <br />10170 Church Ranch Way Suite #200 <br />Westminster, CO 80021 <br />June 8, 2011 <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Dick Wolfe, P.E. <br />Director/State Engineer <br />RE: Lafarge West Inc. Iverson Mine (M-2011-001) <br />Section 34, Township 6 North, Range 66 West, 6th P.M. <br />Water Division 1, Water District 2, Weld County <br />Dear Mr. Hansen: <br />This letter is in response to the letter dated May 16, 2011 from Jared Dains at Applegate <br />Group, Inc. requesting confirmation of the adequacy of the share dedication for the proposed <br />Iverson Mine. According to the letter, during mining operations the site will be dewatered to <br />allow dry mining, so groundwater exposure during the life of the mining operation is expected to <br />be minimal. However, at the conclusion of mining, the proposed reclamation plan anticipates <br />that an unlined pond of approximately 44.4 acres in size will remain on site. The estimated net <br />evaporation from exposed water in the area of the proposed mining operation is 2.92 acre- <br />feet/acre per year based on a gross evaporation of 45 inches and average historical <br />precipitation of 14.2 inches, based on information obtained from the nearby Greeley UNC <br />climate station. Therefore, the total annual depletion that would result from the 44.4 acres of <br />exposed ground water is 129.72 acre-feet per year. <br />In accordance with the letter dated April 30, 2010 from the Colorado Division of <br />Reclamation, Mining, and Safety ("DRMS"), all sand and gravel mining operators must comply <br />with the requirements of the Colorado Reclamation Act and the Mineral Rules and Regulations <br />for the protection of water resources. The April 30, 2010 letter from DRMS requires that you <br />provide information to DRMS to demonstrate you can replace long term injurious stream <br />depletions that result from mining related exposure of ground water. The DRMS letter identifies <br />four approaches to satisfy this requirement. <br />In accordance with approach no. 4, you have provided a affidavit from Tim Iverson dated <br />May 12, 2011 that dedicates 6.25 shares of the Greeley Irrigation Company ("GIC") to the <br />augmentation of the sand and gravel operation assigned DRMS permit no. M-2011-001 and the <br />future Substitute Water Supply Plan for as long as there are depletions at the associated gravel <br />pits or until such time as another replacement source is obtained. In addition, the affidavit <br />states that the shares will not be sold, leased, or traded to others during the term of this <br />dedication. A copy of the affidavit is attached to this letter. This affidavit is acceptable for the <br />dedication of the shares; however, if the State Engineer determines that a different affidavit or <br />dedication process is necessary to assure proper dedication of the shares, additional <br />information may be required as part of the Substitute Water Supply Plan ("SWSP") approval <br />process. <br />RECE IFn <br />JUN 0 8 2011 <br />Office of the State Engineer Division or Kec;&&vi uuc,. <br />1313 Sherman Street, Suite 818 • Denver, CO 80203 • Phone: 303-866-3581 • Fax: 303-866 35in and Sdety <br />89 <br />www.water,state.co.us