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Exhibit l.- Baseline Resource SEO Slurry Wall Approval <br />OFFICE OF THE STATE ENGINEER <br />Division of Water Resources <br />Department of Natural Resources <br />1313 Sherman Stmt, Room 818 <br />Denver, Colorado 80203 <br />Phone (303) 866-3581 <br />FAX (303) 866 -3589 <br />httpJJWww.water.state.co.us <br />Scott Palmer, P.E. <br />Deere & Ault Consultants, Inc. <br />600 S. Airport Road, Building A, Suite 205 <br />Longmont, CO 80503 <br />Re: Walker Reservoir Phase l: Pond Nos. 1 and 2 <br />D&A Job No. CG -0134.014.00 <br />Water Division 1, Water District 2 <br />Dear Scott: <br />The purpose of this letter is to approve the lining of the above referenced gravel pit. This approval <br />is based on the information you provided under a covers letters dated June 13, 2007 and August <br />10, 2007 as well as the site inspection conducted on July 10, 2007. The estimated pit inflows <br />from precipitation and groundwater and outflows due to pumping and evaporation indicate that <br />this aft has been lined to the design standard referenced in the August 1999 State Engineer <br />Guidelines for Lining Criteria for Gravel Pits. Meeting the design standard requires that all <br />water inflows and outflows for this pond must be accounted for on a monthly basis. <br />Please call me if you have any questions. <br />CC: Robert Stahl, Water Commissioner <br />Shera Sumerford, Water Commissioner <br />STA'I'E OF COLORADO <br />September 11, 2007 <br />Sincerely, <br />Jana C. Ash, P.E. <br />Water Resource Engineer <br />Bill Ritter. Jr. <br />Gov <br />Harris D. Sherman <br />Exec tive Director <br />N <br />State Engineer <br />