2011-08-02_HYDROLOGY - M1992069 - Laserfiche WebLink

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The MLRB permit, issued January 26, 1994, incorporates all application materials as amended and supplemented by the original permit applicant and operator, Carl Hill and Best -Way Paving Co. The application materials state that the Boyd Ditch shares will be made available for augmentation of water losses associated with the mining operation and further state that the 240 shares of Boyd Ditch will be used in the augmentation plan to cover a portion of the post- mining augmentation requirements associated with unlined lakes exposing 67.1 acres of alluvial groundwater. The Lease, recorded with the Weld County Clerk and Recorder at Reception No. 3783048, grants AI the exclusive rights to use any water or water rights appurtenant to the Leased Premises, including without limitation the shares held by 83 JV, Best -Way Paving Company and Carl and Gary Hill in the Boyd Ditch. The Lease also provides that AI is responsible for water augmentation only during the term of the lease and 83 JV is responsible for water augmentation following termination of the lease. In compliance with MLRB permit requirements and the Lease, evaporative losses associated with the F Street mining operation and commitment of replacement sources have been covered under annual Substitute Water Supply Plans approved by Division of Water Resources, Office of the State Engineer, and the 83 JV Boyd Ditch shares have consistently been committed in these plans since 1992. In 2001, the State Engineer's Office required a commitment of the 240 shares of Boyd Ditch stock to the Substitute Water Supply Plan for the site, which was supplied by Carl Hill by commitment dated January 31, 2002 (copy enclosed). In addition to the commitment of the 83 JV Boyd Ditch shares to the Temporary Substitute Supply Plan, these shares have been cited in the Substitute Water Supply Plans as a replacement source for a permanent plan of augmentation. In its approval of the current 2011 Substitute Water Supply Plan, recorded with the Weld County Clerk and Recorder at Reception No. 3783049, the Division of Water Resources is requiring that a permanent plan of augmentation be filed with Water Court by the expiration date of the current Substitute Water Supply Plan, December 31, 2011, to address the long -term evaporative losses and commitment of replacement sources for F Street. In response to Division of Reclamation, Mining and Safety requirements under the MLRB permit regarding mining operations with exposed ground water, AI acknowledged by letter dated April 26, 2011 (copy enclosed) the Division of Water Resources requirement for the permanent plan of augmentation and commitment of replacement sources, to include use of the 240 shares of Boyd Ditch. It is the responsibility of 83 JV or any subsequent owner of the F Street property and Boyd Ditch shares to assure that the water court application is filed or, if not, to provide the additional bonding for failure to do so.