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Page 2 of 8 <br />Jeffrey Clark <br />August 8, 2011 <br />Depletions will result from evaporative losses and water removed in the mined product at <br />the Bromley Lakes site, and evaporation losses at the North Tower Pit. The proposed <br />replacement sources are consumptive use credits from Fulton Ditch shares owned by the <br />Applicant, water previously stored in Kenneth Mitchell Lake, water leased . from the City of <br />Brighton, and water stored under the Erger Pipeline water right. <br />In accordance with the letter dated April 30, 201() 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, 201() letter from DRMS required 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 identified <br />four approaches to satisfy this requirement. <br />In accordance with approach no. 4, you have provided an affidavit dated August 4, 2010 <br />that dedicates the 70 shares of the Fulton Ditch water as replacement water solely for this <br />SWSP for as long as there are depletions at this gravel pit site or until such time as another <br />replacement source is obtained. A copy of the affidavit is attached to this letter. For the <br />purposes of this SWSP, this affidavit will be accepted for the dedication of the shares; <br />however, if the State Engineer determines that a different affidavit or dedication process <br />is necessary to assure proper dedication of the shares, additional information may be <br />required prior to future SWSP approvals. <br />Also, in accordance with approach nos. 1 and 3, you have indicated that a bond has <br />been obtained for $4,169,240 that can cover the cost of lining or backfilling the Bromley Lakes <br />site to prevent the exposure of ground water. <br />A water court application for a permanent augmentation plan for the North Tower Pit was <br />filed on March 1, 1990 under case no. 1990CW39. The application was amended on November <br />26, 2003 and a second amendment was filed on January 23, 2008. The approval of this plan <br />does not imply a position by our office on any litigation associated with case no. 1990CW39 or <br />any other case. Condition 14 of the previous SWSP approval required the Applicant to include <br />information that describes what steps they have taken towards obtaining a final decree, to <br />assure that the court application continues to progress through the court process. According to <br />the information provided in this SWSP request, the Applicant has been working diligently to <br />obtain a final decree in case no. 1990CW39. A revised engineering report and draft decree <br />were circulated to objectors in that case on April 29, 2011, with comments due by September <br />30, 2011. A status conference has additionally been set for October 20, 2011. <br />Condition 13 of the previous SWSP approval required the Applicant to demonstrate to the <br />State Engineer's Office that they have commenced backfilling or lining of Ready Mixed Pit No. <br />1; have obtained an agreement with Brighton regarding lining of the pond; or are diligently <br />negotiating to obtain an agreement with Brighton. According to your June 16, 2011 letter, <br />RMCC and Brighton have been working to have the Bromley Lakes site annexed into the City of <br />Brighton. Once the annexation is finalized, you anticipate that RMCC and Brighton will begin <br />discussing Brighton's purchase and remediation of the remaining area within the Bromley Lakes <br />site. <br />