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Mr. Jared Dains <br />Timnath - Connell Pit -M99 -050 <br />August 29, 2011 <br />Page 3 <br />In accordance with the letter dated April 30, 2010 (copy attached) from the Colorado <br />Division of Reclamation, Mining, and Safety ( "DRMS "), all sand and gravel mining operators <br />must comply with the requirements of the Colorado Reclamation Act and the Mineral Rules <br />and Regulations for the protection of water resources. The April 30, 2010 letter from DRMS <br />requires that you provide information to DRMS to demonstrate you can replace long term <br />injurious stream depletions that result from mining related exposure of ground water. The <br />DRMS letter identifies four approaches to satisfy this requirement. In accordance with <br />approach no. 1 and 3, you have obtained a bond for $510,198 through DRMS for lining of <br />the exposed ground water. <br />A monthly breakdown of the stream depletions from the mining operation as well as the <br />replacements made by the recharge accretion credits of the Box Elder Ditch shares are shown in the <br />attached Table 6. <br />Conditions of Approval <br />I hereby approve this substitute water supply plan, in accordance with Section 37 -90- <br />137(11), C.R.S., subject to the following conditions: <br />1. This plan is approved with an effective date of August 29, 2011 and shall be valid through <br />March 31, 2012 unless otherwise revoked or modified. If this plan will not be made <br />absolute bv a water court action bv the plan's expiration date, a renewal request <br />must be submitted to this office with the statutory fee (currently $257) no later than <br />February 15, 2012. <br />2. The flow into the recharge site must be metered and equipped with a continuous flow <br />recorder unless the water commissioner, in conjunction with the division engineer, <br />determines adequate records may be kept without such equipment. <br />3. The total surface area of the ground water exposed at the Timnath - Connell Pit must not <br />exceed 8.0 acres, resulting in 19.5 acre -feet per year of evaporative loss. <br />4. The total amount of ground water used for dust control shall not exceed 0.8 acre -feet per <br />year and the total product mined at the Timnath - Connell Pit site shall not exceed 200,000 <br />tons per year, resulting in 5.9 acre -feet per year lost with the mined product. <br />5. Total consumption and lagged depletions shall not exceed the amounts shown in attached <br />Table 2. <br />6. Approval of this plan is for the purposes as stated herein. Any additional uses of water <br />must first be approved by this office. Any future additional historical consumptive use <br />credit given (e.g., agricultural water transfer) for this site must consider all previous credits <br />given. <br />7. All pumping for dust control purposes shall be measured in a manner acceptable to the <br />division engineer. <br />8. The replacement water, which is the subject of this plan cannot be sold or leased to any <br />other entity. As a condition of subsequent renewals of this substitute water supply plan, the <br />