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Mark A. McLean, P.E. Page 2 <br />October 6, 2011 <br />Arkansas Valley Water Conservancy District ( LAVWCD). The LAVWCD will provide up <br />to 21 acre -feet of Larkspur Ditch water released from storage in Pueblo Reservoir and <br />administered by AGUA. <br />The mining operations have caused permanent ground water exposure and <br />perpetual evaporation losses from the pit. In accordance with the April 30, 2010 letter <br />from the Colorado Division of Reclamation, Mining, and Safety ( "DRMS "), all sand and <br />gravel mining operators must provide information to DRMS to demonstrate they can <br />replace long term injurious stream depletions that result from mining related exposure of <br />ground water. Accordingly, RBK has posted a bond with the Division of Reclamation, <br />Mining, and Safety (DRMS) for $14,530, an amount sufficient to backfill up to 4.0 acres <br />of excavation. RBK should explore options to provide permanent replacements and a <br />decreed plan for augmentation. Until such plan for augmentation is decreed, RBK must <br />continue to maintain the bond with DRMS. <br />The State and Division Engineers have reviewed the plan and the adequacy of <br />each source of water provided for use as augmentation water, including, where <br />necessary, the historical consumptive use of each water right, and return flows from <br />diversion of water imported into the Arkansas River Basin or other fully consumable <br />waters proposed for use as augmentation water. In accordance with Section 25 -8- <br />207(7), C.R.S. and Senate Bill 89 -181 Rules and Regulations adopted on February 4, <br />1992, the State Engineer has determined that subject to the terms and conditions below, <br />the replacement supply is of a quality to meet the requirements of use to senior <br />appropriators. <br />CONDITIONS OF APPROVAL <br />I hereby approve the proposed substitute water supply plan in accordance with <br />Section 37 -90- 137(11), C.R.S., subject to the following conditions: <br />1. This current plan shall be valid through March 31, 2012 unless otherwise revoked <br />or modified. The previous plan for the period April 1, 2010 — March 31, 2011 has <br />been approved. <br />2. A request for renewal of this plan must be submitted with the statutory fee then in <br />effect at least 45 days prior to the date of expiration (by February 15, 2012). <br />3. The water consumption associated with this mining operation must not exceed <br />the evaporative loss of 14.4 acre -feet during the plan year. The water surface <br />area may not exceed 4.0 acres. <br />4. Approval of this plan is for the purposes as stated herein. No mining, washing, or <br />any other use of water is authorized unless an amendment to this plan is <br />approved. <br />5. Releases of water by the Lower Arkansas Valley Water Conservancy District <br />pursuant to this plan shall be under the approval of the Division Engineer and the <br />Augmentation Coordinator and shall equal or exceed the depletions to be <br />replaced on a monthly basis. <br />