2011-11-28_HYDROLOGY - M1988112 (2)

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Colorado Division of Water Resources June 23, 2011 Page 3 Newmont Realty Company, Inc. (Newmont Realty), a BMRI affiliate, has purchased the Salazar Ranch (formerly known as the Dos Hermanos Ranch or the Shalom Ranch) from Mr. Harris (Sandy) Cooper. The Salazar Ranch is located immediately west of the BMRI San Luis Gold Project, and Rito Seco also flows through the ranch (Figure 1). The surface and ground water direct flow rights, as well as storage rights which have historically been used to irrigate lands on the Salazar Ranch, were also purchased by Newmont Realty. To provide better operational flexibility, BMRI recently filed an application for an augmentation plan that seeks to consolidate all of its augmentation procedures into one plan. As described in the application for Case No. 07CW42, this new plan seeks a confirmation of 1) a new junior storage right on the Salazar Ranch, 2) a change of senior irrigation rights associated with the Salazar Ranch to include augmentation, replacement, and storage releases, and 3) alternate points of diversion for all of the Salazar Ranch rights to allow diversion thereunder at any of the current points of diversion for the remaining Salazar Ranch water rights. As part of this augmentation plan, BMRI will provide out -of- priority depletion augmentation due to West Pit and alluvial pumping, and TMF depletions related to rainfall and snowfall capture. PROPOSED SWSP The proposed SWSP does not envision any new operations associated with control of West Pit or alluvial water. Wells will continue to operate to maintain water levels in the West Pit and control migration of constituents downgradient in the alluvial aquifer. There also will be no new operation associated with pumping water to the TMF, i.e., when water is pumped from the West Pit and alluvial aquifer to the TMF and fully consumed, it will be augmented 100 percent. However, under this SWSP, BMRI proposes to use some of its Salazar Ranch water rights, which it is seeking to change in 07CW42, for augmentation of these depletions. Current BMRI water management operations have depletions from a) brine from the on -site treatment plant, b) capture of precipitation and storm water runoff in the TMF and other ponds near the West Pit, and c) the use of West Pit and alluvial water at the TMF. The depletive effects from BMRI's water management activities will be offset by augmentation supplies, which include a) water stored in the Salazar Reservoir, b) historic consumptive use associated with the adjudicated irrigation wells and/or Salazar Ditch on the Salazar Ranch because of the dry-up of certain historically - irrigated lands, and c) the adjudicated augmentation water supply from the Rocky Mountain Farms Well that was originally adjudicated in Case No. 89CW32, if needed (Well Permit No. 8324). Therefore, the primary component of the proposed SWSP is the use of Salazar Ranch water rights as the principal augmentation supply, supplemented by Rocky Mountain Farms well water, as necessary (Figure 1).