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r <br />Dear Mr. Williams: <br />DEPARTMENT OF NATURAL RESOURCES <br />DIVISION OF WATER RESOURCES <br />Mr. Todd Williams, P.E. <br />Williams and Weiss Consulting, LLC <br />5255 Ronald Reagan Boulevard, Ste 220 <br />Johnstown, CO 80534 <br />December 19, 2011 <br />RE: Wagner- Kauffman No. 3 Substitute Water upply Plan (WDID 0402529) <br />Wagner- Kauffman No. 3 Pit, DRMS N0.'10-1999-069 (WDID 0403008) <br />Section 17, 20 and 21, T5N, R68W, 6th P.M. <br />Water Division 1, Water District 4, Larimer County <br />Approval Period: January 1, 2012 through December 31, 2012 <br />Contact Phone Number for Mr. Todd Williams: 303 - 653 -3940 <br />We have reviewed your letters of October 28, 2011 and December 5, 2011 requesting renewal of <br />the above referenced substitute water supply plan for a sand and gravel pit. The required fee of $257.00 <br />for the renewal of this substitute supply plan has been submitted (receipt no. 3652844). The original <br />supply plan was approved on December 16, 1999 and it was most recently approved in a letter dated <br />December 9, 2010. <br />SWSP Operations <br />This plan seeks to replace depletions resulting from mining operations at the Wagner /Kauffman <br />No. 3 Pit ( "W -K #3 "). The mine is located in Larimer County in Sections 17, 20 and 21, Township 5 <br />North, Range 68 West of the 6 P.M. Mining activities at the Pit are complete and reclamation activities, <br />including the completion liners will continue into 2012. It is anticipated that liner construction will be <br />complete in the summer of 2012 and that by December 1, 2012 the liners will have received approval <br />through the State Engineer's Office and all exposed ground water will be backfilled. From January 2012 <br />through November 2012, the only depletions that will occur, and will be covered under this SWSP are <br />the evaporative losses from exposed ground water. Coinciding with the cessation of dewatering, <br />projected to be December 1, 2012, post pumping depletions impacting the river and will be covered <br />under this SWSP. The replacement will be made using a lease from the City of Loveland. Lined storage <br />is planned after reclamation for a portion of the site. The remaining mining area will be backfilled above <br />the ground water table as required in the reclamation plan. <br />In accordance with the letter dated April 30, 2010 (copy attached) from the Colorado Division of <br />Reclamation, Mining, and Safety ( "DRMS "), all sand and gravel mining operators must comply with the <br />requirements of the Colorado Reclamation Act and the Mineral Rules and Regulations for the protection <br />of water resources. The April 30, 2010 letter from DRMS requires that you provide information to DRMS <br />to demonstrate you can replace long term injurious stream depletions that result from mining related <br />exposure of ground water. The DRMS letter identifies four approaches to satisfy this requirement. <br />Approach # 3 is to file a financial warranty to cover the cost of installing a liner. Jake Kauffman and <br />Son, Inc holds a bond in the amount of $570,000 to cover the cost of lining and reclamation activities <br />J <br />Office of the State Engineer f,,, <br />1313 Sherman Street, Suite 818 • Denver, CO 80203 • Phone: 303 - 866 -3581 • Fax: 303 - 866 -3589 <br />www.water.state.co.us <br />StitAc)r <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Dick Wolfe, P.E. <br />Director /State Engineer <br />• <br />