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Kimberly Frick Page 2 <br />January 9, 2012 <br />Depletions <br />Lagged depletions to the Arkansas River were calculated by using the AWAS model, <br />and an interpolated stream depletion factor of 88 days ( "Stream Depletion Factors, Arkansas <br />River Valley, Southeastern Colorado" by C.T. Jenkins and O. James Taylor; USGS OFR 72- <br />192). A summary of the lagged monthly stream depletions is shown in the attached Table 3. <br />No groundwater will be used for equipment washing, concrete production, reclamation or any <br />other purpose. Total monthly depletions for each use will be limited to the totals provided in <br />your Table 2. No groundwater was exposed within the permit boundary prior to January 1, <br />1981. No phreatophyte credit has been applied to this plan. <br />Replacement <br />The proposed source of replacement water is GP Ranches' ownership of 284 common <br />shares in the Lower Arkansas Water Management Association ( "LAWMA "). Only 37 LAWMA <br />shares will be dedicated to this plan. This water will cover depletions throughout the entire year. <br />A transit loss will be accounted for by LAWMA as part of their agreement with GP Ranches. If <br />the LAWMA share yield is reduced from the current projection of 0.85 acre -feet per share, more <br />shares will be dedicated to the plan. <br />Long -term Augmentation Obligation <br />After mining and reclamation is complete, the applicant will construct a lined reservoir <br />with a total surface area of approximately 183 acres. The applicant is in the process of <br />obtaining a corporate surety bond for the West Farm Pit allowing the site to be bonded for lining <br />or backfilling the pit in the rare event that GP Ranches ceases mining and abandons the site. <br />Conditions of Approval <br />1. This plan shall be valid through April 30, 2012, unless otherwise revoked or modified. If <br />this plan will not be made absolute by a water court action by the plan's expiration date, <br />a renewal request must be submitted to this office with the statutory fee (currently $257) <br />no later than February 1, 2012. <br />2. Applicant must provide the name, address and phone number of the person who will be <br />responsible for the operation of the plan to this office, the division engineer, and the water <br />commissioner within 20 days of the receipt of this approval. <br />3. A well permit, Permit No. 68754 -F, has been obtained for the current uses (including <br />dewatering) and exposed pond surface area of the gravel pit in accordance with §37 -90- <br />137(2) and (11), C.R.S. The permit was issued on August 26, 2009, and extended until <br />August 26, 2011. If mining has not yet commenced upon expiration of the extended <br />permit, the applicant must reapply for a new well permit and this substitute water supply <br />plan will be invalid until a new permit to expose groundwater is obtained. <br />4. The water consumption and depletions associated with this mining operation must not <br />exceed those amounts listed on the attached Table 2. The total area of exposed <br />groundwater shall not exceed 0.61 acres and total consumptive use shall not exceed <br />30.8 acre -feet of which 2.5 acre -feet is due to evaporative loss and 28.3 acre -feet is <br />industrial consumptive use. Documentation of pond size may be required by the <br />