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Andy Rodriguez <br />Bernhardt SWSP <br />February 2, 2012 <br />Page 4 <br />with the requirements of the Colorado Reclamation Act and the Mineral Rules and Regulations <br />for the protection of water resources. The April 30, 2010 letter from DRMS requires that you <br />provide information to DRMS to demonstrate you can replace long term injurious stream <br />depletions that result from mining related exposure of ground water. The DRMS letter identifies <br />four approaches to satisfy this requirement. If the information you are providing to DRMS is <br />included under the approaches numbered 1 — 3, a copy of that information needs to also be <br />provided to this office (the Division of Water Resources). <br />In accordance with approach nos. 1 and 3, you have indicated that a bond has been obtained <br />for $1,053,118.61 through the Division of Reclamation, Mining, and Safety ( "DRMS ") to assure <br />that depletions from groundwater evaporation do not occur in the unforeseen event, or events, <br />that would lead to the abandonment of the Pit. <br />14. This substitute water supply plan may be revoked or modified at any time should it be <br />determined that injury to other water rights has or will occur as a result of this plan. Should this <br />substitute water supply plan expire without renewal or be revoked prior to adjudication of a <br />permanent plan for augmentation, all excavation of product from below the water table, and all <br />other use of water at the pit, must cease immediately. <br />15. In accordance with amendments to §25 -8- 202(7), C.R.S., and Senate Bill 89 -181 Rules and <br />Regulations adopted on February 4, 1992, the state engineer shall determine whether the <br />substitute supply is of a quality to meet requirements of use to senior appropriators. As such, <br />water quality data or analysis may be requested at any time to determine if the water quality is <br />appropriate for downstream water users. <br />16. The decision of the state engineer shall have no precedential or evidentiary force, shall not <br />create any presumptions, shift the burden of proof, or serve as a defense in any water court <br />case or any other legal action that may be initiated concerning the substitute water supply plan. <br />This decision shall not bind the State Engineer to act in a similar manner in any other <br />applications involving other plans or in any proposed renewal of this plan, and shall not imply <br />concurrence with any findings of fact or conclusions of law contained herein, or with the <br />engineering methodologies used by the Applicant. <br />Should you have any questions, please contact Joanna Williams of this office or Jonathan <br />Hernandez of our Division office in Greeley at (970) 352 -0742. <br />Sincerely, <br />Rein, P.E. <br />Deputy State Engineer <br />Attachments: Tables 1, 2A, 2B, 3 and 4 <br />Figure 1 <br />Town of Milliken Lease <br />Letter from DRMS dated April 30, 2010 <br />Administration Protocol `Augmentation Plan Accounting, Division One — South Platte River" <br />cc: Jonathan Hernandez, Water Resource Engineer, 810 9 Avenue, Suite 200, Greeley, Colorado 80631, <br />(970)- 352 -8712 <br />Jason Smith, Water Commissioner, District 4 (810 9 Street, Ste. 200, Greeley, CO 80631 (970) 290 -7397) <br />William Schneider, Water Commissioner District 2 (810 9 Street, Ste. 200, Greeley, CO 80631 (970) 381- <br />0828) <br />Division of Reclamation, Mining and Safety <br />KGR/JMH <br />