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Mr. Andy Rodriguez Page 6 <br />Poudre Pits Aggregate Mine SWSP <br />January 26, 2012 <br />Reservoir and will be assessed a total transit loss of 9.1%, or as assessed by the Water Commissioner. <br />Copies of the 2011 and 2012 lease leases were provided to this office and are attached to this letter. <br />In accordance with the letter dated April 30, 2010 (copy attached) from the Colorado <br />Division of Reclamation, Mining, and Safety ( "DRMS "), all sand and gravel mining operators <br />must comply with the requirements of the Colorado Reclamation Act and the Mineral Rules and <br />Regulations for the protection of water resources. The April 30, 2010 letter from DRMS requires <br />that you 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. The 4 approach requires documentation to identify <br />what water rights or other permanent water source will be dedicated to the SWSP to assure that <br />all permanent depletions from either an unforeseen abandonment of the site by the Applicant or <br />as a result of long term ground water exposure after completion of mining and reclamation will <br />be replaced so as to prevent injury to other water rights <br />Information documenting compliance with the April 30, 2010 DRMS Letter has not been <br />provided to our office. The applicant has stated that the Tigges land owner will provide a long <br />term augmentation plan for the ponds exposed on the Tigges property using up to 11 shares of <br />his Whitney Ditch shares. The operator is in the process of assessing and obtaining bonds to <br />cover lining or backfilling operations to prevent the longterm depletions that would be caused if <br />the operator abandons the pit. This SWSP and all future SWSP will not allow any additional <br />exposure of ground water until the operator is able to document compliance with the April 30, <br />2011 DRMS Letter. <br />Conditions of Approval <br />I hereby approve the proposed substitute water supply plan in accordance with §37 -90- 137(11), <br />C.R.S., subject to the following conditions: <br />1. This plan shall be valid for the period of March 21, 2011 through December 31, 2012 unless <br />otherwise revoked or modified. If this plan will not be made absolute by a water court action by <br />the plan's expiration date, a renewal request must be submitted to this office with the statutory <br />fee of $257 for each DRMS site no later than November 15, 2012. <br />2. A valid well permit must be obtained for the current use and exposed surface area at the North <br />La Poudre Pit in accordance with §37 -90- 137(2) and (11), C.R.S. in conjunction with this plan. <br />The provisions of Colorado Revised Statute 37 -90- 137(2) prohibits the issuance of a permit for <br />a well to be located within 600 feet of any existing well, unless the State Engineer finds that <br />circumstances so warrant after a hearing held in accordance with the procedural rules in <br />2CCR402 -5. This hearing may be waived if you are able to obtain statements from the owners <br />of all wells within 600 feet, verifying that they have no objection to your use of the proposed <br />well. Should a new well permit be denied for reasons of 600 foot spacing, or any other <br />legitimate reason, approval of this substitute supply plan may be cancelled. <br />3. Well permits were obtained for the current use and exposed pond surface area at the <br />Firestein /Tigges /Roberts Pit, and the La Poudre Pit in accordance with §37 -90- 137(2) and (11), <br />C.R.S., permit nos 62773 -F, and 61571 -F, respectively. <br />4. The total area of pond surface exposed acres for each of the pits shall not exceed those <br />values listed in Table A of this approval. Should the total surface area exposed exceed those <br />amounts, the Applicant is required to immediately file an amendment with this office. <br />5. The total amount of ground water to be appropriated from each of the pits shall not exceed the <br />values listed in Table B of this approval. <br />