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Peter Wayland <br />Nelson Mining Resource SWSP <br />February 1, 2012 <br />Page 2 <br />In accordance with approach nos. 1 and 3, you have indicated that a bond has been <br />obtained for $186,814 through the Division of Reclamation, Mining, and Safety ( "DRMS "). <br />This bond is for reclamation requirements under the current permit but may not be <br />sufficient for lining or backfilling the pit to ensure that depletions from groundwater <br />evaporation do not occur in the unforeseen event, or events, that would lead to the <br />abandonment of the Pit. Future SWSPs for this site will not authorize any additional use <br />of ground water until the Applicant provides documentation that a bond sufficient to <br />cover lining or backfilling of the pit has been obtained. In addition according to the <br />information provided you indicated that the land owner Mr. Howard Nelson has entered <br />into a lease agreement with the applicant, which states that Lessor will grant to Lessee <br />the water rights associated with the property for processing and augmentation during <br />the term of the lease. The term of the lease is for a period of 20 years from the date <br />entered into the agreement, which was April 18, 2001. <br />Depletions <br />Consumptive use of water at the property consists of 30.75 acre -feet of evaporation from <br />up to 12.6 acres of exposed surface area. No groundwater was exposed at this site prior to <br />January 1, 1981. Depletions from evaporation at the mine site will accrue to Saint Vrain Creek. <br />You have provided a monthly breakdown of the annual depletions at this site in your <br />attached Table AI1.1. The IDS AWAS stream depletion model was used to determine the <br />lagged depletions from evaporation to Saint Vrain Creek. The aquifer characteristics used in the <br />model are: transmissivity (T) = 157,000 gallons per day per foot and specific yield (SY) = 0.2, <br />the distance of the exposed ground water to the stream = 2,013 feet, and the location of the <br />parallel impermeable boundary was estimated to be 2,126 feet from the stream. For purposes <br />of this SWSP, the distance of the exposed ground water to the river X is accepted; <br />however, should the Applicant seek to renew this SWSP, the Applicant must calculate <br />the depletions with the X value measured from the centroid of the pond. <br />Replacements <br />The proposed source of replacement for this pit is the historical consumptive use from the <br />dried -up of 30 acres of land historically irrigated with 0.434 shares of Last Chance Ditch diverted <br />from Saint Wain Creek used for irrigation of the mined property lrriga - has <br />ceased on the Nelson Pit site due to the mining operation and groundwater lakes. The Applicant <br />owns 1.5 shares of the outstanding 20 shares of the Last Chance Ditch. The 1.5 shares of the <br />Last Chance Ditch were historically used for irrigation on the Nelson Pit mining site. The historical <br />use of the irrigation supply was quantified using the average monthly diversion from 1950 through <br />2005. The total irrigated crop acreage varied from 101 acres (1950 to 1965) to 121 acres (1966- <br />1990) to 72 acres (1991- 2005). The ditch loss used the consumptive use analysis was 10 percent <br />based on the ditch location, its length and previous experience and the irrigation efficiency was <br />taken as 50 %. Water in excess of the irrigation requirement was added to the soil moisture bank, <br />which was assumed to have a water holding capacity of 1.95 " /ft. The consumptive use analysis for <br />the 1.5 shares averaged 160.6 acre -feet per year with a non - irrigation season return flow <br />obligation of 14.6 acre -feet (Table AI.7). The pro -rata historical consumptive use credit for the <br />0.434 shares is 48.18 acre -feet with a non - irrigation season return flow obligation of 4.34 acre - <br />feet. After applying the 0.434 shares of Last Chance Ditch water, there will be 16.87 acre -feet of <br />uncompensated depletions. <br />