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Peter Wayland <br />Nelson Mining Resource SWSP <br />February 1, 2012 <br />Page 5 <br />augmentation must be filed with the Division 1 Water Court at least three (3) years prior <br />to the completion of mining to include, but not be limited to, Tong -term evaporation losses <br />and lagged depletions. If a lined pond results after reclamation, replacement of lagged <br />depletions shall continue until there is no longer an effect on stream flow. <br />13. In accordance with the letter dated April 30, 2010 (copy attached) from the <br />Colorado Division of Reclamation, Mining, and Safety ( "DRMS "), all sand and <br />gravel mining operators must comply with the requirements of the Colorado <br />Reclamation Act and the Mineral Rules and Regulations for the protection of <br />water resources. The April 30, 2010 letter from DRMS requires that you provide <br />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 <br />letter identifies four approaches to satisfy this requirement. If the information you <br />are providing to DRMS is included under the approaches numbered 1 — 3, a copy <br />of that information needs to also be provided to this office (the Division of Water <br />Resources). <br />In accordance with approach nos. 1 and 3, you have indicated that a bond has <br />been obtained for $186,814 through the Division of Reclamation, Mining, and <br />Safety ( "DRMS "). This bond is for reclamation requirements under the current <br />permit but may not be sufficient for lining or backfilling the pit to ensure that <br />depletions from groundwater evaporation do not occur in the unforeseen event, <br />or events, that would lead to the abandonment of the Pit. Future SWSPs for this <br />site will not authorize any additional use of ground water until the Applicant <br />provides documentation that a bond sufficient to cover lining or backfilling of the <br />pit has been obtained. In addition according to the information provided you <br />indicated that the land owner Mr. Howard Nelson has entered into a lease <br />agreement (attached) with the applicant, which states that Lessor will grant to <br />Lessee the water rights associated with the property for processing and <br />augmentation during the term of the lease. The term of the lease is for a period of <br />20 years from the date entered into the agreement, which was April 18, 2001. <br />14. The Applicant shall perform an inspection and provide verification for all parcels of dried <br />up land used to generate augmentation credits during the term of this SWSP. The final <br />verification of dry up will be in the form of an affidavit signed by an individual having <br />personal knowledge of the dry up for the entire irrigation season for each parcel of land <br />used in this SWSP. In accordance with the attached protocol for dry-up of irrigated <br />land, the Applicant shall provide a written notification to the water commissioner and <br />division engineer by April 1, 2012 identifying the lands to be dried up for the 2012 <br />irrigation season. By October 15, 2012 the Applicant shall provide an affidavit to the <br />water commissioner and division engineer that identifies and confirms the lands that <br />were dried up during the 2012 irrigation season in order that the final determination of <br />augmentation credits for the irrigation season can be made along with mapping showing <br />any revisions to the dried -up acreage. A GIS shapefile must be emailed to <br />Div1Accounting @state.co.us for each dry -up notification and affidavit. The shapefile shall <br />include the pending case number, the WDID of the plan, the acreage of dry-up, and any <br />accompanying metadata. In addition, the datum must NAD83 and the UTM projection <br />must be Zone 13 North. The Applicant shall modify accounting to reflect that the credit <br />