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Mr. Jared Dains <br />Lafarge Middle Poudre Combined SWSP <br />March 29, 2012 <br />Page 5 <br />replacement water will be from Fossil Creek Reservoir and, due to its location, will not be assessed a <br />transit loss. <br />In accordance with the letter dated April 30, 2010 from the Colorado Division of Reclamation, <br />Mining, and Safety ( "DRMS "), all sand and gravel mining operators must comply with the requirements <br />of the Colorado Reclamation Act and the Mineral Rules and Regulations for the protection of water <br />resources. The April 30, 2010 letter from DRMS requires that you provide information to DRMS to <br />demonstrate you can replace long term injurious stream depletions that result from mining related <br />exposure of ground water. The DRMS letter identifies four approaches to satisfy this requirement. The <br />4 approach requires documentation to identify what water rights or other permanent water source will <br />be dedicated to the SWSP to assure that all permanent depletions from either an unforeseen <br />abandonment of the site by the Applicant or as a result of long term ground water exposure after <br />completion of mining and reclamation will be replaced so as to prevent injury to other water rights <br />In accordance with approach no. 4, you have provided an affidavit dated November 23, 2011 that <br />dedicates 5 Box Elder Ditch shares water as replacement water solely for this SWSP for as long as <br />there are depletions at this gravel pit sites or until such time as another replacement source is obtained. <br />A copy of the affidavit is attached to this letter. For the purposes of this SWSP, this affidavit will be <br />accepted for the dedication of the shares; however, if the State Engineer determines that a different <br />affidavit or dedication process is necessary to assure proper dedication of the shares, additional <br />information may be required prior to future SWSP approvals. Also in accordance with approach nos. 1 <br />and 3, you have indicated that a bond has been obtained for $442,750 for the East Rigden Pit, $758,400 <br />for the Three Bells Pit, $717,00 for the Kyger Pit, and $277,500 for the Sheilds Mine. The long -term <br />reclamation plan for the East Rigden and Kyger Pits are lined water storage. Both Three Bells and <br />Shields Mine will include unlined ponds as the final reclamation plan. For any unlined ponds that will <br />remain after mining, a plan for augmentation must be filed with the water court at least 3 years prior to <br />the completion of mining. <br />A monthly breakdown of the stream depletions from the mining operations as well as the <br />replacements is shown in the attached Table 6 (rev. 3/8/12). <br />Conditions of Approval <br />hereby approve the proposed substitute water supply plan in accordance with Section § 37 -90- <br />137(11), C.R.S. subject to the following conditions: <br />1. This plan is approved with an effective date of January 1, 2012 and shall be valid through December <br />31, 2012 unless otherwise revoked or modified. If this plan will not be made absolute by a water <br />court action by the plan's expiration date, a renewal request must be submitted to this office with the <br />statutory fee (currently $257 per pit) for each gravel pit no later than November 15, 2012. <br />2. A well permit is required for the current use and exposed ground water surface at each site in <br />accordance with § 37 -90- 137(2) and (11), C.R.S. As shown on Table A, the well permits for the <br />East Rigden Pit, Kyger Pit, and Shields Mine do not cover the current use or exposed ground <br />water surface. These permits must be amended or a new well permit must be obtained in <br />accordance with § 37 -90- 137(2) and (11), C.R.S. The provisions of § 37 -90- 137(2), C.R.S, <br />prohibit the issuance of a permit for a well to be located within 600 feet of any existing well, unless <br />the State Engineer finds that circumstances so warrant after a hearing held in accordance with the <br />procedural rules in 2 CCR 402 -5. This hearing may be waived if you are able to obtain <br />statements from the owners of all wells within 600 feet, verifying that they have no objection to <br />your use of the proposed well. Should a new well permit be denied for reasons of 600 foot <br />spacing, or any other legitimate reason, approval of this SWSP will be cancelled. <br />