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Mr. Stephen Buechner Page 2 <br />May 21, 2012 <br />DEPLETIONS <br />During this plan year, the maximum exposed surface area total of 17.2 acres within the <br />Active Pit (16.7 exposed acres) and the Unused Wash Pond (0.5 acres). You have submitted <br />an analysis that shows the calculated evaporation, effective precipitation, and resultant net <br />replacement obligation in the attached Tables 1 and 2. You have also performed a depletion <br />analysis based upon the net replacement obligation and the aquifer characteristics to show the <br />lagged depletion schedule to the Arkansas River, as presented in that attached Table 3. The <br />total lagged depletions for this plan year are estimated to be 59.28 acre -feet (56.54 acre -feet <br />from the Active Pit, 1.73 acre -feet from the Unused Wash Pond, and 1 acre -foot from the <br />sanitary /miscellaneous well). During the April 1, 2012 through March 31, 2013 plan year, the <br />site excavations will not expose any additional ground water. No mining or dewatering will take <br />place during this plan year unless an amendment to this plan is approved. <br />Stream depletion analyses for both the Active Pit area and the Unused Wash Pond <br />(attached) used the Stream Depletion Factors of 7.3 days for the Active Pit and 120 days for the <br />Unused Wash Pond, obtained from the USGS Publication 72 -192 "Stream Depletion Factors, <br />Arkansas River Valley, Southeastern Colorado ". <br />REPLACEMENTS <br />The source of replacement water is the Arkansas Groundwater Users Association <br />( "AGUA "), and the 1 -year lease agreement covering this plan year has been submitted as <br />verification to this office. The amount of the lease water is for 60 acre -feet of fully consumable <br />water, commencing April 1, 2012. Per the lease agreement, this volume of water will be <br />delivered to a point on the Arkansas River in Section 34, Township 20 South, Range 63 West of <br />the 6th P.M., which is directly adjacent to the Rich Pit; therefore, transit losses will not be <br />assessed. The lease with AGUA will provide sufficient replacement water for depletions at the <br />Rich Pit over the plan year, and will be delivered according to the schedule outlined in Column E <br />of the attached Table 3. A new lease agreement must be provided for any renewal of this <br />SWSP in the coming years. <br />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 gravel <br />mining operators must comply with the requirements of the Colorado Reclamation Act <br />and the Mineral Rules and Regulations for the protection of water resources. The April <br />30, 2010 letter from DRMS requires that you provide information to DRMS to demonstrate <br />you can replace, or provide bonding for an alternative method to mitigate, the long term <br />injurious stream depletions that result from mining related exposure of ground water. <br />A source of renewable Tong -term replacement water sufficient to cover <br />evaporative depletions has not been secured for this plan. In a letter dated April 28, <br />2011, Lafarge notified DRMS that it was considering bonding the site to install a slurry <br />wall liner for use as water storage, with a preliminary estimated cost of $271,320. At this <br />time Martin Marietta plans to proceed with this option to mitigate log -term injurious <br />stream depletions that result from mining - related exposure of groundwater. Martin <br />Marietta anticipates that it will have up to three years to phase in the additional financial <br />warranty. The Rich Pit is currently bonded for $51,542 with the DRMS. Future SWSPs for <br />this site will not authorize any additional use of ground water until the Applicant provides <br />documentation that a bond sufficient to cover lining or backfilling of the pit has been <br />obtained. <br />