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Mr. Stephen Buechner <br />Applegate Group, Inc. <br />O 1499 West 120 Avenue, Suite 200 <br />Denver, Colorado 80234 -2759 <br />- 1 � ' f <br />< � n5� <br />DEPARTMENT OF NATURAL RESOURCES 1 <br />c) DIVISION OF WATER RESOURCES <br />May 21, 2012 <br />Re: Parkdale Project, Substitute Water Supply Plan <br />DRMS File No. M -97 -054 <br />Section 12, T18S, R72W, 6th P.M. <br />Water Division 2, Water District 12 <br />Approval Period: October 1, 2011 — September 30, 2012 <br />Contact phone number for Mr. Stephen Buechner: 303 - 452 - 6611 <br />Dear Mr. Buechner: <br />PLAN OPERATION <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Dick Wolfe, P.E. <br />Director /State Engineer <br />RE CEIVED <br />40 22 20 <br />J1VISi00 of Reclam <br />Mining & Safety <br />We have received your August 18, 2011 letter requesting the renewal of a substitute <br />water supply plan ( "SWSP ") for a quarry and sand and gravel mine, known as the Parkdale <br />Project, operated by Front Range Aggregates, LLC ( "Applicant "). The most recent SWSP <br />approval letter was dated June 8, 2011. Updated engineering has been provided in support of <br />this request. The mine is permitted with the Division of Reclamation, Mining, and Safety under <br />File No. M -97 -054. The $257 renewal fee has been accepted with receipt no. 3651959. <br />The Parkdale Project is located approximately 12 miles of Canon City on the north bank <br />of the Arkansas River. The operation will consist of sand and gravel production and will impact the <br />Arkansas River in the form of depletions due to evaporation and operational losses associated with <br />mining. According to a letter dated October 1, 2009, mining at the Parkdale Project is projected <br />to continue for approximately 8 -12 years in the alluvium, and approximately 30 — 40 years in the <br />granite quarry. It is assumed that mining below the water table will not occur during the period of <br />this SWSP (October 1, 2011 to September 30, 2012). <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 long term injurious stream depletions that result from mining related <br />exposure of ground water. <br />In accordance with approach nos. 1 and 3, you have indicated that a bond has <br />been obtained for $1,174,724 through the Division of Reclamation, Mining, and Safety <br />( "DRMS ") to assure that depletions from groundwater evaporation do not occur in the <br />unforeseen event, or events, that would lead to the abandonment of the Pit. In addition, <br />Front Range Aggregates owns and has dedicated five shares of Twin Lakes Reservoir <br />Office of the State Engineer 4j': 0 S <br />1313 Sherman Street, Suite 818 • Denver, CO 80203 • Phone: 303 - 866 -3581 • Fax: 303 - 866 -3589 <br />www.water.state.co.us <br />