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Jared Dains <br />May 21, 2012 <br />In accordance with approach nos. 1 and 3, you have indicated that a bond has been <br />obtained for $86,867 provided by Pioneer's original M- 1977 -174 mining permit through the <br />Division of Reclamation, Mining, and Safety ( "DRMS "). This bond is for reclamation <br />requirements under the current permit but may not be sufficient for lining or backfilling <br />the pit to ensure that depletions from groundwater evaporation do not occur in the <br />unforeseen event, or events, that would lead to the abandonment of the Pit. Future <br />SWSPs for this site will not authorize any additional use of ground water until the <br />Applicant provides documentation that a bond sufficient to cover lining or backfilling of <br />the pit has been obtained. <br />Depletion <br />Depletions from Pond #1 will result from evaporation from exposed surface area and <br />from industrial uses for the concrete batch plant. The total annual depletions are estimated to <br />equaJ,19 -feet and all depletions are assumed to be 100% consumptive. You have <br />provided a rrionthly breakdown of the annual depletions made up of 2.83 acre -feet of net <br />evaporative Toss corresponding to a water surface area of 1.07 acres and 16.48 acre -feet (13.19 <br />acre -feet based on pumping during 2007 with a safety factor of 25 %) of water used for industrial <br />use for the concrete batch plant. Total monthly depletions for each use will be limited to the <br />totals provided in your Table 3. <br />Replacement <br />Page 2 <br />The proposed source of replacement water for this SWSP is the Applicant's NT <br />Arapahoe Entitlement decreed in Water Court Case No. 1984CW73. Case No. 1984CW73 <br />quantified the amount of water underlying the applicant's land within the Arapahoe aquifer to an <br />annual production of 9.45 acre -feet at a rate not to exceed 200 GPM. In the previous SWSP <br />approval we indicated that only 98% of the water can be withdrawn for use under Monks' decree, <br />and their 9.45 acre -feet will provide only 9.26 acre -feet of water. However the decree in Case <br />No. 1984CW73 states that the 2% relinquishment requirement only applies to the water <br />withdrawn from the Laramie -Fox Hills formation. Therefore all of the 9.45 acre -feet will be <br />withdrawn from the Applicants NT Arapahoe Well, 26943 -F, and will be dedicated to this SWSP. <br />Although the decree in case no. 1984CW73 allows the water to be used for augmentation <br />purposes, the permitted use of well no. 26943 -F is for commercial purpose only, therefore on <br />February 2, 2012, the Applicant submitted a new permit application ( #3653912) for the <br />expansion of use of well no. 26943 -F and this application has been approved under permit no. <br />76030 -F. The remainder of the replacement water for this SWSP will be leased from Pioneer's <br />NNT Arapahoe Entitlement decreed in Water Court Case No. 2002CW66. Pioneer obtained an <br />augmentation plan where the NNT Arapahoe will provide 34.89 acre -feet, after relinquishment of <br />4% of the annual available appropriation, results in 33.49 acre -feet available annually. The <br />decree provides that the groundwater decreed may be withdrawn by wells located on lands <br />contiguous to the Subject land. Pioneer then obtained Permit No. 64792 -F pursuant to the <br />decree to appropriate water through Well No. 26943 -F, which is located on Monks' land. Monks <br />and Pioneer have entered into a 3 year lease where Pioneer will lease up to 12 acre -feet <br />annually to Monks (Pioneer's Excess 12 acre - feet). Of the 12 acre -feet appropriated under <br />Permit No. 64792 -F, 11.52 acre -feet will be available for use in this SWSP and the remaining <br />4% will be returned to the alluvial aquifer. The term of the lease is through March 31, 2015 and <br />a copy of the lease is attached to this letter. The lease also states that in the future if Pioneer <br />