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THE LAKE CANAL COMPANY <br />THE LAKE CANAL RESERVOIR COMPANY <br />The Applegate Group, Inc. <br />Attn: Mr. Jared Dains <br />1499 West 120 Ave., Suite 200 <br />Denver, CO 80234 -2728 <br />Subject: Connell GL Pit SWSP WY 2012 <br />Dear Jared: <br />April 12, 2012 <br />The Lake Canal Reservoir Company (LCRC) has reserved 10.0 acre -feet of water for <br />the GL Pit Substitute Water Supply Plan for Connell Resources. The source of the <br />augmentation water will be from a system of reservoirs owned by LCRC known as the <br />Gray Lakes. The LCRC change case 06CW276 lists augmentation as a changed use. <br />The table found below includes the accompanying return flow release and transit loss <br />to satisfy the release of 4.5 acre -feet of augmentation water. <br />CU RF Transit Loss Total <br />45% 55% 4.1% Release <br />Month [ac-ft] [ac -ft] [ac-ft] [ac -ft] <br />Jun -12 0.4 0.5 0.04 0.94 <br />Jul -12 0.5 0.6 0.05 1.15 <br />Aug -12 0.5 0.6 0.05 1.15 <br />Sep -12 0.5 0.6 0.05 1.15 <br />Oct -12 0.4 0.5 0.04 0.94 <br />Nov -12 0.4 0.5 0.04 0.94 <br />Dec -12 0.3 0.4 0.03 0.73 <br />Jan -13 0.3 0.4 0.03 0.73 <br />Feb -13 0.3 0.4 0.03 0.73 <br />Mar -13 0.3 0.4 0.03 0.73 <br />Apr -13 0.3 0.4 0.03 0.73 <br />May -13 0.3 0.4 0.03 0.73 <br />Total 4.5 5.7 0.45 10.65 <br />The schedule above has been approved by the Water Commissioner; Mr. George <br />Varra. Please coordinate the required releases with the water commissioner and <br />subsequently provide any additional accounting he may request. <br />