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July 27, 2012 <br />Mr. Dick Wolfe, State Engineer <br />Division of Water Resources <br />1313 Sherman Street, Suite 821 <br />Denver, CO 80203 <br />AGGREGATE <br />Re: MLRB Permit M- 1992 -069 — 83 Joint Venture Pit (aka F Street Pit) INDUSTRIES <br />Temporary Variance of Compliance Requirements Regarding Replacement of Depletions <br />from Sand and Gravel Mining <br />Dear Dick: <br />Thank you for your time the other day to discuss issues Aggregate Industries (AI) is attempting <br />to address with regard to compliance requirements relative exposed groundwater at the above - <br />referenced operation. In response to our discussion you indicated that a temporary variance of <br />those requirements may be approved until such time as the various issues associated with the <br />property can be sorted out and resolved. This letter is therefore being submitted as AI's formal <br />request for such variance to be consistent with the filing requirements of the term of our <br />Temporary Substitute Supply Plan (TSSP) through December 31, 2013. <br />For the records of Division of Water Resources (DWR), the following summarizes some of the <br />history related to the F Street Pit operation and the property: <br />AI has completed mining and reclamation of the F Street Pit in accordance with the DRMS <br />permit and the sand and gravel mining Lease with property owner 83 Joint Venture (83 JV), <br />which included a post - mining, unlined pond with a water surface area of 67.1 acres. In <br />accordance with the terms of the Lease, 83rd JV has the long -term water augmentation <br />responsibility for this site and, as noted in the DRMS permit application documents, planned to <br />use 240 shares of Boyd Freeman Ditch for water obligations associated with the reclaimed open <br />pond and to obtain additional water rights as necessary to cover all depletions. In accordance <br />with DWR's requirements, 83 JV also committed its Boyd Freeman shares during the term of <br />the Substitute Water Supply Plan for the gravel mine facility and so long thereafter as required <br />by the Colorado State Engineer (copy of January 31, 2002 Commitment of Water Supply <br />enclosed). <br />During the course of 2011, the 83 JV Boyd Freeman ditch shares were sold to the City of <br />Greeley subject to AI's rights under the Mineral and Surface Lease. The City acknowledged <br />Al's rights to continued use of the ditch shares in its temporary substitute water supply plan; <br />however, since conveyance of 83 JV's water rights to the City did not include conveyance of <br />the land for which the permanent plan of augmentation is required, the City advised that the <br />shares will not be available to 83 JV for its responsibility for implementing and complying with <br />the requirements for the post - mining permanent plan of augmentation for the property. <br />Aggregate Industries <br />West Central Region, Inc. <br />1707 Cole Blvd., Suite 100 <br />Golden, CO 80401 <br />Telephone: 303 - 985 -1070 <br />An Equal Opportunity Employer <br />