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Cheryl Signs, P.E. <br />Cheryl Signs Engineering <br />109 East Fourth Avenue <br />Denver, CO 80203 <br />Re: Western Sugar Pit, Substitute Water Supply Plan (WDID 0302554) <br />DRMS File No. M- 2010 -049 (WDID 0303038) <br />Sections 4 and 9, T5N, R65W of the 6 P.M. <br />Water Division 1, Water District 3 <br />Approval Period: August 1, 2011 through July 31, 2013 <br />Contact Phone Number for Ms. Cheryl Signs: 303 - 778 -7653 <br />Dear Ms. Signs. <br />This letter is in response to your application of July 5, 2011 requesting a substitute water supply <br />plan (SWSP) for a sand and gravel pit to be operated by Varra Companies, Inc. ( "VCI" or "Applicant ") in <br />accordance with § 37 -90- 137(11), C.R.S. The Applicant shall be responsible for compliance with this <br />SWSP, but the State Engineer's Office may also pursue the landowner, for eventual compliance. The <br />required fee of $1,593 for the SWSP has been received. <br />SWSP Operations <br />DEPARTMENT OF NATURAL RESOURCES <br />DIVISION OF WATER RESOURCES <br />September 12, 2011 <br />The Western Sugar Pit is located in the S 1/2 of Sections 4 and the N 1/2 of Section 9, <br />Township 5 North, Range 65 West of the 6 P.M. This SWSP seeks to replace depletions resulting <br />from the mining at the Western Sugar Pit. The depletions that result from the mining operation over <br />the first two years of existence include evaporation from exposed ground water, dust suppression, <br />dewatering, and water lost with the mined product. The proposed replacement of depletions and <br />maintenance of return flows will come from a combination of either direct replacement or storage in <br />the 112 Reservoir (WDID 0504001), Dakolios Reservoirs (WDID 0504003) and /or Von Ohlen <br />Reservoir (WDID 0504002) of Applicant's shares in the Last Chance Ditch, Rural Ditch, Godding <br />Ditch. Hayseed Ditch. and junior water rights decreed in case no. 2001CW274. <br />In accordance with the letter dated April 30, 2010 (copy attached) from the Colorado <br />Division of Reclamation, Mining, and Safety ( "DRMS "), all sand and gravel mining operators <br />must comply with the requirements of the Colorado Reclamation Act and the Mineral Rules <br />and Regulations for the protection of water resources. The April 30, 2010 letter from DRMS <br />requires that you provide information to DRMS to demonstrate you can replace long term <br />injurious stream depletions that result from mining related exposure of ground water. The <br />DRMS letter identifies four approaches to satisfy this requirement. <br />Office of the State Engineer <br />1313 Sherman Street, Suite 818 • Denver, CO 80203 • Phone: 303 - 866 -3581 • Fax: 303 - 866 -3589 <br />www.water.state.co.us <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Dick Wolfe, P.E. <br />Director /State Engineer <br />