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DEPARTMENT OF NATURAL RESOURCES S' A <br />_ P <br />DIVISION OF WATER RESOURCES <br />Mr. Jared Dains, E.I. <br />Applegate Group, Inc. <br />1499 West 120 Ave., Suite 200 <br />Denver, CO 80234 -2759 <br />December 31, 2012 <br />Re: Loloff Substitute Water Supply Plan (WDID 0302524) <br />Loloff Pit, DRMS Permit NoviQ1- 1985 -112 (WDID 0303012) <br />Section 4, T5N, R65W, 6th P.M. <br />Water Division 1, Water District 3, Weld County <br />Dear Mr. Dains: <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 />d <br />Approval Period: January '1, 2013 through December 31, 2013 <br />Contact Phone Number for Mr. Dains: 303 - 452 -6611 '9 f 2 913 <br />Div. t;i <br />FOR. ylu: & Szjc,!I' <br />We have reviewed your letter dated November 13, 2012 requesting approval of a <br />substitute water supply plan ( "SWSP ") on behalf of Loloff Construction, Inc. ( "Loloff' or <br />"Applicant ") to cover depletions caused by an existing gravel pit operation. This site was <br />previously covered under the combined SWSP for Aggregate Industries ( "Al "); however a <br />separate SWSP was obtained by Loloff for the site in 2008. The required renewal fee of $257 <br />(receipt no. 3652993) has been received. <br />SWSP Operations <br />The Loloff Pit is a gravel pit operation located in the SEY4 of the NW%4 of Section 4, <br />Township 5 North, Range 65 West of the 6 P.M., in Weld County. This SWSP will make <br />replacements to the Cache La Poudre River for depletions resulting from mining operations during <br />the 2013 plan year, and for lagged depletions from past operations at the Loloff Pit. Consumptive <br />uses at the Loloff Pit site include evaporative losses from exposed ground water within the permit <br />boundaries, and operational uses. No mining occurred in 2012 however the operator anticipates <br />that the site will be mined below the water table during 2013; therefore the amount of exposed <br />ground water is expected to slightly increase during the approval period. Well permit no. 74793 -F <br />has been issued for the site. The replacement sources proposed to be utilized in this SWSP are <br />leases with the Platte River Power Authority and the Graham Drainage Ditch Company. <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 and <br />Regulations for the protection of water resources. The April 30, 2010 letter from DRMS requires <br />that you provide information to DRMS to demonstrate you can replace long term injurious <br />stream depletions that result from mining related exposure of ground water. The Loloff Pit is not <br />in compliance with this requirement. On February 2, 2012 DRMS sent a letter to Loloff <br />Construction outlining two options to bring the pit into compliance through raising the bond <br />amount over a three year period. The 2012 SWSP provided that future SWSPs will not be <br />