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Todd Williams <br />Wagner /Kaufmann # 3 SWSP <br />January 7, 2013 <br />Page 4 <br />13. In accordance with the letter dated April 30, 2010 from the Colorado Division of Reclamation, <br />Mining, and Safety ( "DRMS "), all sand and gravel mining operators must comply with the <br />requirements of the Colorado Reclamation Act and the Mineral Rules and Regulations for the <br />protection of water resources. Jake Kauffman and Son, Inc holds a bond in the amount of <br />$570,000 to cover the cost of lining and reclamation activities. This bond is required to be in <br />place until the two liners are approved by the State Engineer's Office and until DRMS authorizes <br />their release, or a partial release. <br />14. The approval of this substitute water supply plan does not relieve the Applicant and /or the <br />landowner of the requirement to obtain a water court decree approving a permanent plan for <br />augmentation or mitigation to ensure the permanent replacement of all depletions, including <br />long -term evaporation losses and lagged depletions after gravel mining has ceased. If <br />reclamation of the mine site produces a permanent water surface exposing groundwater to <br />evaporation, an application for a plan for augmentation must be filed with the Division 1 Water <br />Court at least three (3) years prior to the completion of mining to include, but not be limited to, <br />long -term evaporation losses. If a lined pond results after reclamation, replacement of lagged <br />depletions shall continue until there is no longer an effect on stream flow. Granting of this plan <br />does not imply approval by this office of any such court application(s). <br />15. In accordance with amendments to §25 -8- 202(7), C.R.S., and Senate Bill 89 -181 Rules and <br />Regulations adopted on February 4, 1992, the State Engineer shall determine if the substitute <br />supply is of a quality to meet requirements of use to which the senior appropriation receiving the <br />substituted supply has normally been put. As such, water quality data or analysis may be <br />requested at any time to determine if the requirements of use of the senior appropriator are met. <br />17. The decision of the state engineer shall have no precedential or evidentiary force, shall not <br />create any presumptions, shift the burden of proof, or serve as a defense in any pending water <br />court case or any other legal action that may be initiated concerning this plan. This decision <br />shall not bind the state engineer to act in a similar manner in any other applications involving <br />other plans, or in any proposed renewal of this plan, and shall not imply concurrence with any <br />findings of fact or conclusions of law contained herein, or with the engineering methodologies <br />used by the Applicant. <br />Please contact Joanna Williams in Denver at (303) 866 -3581, or Jonathan Hernandez in Greeley <br />at (970) 352 -8712, if you have any questions concerning this approval. <br />Sincerely, <br />li <br />atherage, P.E., <br />of Water Supply <br />Attachments: Tables 1 & 5 <br />City of Loveland Lease <br />Administration Protocol "Augmentation Plan Accounting, Division One — South Platte River" <br />cc: Jonathan Hernandez, Water Resource Engineer, Jonathan.hernandeza,state.co.us <br />810 9th Street, Ste. 200, Greeley, CO 80631 (970) 352 -8712 <br />Jason Smith, Water Commissioner, District 4, iason.smith2(a)state.co.us <br />810 9 Street, Ste. 200, Greeley, CO 80631 (970) 290 -7397 <br />Division of Reclamation Mining and Safety <br />JD /jmh: Wagner- Kauffman Pit #3 renewal (13).doc <br />