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Andy Rodriguez
<br />Bernhardt SWSP
<br />January 8, 2013
<br />Page 4
<br />with the requirements of the Colorado Reclamation Act and the Mineral Rules and Regulations
<br />for the protection of water resources. The April 30, 2010 letter from DRMS requires that you
<br />provide information to DRMS to demonstrate you can replace long term injurious stream
<br />depletions that result from mining related exposure of ground water. The DRMS letter identifies
<br />four approaches to satisfy this requirement. If the information you are providing to DRMS is
<br />included under the approaches numbered 1 — 3, a copy of that information needs to also be
<br />provided to this office (the Division of Water Resources).
<br />In accordance with approach nos. 1 and 3, that a bond has been obtained for $1,858,965.73
<br />through the Division of Reclamation, Mining, and Safety ( "DRMS ") to assure that depletions
<br />from groundwater evaporation do not occur in the unforeseen event, or events, that would lead
<br />to the abandonment of the Pit.
<br />14. This substitute water supply plan may be revoked or modified at any time should it be
<br />determined that injury to other water rights has or will occur as a result of this plan. Should this
<br />substitute water supply plan expire without renewal or be revoked prior to adjudication of a
<br />permanent plan for augmentation, all excavation of product from below the water table, and all
<br />other use of water at the pit, must cease immediately.
<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 whether the
<br />substitute supply is of a quality to meet requirements of use to senior appropriators. As such,
<br />water quality data or analysis may be requested at any time to determine if the water quality is
<br />appropriate for downstream water users.
<br />16. 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 water court
<br />case or any other legal action that may be initiated concerning the substitute water supply plan.
<br />This decision shall not bind the State Engineer to act in a similar manner in any other
<br />applications involving other plans or in any proposed renewal of this plan, and shall not imply
<br />concurrence with any findings of fact or conclusions of law contained herein, or with the
<br />engineering methodologies used by the Applicant.
<br />Should you have any questions, please contact Joanna Williams of this office or Jonathan
<br />Hernandez of our Division office in Greeley at (970) 352 -0742.
<br />Sincerely,
<br />Jeff eatherage, P.E.
<br />i of Water Supply
<br />Attachments: Tables 1, 2A, 26, 3 and 4
<br />Figure 1
<br />Town of Milliken Lease
<br />Administration Protocol `Augmentation Plan Accounting, Division One — South Platte River'
<br />cc: Jonathan Hernandez, Water Resource Engineer, lonathan.hernandezC�state.co.us
<br />810 9th Avenue, Suite 200, Greeley, Colorado 80631, (970)- 352 -8712
<br />Jason Smith, Water Commissioner, District 4, 'ason.smith2(aD-state.co.us
<br />8109 th Street, Ste. 200, Greeley, CO 80631 (970) 290 -7397
<br />William Schneider, Water Commissioner District 2, william.schneider @state.co.us
<br />810 91h Street, Ste. 200, Greeley, CO 80631 (970) 381 -0828
<br />Division of Reclamation, Mining and Safety
<br />JD /JMH
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