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DEPARTMENT OF NATURAL RESOURCES DIVISION OF WATER RESOURCES March 27, 2013 Mr. Jared Dains, E.I. Applegate Group, Inc. 1499 West 120th Ave., Suite 200 Denver, CO 80234 -2759 Re: Substitute Water Sup Jy Plan for the Greeley Pit, WDID 0302545 DRMS Permit No. M- 1977 -151, WDID 0303034 Section 36, T6N, R66W and Section 31, T6N, R65W, 6th P.M. Water Division 1, Water District 3, Weld County Approval Period: April 1, 2013 through October 31, 2013 (or March 31, 2014 subject to condition #1) Contact Phone Number for Mr. Dains: 303 - 452 -6611 John W. Hickenlooper Governor Mike King Executive Director Dick Wolfe, P.E. Director /State Engineer Dear Mr. Dains: We have received your letter dated February 15, 2013, requesting renewal of the above - referenced substitute water supply plan ( "SWSP ") on behalf of R.M. Hiner Construction Co., Inc. ( "Hiner" or "Applicant "). This SWSP is requested to cover depletions caused by an existing gravel mining operation. The required fee of $257.00 for the renewal of this substitute water supply plan has been submitted (receipt no. 3658903). The most recent substitute water supply plan was approved on June 22, 2011 for operations through March 31, 2013. SWSP Operations The Greeley Pit (permit no. 74638 -F, WDID 0303034) is located in the NEV4 of Section 36, Township 6 North, Range 66 West and the NWY4 of Section 31, Township 6 North, Range 65 West of the 6 P.M., as shown on the attached Figure 1, dated March 21, 2011. During the plan period, Hiner plans to conduct wet mining operations at the Greeley Pit, with no dewatering or material washing to occur. Hiner proposes to replace out -of- priority depletions from the Greeley Pit with a combination of Hiner's ownership of 3.0 shares in the Greeley Irrigation Company and leases with the Graham Ditch Company, and a non - irrigation season lease that has yet to be finalized (see condition #1). Depletions The depletions that result from the mining operation at the Greeley Pit consist of evaporation from exposed surface area, water removed in the mined product, intermittent fill volume, and water used for dust control. The current exposed surface area at this site is 72.0 acres. It is projected the exposed surface area will increase to 72.3 acres by March 2014 due to the progression of mining. A total of 40.2 acres of pond surface was exposed within the Greeley Pit reclamation permit boundary prior to January 1, 1981. Based on the Division 1 Water Court decision in case no. 2009CW49, the replacement of evaporative depletions is not required for ground water exposed to the atmosphere prior to January 1, 1981 through open mining of sand and gravel, regardless of whether open mining operations continued or were reactivated on or 4 Office of the State Engineer 1313 Sherman Street, Suite 818 • Denver, CO 80203 • Phone: 303 - 866 -3581 • Fax: 303 -866 -3589 www.water.state.co.us RECEIVED MA R 2 8 2013 Division of Reclamation, Mining & Safety