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Rick Parsons M &G SWSP March 28, 2013 Polly Mann Fulton Ditch Shares Factors Page 4 of 7 Starting April 2013, the water attributable to the 61 Fulton Ditch shares will be delivered into the pit during the irrigation seasons. The water delivered to the pit will be multiplied by the CU factors above to determine the CU portion and the surface return portion. The CU portion will be lagged to the river and credited as replacement for lagged evaporation depletions and the calculated wintertime return flow obligations. The surface return portion will exit the northwest corner of the pit through a corrugated metal pipe under 120 Ave and will reach the east bank of the South Platte River on the north side of 120 Avenue. Winter time return flows will be calculated based on the total of the CU recharged during the previous irrigation season. This recharge operation will require a measurement structure capable of measuring and recording the farm headgate deliveries into the pit, and a measurement structure capable of measuring and recording the surface return portion that is returned to the river. The surface return measurement structure must not also intercept storm water runoff. No credit will be given to water delivered to the pit or returned back to the river that is not measured to the satisfaction of the water commissioner. Non - irrigation uses are limited in agreement with other Fulton Ditch historic consumptive use analyses, current ditch operations, and expected yields during a dry year. It is possible the ditch will be limited to its 1865 right of 79.7 cfs during parts of the season. This would result in deliveries to each of the three ditch sections for 2 days on and 4 days off with 1 cfs delivered to each 38.4 shares owned (1 miner's inch per share) for about 10 days per month. This translates to approximately 1.59 cfs for all 61 shares. Long Term Augmentation Requirements In accordance with the letter dated April 30, 2010 (attached) from the Colorado Division of Reclamation, Mining, and Safety ( "DRMS "), all sand and gravel mining operators must comply with the requirements of the Colorado Reclamation Act and the Mineral Rules and Regulations for protection of water resources. The April 30, 2010 letter from DRMS required that you provide information to DRMS to demonstrate you can replace long term injurious stream depletions that result from mining related exposure of ground water. The operator holds a bond in the amount of $9,700 through DRMS to cover the cost of final reclamation. This bond IS NOT sufficient to ensure backfilling or lining the pit to prevent long term ground water exposure in the event the operator walks away from the site. The current reclamation plan filed with DRMS (3/15/2010) is to create a 26.7 acre ground water lake. This reclamation plan would require the Applicant to file and obtain a water court approved Plan for Augmentation that addresses the long term augmentation that exposed ground water lakes requires. However, the Applicant is now planning to backfill the permit area so that no exposed ground water area remains exposed thereby eliminating long term injurious depletions. The Applicant has recently received approval of a Conditional Use Permit from the Adams County Board of County Commissioners which will allow the Applicant to backfill the site within the next 36 months. The Applicant will next coordinate with DRMS to change the final reclamation plan from open water surface to a backfilled site. As a part of the change in reclamation plan, DRMS will review the current reclamation bond. In order for this SWSP to be renewed, the Applicant Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec CU as % of Diversion - - - 55.9 69.7 71.5 71.6 67.5 59.8 41.5 - - Replacement as % of Summer CU 0.6 0.5 0.4 - - - - - - - 1.1 0.8 Rick Parsons M &G SWSP March 28, 2013 Polly Mann Fulton Ditch Shares Factors Page 4 of 7 Starting April 2013, the water attributable to the 61 Fulton Ditch shares will be delivered into the pit during the irrigation seasons. The water delivered to the pit will be multiplied by the CU factors above to determine the CU portion and the surface return portion. The CU portion will be lagged to the river and credited as replacement for lagged evaporation depletions and the calculated wintertime return flow obligations. The surface return portion will exit the northwest corner of the pit through a corrugated metal pipe under 120 Ave and will reach the east bank of the South Platte River on the north side of 120 Avenue. Winter time return flows will be calculated based on the total of the CU recharged during the previous irrigation season. This recharge operation will require a measurement structure capable of measuring and recording the farm headgate deliveries into the pit, and a measurement structure capable of measuring and recording the surface return portion that is returned to the river. The surface return measurement structure must not also intercept storm water runoff. No credit will be given to water delivered to the pit or returned back to the river that is not measured to the satisfaction of the water commissioner. Non - irrigation uses are limited in agreement with other Fulton Ditch historic consumptive use analyses, current ditch operations, and expected yields during a dry year. It is possible the ditch will be limited to its 1865 right of 79.7 cfs during parts of the season. This would result in deliveries to each of the three ditch sections for 2 days on and 4 days off with 1 cfs delivered to each 38.4 shares owned (1 miner's inch per share) for about 10 days per month. This translates to approximately 1.59 cfs for all 61 shares. Long Term Augmentation Requirements In accordance with the letter dated April 30, 2010 (attached) from the Colorado Division of Reclamation, Mining, and Safety ( "DRMS "), all sand and gravel mining operators must comply with the requirements of the Colorado Reclamation Act and the Mineral Rules and Regulations for protection of water resources. The April 30, 2010 letter from DRMS required that you provide information to DRMS to demonstrate you can replace long term injurious stream depletions that result from mining related exposure of ground water. The operator holds a bond in the amount of $9,700 through DRMS to cover the cost of final reclamation. This bond IS NOT sufficient to ensure backfilling or lining the pit to prevent long term ground water exposure in the event the operator walks away from the site. The current reclamation plan filed with DRMS (3/15/2010) is to create a 26.7 acre ground water lake. This reclamation plan would require the Applicant to file and obtain a water court approved Plan for Augmentation that addresses the long term augmentation that exposed ground water lakes requires. However, the Applicant is now planning to backfill the permit area so that no exposed ground water area remains exposed thereby eliminating long term injurious depletions. The Applicant has recently received approval of a Conditional Use Permit from the Adams County Board of County Commissioners which will allow the Applicant to backfill the site within the next 36 months. The Applicant will next coordinate with DRMS to change the final reclamation plan from open water surface to a backfilled site. As a part of the change in reclamation plan, DRMS will review the current reclamation bond. In order for this SWSP to be renewed, the Applicant