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THE LAKE CANAL COMPANY <br />THE LAKE CANAL RESERVOIR COMPANY <br />Williams and Weiss Consulting, LLC <br />Attn: Mr. Todd Williams <br />5255 Ronald Reagan Blvd, Ste. 220 <br />Johnstown, CO 80534 <br />Subject: Connell GL Pit SWSP <br />Dear Todd: <br />April 12, 2013 <br />Exhibit 3 - <br />Lake Canal Reservoir Company <br />Lease Approval <br />The Lake Canal Reservoir Company (LCRC) has reserved 8.85 acre -feet of water for <br />the Connell Resources GL Pit Substitute Water Supply Plan. The source of the <br />augmentation water will be from a system of reservoirs owned by LCRC known as the <br />Gray Lakes. The LCRC change case 06CW276 lists augmentation as a changed use. <br />The LCRC will release the augmentation water per the schedule you furnished and <br />found below: <br />Month <br />Consumptive <br />Use <br />[ac -ft] <br />Return <br />Flow <br />[ac -ft] <br />Transit <br />Loss <br />[ac -ft] <br />Total <br />Release <br />[ac -ft] <br />Jun -13 <br />0.32 <br />0.39 <br />0.01 <br />0.72 <br />Jul -13 <br />0.45 <br />0.55 <br />0.02 <br />1.02 <br />Aug -13 <br />0.48 <br />0.59 <br />0.02 <br />1.08 <br />Sep -13 <br />0.45 <br />0.55 <br />0.02 <br />1.02 <br />Oct -13 <br />0.39 <br />0.48 <br />0.01 <br />0.88 <br />Nov -13 <br />0.32 <br />0.39 <br />0.01 <br />0.72 <br />Dec -13 <br />0.26 <br />0.32 <br />0.01 <br />0.59 <br />Jan -14 <br />0.23 <br />0.28 <br />0.01 <br />0.52 <br />Feb -14 <br />0.22 <br />0.27 <br />0.01 <br />0.50 <br />Mar -14 <br />0.22 <br />0.27 <br />0.01 <br />0.50 <br />Apr -14 <br />0.26 <br />0.32 <br />0.01 <br />0.59 <br />May -14 <br />0.32 <br />0.39 <br />0.01 <br />0.72 <br />Total <br />3.92 <br />4.79 <br />0.14 <br />8.85 <br />Please coordinate the required releases with the water commissioner and <br />subsequently provide any additional accounting he may request. <br />If you are in agreement, please forward the enclosed invoice to your client for <br />payment. When payment is received the augmentation water will made available. <br />