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Mr. Jared Dains, E.I. <br />Loloff SWSP —Amendment #1 <br />May 28, 2013 <br />Page 2of6 <br />Regulations for the protection of water resources. The April 30, 2010 letter from DRMS requires <br />that you provide information to DRMS to demonstrate you can replace long term injurious <br />stream depletions that result from mining related exposure of ground water. The Loloff Pit is not <br />in compliance with this requirement. On February 2, 2012 DRMS sent a letter to Loloff <br />Construction outlining two options to bring the pit into compliance through raising the bond <br />amount over a three year period. The 2012 SWSP provided that future SWSPs will not be <br />renewed until documentation has been provided to this office that shows Loloff is complying with <br />either the February 2, 2012 DRMS letter or an alternative plan approved by DRMS. This office is <br />in receipt of a September 7, 2012 letter from DRMS to Loloff documenting the exposed <br />groundwater compliance process. This letter provided the option of Loloff purchasing and <br />committing water shares to the State Engineer's Office or the possibility of reducing the final <br />size of the pond to reduce the overall augmentation requirement and the required bond. These <br />proposals will be evaluated by the Loloff's and a revised plan will be submitted to DRMS for <br />their review. To allow replacements to be made while Loloff works on obtaining exposed <br />groundwater compliance, this SWSP will be renewed for 2013. Future SWSPs will not be <br />renewed unless Loloff can show a good faith effort in obtaining compliance and <br />document the steps taken and result of this effort. <br />Depletions <br />Depletions at the site during this plan period will consist of evaporative losses and <br />operational losses. In 2011, the amount of exposed ground water at the Loloff Pit increased <br />from 10.5 acres to 17.2 acres and remained at 17.2 acres for 2012. It is anticipated that with <br />mining operations and associated dewatering operation in 2013 that the exposed ground water <br />will decrease from 17.2 acres to 2.0 acres by August 1, 2013. Net evaporative depletions were <br />calculated using a gross annual evaporation of 45 inches from the exposed water surface, with <br />a credit of 9.97 inches for effective precipitation. No credit was claimed for ice cover periods. <br />The net depletion of ground water due to evaporation of exposed ground water surface was <br />calculated to be 32.90 acre -feet for this plan year. <br />Dewatering will occur at the site to allow for dry mining. Ground water pumped for <br />dewatering purposes will be discharged to a drainage ditch that runs along the west border of <br />the site. This drainage ditch generally runs southeast, crosses under Balsam Ave and then <br />under Highway 263, where it turns east and empties into the Ogilvy Ditch. The Applicant is <br />required to ensure and show the dewatering water is released to the Poudre River through the <br />Ogilvy return structure. This SWSP does not authorize the use of any of these conveyance <br />structures; it is the Applicants responsibility to obtain the legal right to use such conveyances <br />and return structures and to provide documentation their water returned to the river. <br />The operator does not have an end date for the dewatering operation but anticipates the <br />operation will be continuous for at least 5 years. As the pit will refill with ground water once <br />dewatering ceases, this will create a large depletion that must be replaced by the operator. Until <br />the operator has a plan to cover post - pumping depletions, dewatering operations must continue <br />to keep the pit in a dewatered state. As long as the pit is continuously dewatered, the accretions <br />to the stream are assumed to sufficiently offset the lagged depletions from dewatering. <br />However, to properly account for post - pumping depletions all dewatering operations must be <br />equipped with a totalizing flow meter to monitor the monthly dewatering volumes from <br />the site, with the monthly meter reads reported on accounting submittals. <br />The Applicant projects mining a total of 55,000 tons of aggregate production in 2013. <br />This material will be wet mined below the ground water table and thus assessed a water loss <br />equal to 4% by weight of the material mined, or 1.62 acre -feet. Finally, the Applicant has <br />