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Mr. Craig Lis GSL Sand and Gravel SWSP March 28, 2012 Page 4 of 5 11. Historical dewatering at this site generated delayed depletions to the stream system. These depletions are required to be replaced in time and amount for the duration that they occur. 12. The approval of this substitute water supply plan does not relieve the Applicant and /or the landowner of the requirement to obtain a Water Court decree approving a permanent plan for augmentation or mitigation to ensure the permanent replacement of all depletions, including long -term evaporation losses and lagged depletions after gravel mining operations have ceased. If reclamation of the mine site will produce a permanent water surface exposing groundwater to evaporation, an application for a plan for augmentation must be filed with the Division 1 Water Court prior to the completion of mining, to include, but not be limited to, long -term evaporation losses and lagged depletions. If a lined pond results after reclamation, replacement of lagged depletions from mining and dewatering shall continue until there is no longer an effect on stream flow. 13. DRMS Permit No M- 2001 -085 requires a lined reservoir as the final reclamation plan. The Applicant has recently submitted an amendment to DRMS which would change the final reclamation plan from water storage to an inert backfill operation. With the next SWSP renewal request, the Applicant is required to demonstrate they have received, or are diligently pursuing, the amended permit or are otherwise in compliance with their DRMS permit reclamation plan and the April 30, 2010 DRMS letter (attached). 14. The Applicant is required to maintain their DRMS permit and an adequate bond to cover their reclamation plan until there are no longer lagged depletions hitting the river, a suitable augmentation plan is obtained, or another party assumes full augmentation responsibilities. The Applicant has a current bond of $281,115 but DRMS has raised the bond requirement to $608,600 to account for the possible need of backfilling the pit. With the next SWSP renewal request, the Applicant is required to demonstrate they are in, or are diligently pursuing, compliance with the April 30, 2010 DRMS letter, specifically in regards to the required financial warranty for the site. 15. This substitute water supply plan may be revoked or modified at any time should it be determined that injury to other vested water rights has or will occur as a result of this plan. Should this substitute water supply plan expire without renewal or be revoked prior to adjudication of a permanent plan for augmentation, all excavation of product from below the water table, and all other use of water at the pit, must cease immediately. In addition, lack of timely accounting may prevent proper administration, which may lead to revocation or modification of this plan. 16. In accordance with amendments to §25 -8- 202(7), C.R.S., and Senate Bill 89 -181 Rules and Regulations adopted on February 4, 1992, the State Engineer shall determine whether the substitute supply is of a quality to meet requirements of use to senior appropriators. As such, water quality data or analysis may be requested at any time to determine if the water quality is appropriate for downstream water users. 17. The decision of the State Engineer shall have no precedential or evidentiary force, shall not create any presumptions, shift the burden of proof, or serve as a defense in any water court case or any other legal action that may be initiated concerning the substitute water supply plan. This decision shall not bind the State Engineer to act in a similar manner in any other applications involving other plans or in any proposed renewal of this plan, and shall not imply concurrence with any findings of fact or conclusions of law contained herein, or with the engineering methodologies used by the Applicant.