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Mr. Andy Rodriguez Page 6 <br />Poudre Pits Aggregate Mine SWSP <br />May 29, 2013 <br />Conveyance loss for delivery of the augmentation water referenced above is subject to <br />assessment and modification as determined by the division engineer. <br />Long -Term Augmentation <br />In accordance with the letter dated April 30, 2010 (copy attached) from the Colorado Division of <br />Reclamation, Mining, and Safety ( "DRMS "), all sand and gravel mining operators must comply with the <br />requirements of the Colorado Reclamation Act and the Mineral Rules and Regulations for the protection <br />of water resources. The April 30, 2010 letter from DRMS requires that you provide information to DRMS <br />to demonstrate you can replace long term injurious stream depletions that result from mining related <br />exposure of ground water. <br />For any gravel pit whose reclamation includes unlined ponds, a plan of augmentation approved <br />by the water court must be obtained to cover the long term evaporative depletions. Until an augmentation <br />plan is obtained the operator may post a sufficient bond to backfill or line the site thereby eliminating any <br />long term augmentation requirements, or permanently dedicate shares that will be used in an <br />augmentation plan to the pit. For any gravel pit whose reclamation includes lining or backfilling of the pit, <br />bonds must be posted that can be used to complete the reclamation plan should the operator walk away <br />from the site. North la Poudre and La Poudre pits have been bonded through DRMS and are in <br />compliance with the April 2010 DRMS letter (approach #1 and #3). The Roberts phase within the <br />Firestein/Tigges /Roberts pit is augmented through 02CW331 and is in compliance with the April 2010 <br />DRMS letter (approach #2). The Firestein and Tigges phase within the Firestein/Tigges /Roberts pit was <br />found to have inadequate bonds and is thus not in compliance with the April 2010 DRMS letter. The <br />operator has worked out a temporary share dedication with the Tigges landowner Kenny Tigges <br />dedicating 8 shares of his Whitney Ditch Water to cover long term evaporative losses. This is not a <br />permanent dedication and thus does not meet the State Engineer's requirements of the April 2010 <br />DRMS letter approach #4. The operator has been in contact with DRMS and is working on a way to bring <br />the site into compliance with exposed groundwater requirements. By the next SWSP renewal the <br />operator is required to provide to our office evidence they have fully bonded the site, obtained an <br />adequate and permanent share dedication, or that they have an approved plan with DRMS to bring the <br />site into compliance over a set time period. A summary of each pit's status regarding their long term <br />augmentation and bonding held through DRMS is shown on the following table: <br />