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• Mr. Jared Dains Applegate Group, Inc. 1499 West 120 Avenue, Suite 200 Denver, CO 80234 -2759 DEPARTMENT OF NATURAL RESOURCES DIVISION OF WATER RESOURCES March 30, 2012 " A ) s , RE: Timnath - Connell Substitute Wat ,Supply Plan (WDID No. 0302526) Timnath - Connell Pit, DRMS No."M -1999 -050 (WDID No. 0303018) Water Division 1, Water District 3 Approval Period: April 1, 2012 through March 31, 2013 Contact Phone Number for Mr. Dains: 303 - 452 -6611 John W. Hickenlooper Governor Mike King Executive Director Dick Wolfe, P.E. RECEIVED) /State Engineer 4AR 302012 Division of Reclamation, Mining & Safety Dear Mr. Dains: This letter is in response to your letter dated February 14, 2012 on behalf of Connell Resources, Inc (Applicant) requesting renewal of the above referenced substitute water supply plan for the Timnath - Connell Pit to cover depletions caused by gravel mining operations in accordance with § 37 -90- 137(11), C.R.S. The required fee of $257 has been submitted (receipt no. 3654078). The most recent SWSP renewal was approved on August 29, 2011 and expires on March 31, 2012 Pit Operations The Timnath - Connell Pit is currently on hold. No mining occurred during the 2011 SWSP approval and no mining is projected to occur during this SWSP approval period. The only depletions are expected to be from dust control and evaporation of exposed ground water. Replacement will occur through an on -site recharge pond using Box Elder Ditch Company shares. In accordance with the letter dated April 30, 2010 (see 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 the 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. A response to the DRMS letter documenting compliance has not been received, specifically documenting that the 1999 bond in the amount of $510,198 is still sufficient to carry out the reclamation plan including a Tined reservoir. Future SWSP renewals may limit the annual amount of ground water to be appropriated to not exceed the amount approved herein until compliance with the DRMS April 30, 2010 letter is documented, or if DRMS specifically finds the existing bond is insufficient. Depletions The Timnath - Connell Pit will not be mined during this approval period and thus no water will be lost in mined product. It is anticipated that 0.8 acre -feet of water will j b � e used for on -site dust Office of the State Engineer VrS 1313 Sherman Street, Suite 818 • Denver, CO 80203 • Phone: 303 -866 -3581 • Fax: 303 - 866 -3589 www.water.state.co.us