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A4V <br />February 17, 2015 <br />Mr. Dick Wolfe, P.E. (Dick.Wolfe @state.co.us) <br />Office of the State Engineer <br />Colorado Division of Water Resources <br />1313 Sherman Street, Room 821 <br />Denver, CO 80203 <br />Mr. Steve Witte, P.E. (Steve.Witte @state.co.us) <br />Mr. Bill Tyner, P.E. (Bi1LTyner @state.co.us) <br />Water Division 2 <br />Colorado Division of Water Resources <br />310 East Abriendo Avenue, Suite B <br />Pueblo, CO 81004 <br />Transmitted via e-mail <br />Martin and Wood Water Consultants, Inc. <br />538 Commons Drive, Golden, CO 80401 <br />Phone: (303) 526 -2600. Fax: (303) 526 -2624 <br />www.martinandwood.com <br />Re: HB 13 -1248 Catlin (Fallowing- Leasing) Pilot Project — "Pay As You Go" <br />Analysis <br />Dear Messrs. Wolfe, Witte and Tyner: <br />Applicants intend to utilize the "pay as you go" approach to replace lagged return <br />flows (deep percolation), per term and condition #31 as provided in the "Written <br />Determination of the State Engineer, HB13 -1248 Catlin Leasing Pilot Project" and approved <br />by the Colorado Water Conservation Board. Term No. 31 requires Applicants to submit the <br />analysis described in the comments by Tri-State that recommended this approach by February <br />17, 2015 to the Division Engineer for approval. That analysis is provided in this letter and is <br />also available on the FTP site listed at the end of this letter, in the folder titled Pay As You <br />Go. The FTP site may be accessed with the username and password also provided at the end <br />of this letter. <br />As noted our submittal of February 6, 2015, which provided proposed accounting, <br />also included a preliminary "Pay As You Go" analysis because the "pay as you go" approach <br />to replacement of lagged return flows eliminates the application of a number of terms and <br />conditions and simplifies the Pilot Project accounting. Please note that the "pay as you go" <br />analysis submitted herewith varies from the preliminary version previously provided. This is <br />a result of subsequent discussions with Bishop and Brogden Associates, Inc., in which the <br />methodology proposed by Tri-State was clarified. As such, in response to anticipated <br />