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A4V <br />February 6, 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 — Proposed Accounting and <br />Preliminary "Pay As You Go" Analysis <br />Dear Messrs. Wolfe, Witte and Tyner: <br />Per term and condition #46 as provided in the "Written Determination of the State Engineer, <br />HB13 -1248 Catlin Leasing Pilot Project," as approved by the Colorado Water Conservation Board, <br />accounting is to be submitted to the Division Engineer no later than February 6, 2015. Said accounting <br />is available on the FTP site listed at the end of this letter, under the filename Catlin Pilot Project <br />Accounting Equations 15- 01- 27.xlsx. The FTP site may be accessed with the username and password <br />also provided at the end of this letter. Applicants intend to utilize the "pay as you go" approach to <br />replacement of lagged return flows, as approved in term and condition #31, thereby eliminating <br />application of a number of terms and conditions and simplifying the Pilot Project accounting. Thus, <br />the accounting submitted herewith reflects use of the "pay as you go" approach. Therefore, this <br />submittal also includes a preliminary "pay as you go" analysis, which is also available at the FTP site <br />in the Updated Appendix I. <br />In order to demonstrate the "pay as you go" approach through accounting that the difference in <br />deep percolation return flow timing would not exceed ten acre -feet in any month and the full volume of <br />deep percolation return flow accretion has been successfully recharged, a preliminary revised LFT <br />analysis has also been completed. This preliminary revised LFT analysis was completed in accordance <br />with the terms and conditions recommended by the State Engineer, excepting term and condition 11, <br />