HomeMy WebLinkAbout1.07 Water informationDivision of Reclamation Mining & Safety
Permit Application
RTZ INDUSTRIAL
SAND & GRAVEL MINING OPERATION
GARFIELD COUNTY, COLORADO
6.4.7 EXHIBIT Gf1} —Water Information
Overview
'fhc RTZ Project is an alluvial deposit located within the floodplain of the Colorado
River. Based on initial water level measurements, monitoring wells and test pits at the
proposed reclamation permit site show an average groundwater elevation 12 - 14 feet
below the land surface across the site.
By its nature, recovery of the alluvial deposit may have effects on surface and subsurface
water systems. Based on standard practices, no adverse quantitative or qualitative effects
to surface waters are expected to result from the proposed RTZ Project. Groundwater
effects will be mitigated to prevent adverse impacts or the mining will be conducted wet
utilizing a track hoe or drag line.
Water Requirements
The attached Table 1 presents the water depletions associated with the various activities
within the gravel pit development. First, the mining of the gravel causes depletion that
has been defined by the State Engineers Office, using those guidelines we estimated the
annual depletion to be 4.4 acre -feet, assuming an annual production of 150,000 tons of
gravel from the site. Second, there will be dust control on the site which we have
assumed will require, on average, 7,500 gallons per day, which results in an annual
depletion of 8.4 acre -feet. Depending on the future development on the property, RTZ
has obtained a WDWCD contract or Wolford contract to cover these depletions (mining
and dust control) that can be terminated at the end of mining without effecting future
activities on the property. RTZ has also obtained a signed contract from Colorado Water
Conservation Board.
There are two proposed phases of the project which will expose various amounts of water
surface area, which will result in evaporation that needs to be augmented. We have
developed the attached table to present the evaporation from each phase. RTZ will
obtain and maintain a full contract for a 2002 dry year call scenario for the final exposed
surface area (approximately 19.4 acres resulting in 63.8 acre -feet of evaporation
annually), 2402 should be the maximum amount that will be required. RTZ will use that
contract to cover each phase, The estimated out of priority evaporation in 2002 would be
Division of Reclamation Mining & Safety
Permit Application
34.4 AF a contract for 40 AF should ensure that the augmentation, for evaporation
requirements, is always available.
Finally, we have reviewed the depletions associated with the proposed on -site office. We
have assumed the office would be a construction trailer which would have a daily
demand of 300 gallons and waste water would be treated through an ISDS system, with
an assumed depletion of 15 percent. This equates to an annual demand of 0.33 ac -ft with
a resulting annual depletion of 4.05 ac -ft. We have obtained an exempt domestic well
permit to sever the need s of the office and scale area.
Surface Water
The Colorado River lies South of the site, adjacent to approximately 1,7 00 linear feet of
the permit boundary. No ditches or laterals cross the permit property. Drainage within
the permit boundary is sheet flow toward the Colorado River.
The mining plant submitted with this package minimizes the potential for surface water
effects. No in -line mining is proposed and the mining plan also seeks to avoid impacts to
other waters of the United States, such as wetlands. The land surface will be exposed to
runoff during mining and reclamation, therefore standard industry water quality protocols
will be observed on the site. A Colorado Discharge Permit System (CDPS) permit,
implementing the NPDES program in Colorado, will be obtained when necessary prior to
commencement of operations.
Wetlands have been provisionally located on the site as illustrated on Exhibit C -1. The
delineation of wetlands is subject to concurrence of the U.S. Army Corps of Engineers,
and that concurrence is being sought at this time. Should jurisdictional wetland
boundaries require the adjustment of wetland and/or mining areas included in the present
Exhibits, the Applicant will submit appropriate documentation to adjust Exhibits and
avoid mining in all waters of the U.S.
Groundwater
Based on proximity to the Colorado River and the shallowness of the alluvial aquifer of
the Colorado River, the Applicant has retained the services of a hydrogeologist to model
the potential groundwater effect of the mining proposal and suggest mitigation techniques
where appropriate. The pumping requirements for dry mining have been estimated to
require up to 1,500 gpm in Phase 1, with more attenuated groundwater effects as the
operation becomes more distant from the Colorado River,
The applicant/operator commits to following rules and regulations of the Office of the
State Engineer regarding wells within 600 feet of the mining operation. Several wells in
the vicinity have been identified and included in the engineering evaluation of
groundwater effects. No water quality issues at these wells are anticipated to result from
the operation. The mining boundary has been moved so that no wells are within 600 feet
of the Project. All wells not owned by the operator are up gradient of the proposed pit.
Division of Reclamation Mining & Safety
Permit Application
Preliminary analysis shows that the groundwater surface may be depressed at some of the
inventoried wells; this effect is anticipated to be small and should not affect the viability
of the wells as a water source. The operator will continue to monitor groundwater effects
and will pursue appropriate mitigation strategies if significant effects are observed
through the course of mining.
As noted on Exhibit C, groundwater monitoring will be preformed on the adjacent wells
and data is currently being collected to refine the operator's understanding of
groundwater effects.
D. n of Reclamation Mining & Safety
Permit Application
T.We l
RT2. Gr-4 P'il
Augmentation Requirements - Mining
Total Surface Atea 194nerer
Month lr Pro dusrenn Rate 12,500 tons
r?1 r:1
41mmg Production
Cdauet Mlned Water Depletion
peony! frrr hJ
DMt Control
foe -JIl
Phase I Area $ 15 5 ac
F l
Surface Eva omtron
Phase 2 Arm = } 9 ac
fare-JJl
F.Pl Arc. = 194w
f 1
Total
2002 CAI Gtays
Aug— etalmn
KcquircluR]tl
ph" l r . r rrir.nr h-
12,500 04
071
t 1
0.3
13
241
0
000
l $.500 0.4
0.64
1 5
04
1.8
293
0
0.00
12.500 04
071
25
06
32
424
0
0.00
12,500 04
0.64
46
12
5.8
6.83
5
1.25
12,500 04
071
65
16
81
9.18
7
228
12.500 04
069
82
21
103
11.39
6
2.50
12,509 04
071
8_,
21
104
11.46
31
1261
52,500 04
071
7-,
18
91
1019
31
1120
1., 500 0.4
064
5 1
1.3
6.4
7.49
30
S24
1.2, 500 0.4
071
1:
0 8
40
5.11
4
0.72
12,500 04
069
16
04
21
313
0
000
12,500 04
071
1C
03
13
133
0
000
150,000 44
84
S0.8
124
63.8
766
114
388
1{I rd +•.Jas t�.o ra 1pt.+doaiwna. ran. IS d—w V.d h) It TZ.
120 na..d a v S G•]I6 Req.nw rnr�. J Nroe.a d tyro ieelr. • R. ala4s. {EyweS C.Ju! rl rw+. 9:ai r.+a ra404nd +,dbealJlJ4J lr+d+J rry ra4Jl1+
190 dc. cJ a. d. dt c•.sc = {pppppbm,
lu • Ad) Eq.ahPre..OdS..f..I At, alma Mdat h] yErrPdn in, ko la .fRa4d—Wpedb-40,S9,noGaid.b,.a0
151 6'..b lb. . —.(..i .. i2, 3.4,•11
01 11.cd a. S ED R.—M. b. C..- C. S
r7 1!q..h C. k—. ]6]drv.J.Jb —bv 6rd —nPr. manlh I— C. b.. n Pe.a eat.
NI Chk I•soporar..n
Kate
D.. In Thr Stnn 111
Januatw
0.07
31
Pebruars
004
28
Wlarvla
016
31
April
0.30
30
Stns
042
31
June
053
30
Juts
0.53
31
Auuasl
047
31
Sept vrt e+
033
30
Cktuhc�
021
31
Pto. c -n'bv
O i l
30
rl—b"
006
31
1TotjI--
1 3 28
365
0..._.,Jn of Reclamation Mining & Safety
Permit Application
Tabir 2
RU Cruel Fit
Augmentation Requirements - Post Mining
Total Swfacc Area 194acres
111 Egiu is Presented 5urfaco Arco tunes Monihty Ernperat ion Rnie {Rate dcveloprd bawd on $H -120 Gidol115os)
(2) Equals Presented Surface Area limes Monthly Evapvrnt,on Ratc {Ruts developed based on -18-120 Gudel-)
i11 Equals the semi ofeol- (16.2)
toy Equals Co1um'n (3]
O1 D-d ou SEO Rcwrdr for Cameo Ca11
(6) E9.4 Column (6) divided by A-bea of da }'s m dic mnnih rind Column (5) plus 10 potent
(1)
(21
(3)
N)
(3)
(6)
Month
31
Surface Eva oration
009
Total
\latch
Augfiwe mion
31
Phase I Area = 15.5 ac
Phase 2 Arcs = 3.9 x
Final Area - 19 4 at
Mas
2002 Call hays
Rcquircrnenl
3u1,v
(and!
(6-to
(nc -A
053
31
plus 103v r-s" 7n"
January
3I
03
t3
133
0
Ord)
February
1.5
0.4
18
182
0
0.00
March
25
0.6
3.2
3.15
0
0.00
.April
4.6
1.2
58
5.77
5
1.06
May
6.5
16
8l
8.10
7
2.01
June
8.2
21
103
10.33
6
227
:July
8.3
21
104
10.38
31
1142
'August
7.3
1.8
91
9.30
31
1001
September
5.1
1 3
64
6.43
30
708
Outobcr
3.2
0.8
4 0
402
4
057
Novembrr
1.6
04
2 l
207
0
000
l mccrrlbcr
I 1.0
03
1 3
125
0
0.00
Total
I 508
129
638
638
114
34.4
111 Egiu is Presented 5urfaco Arco tunes Monihty Ernperat ion Rnie {Rate dcveloprd bawd on $H -120 Gidol115os)
(2) Equals Presented Surface Area limes Monthly Evapvrnt,on Ratc {Ruts developed based on -18-120 Gudel-)
i11 Equals the semi ofeol- (16.2)
toy Equals Co1um'n (3]
O1 D-d ou SEO Rcwrdr for Cameo Ca11
(6) E9.4 Column (6) divided by A-bea of da }'s m dic mnnih rind Column (5) plus 10 potent
NI-110% Csapmalicin
Rate
Wvs In The Month
Janu,ux
0.07
31
vcll -"'
009
28
\latch
0 t6
31
g1if 11
0.30
30
Mas
047,
31
3u1,v
053
30
Jul,
053
31
Aug,j %i
0.47
31
Sepre"ibe.
0.33
30
W.I.mi
0,21
31
N- cruller
0.11
30
(Jccemher
0.06
31
ITutal
323
365
District Court, Water Division 5, Colorado
1098 th Street, Suite 104
Glenwood Springs, CO 81501
Phone Number! (970) 945 -5075
Concerning the Application for Water Rights of;
RTZ INDUSTRIAL, LLC
IN GARFIELD, PiTKIN, EAGLE, AND SUMMIT COUNTIES,
EF'ILED Uorurnent
CO Garfield County District Court 901 JU
Filing W: 21465259
Reviely Clerk: Jeanine Horslcy
CASE No. 07CW88
FINDINGS OF FACT, RULING OF REFEREE, AND JUDGMENT AND DECREE OF
WATER COURT
This matter came before the Court upon the Application of RTZ Industrial, LLC for
Underground Conditional Water Rights and Approval of Plan for Augmentation.
The Water Judge referred the Application to the undersigned as Water Referee for Water
Division No. 5, State of Colorado, in accordance with Article 92 of Chapter 37, Colorado
Revised Statutes 1973, known as the Water Rights Determination and Administration Act of
1969.
The undersigned Referee has made such investigations as are necessary to determine
whether or not the statements in the Application are true, has become fully advised with respect
to the subject matter of the Application and has consulted with the Division Engineer for Water
Division No. 5. The Referee hereby makes the following deterniitcation and ruling as the Referee
in this matter.
I. FINDINGS OF FACT
1. The Applicant is RTZ Industrial, LLC, a Colorado limited liability company, whose
address is in care of Wayne Rudd, Personal & Confidential, 4132 Pak Avenue, Basalt, Colorado
81621.
2. Applicant was represented in this matter by Dalcomb & Green, P.C., Post Office Drawer
790, Glenwood Springs, Colorado 81602 (970) 945.6545.
3. Applicant filed an Application for Conditional Undergmund Water Rights and Approval
of a Plan for Augmentation on April 30, 2007.
4. The Application was properly published in the resume for Water Division .No. 5. All
notices required by law have been made, and the Court has jurisdiction over the Application and
over all of the parties in this case.
5. None of the water rights or sources thereof involved in this Application are located within
a designated ground water basin.
6. No Statements of Opposition to the Application were filed. The time for filing such
statements has expired.
7. The Court finds that the relief requested herein is consistent with the relief originally
requested in the Application and for which public notice was provided,
CLAIM FOR CONDITIONAL UNDERGROUND WATER RIGHTS
8. Name of Reservoir: RTZ Gravel Pit Well No.1
A. Legal description: The center of the gravel pit well is located within the SW 114,
SE 1i4, and NE114 of the NEi14, Section 33, Township 7 South, Range 96 West of the 6"
Principal Meridian, at a distance of 616 feet from the east section line and 1,380 feet from
the north section line of said Section 33.
B. Source: Alluvial groundwater tributary to the Colorado River.
C. Depth of Well: approximately 25 feet.
D. Appropriation;
Date of initiation of appropriation: January 10,200 1.
ii. How appropriation was initiated: Purchase of property by lessor,
negotiations regarding a gravel mining lease, site inspection and location of gravel
pit site, formation of intent to divert water for the proposed uses, and preparation
of en&eering data to support same.
E. Date water applied to beneficial use: Not applicable.
F. Amount claimed: 2.0 cts., conditional, with a total annual diversion of up to 54,8
acre feet.
G. Uses: Industrial (including gravel production and dust control), recreation, and
piscatorial.
9. Well Permit: Upon the issuance of a decree in this case and compliance with Paragraph
20, the Applicant will submit an application for a variance approval to the Board of Examiners
for Water Well Contracts and an application for a well permit to the Colorado Division of Water
Resources.
CASE No. 07CW88 .2- FINDiNGsr Rt!LiNc; & DECREE
14. Name(s) and addresses) of owner(s) of the land upon which any structure is or will be
located, upon which water is or will be stored, or upon which water is or will be placed to
beneficial use: Specialty Restaurants Corporation and Stockton Restaurant Corporation, in care
of Tom Khiksdahl, 8191 E. Kaiser Blvd., Anaheim, CA 92808.
11. Name of Reservoir: RTZ Gravel Pit Well No. 2
A. Legal description: The center of the gravel pit well is located within the NW 114
and NE 114, NEI14 Section 33, Township 7 South, Range 96 West of the 6*' Principal
Meridian at a distance of 676 feet from the east section litre and 447 feet from the north
section line of said Section 33.
B. Source: Alluvial groundwater tributary to the Colorado River.
C. Depth of Well: approximately 25 feet. ~ -
D. Appropriation-
(i) Date of initiation of appropriation: January 10, 2001.
(ii) How appropriation was initiated: Purchase of property by lessor,
negotiations regarding a gravel mining lease, site inspection and location of gravel
pit site, formation of intent to divert water for the proposed uses, and preparation
of engineering data to support same.
R Date water applied to beneficial use: Not applicable.
F. Amount claimed: 2.0 c,f.s., conditional, with a total annual diversion of up to 12.9
acre feet.
G. Uses: Industrial (including gravel production and dust control), recreation, and
piscatorial.
12. Well Permit: Upon the issuance of a decree in this case and compliance with Paragraph
24, the Applicant will submit an application for a variance approval to the Board of Examiners
for Water Well Contracts said an application for a well permit to the Colorado Division of Water
Resources.
13. Name(s) and addresses) of owner(s) of the land upon which any structure is or will be
located, upon which water is or will be stored, or upon which water is or will be placed to
beneficial use; Specialty Restaurants Corporation and Stockton Restaurant Corporation, in care
of Tom Kluksdahl, 8191 E. Kaiser Blvd., Anaheim, CA 92808,
CASE No. 07CW88 -3- FINDimGs, RuL ING & DECREE
CLAIM FOR APPROVAL OF PLAN FOR AUGMENTATION
14. Structures to be Augmented:
A. RTZ Gravel pit Well No, 1, described above.
B_ RTZ Gravel Pit Well No. 2, described above.
15. Water rights to be used for augmentation:
Applicant will obtained a contract in the amount of 54.6 acre feet of augmentation water
from the storage reservoirs described below from the Colorado River Water Conservation
District (the "River District!'). Applicant will utilize storage water available under Contract No.
CW08004 with the River District. Operation of the plan shall be Contingent upon the continued
existence of Applicant's River District water supply contract. Applicant has contracted Tc r a total
of 50.6 acre feet of annual delivery of augmentation supply from the River District's contract
sources described herein. The contracted amount is sufficient to augment all of the out -of-
priority depletions associated with diversions from the augmented structures and will include a
10% transit loss associated with the augmentation releases, Subject to that limitation, Applicant
may reduce its contracted amount as provided in its River District contract or, at its election,
maintain such greater amounts as it decides to retain for uses under future legally approved
plans.
16. Previous Decrees for water rights to be used for augmentation:
A. Rued! Reservoir: The River District holds Contracts No. 009D6CO111,
009D6C0118, and 039F6C0011 from the United States Bureau of Reclamation for 1,730
acre feet of annual supply from Rue-di Reservoir and may Obtain additional contracts in
the future. This water will be used in addition to and substitution for Wolford Mountain
Reservoir water in appropriate circumstances where Ruedi water is physically equivalent
to Wolford water.
1} Le-al descrz 'on of ]ace of sta e: Ruedi Reservoir is located in
Sections 7, 8, g, 11 and 14 through 18, T. 8 S., R. 84 W., 6th P.M., in
Eagle and Pitkin Counties. The dam axis intersects the right abutment at a
point whence the SW corner of Section 7, T. 8 S,, R. 84 W. of the 6th
P.M. bears N. 82EIUW, a distance of 1,285 feet.
2) Source. Fryingpan River,
3) Previous storage decrees:
CAs$ No. 97CW88 .4- FWDiNGS, RULING & DECREE
a. Civil Action No. 4613:
Decree Date: June 24, 1958.
Court: Garfield County District Court.
Amount: 140,697.3 acre feet, reduced to 102,369 aore feet
pursuant to order of the Water Court in Case No. W- 789 -76. The
full amount was made absolute in Case No. 88CW85.
ARnronriation Date: July 29, 1957.
se: Domestic, municipal, irrigation, industrial, generation of
electrical energy, stock watering and piscatorial.
b. Case No. 81CW34:
Decree D : April 8, 1985.
Court: District Court, Water Div. No. 5.
Amount: 141,280 acre feet (refill); of this amount, 44,509 acre feet
were made absolute in Case No. 95CW95 and 25,257 acre £ect
were made absolute in Case No. 01CW269, for a total of 69,766
acre feet absolute.
Appropriation Date: Jan. 22,1981.
Use: Irrigation, domestic, municipal, generation of electrical
energy, stock watering, industrial, piscatorial, recreation and
maintenance of sufficient storage reserves to fulfill contractual
obligations and provide stored water for recreation in times of
drought
B. Wolford Mountain Reservoir. The River District owns and operates Wolford
Mountain Reservoir (Oda Gunsight Pass Reservoir) which has the following water
rights:
(1) Case No. 87CW283:
i. Decree Date: November 20, 1989
ii. Legal description of place of storage: The dam is located in the
SW 114 of the NEi14 of Section 25, T. 2 N., R. 81 W., 6th P.M. The
intersection of the dam axis with the right abutment will occur at a point
which bears S. 54 deg. 54'24" E. a distance of 716.46 feet from the NW
Corner of said Section 25.
iii. Source: Muddy Creek and its tributaries
iv. Amount: 59,993 acre feet conditional; of this amount, 32,986 acre
feet were made absolute for piscatorial and recreational uses by decree
entered in Water Court. Case No. 95CW251, and the full amount was made
CASE No, 07CW88 -5- Frr wNGs, RvuNG & DEcREE
absolute for all purposes by decree entered in plater Court Case No.
02CW107.
V. Appropriation Date: December 14, 1987
Vi. Use: All beneficial uses, including but not limited to domestic,
municipal, agricultural and recreational uses, which uses satisfy the
requirements of the Windy Gap Settlement made with the Municipal Sub-
district of the Northern Colorado Water Conservancy District; use to meet
the water requirements of the inhabitants of the River District for all uses,
including uses in the Middle Park area; and use to meet the terms of a
lease agreement executed March 3, 3987 between the River District and
the City and County of Denver.
(2) Case lit►. 95CW281:
i. Decree Date: August 26, 1997
Ii. Legal description of place of storage: The dam is located in the
SW114 of the NE114 of Section 25, T. 2 N., R, 81 W., 6th P.M. The as-
built intersection of the dam axis (Sta. D19+15.61) with the West Access
Road (Sta. WR50 +55.05), as shown on the Colorado River mater
Conservation District, Wolford Mountain Project, Ritschard Darn
construction drawing "Dimensional Dam Layout" sheet 8 of 94, occurs at
a point which bears S. 53E24156" E. a distance of 3,395.51 feet from the
NW Corner of said Section 25; the bearing of said dam axis from Sta.
19 +35.61 to Sta. 0+00 being S. 75 Deg. 28'29" E.
iii. Source: Muddy Creek and its tributaries
iv. Amount: 6,000 acre feet conditional
v- Appropriation Date: January 16, 1 995
vi. Use: All beneficial uses by and for the benefit of the inhabitants of
the Colorado River Water Conservation District, including but not limited
to domestic, municipal, industrial, irrigation, agricultural, piseatorial and
recreational; such uses will include environmental mitigation, including
environmental mitigation requirements associated with the Wolfbrd
Mountain Project; such uses will be made directly or by substitution,
augmentation, or exchange. None of the water stored in the exercise of the
right will be delivered directly or by exchange, substitution, or otherwise
for use outside of Colorado Water Division No. 5.
(3) Case No. 98CW237:
CAsE No. 07CW88 -6- FiNDrNc;s, Rur.ruc & DECREE
i. Decree Date. duty 6, 2040.
ii. Legal Description of place of storage: Same as for 95CW281.
iii. Source: Muddy Creek and its tributaries
iv. Amount: 30,000 acre feet conditional with 15,895 acre feet being
absolute for recreational and piscatorial and flood control.
V. Appropriation Date. November 17, 1998
vi. Use: Certain of the beneficial uses previously adjudicated for
Wolford Mountain Reservoir in Case No. 87CW283, District Court for
Colorado Water Division No. 5 (November 20, 1989 Judgment and
Decree), and Case No. 95CW281, District Court for Colorado Water
Division No. 5 (August 26, 1997 Judgment and Decree). `
87CW283: The reservoir will be used to satisfy the requirements of the
Windy Gap Settlement made with the Municipal Subdistrict of the Northern
Colorado Water Conservancy District. This will involve all uses, including but
not limited to domestic, municipal, agricultural, and recreational uses. The
reservoir will also be used to meet the water requirements of the inhabitants of the
River District for all uses, including uses in the Middle Park area.
95CW281: All beneficial uses by and for the benefit of the inhabitants of
the Colorado River Water Conservation District, including but not limited to
domestic, municipal, industrial, irrigation, agricultural, piscatorial and
recreational; such uses will include environmental mitigation, including
environmental mitigation requirements associated with the Wolford Mountain
Reservoir Project; such rases will be made directly or by substitution,
augmentation, or exchange.
Remarks: The Refill Right described herein will be exercised to provide supply
for the Western Slope uses of water from Wolford Mountain Reservoir described
above, including flood control, other operational purposes, and environmental
mitigation and enhancement for the benefit of uses within the District. The Refill
Right will not be used in conjunction with the Reservoir capacity (24,000 a.f.)
whicb is allocated for the supply of water to the Denver Board of Water
Commissioners under Applicant's contractual relationsbip with Denver, or the
Reservoir capacity (6,000 Aft) which is allocated for Colorado River endangered
fish releases.
17. Names and Addresses of Owners or reputed owners of land upon whieb augmentation
structures are located: United States Department of Interior, Bureau. of Reclamation, Eastern
Colorado Arca Office, 11056 West County Road 18E, Loveland, CO 80537 -9700. Notice of
filing and a copy of the application was provided by certified mail, return receipt requested to the
CASE No. 07CW88 -7- Ri+rr [Na, RLYLINc & DECREE
owners of the land upon which any new diversion structure or existing diversion structure are or
will be located pursuant to C.R.S. § 3 7-92-302(2)(b)(I 1).
STATEMENT OF PLAN FOR AUGMENTATION
18. Statement of plan for augmentation:
A. Nature and Pw -pose of Augmentation Plan:
Applicant has entered into a lease to perform gravel raining operations on
property owned by Specialty Restaurants Corporation and Stockton Restaurant
Corporation depicted in Figure 1, attached hereto and incorporated by reference, and
generally described as being located along the north bank of the Colorado River in
Section 33, Township 7 South, Range 96 West of the 6'h P.M., in Garfield -County,
Colorado,
The purpose of the augmentation plan described Herein is to protect the water
supply for the RTZ Gravel Pit Wells 1 and 2 during the gravel mining operations and
during the post - reclamation phase. The RTZ Gravel Pit Wells have junior water rights
that are subject to a call by downstream senior water rights. Therefore, depletions caused
by evaporation from the gravel pits and from the industrial uses associated with the
gravel mining operation must be augmented. Out-of-priority depletions from the RTZ
Gravel Pit Wells will be augmented using augmentation storage water purchased from the
River District.
H. Estimated —W er Requirements. CongpRfivc Uses and QVIetions:
(1) Gravel Mining Operations:
Water uses associated with the Applicant's gravel mining operations
include gravel production and dust control. At full production, it is estimated that
the RTZ Gravel Pit Wells will produce 150,006 tons of gravel per year. A net
moisture loss of four percent (4 11/o) by weight will occur with the gravel mining
Process, and the water use is 104 percent consumptive. At 150,400 tons per year
(TPY), the estimated water diversion and depiction for gravel production use is
4.4 acre feet per year, which will distributed equally by month throughout the
year as shown on Table 1, attached hereto and incorporated herein by reference.
It is estimated that 10,004 gallons of water per day will be required for
dust control during mining operations. The amount of water used for dust control
is approximately 8.4 acre feet per year, which is distributed equally by month
throughout the yeas as shown on Table 1. The water use is 100 percent
consumptive, for a total dust control depletion of 8.4 acre feet per year.
CAsF No. 07CW88 -8. RNDiNGs, RULING & DECRc. E
Total water diversions and depletions for gravel production and dust
control are estimated to be 12.8 acre feet annually.
(2) Pond Evaporation
Stream depletions will also occur from the evaporation of exposed
groundwater in the RTZ Gravel Pit Wells created by mining operations. The
gravel pits will be created over the life of the mining operation and, at completion
of mining operations, the total surface area of the gravel pits will be up to 19.4
acres (15.5 acres for RTZ Gravel Pit Well 3 and 3.9 acres for RTZ Gravel Pit
Well 2). Using the SEO method outlined in the General Guidelines of Substitute
Water Supply plans for Sand and Gravel Pits, the Applicant's engineer calculated
the net evaporation rate from the RTZ Gravel Pit Wells to be 3.29 acre feet per
exposed surface acre.
C. Augmentation Requirements:
(1) Augmentation during gravel mining operations:
Table 1, attached hereto and incorporated herein by reference, shows the
anticipated monthly depletions and augmentation requirements schedule during
gravel mining operations. Total annual depletions associated with the gravel
mining operation will equal 53.8 acre -feet at full build -out of the gravel pit wells.
The RTZ Gravel Pit Wells will be located adjacent to and within 1000 feet of the
Colorado River in a shallow, highly porous gravel formation hydraulically
connected to the Colorado River. The timing of stream depletions from the uses of
the gravel pit ponds are presumed to be instantaneous.
The water level in the gravel pit wells will seek equilibrium with the
surrounding groundwater table. Allowing the water level in the gravel pit wells to
increase during a call could cause lagged depletions to the Colorado River.
Applicant shall not increase the water level in the gravel pit wells during
enforceable calls,
Total stream depictions at fill build -out of the gravel mining operation
include 38.8 acre -feet of potential out -of- priority depletions that will occur during
tho historical call period from downstream senior water rights on the Colorado
River. In an extreme dry year (2442 dry year scenario), the call has historically
occurred for 114 days during the months of April through October, see Table I
attached hereto.
Augmentation water will be provided from the storage water sources
CASE No. 07CW88 -9- FFN INGS, RMING & DECREE
identified above pursuant to a contract with the Rivet' District as necessary to
augment out-of-priority depletions. The analysis of depletions and augmentation
requirements shown on Table 1 indicates that 38.8 acre feet of contract water is
required to replace the depletions at full build -out of the gravel raining operations.
Water released pursuant to the allotment contract will include an assumed ten
percent (10 %) transit loss, which may be modified pursuant to C.R.S. §§ 37 -80-
102(7) and 37 -83 -104.
(2) Augmentation During Post - reclamation Phase
Following the cessation of mining operations, during the post - reclamation
phase, the only consumptive use of water will be caused by evaporation from the
RTZ Gravel Pit Wells. So long as groundwater is exposed to the atmosphere
from the RTZ Gravel Pit Wells, Applicant shall be responsible for replacing the
evaporative depletions caused thereby. Total annual evaporative losses are
estimated to be 63.8 acre feet per year. Of that amount, 34.4 acre feet will be out -
ot= priority during the historical call period from downstream senior water rights
on the Colorado River, see Table 2, attached hereto and incorporated herein by
reference.
During the post-reclamation phase, out -of- priority evaporative depletions
will be augmented using contract storage water. The schedule of post - reclamation
depletions and replacement water requirements is shown on Table 2. The analysis
of post - reclamation depletions and augmentation requirements indicates that 31.3
acre feet of contract water is required to replace evaporative depletions.
Applicant's total contract water purchase obligation associated with delivery of
reservoir storage water during the past - reclamation phase is 34.4 acre feet per
year which includes ten percent (10 %) attributable to transit losses, which may be
modified pursuant to C.R.S. § §37- 80- 102(7) and 37 -83 -104.
19. The water to be provided for augmentation is of a quality and quantity so as to meet the
requirements for which, the water has been used by senior downstream appropriators, and
therefore meets the requirements of C.R.S. § 37- 92- 305(5).
20. Wells constructed in accordance with State Engineer's Well Permit Nos. 27441, 225425,
269894, and 206240 may be located within 600 feet of the RTZ industrial Gravel Pit Wells 1 and
2. Applicant will either obtain waivers for all wells located within 600 feet or participate in a
hearing, pursuant to C.R.S. § 37- 90- 137(b)(Ii) prior to issuance of well permits for the RTZ
Gravel Pit Wells.
H. CONCLUSIONS OF LAW
1, To the extent they constitute legal conclusions, the foregoing Findings of Fact are
incorporated herein.
CASE No. 07CW88 _10- FINMNGs, Rut,NG & E)ECRm.
2. All notices required by law have been properly made, including as required under C.R.S.
§37- 92- 342(3). The Court has jurisdiction over the Application and over all entities or persons
who had standing to appear, even though they did not do so.
3. The Application is complete, covering all applicable matters required pursuant to the
Water Right Determination and Administratinn Act of 1969, C.R.S. §§ 37 -92 -101 through -602.
4. The Court has given due consideration to the Division Engineer's Summary of
Consultation dated January 14, 2008. See C.M. §37- 92- 342(4). A copy of the Summary of
Consultation was properly served on all parties to the case.
5. Applicant has fulfilled all legal requirements for a decree for the requested water rights,
including C.R.S. §§ 37 -92 -302 and 37 -92 -345.
5. Applicant has fulfilled all legal requirements for a decree for the requested plan for
augmentation, including C.R.S. §§ 37 -92 -302 and 37 -92 -305.
7. Pursuant to C.R.S. § 37- 92- 305(8), the plan for augmentation is sufficient to permit the
continuation of diversions when curtailment would otherwise be required to meet a valid senior
call for water, because the Applicant will provide adequate replacement water necessary to meet
the lawful requirements of a senior diverter at the time and location and to the extent that the
senior would be deprived of his or her lawful entitlement by the Applicant's diversion.
8. The Court hereby concludes the Applicant has established that water can and will be
diverted under the subject conditional water rights and will be beneficially used, and that this
water supply project can and will be completed with diligence and within a reasonable time.
9. The conditional water rights decreed herein are individual components of Applicant's
integrated water supply system. Consequently, in subsequent diligence proceedings, work on any
one feature of Applicants supply system shall be considered in finding that reasonable diligence
has been shown in the development of water rights for all features of Applicant's water supply
system, see C.R.S. § 37- 92- 301(4)(b).
10. If operated in accordance with the terms and conditions of this decree, the plan for
augmentation described herein will prevent injury to senior vested or decreed conditional water
rights,
11. The subject Application is in accordance with Colorado law. Applicant has fulfilled all
legal requirements for entry of a decree in this case.
1H. JUDGMENT AND DECREE
1. The foregoing Findings of Fact and Conclusions of Law are incorporated herein.
CAsa No, 07CW88 -11- FwDrN ;s, RULING & DECREE
2. The Court hereby awards water rights to the RTZ Gravel Pit Well No. I and the RTZ
Gravel Pit Well No. 2 in the amount of 2.0 c.f.s., conditional, for each well, and as more fully
described herein..
3. The Court hereby decrees and approves the plan for augmentation described herein.
4. In consideration of the specific findings and conclusions made herein, and in
conformance with C.R.S. § 37- 92- 304(6) (1990), as amended, the plan for augmentation decreed
herein shall be subject to reconsideration by the Water Judge on the question of injury to the
vested water rights of others for a period of five years from Applicant's notice to the Division
Engineer and the Water Court that the augmentation plan has become operational and the project
has reached 75% build -out. Such notice must confirm that the decreed augmenting sources are in
place, that the terms and conditions necessary to operate the plan as required by the decree have
been met, and that the augmented uses and augmentation have been initiated. If no petition for
reconsideration is filed within said five years, retention of jurisdiction for this purpose shall
automatically expire. Any party who wants the Court to reconsider the question of injury must
file a verified petition with the Court, setting forth the facts that cause such injury and explaining
the claimed injury. The party filing the petition shall have the burden of going forward to
establish the prima facie facts alleged in the petition. If the Court finds those facts to be
established, the Applicant shall thereupon bear the burden of proof to shore (a) that any
modification sought by the Applicant will avoid injury to other water rights, or (b) that any
modification sought by the petitioner is not required to avoid injury to other water rights, or (e)
that any term or condition proposed by Applicant in response to the petition does avoid injury to
other water rights.
5. In conformance with Colo. Rev. 5tat. § 37- 92- 305(8), the State Engineer shall curtail all
out -of- priority diversions, the depletions from which are not so replaced under the terms and
conditions of this decree as to prevent injury to vested water rights.
5. The applicant shall install measuring devices, provide accounting, and supply
calculations regarding the tinting of depletions as required by the Division Engineer for the
operation of this Elan. The applicant shall also file an annual report with the Division Engineer
by November 15 following each preceding irrigation year (November 1 through October 31)
summarizing diversions and replacements made under this plan.
7. Review of determinations made by the Division Engineer or the State Engineer in
administration of the subject water rights and plan for augmentation are wetter matters over
which the Water Court has exclusive jurisdiction.
S. Pursuant to Rule 9 of the Uniform Local Rules for All State Water Court Divisions, upon
the sale or other transfer of the Conditional RTZ Gravel Pit Well No. 1 and the RTZ Gravel Fit
Well No. 2 rights, the transferee shall file with the Division 5 Water Court a notice of transfer
which shall state:
CASE No. 07CW88 _12- RN€ ZNGS, RLUNG & DECREE
1.11 ll,l,li IS
I 116121 >:!:.: I1,r lo, i i:•i4 r
itl i t: r: l,•rk-, it : ill._ ; I.o J
1 I he IiIIc, and cap. nuiui•iernl this C a; <e INo. U7CAVS9 .
13. -I he dr=criplitm of dic cetnditi qml %valer ngltt transferrcdl
C'. 'Chc niIInc of the Imnilomr;
[�. The name it lid mailing address of the Transferee;
F- A copy of [he recorded deed.
q f lie ro wl it: r of lhe: said conditionaI water rights shall Also, nobly the C:Icrk of the Division
5 Water Court of any change in mailing address. '17te Clerk shall place any notice of transter or
Change 0 .Id+Jress ill tlu rax ti lc of this Case No. 07CW88 and in The case file (if any) in wluch
the Coati Grsl made a finding cif reasonable diligence.
HL tt is accordingly ordered that this Ruling of Referee and Judgment and Decree shall lea - -
filed whit the Water Clerk and shall become effective upon such riling. subject to judi ial revicw
pursuant to C.R.S. § 17 -42 -304, as amended.
11. lT is further ordered that it copy of this Ruling of Rofarce and Judgment and Decree s tic ll
be filed with the State Engineer and the Division Engineer for Water Division No. 5.
Done to the City of Crlenwoad Springs, Colorado, this
8Y T1IF REFER E:
�
LED
Lain Leo niak, Wit eferec
Water Divisioa No. 5
DATE-f) � Slate of Colombo
DECREE
ZNo protest was IlWd in this mauer. Tha foregoing Ruling of the Referee is confirmed and
approved. and is made the Judgment and Decree of this Court. The conditional water rights for
IItc RTZ Gravel Pit_WeiIs, Net. I and 2 described for diligence herein shat I be in fu ft force and
effect until _re` . t/ 2014, if the Applicant wishes to maintain the coWilional water
rights thereafter it shall File an application far a finding of reasonable diligence on or bctore that
date, or make a showing on or before then that the conditional water rights have become ahsnIute
%aktr rib IIts by reason uIIhc uampIclinIt of the appropriations.
Dvre 01 is 2±4 day of
UY THE COURT:
C =I 1n IF -13. FINOLNGS, RULING& PFCRrr
7
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RTZOftyet Fie WoU N& 2 Property Boundary
NW# &NEJ, NO, Section 33
676 FEY,, 447 FM
sop a
M. R46W, 6th Pyf t
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RTZL m-61 Pit WoU No. I
f SW }, SE # & NE , NFJ, Section 33
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ly
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- FIGURE NO,
Grovel Pits Locations RTZ INDUSTRIAL
SCALE: DATE: Apr11 2007 SfiES OF t ZANCANECLA ANV 455WIAT INC.
1" — 2000
DRAWN BY: !D BY: APPD BY: dRAW1NG: RMI'mcc,07 AN
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Table 2
RTZ G cn• el Pi[
Augmentation Requirements - Post Mining
Total Surface Arc's I 19.4 acres
ui r.. 1 rfi frl rd,
Mw1d1
rq Equal; Pmenud Surixe A r iii %Mammy EvV&-ttoo Racy gm de lr od b" d6 51)•12A Cuidelocsl
;li Eq+ek Pmsorerd Sucfxs Arra 6m Mowlb- Ecaporarlon Raw (Raw dnc"bAw d um S11.120 Cnuddinco)
Ul Egwak & rura afaolerren fl & 2).
rat E4-ft Cahn (3).
C11 Based w SeO Records for Cameo Call
1.� Equ b Cafuam (6) di.;dcd by WW of dayr m Ae mead& omvs Cuhmn i-S) plea 1 o pc oL
Imrraold -ft ocL
2 'C6JJC�'•:b7S9 RlZ C .rI Pit Augm[nw7on Rrcui C wLs
guru= Lv ci
TOW
Augnenca4on
Pbosr F Ards - 15.5 iC
Phase 2 A W3 - 3.9 u
Final ,ICS - 19.4 m
2(102 C/U DR"
Requilemenc
fdG fo
IOU WASif low
January
l.1
0 -3
1 -3
1.33
0
0.00
February
1 -5
0.4
i's
1.92
0
0 -on
marcb
25
0.6
12
3 -15
0
0.00
April
3.6
i.2
5.8
5.77
5
1.06
May
65
1 -6
S. t
8.10
7
?.0l
hue
82
2.1
103
1033
6
7.27
hilt'
8.3
2.1
10.4
10.38
31
11-42
AU"
7.3
I.8
9.1
9.t0
31
10.01
September
5.1
1 -3
6.4
6.43
30
7.68
Oelober
3-2
08
4 -0
4.02
a
0.57
NoWn +er
7.6
0.4
2 -1
207
0
0.00
D-Mbe,
1.0
0.3
1.3
1.25
0
0 -00
alai
50 -8
12 -9
63S
63.8
114
34.4
rq Equal; Pmenud Surixe A r iii %Mammy EvV&-ttoo Racy gm de lr od b" d6 51)•12A Cuidelocsl
;li Eq+ek Pmsorerd Sucfxs Arra 6m Mowlb- Ecaporarlon Raw (Raw dnc"bAw d um S11.120 Cnuddinco)
Ul Egwak & rura afaolerren fl & 2).
rat E4-ft Cahn (3).
C11 Based w SeO Records for Cameo Call
1.� Equ b Cafuam (6) di.;dcd by WW of dayr m Ae mead& omvs Cuhmn i-S) plea 1 o pc oL
Imrraold -ft ocL
2 'C6JJC�'•:b7S9 RlZ C .rI Pit Augm[nw7on Rrcui C wLs
-r �tA- ( t1.31to',2�3
CW08004
WATER S[JPPLY CONTRACT
This Contract is made between the COLORA -DO RIVER WATER CONSERVATION
DISTRICT (herein the "River District "), a political subdivision of the State of Colorado acting by
and through its Colorado River Water Projects Enterprise, and WfZ INDUSTRIAL, LLC (herein
"Contractor ") effective as of the date of the River District's execution indicated below.
RECITALS
A. The River District is authorized to contract to deliver water for beneficial use from
River District water projects pursuant to provisions of C.R.S. § 37 -46 -101, et seq. (herein "River
District Organic Act ").
B. The River District is the owner and operator of the Wolford Mountain Reservoir
Project located on the Muddy Creek drainage near Kremmling, Colorado, having obtained necessary
decrees from the District Court in and for Colorado Water Division No. 5 therein "Water Court ")
and permits from governmental agencies, and the River District is entitled to deliveries of water
from Ruedi Reservoir under its Contracts with the U.S. Bureau of Reclamation.
C. The River District's Board of Directors has adopted a Water Marketing Policy, as
revised by the Board from time to time, to provide for the use of water available from the River
District's sources of supply pursuant to contracts, and that Water Marketing Policy is to be
implemented through the River District's Water Projects Enterprise,
D. Contractor has a need for wholesale water supply, demonstrated in its submittal to
the River District pursuant to the Water Marketing Policy's contracting process, in the amount of
50.6 acre feet annually for municipal /industrial purposes, which beneficial uses will be
accomplished by Contractor generally in the vicinity ofGarfield County, Colorado, by ground water
diversions from or within the Colorado River drainage.
E. Contractor is aware of the "Hydrology Assumptions" which are part of the Water
Marketing Policy and is satisfied, based on its review and investigations, that Contractor legally and
physically can make use for its intended purposes of the Contracted Water, which are the subject
of this Contract and that such use will comply with the Water Marketing Policy.
AGREEMENT
The foregoing Recitals are incorporated into this agreement between the River District and
Contractor.
DEFINITIONS
In this Contract certain terms will have definitions as stated below:
WAIER StJf'I'I,Y CONTRACT
Page 2
CW08004
• The "River District" means the Colorado River Water Conservation District created
and existing pursuant to the River District Organic Act defined in Recital A and
acting by and through its Colorado River Water Projects Enterprise which is
currently described and memorialized in the Resolution of the Colorado River Water
Conservation District's Board of Directors dated April 20, 2005,
■ The "Project" means the River District's "Colorado River Supply" from: (1) Wolford
Mountain Reservoir, for which storage water right decrees were obtained by the
River Districtin Cases No. 87CW283, 95CW281 and 98CW237 in the District Court
for Colorado Water Division No, 5, and for which additional storage water right
decrees may be obtained in the future by the River District in other cases; (2) the
River District's contractual right to water deliveries from Ruedi Reservoir; and (3)
other supplies that the River District may acquire suitable for use in its Water
Marketing Program.
■ "Agricultural" means the use of water for commercial production of agricultural
crops and livestock and other uses consistent with any right decreed for irrigation
purposes, which uses are made on a parcel of land of at least ten acres.
• "Municipal and Industrial" means the use of water by individuals, cities, towns,
public or quasi - public districts, private corporations, homeowners associations, or
other entities for domestic, municipal, and miscellaneous related purposes as those
terms are traditionally and commonly construed, including the use of water for
purposes of producing or processing a non - agricultural product or service for sale,
including without limitation, such uses as manufacturing, raining, milling, land
reclamation, golf course irrigation, snowmaking, and non - hydroelectric power
generation; and including the use of water for environmental mitigation purposes
associated with such uses; but excepting the agricultural use of water defined herein.
"Contracted Water" means the water which is the subject of this Contract which is
to be released and delivered by the River District and used by Contractor. 7'he
Contracted Water is 50.6 acre feet of Colorado River Supply below the Roaring Fork
Confluence available during each Project Year during the term of this Contract,
subject to the provisions Hereof, for Contractor's use without right of carryover of
any amount not used in any Project Year.
• "Project Year" means a period of time from July 1 through and including the
subsequent June 34.
• "Water Marketing Policy" means the River District's policy statement as revised and
readopted as of the execution date of this Contract and as the same may be amended
in the future.
WATER SUPPLY CONTRACT CW08004
Page 3
■ "Project I lydrology Assumptions" or "Hydrology Assumptions" means the document
attached as Appendix "A" to the Water Marketing Policy adopted on October 17,
2046.
Diver District Water Delivery Obligations and Resnonsihilities.
a. Delivery. The River District will deliver the Contracted Water at the outlet works
of the Contracted Water's sources of supply into the receiving natural streams in
quantities provided herein. Unless otherwise agreed to by the River District's
General Manager based upon written request of Contractor, the River District will
make releases or request that releases be made for Contractor, based upon
Contractor's written schedule of anticipated demand, adjusted as necessary by the
ongoing status of river administration vis -a -vis the priority status of Contractor's
diversions, provided that the releases can be made within the operational limitations
of the River District's project facilities as determined by the River District-in its sole
discretion. Contractor shall be solely responsible after delivery for thClegal and
physical delivery and use of the Contracted Water.
b. Delivery Contingencies. The River District's delivery of Contracted Water shall be
subject to Contractor's payments pursuant to paragraph 3 below, and the provisions
for curtailment of deliveries in paragraph 5 below.
C. _Water Measurements. The River District shall measure at the outlet works of the
Contracted Water's sources of supply all Contracted Water and shall notify the
Division Engineer of Colorado Water Division No. 5 of the date, time and amount
of Contracted Water released pursuant to this Contract. Copies of such records shall
be provided to Contractor upon request.
d. Water Quality. The River District shall have no obligation to Contractor or any other
person regarding and snakes no warranties or representations to Contractor
concerning the quality of Contracted Water delivered pursuant to this Contract by
releases of raw water to natural streams.
e. Maintenance of Facilities. The River District, to the extent that it has ownership and
maintenance control, shall use its best efforts to maintain in good working condition
the water storage and release facilities of the Contracted Water.
Withholding of Delive . The River District may withhold deliveries of Contracted
Water in the event of Contractor's nonpayment for Contracted Water or any other
breach of this Contract by Contractor. Such remedy shall not be the River District's
exclusive remedy in the event of any such breach.
WATER SUPPLY CONTRACT
Page 4
CW08004
g.
Delivery from Primate or Alternate _Sources. The River District will deliver the
Contracted Water from the sources of Colorado River Supply below the Roaring
Fork Confluence described herein, which will meet the Contractor's need to satisfy
calls by senior water rights or the Contractor's physical need for any direct delivery
of Contracted Water to Contractor's diversions. Subject to meeting those objectives,
the River District reserves the right to provide all or any of the Contracted Water to
Contractor from alternate reservoirs for Contractor's use, provided that the alternate
sources are suitable to physically satisfy calls by senior water rights or Contractor's
need for direct delivery.
2. Contractor's Water Use Obligations and RessponsibiIities.
a. Schedulinu of Use. Contractor has provided the River District a preliminary written
schedule of its anticipated monthly demands for the Contracted Water during the
Project Year (July 2008 - June 2009). The schedule provided by Contractor in its
application for this Contract shall serve as the schedule to be used. until it is modified
in a written notice given by Contractor to the River District, or as necessary in
response to river administration of the Contractor's diversions. The schedule shall
identify the volume of any Contracted Water anticipated by Contractor not to be
needed by it during any particular Project Year. Contractor shall update said
schedule periodically during the Project Year as conditions require and give the
River District written notice of all such revisions.
b. Carriage Losses. Contractor shall bear carriage losses in such amount as is
determined by the Division Engineer for Colorado Water Division No. 5, from the
point ofdelivery of Contracted Water to Contractor's point(s) ofuse and/or exchange
or augmentation.
C. Use Per Contract and Law. Contractor's use of Contracted Water shall in all
instances be in accordance with the terms of this Contract, the permits and decrees
of the Project, the Water Marketing Policy, as it may change from time to time, and
in accordance with applicable law and all decrees related to the Contracted Water.
Contractor is not authorized to apply for or secure any change in the water rights for
or associated with any of the sources of supply of the Contracted Water.
d. Legal Appro_vaLs. Contractor shall at its sole expense adjudicate a plan or plans for
augmentation or exchange and/or secure administrative approvals of any temporary
substitute supply plans which are needed for Contractor to use its Contracted Water.
Any such plans shall identify Wolford Mountain Reservoir and Ruedi Reservoir as
the sources of supply. Contractor already has filed such an application in Water
Court, Water Division No, 5, Case No. 07CW88. If necessary, Contractor shall
amend the application to identify both of the River District's sources of supply. If
Contractor intends to make any additional application(s) for any augmentation or
exchange plan(s) or substitute supply plan(s) needed for Contractor to use its
Contracted Water, Contractor shall submit the proposed application(s) to the River
WATER SUPPLY CONTRACT
Page 5
CW08004
District within a reasonable time before Contractor proposes to file such application.
The River District shall review written approval of such applications before they are
submitted or filed, and the River District's approval shall not be unreasonably
withheld. The River District may in its discretion become a coapplicant in the
prosecution of any such applications for the purpose of protecting its water rights and
related policies. Contractor shall cause to be included in any final decree of the
Water Court a provision conditioning Contractor's use of the Contracted Water on
the existence of a River District contract.
C. Limitation on Disposition.
i. Contractor shall not sublet, sell, donate, loan, assign or otherwise dispose of
any of its rights to this Contract or to Contracted Water without prior written
notice to, and the written approval of, the River District and the payment of
a transfer fee at the prevailing rate set forth in the Water Marketing Policy.
The River District's approval of such disposition shall be granted in all
instances in which the Contractor is transferring the water system which
supplies the Contracted Water, or a permanent transfer of the Contract is to
be made to a successor in interest of Contractor by reason of the transfer of
the title or other legal right to use the property served by the Contracted
Water, or where the transfer is made to an entity such as a homeowners'
association or special district created to serve the property originally
represented to the River District to be served with the Contracted Water.
ii. The assignment of a Contract is subject to the Water Marketing Policy as
revised as of the effective date of the assignment. In accordance with this
subparagraph (ii), any assignee must pay for the Contracted Water at the
then - current price determined by the River District Board of Directors.
f. Contractor's Water Rates. Contractor may charge its water customers who are
supplied with Contracted Water such rates and charges as are permitted by Colorado
law,
g. Nondiscrimination. Contractor shall not discriminate in the availability of or charges
for any water service or water supply made available pursuant to or based upon the
Contracted Water on account of race, color, religion, or national origin or any other
criteria prohibited under state or federal law.
h. Accounting of Use. Contractor shall maintain an accounting of its use of all water
used or supplied by Contractor on form(s) acceptable to the River District
specifically for the purpose of enabling the River District to prove the use of River
District Project water rights and to administer and operate the Project and water right
decrees and/or administrative approvals related to Contractor's use of Contracted
Water. Contractor shall submit its accounting forms and records to the River District
promptly upon request and shall assist the River District as it may reasonably request
WATF11 SUPPLY CONTRACT
Page 6
CW08004
in presenting and/or verifying such evidence of use in court or before administrative
agencies by testimony of Contractor or its authorized and informed officers or
agents.
i. Section 404 of the Clean Water Act (33 U.S.C. 1344) regulates the discharge of
dredged or fiii material into the waters of the United States. Contractor shall consult
with the Army Corps of Engineers if construction of facilities necessary to use the
Contracted Water requires Section 444 compliance, which may include obtaining a
permit, Further consultation and approval by the United States Fish and Wildlife
Service may be required to ensure compliance with the Endangered Species Act (16
U.S.C. 1531, et seq.) if Contractor proposes physical alterations to the designated
critical habitat of the Colorado River endangered fish species. As of March 1, 2007,
designated critical habitat exists from the Garfield County 320 Road Bridge Grossing
of the Colorado River in Rifle downstream to the Colorado State line.
3. Contractor's Payments
In addition to the application fee already paid by Contractor, in order for the River
District's delivery obligation to become effective on or about July 1, 2008,
Contractor shall pay to the River District on the execution of this Contract the total
sum of $7,185.83, being $135.25 for each acre foot of 54.6 acre feet of Contracted
Water for the Project Year (July 2008 -June 2004), plus an additional fee of $342..18
which is 5% of the annual payment contract amount in order to defer delivery rights
for one Project Year, as indicated by Contractor's application, Thereafter, the River
District shall provide Contractor an annual invoice for the Contracted Water, and
Contractor shall pay the invoice withinthirty (30) days of receipt. The price for each
type of water will be reviewed and set annually by the River District's Enterprise
Board of Directors (which decision normally will be made prior to March 1 each
year). Any annual increase in the contract price shall not exceed the then - current
published Consumer Price Index (CPI) plus New Growth Index (NGI).
b. Contractor also shall pay any special assessment levied by the River District on
Contractor to recoup all or a portion of costs attributable to extraordinary
maintenance incurred by the River District or assessed upon the River District by its
third party water suppliers.
4. Contract Term.
Subject to the provisions of paragraph 6 below, the initial term ofthis Contract shall
be for a period of up to forty (40) years from the date of the execution of this
Contract (through June 30, 2048).
b. Upon the completion of the initial term and subject to the provisions of paragraph 6
below, Contractor shall have the right to renew this Contract for a secondary terin
of thirty -five (35) years, which shall commence upon the expiration of the initial
WATER SUPPLY CONT'RAC'T'
Page 7
C W08004
term. If Contractor desires to so renew this Contract, it shall provide the River
District written notice of its intention to do so at least ninety (90) days prior to the
expiration of the initial terra of this Contract. Thereafter, and prior to the expiration
of the initial term, the River District and Contractor shall execute a supplemental
agreement of renewal in a form mutually acceptable to the River District and
Contractor. If such notice of intention to renew is not provided and such
supplemental agreement is not executed, no renewal term shall commence.
C. Upon renewal, the following terms of this Contract shall be subject to revision:
i. The price of water shall be based on the then. - current water price as
determined by the River District's Board of Directors.
ii. The need or appropriateness of any conservation plan concerning
Contractor's use of Contracted Water as determined by the River District.
5. Water Shortage. In the event that the River District is unable, because of either legal or
physical reasons (including, but not limited to, hydrologic shortages and operational
restrictions), to deliver any or all of the full amount of water contracted from the Project,
including the Contracted Water, the River District reserves the right to apportion the
Project's available water among its several contractors, including Contractor, in the manner
provided in paragraph 5 of the Water Marketing Policy.
G. Contract Termination.
a. Termination by River District.
i. The River District may terminate this Contract for any violation or breach of
the terms of this Contract by Contractor, including Contractor's failure to pay
timely any sum or amount due under this Contract within thirty (30) days
after receiving written notice from the River District of such breach.
ii. The River District also may terminate this Contract if, in its discretion, any
judicial or administrative proceedings initiated by Contractor as
contemplated in subparagraph 2.d above, threaten the River District's
authority to contract for delivery of Project Water or the River District's
water rights, permits, or other interests associated with the Project.
iii. The River District may terminate this Contract if its legal ability to deliver
Contracted Water is materially impaired or is eliminated because of the
termination or adverse modification of permits, decrees or other
authorizations which are needed to deliver the Contracted Water.
b. Termination by Contractor.
WATER SUPPLY CONTRACT
Pane 8
CW08004
Contractor may terminate this Contract in its entirety for any reason by
giving the River District at least thirty (30) days advance notice prior to the
due date of Contractor's next annual payment.
ii. Every fifth year after the year in which this Contract is executed, Contractor
may partially terminate this Contract as to the amount of Contracted Water
by giving the River District at least thirty (30) days advance notice prior to
the due date of Contractor's next annual payment. Partial termination by
Contractor shall not exceed more than fifty percent (50 %) of the amount of
Contracted Water which is then under contract.
iii. Within thirty (30) days of final approval of the Water Court application
contemplated by subparagraph 2.d. above, Contractor may by written notice
to the River District partially terminate this Contract as to the amount of
Contracted Water which is not needed under that approval.
Z.
C. Notice of Termination to Affected officials. The River District will notify the
Division Engineer and any other appropriate governmental officials of any full or
partial contract termination except for any partial termination under subparagraph
6.b.(iii).
7. Miscellaneous /Standard Provisions.
a. Notices.
A11 notices required or appropriate under or pursuant to this Contract shall be
given in writing mailed or del ivered to the parties at the following addresses:
River District;
Colorado River Water Conservation District
Attention: Secretary 1 General Manager
201 Centennial Street, Suite 200
P. 0. Box 1120
GIenwood Springs, Colorado 81502
Phone: (970) 945 -8522
Fax: (970) 945 -8799
WATER SUPPLY CONTRACT CW08004
Page 9
Conyac Qr:
RTZ Industrial, LLC
c/o Thomas A. Zancanella, Partner
P.O. Sox 1948
Glenwood Springs, CO 81642
Phone: (970) 945 -5700
Fax: (974 )945 -1253
tzancanellaza- engineeriilv,.conI
ii. Either party may, by written notice given in accordance with this provision,
change the address to which notices to it shall be mailed or delivered.
b. Amendment. No amendment, modification, or novation of this contract or its
provisions and implementation shall be effective unless documented inwritingwhich
is approved and executed by both parties with the same formality as they have
approved and executed this Contract.
C, This Contract is subject to the River District's Water Marketing Policy, as it may be
revised from time to time by the River District's Sward.
COLORADO RIW>E;R WATER CONSERVATION
DISTRICT acting by and through its Colorado River
Water Projects Enterprise
ATTEST:
Dan 06rch, Deputy General Manager /Asst. Sec.
R.. Eric Kuhn, General Manager /Secretary
RTZ INDUSTRIAL, LLC
By: :1:11Q A'a h A — xca4,cAq
Thomas A. Zancane a, Partner
WATER SUPPLY CONTRACT
Page I4
VERIFICATION
STATE OF COLORADO )
5s.
COUNTY OF GARHELD )
CW08004
The foregoing Water Supply Contract was subscribed and sworn to before me by R. Eric
Kuhn as General Manager /Secretary and Dan Birch, Deputy General Manager/Asst. Sec. of the
Colorado River Water Consqyvation District, acting by and through its Colorado River Water
Projects Enterprise this day of 5epkwi her" , 2ao8.
Witness my hand and official seal. My Commission Expires:
Public
STATE OF COLORADO )
)'9s.
COUNTY OFF• `�`+
The foregoing Water Supply Contract was subscr' d and sworn to
A. Zancanella as Partner of RTZ Industrial, LL( this day of Ael -
Witness my hand and official seal. My Commission Expires:
Notary Pub
LORRA
NdLS
'0.....•
My Com*siorl Ea<pires 07IM011
iefv urx.by.Thomas
