Zigan Sand And Gravel Inc. V. Cache La Poudre Water Users Association

This is an appeal from a judgment of the District Court for Water Division No. 1 denying the application of Zigan Sand and Gravel, Inc. (Zigan) for approval of a plan for augmentation. Zigan proposed to mine sand and gravel from its land near the South Platte River in Adams County. The operation would result in two open pits that would extend below the water table and intercept ground water. The ponds so created would continue in existence after completion of mining and would have a total surface area of approximately 69 acres. The court disapproved the plan for augmentation because it contained no provision for replacement of the water that would be lost by evaporation from the surface of the ponds after completion of the mining activities. Zigan appealed, and certain parties who had objected to Zigan's plan for augmentation cross-appealed the court's holding that Zigan had no obligation to replace water lost through evaporation during the mining operations and prior to commencement of the reclamation process. We affirm the district court's denial of Zigan's application for approval of the plan for augmentation,  but reverse the court's determination that augmentation is not required for evaporation that will occur before reclamation has begun.