Regulations and Oversight

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Nestlé Waters’ Ruby Mountain Springs Project involved extensive review and approval by a variety of agencies including but not limited to:

Nestlé engaged these agencies and other stakeholders early during the project feasibility study to identify potential constraints on the project and to explore agency concerns. Later, during the permitting process, Nestlé provided reports addressing hydrologic, environmental, traffic, and economic aspects of the project to these agencies for their review. From these reviews, Nestlé has been issued approval of several permits and compliance documents from these agencies that govern all aspects of its Ruby Mountain Springs Project.

Chaffee County Land Use Oversight

In September of 2009, Chaffee County issued 1041 and Special Land Use Permits to Nestlé Waters that govern all aspects of the project’s construction, spring water harvest, and trucking operations in Chaffee County. County oversight of the project established by these Permits and associated comprehensive conditions ensure that the company’s operations in Chaffee County are in compliance with local, state, and federal regulations at all times.

Under these Permits, Nestlé Waters must also submit an annual report to the County covering all aspects of the project. Nestlé Waters submitted its first Annual Report on March 1, 2010. From time to time, the County has approved technical revision or amendment to those permits at Nestlé’s request when the County determined that proposed changes will not cause significant negative affects, or that the benefits of the changes outweigh any additional negative affects.

Water Withdrawal and Augmentation Oversight

Chaffee County established numerous permit conditions that regulate the quantity, flow-rates, and timing of Nestlé’s withdrawals from the Ruby Mountain Springs. Additionally, under these conditions, Nestlé must monitor on a frequent and long-term basis all withdrawals, spring flows, water table elevations in a regional monitoring well network, and other hydrologic data as part of its ongoing operations. Nestlé meters its withdrawals from the Ruby Mountain Springs on a daily basis, and provides monthly and annual reports to the County on those withdrawals as well as flows in the springs.

State water law requires replacement to the Arkansas River of the spring water Nestlé collects either under an SEO-approved Substitute Water Supply Plan (short-term) or a court-approved Plan for Augmentation (long-term). This ensures that the flow in the river downstream of the Ruby Mountain Springs will not be affected by Nestlé’s withdrawals. The SEO issued Nestlé a Substitute Water Supply Plan in April, 2010. Nestlé anticipates filing for a Plan for Augmentation in water court sometime in 2010.

Nestlé’s augmentation water is provided through a lease of water from the City of Aurora. This water represents a very small fraction of water rights previously designated for municipal use that Aurora owns and manages on the Arkansas and Colorado Rivers. The lease provides Nestlé 200-acre-feet of water annually for ten years with an option to renew for an additional ten years. The Aurora lease also provides that in the event of a severe (Stage III) drought Aurora may curtail supply of this water, and Nestlé would be required to stop production at the Ruby Mountain Springs. Nestlé is required to provide to the County monthly and annual reports on Aurora’s augmentation operations.

Similar to all water right users in Colorado, the SEO oversees Nestlé’s spring water withdrawals based on the requirements established in the Substitute Water Supply Plan or Plan for Augmentation Court Decree.

Not only is Nestlé Waters’ committed to managing water resources sustainably wherever we operate, but at the Ruby Mountain Springs, withdrawals are rigorously regulated and overseen by Chaffee County and the SEO to be protective of the springs and other water users.

Nestlé Waters Property Habitat Management and Restoration

NWNA is committed to managing its properties to ensure long-term protection of its springs, upland, riparian, and wetland habitats and the flora and fauna dependent upon them. Nestlé has adopted, and Chaffee County has approved, Land Management Plans for Nestlé’s Ruby Mountain Springs and Bighorn Springs properties. These plans provide for habitat reclamation, and long-term management of the habitat and uses of the properties. Each year, Nestlé will submit plans and status reports to Chaffee County, CDOW, and NRCS regarding Nestlé’s management of these properties. Habitat Reclamation of the Ruby Mountain Springs property will be subject to a USACE wetlands restoration permitting and Chaffee County oversight.