We want to apply the Seepage parameter to the well flow rate for the Disposal_Pond object. To do that, open the Object Properties dialog box by double-clicking on the Disposal_Pond object on the top view of the model. Then, on the MODFLOW Features tab, select "Seepage" as the PEST Modifier as illustrated below. The Modification Method can be left at the default value of Multiply. In addition to the PEST parameters, you could also choose the Kx data set because it is a data set that is modified by PEST. In this case choosing Kx does not make sense. You could also could have set the value of the Seepage parameter to 0.03 and instead of specifying a PEST modifier, you could have used Seepage as the formula for the pumping rate for the time period 0 to 631152000.
Screen capture illustrating the application of the Seepage parameter to the disposal pond flow rate.