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A. Natural Soda LLC <br />2015 Project Status Report & Annual Plan of Development <br />1.0 Introduction and Project Summary <br />Natural Soda, Inc. formally changed its operating name to Natural Soda LLC (NS) in <br />January of 2015. This 2015 Project Status Report and Annual Plan of Development is <br />submitted to fulfill the requirements of BLM sodium leases, COC -00118326, <br />COC -00118327, COC -0119986, and COC -37474 as stated in Federal Regulations <br />43 CFR, Subpart 3591 and 3592 and project Record of Decision dated <br />January 20, 1987. This report is also submitted to the Colorado Division of Reclamation <br />Mining and Safety (DRMS) to meet the requirements for an Annual Report per State <br />permit number M-1983-194, and in part to meet the requirements contained in the EPA <br />UIC Class III Area Permits: C030358-00000 and C032169-00000. <br />This report summarizes NS 2015 process operations, production activities, reclamation <br />status, geotechnical and environmental monitoring results, as well as, the status of all <br />surface facilities and wells. Proposed operations for 2016 will be described in this <br />report, including drilling the 15H production pair, 151-I Subsurface Subsidence <br />Monitoring Well, installation of a new weather station at the NS plant, conversion of the <br />O-GMW-A well into a Water Supply Well (WSW -5), and the 2016 Nahcolite Resource <br />Drilling Program. <br />2.0 Description of Project Area <br />2.1 Location and Regional Setting <br />The four NS sodium leases are located in the Piceance Creek Basin in Rio Blanco <br />County in northwestern Colorado (Figures 1 and 2). The sodium leases are located <br />primarily between the Yellow Creek and Piceance Creek drainages, approximately 41 <br />miles from Meeker, Colorado and 53 miles from Rifle, Colorado. The climate is <br />semi -arid with annual precipitation averaging 12-14 inches. Precipitation generally <br />occurs as snow from November to March and as rain during the remainder of the year. <br />The vegetation is predominantly pinyon pine, sagebrush, Utah juniper, western <br />wheatgrass, and needle -and -thread grass. The total area contained within the four <br />sodium leases is 8,379 acres more or less. The principle area of operation is located in <br />and around Section 26, T1 S, R98W, 6th Principal Meridian. Figure 1 shows the NS <br />leases and regional map setting. Figure 2 shows sodium leases within the Piceance <br />Creek Basin. Figure 3 and Figure 4 show the NS well locations, and proposed well <br />locations. <br />DAUB pp&ASSOCIATES. INC. <br />1 January 2016 <br />