INSPEC12603 - Laserfiche WebLink

Home Browse Search

(Page 2) MINE ID # OR PROSPECTING ID # M-1999-002 INSPECTION DATB 06/29/04 INSPECTOR'S INITIALS ESC OSS3RVATION3 This was an inspection of the Yankee Gulch Sodium Minerals Project conducted by Erica Crosby and Carl Mount of the Colorado Division of Minerals and Geology. Ed Cooley, Max Ramey, Celina Akin and Tom Jacobson of American Soda L.L.P were present during the inspection. The mining and reclamation permit was issued to American Soda L.L.P. on July 16, 1999. The total permit area is 4,084 acres whereas 512.5 acres is to be affected in the first five-year panel block. The site is on land owned by the Bureau of Land Management (BLM). The Division holds a bond in the amount of $236,424.00. The total reclamation cost estimate for the Yankee Gulch Sodium Minerals Project totals $7,444,531.00, and the BLM retains a majority of the bond. The Division and American Soda discussed the Cavity Characterization Study for Well 28-21 and the submittal of a revision to incorporate a reduced groundwater-monitoring plan based on the mine shutdown status and changes to the NPL standards. On April 20, 2004 American Soda notified the Division that the Piceance Operations will be phased down starting July 1, 2004. Due to the high energy costa and a depressed soda Ash market, the Sodium Carbonate/Sodium Bicarbonate processing operations are operating at a net loss. American Soda has started the process to phase down, curtail the mining operations, mothball the facilities and maintain the operations so that they can be re-established in the future. American Soda will place a number of wells in a state of temporary abandonment using the following procedures: • Injection into each well will be ceased and the well will be depressurized by allowing production flow to continue with the assistance of a booster pump. During the period of shutting in the well the volumetric flow and mass balance will be well outside of the limits set by the UIC Permit, Commercial Mine Plan and 112 Permit. • At the time a well is placed in Temporary Abandonment Status there will be no injection into that well until such time that a Mechanical integrity Test has been conducted and permission is received to once again commence injection. During the transition from normal operation to Temporary Abandonment the requirement to maintain a plus or minus 158 volumetric flow balance will need to be waived. • Once a well has been depressurized the production tubing will be removed and a cast iron bridge plug or cement plug will be placed in the casing as close as possible to the bottom of the crown pillar. Once the plugs are in place a Mechanical Integrity Test will be performed on the well. A Mechanical integrity Test will be conducted on two- year intervals for as long as the well is in Temporary Abandonment. • All wells to be placed in Temporary Abandonment Status are deemed to be candidates for future operation. Any wells that are not deemed to be candidates for future operations will be plugged and abandoned. • The pipeline system used to supply inject brine to the well field and recover production brine from the well field will be flushed, drained, sealed and maintained in a mothballed condition until such time as the operations are restarted. • Once the well field is depressurized the well field pump house systems and gas separator systems will be flushed, drained, and sealed. Instrumentation skids at well sites that are scheduled for future operations will be mothballed, locked and left in place. Instrumentation skids for wells that are to be Plugged and Abandoned will be removed from the well site and placed in storage. • The Process Plant Equipment at the Piceance Facility will be flushed, drained, sealed, purged and blanketed as required to protect the equipment during the mothball period. Required electrical power will remain to supply power as needed to conduct preventive maintenance procedures during the mothball period. • The two intra-plant pipelines will be evaluated as to other possible short-term uses than their current operation of supplying water and production brine to and from the Parachute and Piceance Facilities. If some other use is found then they will be placed in that service and any modifications to existing permits and right of ways will be made as necessary to allow for these changes. If no other options are found then these