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(Page 3) MINE ID # OR PROSPECTING ID # M-1999-002 INSPECTION DATE 21/08/04 INSPECTOR'S INITIALS ESC • Well 21-16; Well pernanently abandoned and the well head has been cut off below the surface. The piping and skids will be removed and the pads and roads will be graded and seeded this fall or next spring. The entrance road to 21-16, 28-17 and 28-41 will remain as a storage laydown area. • Well 28-17; Well permanently abandoned and the well head has been cut off below the surface. The piping and skids will be removed and the pads and roads will be graded and seeded this fall or next spring. • Well 28-41; Well permanently abandoned and the well head has been cut off below the surface. The piping and skids will be removed and the pads and roads will be graded and seeded this fall or next spring. • Well 29-51; Well permanently abandoned (only drilled to 250 feet) and the well head has been cut off below the surface. The mud pits have been graded. • Well 20-6; Well was plugged and capped back in 2000. Pad area will be graded and seeded. The road will be graded and the drainage area will be reshaped. • Well 20-32; American Soda intended for this well to be placed in Long Term Standby. Problems occurred to the well when the casing was pulled and would not hold the required pressure. Therefore, the well was permanently abandoned. Road will remain to access future drill pads. • well 20-35; American Soda intended for this well to be placed in Long Term Standby. Problems occurred to the well when the casing was pulled and would not hold the required pressure. The well has been permanently abandoned. • Well 20-31; American Soda intended for this well to be placed in Long Term Standby. Problems occurred to the well when the casing was pulled and would not hold the required pressure. The well has been permanently abandoned. • Well 20-30; Well plugged. One casing was producing gas. This well will undergo a pressure test to determine if the temporary seal is adequate. • Well 20-76; American Soda intended for this well to be placed in Long Term Standby. Problems occurred to the well when the casing was pulled and would not hold the required pressure. The well has been permanently abandoned. • Well 29-68; American Soda intended for this well to be placed in Long Term standby. Problems occurred to the well when the casing was pulled and would not hold the required pressure. The well has been permanently abandoned. • Well 29-23; Well placed in Long Term Standby. The skid has been stored adjacent to the well. • Well 29-53; American Soda intended for this well to be placed in Long Term Standby. Problems occurred to the well when the casing was pulled and would not hold the required pressure. The well has been permanently abandoned. • Well 29-24; Well placed in Long Term Standby. Nacholite residue will need to be cleaned up from the pad area. • Well 28-21; Well placed in Long Term Standby. The skid has been stored adjacent to the well. 2 & 8 Contact Address ^ CE NAME Mr. Ed Cooley ^ BL OPERATOR American Soda, L.L.P. fl FS STREET 2717 CR 215 ^ HW CITY/STATE/ZIP Parachute, CO 81635 ^ HMWMD (CH) ^ SE ^ WQCD (CH) Cc: Carl Mount; DMG