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ITEM 2 PICEANCE MINING OPERATION COST SUMMARY Please note that the following discussion uses 1999 U.S. dollars. For prediction of actual expenditures, amounts should be escalated at a suitable rate to the year of actual obligation. Investment in Initial Processing and Related Facilities Capital investments for the Yankee Gulch Sodium Minerals Project (Yankee Gulch Project) Piceance Mining Operation initial processing facility and associated project features were provided to Rio Blanco County in the Supplemental Information package submitted by letter of February 8, 1999. Capital investments for the Piceance Mining Operation initial processing facility and associated project features are as follows. These costs do not include well field development, which is addressed sepazately below. • Facilities, Roads, Structures, and Pond (Table 2-1) $9,085,269 • Process Equipment (Table 2-2) $19,171,733 • Compressors and Urilities (Table 2-3) $3,935,704 • Boiler and Boiler Water Treatment (Table 2-4) 2109 705 Subtotal for the Initial Processing Facility and $34,302,411 Associated Project Features Solution Mining Well Investments As previously presented in the Supplemental Information package, the estimated investment in the initia126 solution mining wells needed to support initial operations is $10,777,617 ($414,524 per well). An estimated additional 424 wells {450 less the 26 initial wells) on 6 mining panels will be required to support the project over its anticipated 30- yeaz life. Investment in subsequently developed wells is expected to be substantially less per well because equipment from retired wells will be recovered and installed on new wells. As the project further refines its methods for solution mining nahcolite, as better information on product recovery is developed, and as actual experience is gained on reuse of well equipment, the total number of wells and their costs may change Operating Costs and Well Field Investment Costs 2-1 Rio Blanco County Additional In(ormanon Request 1 iceance Mining Operation American Soda, L.L.P.