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AmerAlia, Inc. <br />INTRODUCTION <br />MWD-1 Drilling and Completion Report <br />This report summarizes the data and information generated while drilling AmerAlia, Inc.'s <br />monitoring well MWD-1 during mid to late January 2000. <br />LOCATION, DESCRIPTION, AND HISTORY <br />MWD-1 is located on Pad 1 in the northeast corner of the Rock School Lease (Federal Sodium <br />Lease C-0119985), Rio Blanco County, Colorado (Figure 1), in the Southwest Quarter of the <br />Northeast Quarter of Section 20, Township 1 South, Range 98 West, at a ground elevation of <br />6,468.1 feet (Figure 2). More specifically, MWD-1 is 1,832 feet from the north line of <br />Section 20 and 2,302 feet from the east line of Section 20. MWD-1 was completed as a <br />groundwater monitoring well for the horizon just above the Dissolution Surface within the <br />Lower Aquifer System (Leached Zone) in the Parachute Creek Member of the Green River <br />Formation (Eocene) at a total depth (TD) of 1,731 feet (Figure 3). <br />Lang Drilling Company of Salt Lake City, Utah, mobilized Rig LK-23 (a top-drive type with <br />reverse circulation) to the MWD-1 location on January 17, 2000, and commenced drilling the <br />17Z-inch-diameter conductor hole at 13:00 on the same day. Lang used two crews that shifted <br />out at noon and midnight. Personnel from Daub & Associates, Inc., mobilized to the site on <br />January 19, 2000, when drilling had reached a depth of 950 feet, and performed the following <br />duties: description of rotary drill cuttings, measurement of groundwater discharge, collection of <br />basic hydrogeochemical data (below 975 feet), and collection of water samples. Figure 4, which <br />is based on data from Tables 1 and 2, summarizes the drilling history of MWD-1. Because Daub <br />& Associates, Inc., personnel were not continuously on site during the drilling of most of <br />MWD-1, Table 3 describes activities below 975 feet. Table 4, which is based on the driller's <br />records, is more detailed; however, it does not include any data for the first 35 feet of the hole or <br />the bottom 36 feet ofthe hole (1,695 to 1,731 feet). <br />The 17z-inch-diameter conductor hole was drilled to a depth of 18 feet; dry compressed air was <br />used for circulation. Steel surface casing (J-55, 40.48 pounds per foot, 10;-inch outside diameter <br />[OD]) was installed and cemented to the surface on January 17, 2000. Following installation of <br />