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Also enclosed is an eight point plan for drilling 7H-2I. Although NSI does not plan <br />to intersect lA cavity, if excessive fluid loss occur near the termination point, the <br />drilling will stop, and well bore integrity will be tested by filling well with water to <br />surface, and if necessary place a cement plug in the end of the well bore. Well <br />integrity will be re-tested and well will be re-cemented if necessary. <br />A drilling company has tentatively scheduled NSI drilling for June 2005. The drill <br />pad for 7H has been constructed. Casing bas been purchased. A submersible <br />pump, motor and drive have been ordered for 7H-1R. NSI plans to have the surface <br />casing installed in April-May. Production from 7H could begin in July 2065. <br />If there are any questions please contact Mr. Rod Storey or myself. <br />Sincerely, <br />Ed Baker, REM <br />EHS Manager <br />CC: EPA <br />~l ~r 2 <br />