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~~•: <br />r D~ <br />~s ~ <br /> S O D A <br />L L P ~ Ed Cooley <br />Environmental Health and <br /> , Safety Manager <br />AMERICAN <br />2717 County Road 215 <br />Parachute, CO 81635 <br />Thursday, March 18, 2004 - <br />Kent Walter <br />Field Office Manager <br />Bureau of Land Management <br />White River Resource Area <br />73544 Highway 64 <br />Meeker, Colorado 81647 <br />Direct Line (970) 285-0407 <br />International Telephone +1 (970) 28&6500 <br />General Facsimile (970) 285-6393 <br />` ENV.62.04 <br />~~~'~~' ~t~,~ <br />MAR 2 2 2004 ~/ <br />Division a! Minerals and Geology <br />Dear Kent: <br />Re: Well 21-16 <br />American Soda LLP has made verbal notification to Paul Daggett and by copy of this letter is <br />providing written notification that Well 21-16 experienced a sudden decrease in production <br />return and a drop in injection and production pressure. As soon as the operations personnel <br />discovered this change the following steps where initiated: <br />1. The well pressure, temperature and flow meters were checked for accuracy. <br />2. The well valves were checked for leakage. <br />When steps one and two did not correct the problem the following steps were initiated <br />3. Injection into the well was discontinued. <br />4. A mechanical integrity test has been completed on the well casing and well tubing. <br />Both the casing and tubing demonstrate integrity. <br />5. A temperature log has been performed and there is no indication of upward <br />movement of fluids (copy attached). <br />Well 21-16 will be de-pressurized and maintained in a standby mode until a final <br />determination can be made to either request permission to re-inject into this well or to <br />plug and abandon the well. <br />A decision on future activities associated with this well should be made within 90 days. <br />Delivering a Crystal Clear Advantage <br />www.americansoda.com <br />