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08/09/2000 16:24 9706259137 AMERALIA,INC AmerAlia Inc. B l8 Taughanbaugh Blvd., PO Box 1330 Iti9e, Co. 81650 970-625-9134 PAGE 02 August 9, 2000 Mr. James Cagney Bureau of Land Managemem 73544 Highway 64 Meeker, Colorado Re: Rock School Lease Experimental Nahcolite Solution Mine Surface and Crroundwater Monitoring Plan Revision Dear Mr. Cagney: We received your July 13, 2000 letter regarding the above subject AmerAlis would like to work with the BLM to resolve the issue of water quality monitoring the Rock School Lease. Our July 10, 2000 letter requested a Monitoring Plan revision. Without discussion or comment, we received your July 13, 2000 rejection letter. In order for AmerAlia to understand and reasonably respond to the rejection letter, we Geed focused discussions on the issues. The following issues were not adequately addressed. Our goal and the responsibility of AmerAlia and BLM is a naltcolite solution mine wilt no significant emironmetttal impacts. To accomplish this goal, potentially impacted resources are identified. An operating plan is developed to minimize adverse impacts to the resources. The operating plan includes process monitoring intended to protect the resources. Success of the operating plan protection must be demonstrated by resource monitoring. In this process, resources are well defined as an available and awful supply that can be drawn upon when needed. In January 2000, AmerAlia conducted and completed the highest quality monitoring well drilling and ground water exploration program in the Piceance Basin. Resuks of this program were submitted to the BLM. The data acquired during January 2000 program demonstrated the Uinta, A-('Jroove and B-('rtoove Aquifers are fresh water resources. The Dissolution Surface Aquifer waters were found to be highly saline. These highly saline waters are unfit for human or animal consumption and are detrimental to plant life- These waters have no value and are not a resource.