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08/09/2000 16:24 9706259137 AMERALIA,INC PAGE 03 The January 2000 exploration program resulted in individual monitoring wells completed to the three fresh water aquifers and two individual monitoring wells completed in the Dissolution Surface Aquifer (MWD-1 and MWD-2). The January 2000 exploration program also demonstrated that the fresh water aquifers are naturally protected from the saline waters by a positive presswe gradient. The fresh water aquifers are under greater pressure than the saline waters, thus preventing contamination of the fresh waters. The Rock School project groundwater monitoring plan was developed prior to the January 2000 drilling and exploration program. The exploration program proved the Dissolution Surface Aquifer is not a resowce. "These waters can not be monitored to demonstrate successful resource protection because they are not a resource. Instead, the Dissolution Surface Aquifer needs to be monitored to protect the fresh water resowces by insuring that it is not forced, through increases in pressure, into tbe fresh water resources. The best way to protect the fresh water resource is to monitor and maintain the protective pressure gradient AmerAlia has installed such a monitoring system. Instruments are placed in each of the three fresh water and the two Dissolution Surface Aquifer monitoring wells to measure dte piezometric pressures. The instrument output is processed and recorded by a microprocessor. Data from the microprocessor will be used in two different ways. Most importantly, a quick tespotrse operation failure alarm will be directly linked to the plant operator station. Secondly, the data will be presended in monthly reports to confirm protection of the pressure gradient protecting the fresh water resources. Absolute protection of the fresh water resource, from the saline waters of the Dissolution Surface Aquifer, is accomplished in this manner. AmerAlia believes it is primarily ow responsibility to protect the resources and to document the success of the program. AmerAlia identified the opportunity to better protect the drinking water resource doting the exploration and monitoring activity and acted to do so. AmerAlia has chosen to exceed generally accepted agency monitoring requirements and expectations. AmerAlia's permit requirements did not include drilling and monthly monitoring of the Uinta Aquifer. The exploration program goals, budget, drilling program, well completion methods and accomplishments clearly exceeded the established nouns and agency requirements, especially for an experimental pilot-plant operation. AmerAlia's piezometric monitoring and alarm system is primary protection of the fresh water resource but is not a permit requirement. AmerAlia knows of three disappointments expressed by the BI.M related to AmerAlia drilling, sampling and data reporting. 1- BTEX Would the gas lift sampling system impact the analytical results? AmerAlia has resolved the BTEX issue by modifying the sampling method to sample only laminar flowing water free of entrained nitrogen lift gas bubbles.