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AMERICAN f <br />SOOA.~LP <br />,tit- g9-aoz <br />~6 ~ <br />Ed Cooley <br />Environmental Health and <br />Safety Manager <br />2777 County Road 215 <br />Parachute, CO 87635 <br />Thursday March 18, 2004 <br />Erica Crosby ~/ / <br />Colorado Department of Natural Resources <br />Division of Minerals and Geology <br />1313 Sherman Street, Room 215 <br />Denver, Colorado 80203 <br />Re <br />Dear Erica: <br />Well 21-16 <br />Direct Line (970) 285-04D7 <br />Internaitonpl Telephone +1 (970) 285-6500 <br />General Facsimile (970) 285-6393 <br />ENV. 66,04 <br />~ 2 5 2U0'+'~ <br />Division of Minerals and Geolo9Y <br />American Soda LLP is providing written notification that Well 21-16 experienced a sudden <br />decrease in production return and a drop in injection and production pressure. As soon as the <br />operations personnel 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 />Should you have any questions or require more information concerning this matter please <br />contact me at 970-285 -0407. <br />Delivering a Crystal Clear Advantage <br />www.americansoda.com <br />