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A at <br />So <br />ERICAN <br />DA, LLP <br />Ed Cooley <br />Environmental Health and <br />Safety Manager <br />2717 County Road 215 <br />Parachute. CO 81635 <br />Friday June 4, 2004 <br />RE~~&4~~® <br />JUN 1 8 2004 <br />Division of Minerals & Deolo®y <br />DirecT Line (970) 285-0407 <br />International Telephone +l (970) 285-6500 <br />General Facsimile (970) 285-6393 <br />ENV. 117.04 <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 />Dear Erica: <br />Re: We1120-14 <br />During the plugging and abandonment procedures for well 20-14, American Soda has <br />had significant difficulty installing bridge plugs or cement baskets. ASLLP has had <br />success establishing a cement basket on the short string 7" casing at a depth of 1470'. <br />During milling operations on the long string 7" casing, the mill bit twisted off at a depth <br />of 1441', <br />During subsequent fishing operations, ASLLP was unable to get the fishing tool past <br />1400' on the long string 7" casing. <br />On 6-3-2004, ASLLP performed a video inspection on both of the 7" casings on well 20- <br />14. The video inspection indicates a parted casing on both the long and short 7" <br />casings at a depth of 1394.6' The dissolution surface on well 20-14 is at 1442'. The <br />condition of the parted casing on the long string 7" casing prevents the insertion of a <br />bridge plug or a cement basket. <br />ASLLP proposes the following plugging procedure: <br />1. Run a 1 3/8" coil tubing as deep as possible into each 7" casing string. <br />2. Establish a 10' - 20' bentonite clay plug as deep as possible beneath the <br />parted casings on the 7" long string casing. <br />3. Establish a cement plug which extends above the parting of the casings. <br />Delivering a Crystal Clear Advantage <br />www.americansoda.com <br />