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(a) The permittee shall notify tb"e EPA that construction is complete and submit the Completion Report For Brine Disposal (EPA Form 7520-10); (b) A successfully passed mechanical integrity test (NIIT) has been performed and witnessed according to the guidance found in Appendix G. Demonstration of mechanical integrity shall consist of two parts: (I) a casing/tubing annulus pressure test to verify the absence of leaks in the casing, tubing, and packer, and (2) a radioactive tracer survey (RATS) to verify that no movement of fluids exists outside the casing into an underground source of drinking water (USDW) through vertical channels adjacent to the wellbore. The permittee shall notify the EPA two (2) weeks prior to conducting these tests so that an authorized representative may be present to witness the tests; (c) The permittee has submitted the results of the downhole reservoir pressure monitoring; and (d) The permittee has submitted a copy of the RATS and temperature logs run during the conversion of the well. Along with this suite of logs, or any other pertinent logs, the permittee shall include appropriate narrative interpretations by a knowledgeable log analyst. Mechanical Intea-ity (Condition 2) To ensure the existing and continued mechanical integrity of the well, the operator must run an initial mechanical integrity test of the injection well that demonstrates: 1) there aze no leaks in the tubing, casing and packer; and 2) there is no flow into or between USDWs adjacent to the wellbore. The Permittee must also demonstrate part I and part II of mechanical integrity on a continuing basis by arranging and conducting a test at least once every five years. A tubing/casing annulus pressure test must be conducted to demonstrate Part I (no leaks in the tubing, casing or packer) at the maximum injection pressure and either a temperature log or a noise log shall be conducted to demonstrate Part II (no flow into or between USDWs adjacent to the casing). Also an M1T is to be successfully conducted after workovers (see Part II. A. 5.). Results of the test shall be submitted (on EPA form found in Appendix B), with documentation, to the Director as soon as possible but no later than thirty (30) days after the test is complete. Test methods and criteria aze to follow current UIC Guidance (Appendix G) for Conducting a Pressure Test to Determine if a Well has leaks in the Tubing, Casing or Packer. The absence of any flow behind casing must also be demonstrated; this shall be initially accomplished by perfomung a radioactive tracer survey (RATS) prior to commencing injection. The EPA has provided a guidance procedure for running the RATS (Appendix F). A Follow up test, for no flow behind pipe, will be done after four to six months of injection using a temperature survey. Statement of Basis for EPA Permit No. CO 10932-04664 Page 11 of 18