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Page 2 On October 5, 1989, Curt Smith ,• sent a memo to the district stating that the number of zones to be monitored and the proposed location are in compliance xith the approved pilot project (for ground water monitoring). This memo also asks that the District remind the company of the previous decisions on bonding and that operations on the pilot scale mine plan are to be conducted in accordance with the approved mine plan, SPA's Underground Injection Control Permit, and the April 1988 monitoring plan. On October 13, 1989, Ralph Costa, sends a letter to NaTec, advising that their proposed $10,000 bond for the planned activities is inadequate. The letter asks for the full S125,000 bond This letter also includes the ARRA wording reminding the company to conduct their operations in accordance with the 1988 monitoring plan, the mine plan and the UIC. On July 5, 1990 Curt Smith was advised, in writing by NaTec, that IRI-1, 26- 90-2, 26-90-3 and 26-90-~1 will be drilled as up-gradient monitoring wells. Additionally, IRI-4, 6, '] and 8 would be doxn-gradient monitoring wells. No approval letter is in tht; file. On July 11, 1990, The IRI-1 sundry was approved. On July 18, 1490, Ray Clanton was informed that NaTec had already completed the majority of the completion work on 26-90-2, 26-90-3 and 26-90-4 prior to sundry approval. At the time of the call, Clanton told NaTec not to proceed without approval if the work was a change to the 1988 monitoring plan. Also, it was discovered later that IRI-7 had already been drilled without approval. On July 19-20, 1990, the sundries for the wells under the heading "1990 Sundry Approval" (3rd column of table on page 3) were approved. On August 1, 1990, verbal approval xas given to change plans for IRI-8 from a Dissolution monitoring well to a perched monitoring well due to junk in the hole. On September 3, 1990, Difficulties in recompleting IRI-1 were encountered and a plug-back procedure was submitted. In this plan was a request to change IRI-7 from a B groove to a Dissolution surface monitoring well. Clanton told David Hildreth of NaTec that a different sundry must be submitted for IRI-7. The District has never received an official change notice. On October 3, 1990, BLM meets with NaTec in the NRRA and NaTec agrees to provide the BLM with a water monitoring plan that summarizes their water monitoring efforts to-date. This plan must include a summary of the 1988 monitoring plan, the UIC and their efforts on-the-ground. On October 16, 1990, BLM receives the promised water monitoring plan. At the present time, the October 16, 1990 water monitoring plan is under review and IRI-5 is pending. The subsequent reports on wells IRI-4, IRI-6, and IRI-7, cannot be signed due to the failure of the company to perform the intended work on these holes.