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CHAPTERONE Purpose and Need ' 1.1 PROJECT BACKGROUND American Soda, L.L.P. (American Soda) proposes the development of a mining operation utilizing vertical solution mining wells for the extraction of bedded and disseminated nahcolite. The proposed development of the Yankee Gulch Sodium Minerals Project (Yankee Gulch Project) commercial mining operations would be built on land in the Yankee Gulch Joint Ventwe Leases, which is located in the BLM's W1ute River Resowce Area neaz Meeker, Colorado, and controlled by American Soda (Figwe 1-1). The Yazilcee Gulch Joint Ventwe Leases encompass 4,955 acres on both the east and west sides of Piceance Creek. The proposed Yankee Gulch Project would be built on 4,084 acres west of the Creek (the Piceance Site). The proposed 30-yeaz mine development would cover approximately 1,030 acres of the 4,084 acres held within the lease. Associated processing facilities would be located in the Parachute Creek Valley near Parachute, Colorado (the Parachute Site). The Pazachute Site is an existing, inactive industrial site at the former Unocal Shale Oil Upgrade Facility. The two sites would be connected by an approximately 44-mile-long pipeline corridor, which would contain a product pipeline running from the Piceance Site to the Parachute Site and a parallel return water pipeline. Water that would be used by the project would be appropriated from the Colorado River and alluvial groundwater wells in the Parachute Valley under an existing water right. The proposed Project Area occupies portions of Rio Blanco and Garfield counties. The entire Piceance Site and most of the northern part of the project pipeline corridor are located on BLM lands. The southern part of the project pipeline corridor and the Parachute Site would be located on private property. Because the project could have potential significant impacts to federal ' lands, the National Environmental Policy Act (NEPA) of 1969 requires that an Environmental Impact Statement (EIS) be prepazed. The BLM White River Resowce Area is the lead agency responsible for the EIS. 1.2 PURPOSE AND NEED I The primary purpose of the proposed Yankee Gulch Project is to produce sodium products at a profit from natwally occurring nahcolite deposits in the Piceance Basin of Colorado. American Soda holds the Yankee Gulch Joint Ventwe Leases (U.S. Sodium Lease Nos. C-0118328 and C-Ol 18329) for the purpose of developing the sodium rsowce and has the right to develop the leases for maximum recovery of sodium. American Soda has submitted a Commercial Mine Plan to the BLM White River Resowce Area pwsuant to 43 CFR 3592 for approval of the ' Yankee Gulch Project. The principal products to be produced by American Soda are sodium bicarbonate and sodium carbonate. Sodium bicazbonate (NaHC03), also called baking soda, is used in manufacturing effervescent salts and beverages, baking powder, sodium salts, pharmaceuticals, cleaning preparations, laboratory reagents, antacids, and many other products. Sodium carbonate ' (NaZC03), also called soda ash, is used in manufacturing glass, chemicals, pulp and paper, soaps and detergents, water treatment products, cleaning preparations, and other products (Lewis 1992). ' ]-1