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Natural Soda, Inc. <br />2003 PROJECT STATUS AND ANNUAL PLAN OF DEVELOPMENT <br />1.0 INTRODUCTION AND PROJECT SUMMARY <br />This report summarizes 2003 process operations, production activities, reclamation status, <br />geotechnical and environmental monitoring results as well as status of all surface facilities and <br />project wells. On February 20, 2003 Natural Soda, Inc (NSI) purchased the White River <br />Nahcolite Minerals project. All NSI operations are located at the former White River Nahcolite <br />(WRN) facilities. Operations at NSI were essentially continuous throughout 2003 to meet <br />market demands. Proposed operations for 2004 will be described in this report. Significant <br />technical considerations and/or proposed changes in operations are presented. <br />2.0 DESCRIPTION OF PROJECT AREA <br />2.1 Location and Regional Setting <br />Four NSI sodium leases are located in the Piceance Creek Basin, Rio Blanco County of <br />northwestern Colorado (see Figure 2-1 ). The sodium lease tracts are located between Yellow <br />Creek and ,Ryan Gulch approximately 41 miles from Meeker, Colorado and 53 miles from <br />Rifle, Colorado by automobile. The climate of the area is semi-arid with annual precipitation <br />averaging 12-14 inches. Precipitation generally occurs as snow from November to March and <br />as rain during the remainder of the year. The vegetation is predominantiy sagebrush, pinyon <br />pine, Utah juniper, western wheatgrass, and needle thread grass. <br /> <br />1 <br />