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• American Soda sold the Processing Facility, Access Road, Storm Water Pond, <br />Septic Leach Field, Electrical Substation equipment and Heliport to EnCana Oil <br />and Gas on September 30, 2005. <br />EnCana Oil and Gas bonded with BLM /or the reclamation of these sites and <br />received a Right of Way from BLM to construct a Natural Gas Processing Plant on <br />the area that encompasses the 10.8 acre temporary lay down and parking area <br />as well as the proposed future evaporation pond site. The temporary batch plant <br />area has been re-esfablished as a batch plant operation for the construction of <br />the Natural Gas Processing Plant and the top soil pile has been enlarged to <br />accommodate top soil from these newly disturbed areas. <br />As part of the sale of assets to EnCana, American Soda retained a right of <br />access over the main access road to the well field and sodium mineral lease <br />lands. <br />3.3 Solution Mining Wells and Pads <br />American Soda constructed 34 well pads in the summer of 2000. The size of <br />• each pad is approximately 150 feet by 80 feet, plus cut and fill slopes, Total <br />disturbance associated with construction of the 34 well pads is approximately 15 <br />acres. <br />Out of the 34 pads constructed, 24 wells were actually drilled and completed <br />during the summer and fall of 2000. Two wells (20-2 and 20-14) formerly part of <br />the American Soda's Test Mine Facility were also converted to commercial wells <br />and brought on-line. One well (20-3) was converted to a commercial well but <br />has never been brought on line. Drilling of new wells (20-11, 20-12, 20-19, 20-30, <br />20-31, 20-32, 20-33, 20-35, 20-36, 20-74, 21-15, 21-16, 28-17, 28-41, 28-21, 29-34, 29- <br />29, 29-28, 29-27, 29-26, 29-24, 29-23, 29-22 and 29-20) commenced in July 2000 <br />and was completed in November 2000. One new well (29-68) was drilled on an <br />existing well pad and placed in operation in during the 2001 - 2002 reporting <br />year. Three new wells (20-76, 29-53 and 20-76) were drilled on existing well pads <br />and placed in operation during the 2002 - 2003 reporting year. Drilling of well 29- <br />51 was started during the 2002 - 2003 reporting year but the drilling operation <br />was halted due to budget restraints at a depth of 200 feet. <br />Wells 20-2, 20-3, 20-11, 20-14, 21-15, 21-16, 28-17, 28-41 and 29-51 were Plugged <br />and Abandoned and Well 20-12 was converted to a Subsidence Monitoring <br />Well during the 2003 - 2004 reporting year. <br />• <br />American SOda, L.L.P. 4 <br />DMG Annual Report <br />July 12 2003 <br />