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1.0 Introduction and Project Summary <br />Natural Soda, Inc's (NSI's) 2007 Project Status and Annual Report of Development is submitted <br />to fulfill the requirements of BLM sodium leases, C-018326, C-0118327, C-01 19986, and C- <br />37474 as stated in Federal Regulations 43 CRD, Subpart 3591 and 3592, and project Record of <br />Decision dated January 20, 1987. This report is also submitted to the Colorado Division of <br />Minerals and Geology to meet requirements for Annual Report and Disturbed Area Map per <br />State permit number M-1983-194. This report summarizes NSI's 2007 process operations, <br />production activities, reclamation status, geotechnical and environmental monitoring results, as <br />well as, the status of all surface facilities and project wells. <br />On February 20, 2003 Natural Soda, Inc. (NSI) purchased the White River Nahcolite Minerals <br />project. All NSI operations are located at the former White River Nahcolite (WRN) and Natec <br />facilities. Operations at NSI continued throughout 2007 to meet market demands. Proposed <br />operations for 2008 will be described in this report. Significant technical considerations and/or <br />proposed changes in operations arc presented. <br />2.0 Description of Project Area <br />2.1 Location and Regional Setting <br />The tour NSI sodium leases arc located in the Piceance Creek Basin, Rio Blanco County of <br />northwestern Colorado (see Figure 2-1 and 2-2). The sodium lease tracts are located between <br />Yellow Creek and Ryan Gulch, approximately 41 miles from Meeker, Colorado and 53 miles <br />from Rifle, Colorado. The climate is semi-arid with arunual precipitation averaging 12-14 inches. <br />Precipitation generally occurs as snow from November to March and as rain during the <br />remainder of the year. The vegetation is predominantly pii1on-pine, sagebrush, Utah juniper, <br />western witcatgrass, and needle thread grass. The total area contained within the four sodium <br />leases or mining unit is 8,222.6 acres. The principle operation is T1S, R98W, and Section 26. <br />Figure 2-1 shows the Natural Soda leases and regional map setting and Figure 2-2 shows sodium <br />leases within the Piceance Basin. <br />Figure 2 -1 <br />NSi Regional Map