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Figure 2 -1A <br />Natural Soda Sodium Leases <br />tiu4h <br />t ?,c <br />? y.M.a t <br />rwt o <br />t? <br />.i <br />2.2 Leasehold Status <br />The original four sodium leases were renewed by the BLM. July 1. 2001 for a period of ten years. <br />Annual rental and minimum roNalty payments were submitted to the Mineral Management Service. <br />3.0 Project Status <br />3.1 2008 Project Activities <br />NSi produced 102.514 tons of sodium bicarbonate in 200 using cavities 541. 6H and 711. Process <br />changes were made throughout the year, which increased the tonnage throughout. There were no <br />signiticau?t production outages experienced during 2008. Routine "boil outs" were performed <br />approximately quarterly throughout the year. Various short shut-downs were required for <br />equipment repair and/or replacement. <br />3.1.2 Items of Significance <br />1. The t01lo\kimg, wells were plugged and abandoned, in accordance with EPA. BLM and <br />DRMS guidelines: 2A-2V, 3A-5V. 4A-4V, and 4A-6V. <br />2. The Colorado Department of Reclamation, Mining and Safety recalculated the bond at the <br />end of the year. NSI is in the process of posting the additional bond. <br />;. Two (2) new injection and recovery well permit applications were submitted in October. <br />4. One (1) new core hole, to be converted to a Dissolution Surtace Aquifer monitor well was <br />submitted in October. <br />5. Mechanical integrity testing was completed in the 2"d Quarter 2008 for penilitted wells 5H <br />and 6H. <br />2008 Annual Report 2 of 28