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4. Please describe in detail the process by which produced water and retort water will <br />be incinerated Will the water be driven off as steam or will there be residual <br />contaminated water that will need to be mitigated? <br />AMSO Response: <br />Both produced liquid and vaporous water will be sent through the surface processing <br />facility as described in Figure A4-3h(ii) of the POD. The separated sour water will be <br />sent to a surge tank, from which it will be fed in controlled fashion to an incinerator. The <br />incinerator will be provided by a reputable vendor that has a demonstrated track record of <br />meeting our specifications. 99.99% oxidation of organics and H2S will be assured by <br />firing the incinerator with propane when insufficient produced oil and gas are being fed <br />to it. All water will be emitted from the incinerator as steam. There will be no residual <br />contaminated water. <br />5. Please describe in detail the "extensive laboratory and field testing to prove the Elite <br />Mining Interval will tightly contain the Pilot Test retort and prevent ground water <br />pollutant entry from the retort. " <br />AMSO Response: <br />Five holes have been drilled through the mining interval on our RD&D site. Two were <br />cored, and the cores have undergone characterization by Fischer assay, mineralogical <br />analysis, and visual inspection for lithology. All wells were logged by standard <br />techniques, and some were logged by downhole cameras and advanced Schlumberger <br />methods that yield mineralogy, grade, and fracture characteristics. Measurements to date <br />have enabled us to demonstrate that the retort site has a thick section of organic rich illitic <br />shale with a very low permeability. Monitoring of three of these wells has established <br />that the chosen retort location has essentially no mobile water and that naturally <br />occurring oil and gas is present in the retort interval and isolated from the aquifer system. <br />6. DBMS is concerned about adequate characterization of the aquifers that would <br />allow evaluation and prediction of ground water movement and contaminant <br />excursions, both laterally and vertically, and would provide the necessary aquifer <br />parameters for ground water modeling if needed Please include an aquifer testing <br />plan that will provide the necessary aquifer parameters for the contingencies described <br />above. <br />AMSO Response: <br />A constant-rate pumping test (minimum 24-hour test) will be conducted to assess <br />hydraulic properties of the U water monitoring interval and connectedness of the U <br />interval to the underlying mining interval and to the overlying B-Groove. One of the <br />three U monitoring wells will serve as the test well while the remaining two wells will <br />be used as observation wells. During the test, pressure heads will be monitored in the <br />mining interval with transducers placed in exploration hole BH-1 (after the hole is <br />completed such that the open interval only includes the R1 zone) and TM-1 (which has <br />been completed in the R1 zone). Pressure heads will be monitored in the B-Groove with <br />a transducer placed in MWP 2 - BG. Additional testing may be conducted, if warranted <br />on the basis of initial test results. <br />110 East 3rd Street, Suite 201 P.O. Box 1470, Rifle, CO 81650/nhone•970-6254324 facsimile:970-6254318 7