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6 <br />Response to DRMS September 25, 2009 Letter Powertech (USA) Inc. <br />• <br />b. The records of the State Engineer's Office (SEO) indicate that there is <br />only one registered well located in Section 33 T1 ON, R67W, other than the <br />monitoring wells installed by Powertech. According to SEO's records, this <br />well is shallow, 259 feet deep, and therefore, believed to be completed <br />within the Laramie Formation. This well is used for livestock watering. <br />According to the property owner, Mr. Howard Diehl, there are no domestic <br />or other agricultural wells in Section 33. <br />The locations of the Section 33 monitoring wells are shown on Figure 6.1. <br />In addition, numerous exploration holes dating back to the 1970s and <br />1980s have been drilled in Section 33 and in adjacent sections. A map <br />showing known exploration holes in Section 33 is presented as Figure <br />12.1. Also shown on Figure 12.1 are the shallow Laramie well used for <br />watering livestock and the Section 33 monitoring well network. <br />C. The pumping well PW-1 and the monitoring wells installed as part of the <br />2009 drilling program were completed by drilling to the top of the proposed <br />screen interval, setting casing, and grouting from total depth to the ground <br />surface. The screen intervals were installed by under-reaming discrete <br />sand intervals based on geology identified from the a-logs. As such, there <br />is a high degree of confidence that these wells will not provide a potential <br />• conduit for vertical migration of injectate. <br />The condition of the exploration boreholes and monitoring wells installed <br />by others is unknown but will be evaluated through ongoing monitoring <br />during the pumping test and reinjection of the produced fluid. <br />The detailed review of available potentiometric-level data for Section 33 <br />monitoring wells shows the data to be consistent and does not indicate <br />any apparent anomalies, which may be caused by vertical leakage <br />through artificial penetrations. <br />d. At this time there are no known wells or bore holes that have been <br />identified as being potential flow pathways for injectate. As described, <br />Powertech is proposing to re-inject the produced fluid under vacuum into <br />the same zone from which it was derived, using the pumping well. As <br />noted, the established monitoring well network in Section 33 will be <br />instrumented and monitored during pumping and re-injection of the <br />produced fluids. <br />ARVAM I