2010-02-01_REPORT - M1983194 (2)

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1.0 Introduction and Project Summary Natural Soda. Inc's (NSI's) 2009 Project Status and Annual Report of Development is submitted to fulfill the requirements of BLM sodium leases. C-018326, C'-0118327. C-0119986, and C- 37474 as stated in Federal Regulations 43 CRD. Subpart 3591 and 3592. and project Record of Decision dated January 20. 1987. This report is also submitted to the Colorado Division of Minerals and Geology to meet requirements for Annual Report per State permit number M-1983- 194. This report summarizes NSI's 2009 process operations, production activities, reclamation status. geotechnical and environmental monitoring results, as well as, the status of all surface facilities and project wells. Proposed operations for 2010 will be described in this report. Significant technical considerations and/or proposed changes in operations are presented. 2.0 Description of Project Area 2.1 Location and Regional Setting The four NSI sodium leases are located in the Piceance Creek Basin. Rio Blanco County of northwestern Colorado (see Figure 2-1 and 2-1 A). The sodium lease tracts are located between Yellow Creek and Ryan Gulch, approximately 41 miles from Meeker, Colorado and 53 miles from Rifle, Colorado. he climate is semi-arid with annual precipitation averaging 12-14 inches. Precipitation generally occurs as snow from November to March and as rain during the remainder of the year. The vegetation is predominantly pinon-pine, sagebrush. Utah juniper, western wheatgrass. and needle thread grass. The total area contained within the four sodium leases or mining unit is 8,222.6 acres. The principle operation is T1S. R98W, and Section 26. Figure 2-1 shows the Natural Soda leases and regional map setting and Figure 2-1 A shows sodium leases within the Piceance Basin. Figure 2 -1 NSI Regional Map • Ray{eh 13 RY llmv NOe ?_ C 10 Colorado '_009 Annual Report I of 33