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An unknown aspect of the experimental pilot project is the resource. Soluble impurities are variable <br /> within the basin, dependent on leaching temperature and influenced by leaching solution composition. <br /> Critical impurities are often undetectable in the core. AmerAlia intends to test higher temperatures <br /> than experienced by WRNM. <br /> The recovery efficiency of leaching nahcolite largely enclosed in an oil shale matrix will be tested. This <br /> must be accomplished while avoiding solution contact with the mineral halite. Halite is associated <br /> with nahcolite deposition in the basin. Experimental testing will involve well size, well completion, <br /> solution temperature, solution flow rate, solution composition, solution flow path, gas cap control,etc. <br /> In addition to developing an economic cavity, it is necessary to combine these cavities into a wellfield. <br /> This involves determining acceptable cavity spacing, size, and shape. Pillar size and shape will also be <br /> tested. The need for a barrier pillar system will be addressed. <br /> AmerAlia will use the experimental pilot project to develop a commercial plan with acceptable <br /> combined drilling, mining, cavities, pillars and barrier pillar impact on other resources such as the oil <br /> shale, aquifers and surface land use. Predictions by experts are favorable, but it has not been <br /> previously done and there is little direct supporting mining experience. AmerAlia feels this <br /> experimental pilot operation is necessary to develop a Rock School Lease commercial mine plan. <br /> The AmerAlia solution mining testing will use numerous experimental technologies and experimental <br /> methodologies to determine the most efficient means of solution mining the specific targeted <br /> stratigraphic intervals. <br /> AmerAlia, Inc. will provide Ms.Judy Binegar-Wilson of the EPA with financial responsibility via a <br /> bonding mechanism to cover all plugging and abandonment costs of all production wells associated <br /> with the experimental pilot operations within 45 days of the date of this letter. This documentation <br /> will be inserted as supplemental information to Attachment R of the AmerAlia, Inc. permit application. <br /> Current plans are to begin construction on the project during August 1999. Testing would begin the <br /> following year. In order to support this schedule; please let us know if you require any additional <br /> information as part of processing the application. We will work closely with you and your staff to <br /> facilitate the timely review of the application and permit acquisition. Please contact Mr.Jerry Daub at <br /> (970) 241-0964 or daubersaj ilnet if you have any questions regarding this application. The <br /> responsible project contact is: <br /> Mr. Roger Day Telephone No: (970) 625-9134 <br /> AmerAlia, Inc. Facsimile No: (970) 625-9137 <br /> 818 Taughenbaugh <br /> P.O. Box 1330 <br /> Rifle, CO 81650 <br /> Thank you for your continued support of the project. <br /> Sincerely yours, <br /> Roger Day <br /> Vice President, Operations <br /> I <br /> Enclosures <br /> Copy: Gerald Daub <br /> Steve Dennis <br />