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July 15, 1999 <br />Mr. Allen C. Sorenson <br />Reclamation Specialist <br />Division of Minerals and Geology <br />1313 Sherman Street, Room 215 <br />Denver CO 80203 <br />Dear Allen: <br />AmerAlia, Inc. <br />P.O. Box 1330 <br />Rifle CO 81650 <br />Voice: 970/625 -9137 <br />FAX: 970/625 -9137 <br />RECEIVED <br />JUL j 5 1999 <br />Division of Minerals & Geology <br />RE: Correspondence and Response to June 18, 1999, Letter "Adequacy of the <br />Application, Rock School Lease Experimental Nahcolite Mine Project, File No. <br />M -99 -051" <br />We received your above referenced letter and a second letter dated June 24, 1999, <br />regarding wildlife issues. Thank you for the time and effort you and others have spent in <br />the reviews. We understand that there were no written objections to our application. We <br />further understand that a letter was received from the Division of Wildlife on June 21 <br />with comments on the application and that you incorporated those comments into your <br />second letter of June 24. <br />In the June 18 letter, it was stated that the DMG has classified the Project as a Designated <br />Mining Operation (DMO) due to the "toxic" nature of the mining operation. We disagree <br />with that classification and, as you know, are meeting with Harry Posey of the DMG on <br />July 15 following Rule 7.2.4 to discuss the situation. Depending upon the outcome of the <br />meeting with Dr. Posey, we may wish to go before the Board in July or August to discuss <br />the issue further. In addition to the meeting with Dr. Posey, we are meeting with you and <br />Dr. Posey at the Project site on July 23 to conduct a site visit, at your request. <br />AmerAlia is diligently developing responses to the above referenced letters and will <br />submit the responses as soon as we can after the DMO issue is resolved. We are eager to <br />obtain a reclamation permit from the DMG in a timely manner and will work closely and <br />diligently with you and the DMG staff to that end. <br />As you know, ground water and surface water will be monitored as part of Project <br />operations. We plan to install the ground water monitoring wells as soon as we can after <br />the AmerAlia/Multi- Agency Monitoring team meets again and the Monitoring Plan is <br />finalized. AmerAlia plans to install process monitoring wells near the Production Well <br />Field and additional monitoring wells down - gradient from the Production Well Field. <br />