2012-02-01_REPORT - M1983194 (2)

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Month Beginning Inventory Production Sales Ending Inventory January 3245 12,048 10,887 4405 February 4405 10,554 9,286 6056 March 6056 10,412 9,574 6511 April 6511 11,090 11,340 6261 May 6261 10,128 12,032 4358 June 4358 11,409 12,523 3244 July 3244 11,347 11,702 2889 August 2889 10,733 11,424 2198 September 2198 9,675 10,316 1557 October 1557 12,725 11,804 2478 November 2478 12,027 11,609 2896 December 2896 10,653 11,734 1816 TOTALS 132,801 134,230 3.1.2 Confidential Cavity Production Table 1: Cavity Production in Tons 3.1.3 Confidential 2011 Monthly Production Tons Summary Table 2: Monthly Production Summary in Tons 3.1.4 Regulatory Review NSI submitted routine Sundry Notices, monthly, quarterly, and annual reports to appropriate agencies. The following summarizes regulatory related activities: • Three wells were plugged and abandoned; the 5H-1V, the 5H, and 6H. Work toward final reclamation was done on the 5H -1V pad, this pad will be seeded in early 2012. The 5H and 6H pads were utilized for drilling operations for the DVPW and will be interim reclaimed when operations are complete. • The three exploration core holes that were completed in 2010 as ground water /subsidence monitoring wells and a water supply well were brought on line late 2010 and early 2011. Daub & Associates, Inc. 6 NSI Annual Report 2010 Cavity Cavity Cavity #7H #10H #11H Tons in 2011 32,964 26,771 73,066 Total tons 51,499 125,144 116,889 3.1.2 Confidential Cavity Production Table 1: Cavity Production in Tons 3.1.3 Confidential 2011 Monthly Production Tons Summary Table 2: Monthly Production Summary in Tons 3.1.4 Regulatory Review NSI submitted routine Sundry Notices, monthly, quarterly, and annual reports to appropriate agencies. The following summarizes regulatory related activities: • Three wells were plugged and abandoned; the 5H-1V, the 5H, and 6H. Work toward final reclamation was done on the 5H -1V pad, this pad will be seeded in early 2012. The 5H and 6H pads were utilized for drilling operations for the DVPW and will be interim reclaimed when operations are complete. • The three exploration core holes that were completed in 2010 as ground water /subsidence monitoring wells and a water supply well were brought on line late 2010 and early 2011. Daub & Associates, Inc. 6 NSI Annual Report 2010