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1 <br />• The EPA approved the Class III UIC Area Permit CO32169 -00000 for the DVPW and <br />the new well permit for the 12H production pair (CO30358- 08416). <br />• The DRMS Permit amendment AM -03 was still under review. <br />• APENs were approved and Construction Permits were issued by the CDHPE for the <br />NSI plant expansion and the boiler installation. <br />3.2 Proposed 2012 Activities and Schedule <br />3.2.1 Confidential Processing <br />NSI anticipates production in excess of 140,000 tons in 2012. Approximately five boil - <br />outs of four -day durations are planned in 2012. With the new boiler installed, NSI plans <br />to begin ramping up production as new wells are brought on line. <br />3.2.2 Well field <br />NSI will begin production in the DVPW. The 12H production pair will be drilled and <br />brought online in 2012. NSI is considering multiple wells for plugging and abandonment <br />in 2012. <br />4.0 2011 Project Activities <br />4.1 On -Site Facilities and Process Description <br />4.1.1 General Arrangement <br />Figure 4 provides an overview of the process flow. <br />4.1.2 Lab Operation / Sanitation/ ISO <br />In 2011, lab activities continued to provide analysis for process control, quality assurance, <br />and regulatory requirements. <br />• Plant operators performed process control analyses. <br />• Chloride levels were monitored on all USP grades to ensure USP standards were <br />met. <br />• The USP test for insolubles was conducted on a per lot basis and a filter test for <br />insolubles was conducted on the dry product once per shift by operations. <br />• Pests were controlled with the use of two UV bug lights, rodent traps around the <br />interior walls of the plant, and the utilization of a sonic bird repeller in the <br />warehouse. <br />• GMP /ISO /Sanitation training was provided for all employees as required. <br />• A food safety and GMP audit was conducted by AIB International. From this audit, <br />NSI received the highest rating (Superior). <br />• OMRI, FDA, NSF, Kosher, and ISO certifications were maintained. <br />Daub & Associates, Inc. 7 NSI Annual Report 2010 <br />