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1 <br />Table of Contents <br />1.0 Introduction and Project Summary 1 <br />2.0 Description of Project Area 1 <br />2.1 Location and Regional Setting 1 <br />2.2 Leasehold Status 4 <br />3.0 Project Status 4 <br />3.1 Confidential 2011 Project Activities (See Figure 3: Plant and Well Location <br />Map) 4 <br />3.1.1 Items of Significance 4 <br />3.1.2 Confidential Cavity Production 6 <br />3.1.3 Confidential 2011 Monthly Production Tons Summary 6 <br />3.1.4 Regulatory Review 6 <br />3.2 Proposed 2012 Activities and Schedule 7 <br />3.2.1 Confidential Processing 7 <br />3.2.2 Well field 7 <br />4.0 2011 Project Activities 7 <br />4.1 On -Site Facilities and Process Description 7 <br />4.1.1 General Arrangement 7 <br />4.1.2 Lab Operation / Sanitation/ ISO 7 <br />4.1.3 Process, Utilities, Facilities 8 <br />4.1.4 Wells Associated With the NSI Project 8 <br />4.1.5 Other Activities 12 <br />4.2 New Findings or Developments 12 <br />4.3 Confidential 2011 Operation Results 13 <br />4.4 Geotechnical Program 15 <br />4.4.1 Subsurface Subsidence Geophysical Logging 15 <br />4.4.2 Surface Subsidence Monitoring 15 <br />4.5 Water Well Pumpage 15 <br />5.0 Environmental Monitoring and Protection 15 <br />5.1 Hydrology Monitoring 15 <br />5.1.1 Introduction 15 <br />5.1.2 Stream Gauging Stations 16 <br />5.1.3 Monitoring Wells 18 <br />5.1.4 Process Ponds 19 <br />6.0 Land Disturbance and Reclamation 19 <br />6.1 Summary of 2011 Disturbance 19 <br />6.2 Regulatory Compliance 19 <br />6.2.1 Regulatory Activity 19 <br />6.3 Reclamation Activity 20 <br />6.3.1 Regrading 20 <br />6.3.2 Seeding 20 <br />6.3.3 Reclamation Fencing 20 <br />6.3.4 Precipitation 20 <br />6.3.5 Vegetation Monitoring Results 21 <br />Daub & Associates, Inc ii NSI Annual Report 2010 <br />