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1 <br />1.0 Introduction and Project Summary <br />Natural Soda, Inc. (NSI) 2011 Project Status Report and Annual Plan of Development is <br />submitted to fulfill the requirements of BLM sodium leases, C- 018326, C- 0118327, C- <br />0119986, and C -37474 as stated in Federal Regulations 43 CFR, Subpart 3591 and <br />3592 and project Record of Decision dated January 20, 1987. This report is also <br />submitted to the Colorado Division of Mining Reclamation and Safety (DRMS) to meet <br />requirements for Annual Report per State permit number M- 1983 -194, and in part to the <br />EPA to meet requirements set by UIC Class III Area Permits CO30358 -00000 and <br />CO32169- 00000. <br />This report summarizes NSI's 2011 process operations, production activities, <br />reclamation status, geotechnical and environmental monitoring results, as well as, the <br />status of all surface facilities and project wells. Proposed operations for 2012 will be <br />described in this report, including drilling the 12H production pair and other potential <br />2012 activities. Significant technical considerations and /or proposed changes in <br />operations will also be discussed. <br />2.0 Description of Project Area <br />2.1 Location and Regional Setting <br />The four NSI sodium leases are located in the Piceance Creek Basin within Rio Blanco <br />County in northwestern Colorado (see Figures 1 and 2). The sodium leases are located <br />primarily between Yellow Creek and Ryan Gulch, approximately 41 miles from Meeker, <br />Colorado and 53 miles from Rifle, Colorado. The climate is semi -arid with annual <br />precipitation averaging 12 -14 inches. Precipitation generally occurs as snow from <br />November to March and as rain during the remainder of the year. The vegetation is <br />predominantly Pinyon pine, sagebrush, Utah juniper, western wheatgrass, and needle <br />thread grass. The total area contained within the four sodium leases or mining unit is <br />8,222.6 acres. The principle operation is confined to T1 S, R98W and Section 26. <br />Figure 1 shows the NSI leases and regional map setting. Figure 2 shows sodium leases <br />within the Piceance Creek Basin. Figure 3 shows the NSI well locations, well bore <br />traces and 2012 planned well locations. <br />Daub & Associates, Inc. 1 NSI Annual Report 2010 <br />