2012-11-30_PERMIT FILE - P2011012

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Sincenely, When the removal of the temporary casing is complete, the well will be immediately filled with cement as an abandonment procedure. After completely cementing the well bore, tremmying the cement from bottom to top, the surface casing will be cut off below the ground surface, and the drill site will be recontoured and reclaimed. 2. "Isolate aquifers ". The near surface aquifers, Dakota aquifer, if present (Dakota and Burro Canyon Formations) and Navajo aquifer (Entrada, Navajo, and Wingate Formations) will be isolated by the surface casing set into the top of the Chinle Formation and cemented to surface. The Dakota aquifer may not be present if the well is spudded below the Dakota/Burro Canyon stratigraphic level, depending on which drill site is selected. The deeper aquifers in the Cutler and Hermosa Formations will be isolated by the temporary casing during the coring of the target horizons, and then isolated by the complete cement plug after abandonment of the well. Jon P. Thorson Manager, Colorado Potash Project 2 3. "Cement bond ". RM Potash plans to have electric logs run in the well bore before the temporary casing is set in the top of the Paradox Formation. At that time the logging contractor will be requested to run a cement bond log on the suface casing to verrify the cement -to -steel bond isolating the Dakota and Navajo aquifers. 4. "Cement plugging ". RM Potash has committed to a complete cement plug in the well bore for abandonment. Cement will be tremmyed from bottom to top, completely filling the well bore with cement. This stipulation is included in the EA (DOI -BLM- CO -5010 -2009 -0076) in section 2.2.3 under the heading "Drill Holes ". Although the term " tremmying" for placement of the cement was not used in the document, that procedure was intended as the cement placement method by RM Potash. 5. "Plugging and Abandonment ". The bore hole will be cemented by tremmying cement from bottom to top as the plugging procedure stipulated in the EA (DOI- BLM -CO- S010- 2009 - 0076), and elaborated above in #1 and #4 of this letter. After cementing, the surface casing will be excavated and cut off 4 feet below the level of the drill site; the drill site will be recontoured and reclaimed as specified in the EA, and a permanent steel marker will be placed over the location of the surface casing. I trust that these explanations will be sufficient clarification of the concerns expressed in your letter of November 15. Besides the copies of this letter sent to your Durango location, I will also send copies to the State office in Denver. If you need additional clarification, please contact me at the address or phone number above.