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3.0 STATUS OF PROJECT OPERATIONS (2012 — 2013) <br />3.1 Current Status /Activities <br />The American Soda Yankee Gulch project is presently in interim status with no solution <br />mining or processing taking place. Ongoing activities during the report period were <br />focused on the well field and test mine pad. These activities include inspection and <br />maintenance of storm water control features, security, and maintenance of access <br />roads, vegetation establishment and control of noxious weeds. Ground water sampling <br />is completed quarterly and the data is reported four times per year in separate <br />documents. Additionally, mechanical integrity testing (MIT) of all long term stand -by <br />wells is conducted once every two years. MIT testing was conducted on eleven wells or <br />partial wells on May 30 and 31, 2012. One well, 28 -21 long string failed the MIT test <br />and was subsequently plugged and abandoned on August 29, 2012. The short string of <br />well 28 -21 was plugged and abandoned previously December 18, 2008. Following the <br />plugging and abandonment of the long string on well 28 -21 the well skid and some of <br />the lateral piping were removed. Work to remove the remaining lateral pipe and reclaim <br />the pad and road extending to this well is planned for the 2013 field season. No new <br />disturbance or reclamation activity occurred in the well field during the current report <br />period. <br />PHOTO 2 - Coil <br />abandonment work. <br />2012. <br />American Soda, L.L.P. <br />DRMS Annual Report <br />July 10, 2013 <br />tubing rig and cement trucks on location during plugging and <br />Well 28 -21 long string plugged through coil tubing on August 29, <br />3 <br />