The Intrepid Potash HB Solar Solution Mine Project (HB Project) has received federal approval from the Bureau of Land Management (BLM).  Following more than three years of careful analysis, the BLM’s Record of Decision (ROD) approving the project was issued in March 2012 and, with BLM’s approval, Intrepid immediately commenced construction on the project.  The 30-day ROD protest period ended in April 2012 with no protests received by BLM.

With an expected 28-year mine life, the HB Project will create jobs, royalty and tax revenues and other important economic benefits for the region. Intrepid anticipates a total investment of approximately $200 – $230 million to construct the HB Project, with approximately $35.3 million invested to date. The first production from the HB Solar Solution mine is estimated to begin in late 2013 with increasing production in 2014 and a ramp up to full production expected in 2015. The annual yield from the HB Project is estimated to be 150,000 to 200,000 tons of potash.

Intrepid is committed to building and operating the HB Project in an environmentally friendly and sustainable manner. The ROD describes the comprehensive environmental protection measures and monitoring tasks that will be implemented during project construction, operation and reclamation.

We deeply appreciate the tremendous support for the project from the Carlsbad community, local, state and federal elected officials, and the oil and gas operators in the area. This support was integral to our successful navigation of the Environmental Impact Statement process.

The full ROD can be found on the BLM’s Carlsbad Field Office website. For more information about the HB Project, please visit www.Intrepid-HBproject.com.

On February 3, 2012, the HB Project Final Environmental Impact Statement (EIS) was released for public review by the Bureau of Land Management (BLM). The BLM selected aspects of Alternatives A, B, and C to develop the Preferred Alternative. This alternative includes approval of Intrepid’s revised HB In‐Situ Solution Mine Operation and Closure Plan, granting new Right of Ways, approval of lease modifications to remove 12,867 acres from the 96,000-acre conventional mining lease limit per state, and approval of permits to drill new water supply, injection, extraction, and monitoring wells.  

Key elements of the preferred alternative include the following:

• The overall footprint of the evaporation ponds would increase by 62 acres.

• Pipeline layout in project area would change slightly to avoid karst features.

• Sixty‐eight percent of the pipeline bundles would be buried.

• Four Rustler wells would be developed and water from Intrepid’s Caprock wells would supplement the Rustler water source.

• A new pipeline from the Caprock wells would be installed and located to avoid sand dune lizard habitat.

• All process plans would remain the same as the Proposed Acton.

Identifying the Preferred Alternative does not constitute a decision, but it is anticipated that the Preferred Alternative will be selected by BLM in the Record of Decision (ROD).

Following the 30 day public review period for the Final EIS, the BLM will select an alternative and associated mitigation measures to be implemented with the selected alternative. The public will be informed of the decision with the publication of the ROD. The ROD is a written public record explaining the BLM’s decision on the proposed project.

Intrepid anticipates that a ROD will be issued by the end of 1Q12. Upon issuance of a favorable ROD and completion of the EIS process, Intrepid intends to move forward immediately with construction of the HB Project. For more information, please visit the BLM Carlsbad Field Office website.

As you may already know, the Draft Environmental Impact Statement (DEIS) public comment period for the HB Solar Solution Mine Project (known as the HB Project) closed on June 27, 2011. We want to thank everyone who submitted letters of support, attended the public meetings in Carlsbad and Hobbs, and showed interest in the project.

The Bureau of Land Management (BLM) is now compiling and reviewing the comments collected during the DEIS public comment period. These comments will be considered as the BLM prepares the Final Environmental Impact Statement (FEIS), which is anticipated to be released in early 2012. When it is released, the FEIS will include the BLM’s announcement of the proposed action (i.e. the chosen alternative for the project). The BLM’s final action, the issuance of the Record of Decision (ROD), is anticipated in the first quarter of 2012.

Again, we greatly appreciate your involvement in the HB Project and will continue to provide you with updates. If you have any questions or would like additional information, please visit our project website, www.Intrepid-HBproject.com, send an email to Info@Intrepid-HBproject.com or call Kevin Ryan at 303-996-5934.

As you may already know, the public comment period for the HB Solar Solution Mine Project (known as the HB Project) Draft Environmental Impact Statement (DEIS) has begun. The Bureau of Land Management (BLM) is soliciting public comment on the DEIS and it is important for your voice to be heard. Letters of support explaining the importance of the HB Project to the community and the value of mining this important resource will be very helpful to the BLM in this process. We encourage you to review the DEIS and send your comments directly to the BLM – not to Intrepid Potash – by June 27, 2011. Click here for more information on how to submit your comments.

While general supportive comments are greatly appreciated, the most effective comments will be personalized, substantive and specific to the DEIS. Most importantly, we hope that you will tell the BLM that you support Alternative B – our preferred alternative. Our reasons for supporting Alternative B, as well as comments in support of the project in general, are summarized below, and you can use these in your letter if they are helpful.

• Alternative B – Supplemental Water Sources – would allow Intrepid to use both Rustler and Caprock groundwater for operation of the HB project. This alternative provides greater operational flexibility, thereby ensuring that the project can be developed and operated as proposed by Intrepid.

• Intrepid strongly prefers to use Rustler groundwater for the HB Project due to its salinity and proximity to the HB Project and would construct the Rustler wells to maximize production from the aquifer.

• Intrepid has existing water rights for both the Rustler and Caprock water sources so all the water needed for this project would come from water to which Intrepid already has rights.

• Due to Intrepid’s water conservation program and process improvements at the East Plant, Intrepid expects to reduce current use of Caprock water by 700 – 900 gallons per minute by the end of the year. As a result, to the extent Caprock water is needed for the HB Project, Intrepid’s Caprock water conservation efforts are expected to significantly offset any increased use for the HB Project.

• Alternative B relies on above ground pipelines. Alternative C calls for the pipelines to be buried. We strongly believe that keeping the pipelines above ground is critical to protecting the environment as we can visually inspect the pipelines and quickly address leaks or damage that could go undetected for a long period of time if the pipelines were buried. Moreover, we are providing adequate crossings where the surface pipelines would be located for cattle, wildlife, ORV, and vehicle access, which eliminates the need to bury them. For these reasons, we do not support Alternative C, which could result in leaks or pipeline damage going undetected for a long period of time.

• With an expected 12 – 18 month construction period and 28-year mine life, the HB Project would create substantial economic benefits for the region:

• More than $90 million in federal and state royalties

• An estimated $120 to $130 million in capital construction expenditures

• 150 to 200 local construction phase jobs and 30 to 40 long-term employees

• It is important that the HB Project be approved in order to maximize the recovery of potash.

• Without this project, millions of tons of potash in the underground works would remain in place, squandering this crucial resource and forgoing the expected significant economic benefits to the region.

• The project does not change how oil and gas development in the region would be managed by the BLM.

• The project would have no impact on oil and gas (O&G) development and there would be no change in BLM’s O&G management practices in the region regardless of whether the No Action, Intrepid’s proposed action, or any of the other alternatives in the DEIS were selected.

• Intrepid is committed to building and operating the HB Project in an environmentally friendly manner. To the extent there are environmental impacts, the DEIS identifies ways they can be mitigated.

• Subsidence: The DEIS identified negligible subsidence impacts and that is supported by Intrepid’s rock mechanics experts. Intrepid has an extensive subsidence monitoring network in place that would be surveyed regularly to measure ground movement and ensure that oil and gas wells, pipelines, power lines, and roads are not affected.

• Air quality: The DEIS identified a minimal increase in emissions, resulting in negligible impacts.

• Karst and caves: Intrepid would work with the BLM to develop a monitoring program in order to minimize any potential impacts to karst and caves.

• Sand dune lizard: Intrepid would work with the BLM to conduct a field survey and biological assessment in order to determine how best to minimize impacts to the sand dune lizard.

• Waterfowl protection: Intrepid’s solar evaporation pond design incorporates features that are not attractive to waterfowl. However, Intrepid will provide and implement an active monitoring and hazing program plan to further ensure waterfowl protection.

• Restoration: No salt tailing pile would be created and roads, ponds and the flotation plant would be reclaimed at the completion of construction.

We appreciate your involvement in the HB Project. If you have any questions or would like additional information, please visit our project website, www.Intrepid-HBproject.com, send an email to Info@Intrepid-HBproject.com or call Kevin Ryan at 303-996-5934.

On Friday, April 15, the Bureau of Land Management (BLM) Carlsbad Field Office issued the Notice of Availability (NOA) for the Intrepid Potash HB Solar Solution Mine Project Draft Environmental Impact Statement (DEIS). The release of this analysis marks an important milestone in the BLM regulatory approval process and initiates a public comment period from April 15 – June 27, 2011.

We encourage you to review the DEIS and submit all comments directly to the BLM — not to Intrepid Potash — through the following methods:

Carlsbad DEIS Public Comment Meeting:
May 10, 2011
3:00 – 7:00 p.m.
Pecos River Village Conference Center
711 Muscatel Ave., Carlsbad, NM 88220

Hobbs DEIS Public Comment Meeting:
May 11, 2011
3:00 – 7:00 p.m.
New Mexico Junior College
Training and Outreach Building
5317 North Lovington Highway, Hobbs, NM 88240

Email:
nmcfo_comment@blm.gov
(the subject line of emails should be identified as “HB In-Situ solution mining DEIS”)

U.S. Mail:
HB In-Situ solution mining DEIS
HB EIS project manager
620 E. Greene St.
Carlsbad, NM 88220

Facsimile:
575-885-9264
(the subject line of facsimiles should be identified as “HB In-Situ solution mining DEIS”)

Hand Delivery:
BLM Carlsbad Field Office
620 E. Greene St.
Carlsbad, NM 88220
(between the hours of 7:45 a.m. and 4:30 p.m. Monday through Friday, excluding Federal holidays)

We are pleased to announce the launch of the HB Solar Solution Mine Project website, www.Intrepid-HBproject.com. The website provides background information on the project and progress on the Bureau of Land Management (BLM) regulatory approval process.

Intrepid Potash – New Mexico, LLC, a wholly-owned subsidiary of Intrepid Potash, Inc., owner and operator of the largest potash mine in Carlsbad, New Mexico and the largest producer of potash in the U.S., has proposed to build and operate a solar solution mine (known as the HB Project) in Eddy County, NM on Intrepid’s own land as well as land managed by the BLM and the State of New Mexico.

Utilizing Intrepid’s own existing potash mine workings in the area, this project would use environmentally sound and proven technologies to extract and produce potash – a resource vital to our country’s food production – while creating significant economic benefits for the region.

We encourage you to visit the website to learn more about the project, access important project materials, sign-up to receive project updates and learn about ways to get involved in the process.

As you may already know, the Draft Environmental Impact Statement (DEIS) is scheduled to be released on or around April 15, 2011. Once the DEIS has been released, you will have the opportunity to review the DEIS and submit comments to the BLM. We will be reviewing the DEIS when it comes out and providing a list of key points that we will be asking for support for during the DEIS public comment period. We will provide you with that information shortly after the BLM releases the DEIS.

We also encourage you to attend the upcoming DEIS Public Comment Meetings. Details included below:

Carlsbad DEIS Public Comment Meeting
May 10, 2011
3:00 – 7:00 p.m.
Pecos River Village Conference Center
711 Muscatel Ave., Carlsbad, NM 88220

Hobbs DEIS Public Comment Meeting
May 11, 2011
3:00 – 7:00 p.m.
Multipurpose Room
New Mexico Junior College
5317 North Lovington Highway, Hobbs, NM 88240

CARLSBAD — Intrepid Potash is another step closer to its proposed construction of a solar solution mine in the inactive workings of its HB Potash Mine located about 20 miles northeast of the city.

The company has already received a water discharge permit from the New Mexico Environment Department and now is waiting for the draft and approval of an environmental impact statement prepared by the federal Bureau of Land Management Carlsbad Field Office.

The BLM has completed the EIS draft and has set a public comment meeting in Carlsbad for May 10.

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