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This application is in a Comprehensive Drilling Plan <br />Location ID: <br />CDP #- <br />Is this application being submitted with an Oil and Gas Location Assessment application? Yes <br />I hereby certify all statements made in this form are, to the best of my knowledge, true, correct, and complete. <br />Signed: <br />Title. Permit Agent <br />Print Name. Andrea Gross <br />Date: 8/29/2013 Email: agross@upstreampm.com <br />Operator must have a valid water right or permit allowing for industrial use or purchased water from a seller that has a valid <br />water right or permit allowing for industrial use, otherwise an application for a change in type of use is required under Colorado <br />law. Operator must also use the water in the location set forth in the water right decree or well permit, otherwise an application <br />for a change in place of use is required under Colorado law. Section 37-92-103(5), C.R.S. (2011). <br />Based on the information provided herein, this Application for Permit -to -Drill complies with COGCC Rules and applicable orders <br />and is hereby approved. <br />COGCC Approved: ML i w ' Director of COGCC Date: 10/18/2013 <br />API NUMBER <br />05 051 06118 00 <br />Expiration Date: 10/17/2015 <br />Conditions Of Approval <br />All representations, stipulations and conditions of approval stated in the Form 2A for this location shall <br />constitute representations, stipulations and conditions of approval for this Form 2 Permit -to -Drill and are <br />enforceable to the same extent as all other representations, stipulations and conditions of approval stated in <br />this Permit -to -Drill. <br />COA Type <br />Description <br />Date Run: 1011812013 Doc [#400469695] Well Name: Oxbow Mining LLC 2 Page 4 of 5 <br />Vessels will notify UPRR representative Zach Burt 48 hours prior to MIRU. <br />(1) COMPLIANCE WITH THE MOST CURRENT REVISION OF THE NORTHWEST <br />COLORADO NOTIFICATION POLICY IS REQUIRED. <br />(2) ANY WATER FLOWS OR LOST CIRCULATION MUST BE REPORTED PRIOR TO <br />RUNNING PRODUCTION CASING (1ST STRING). EMAIL: <br />DAVID.ANDREWS@STATE.CO.US. <br />(3) MINIMUM 48 HOUR NOTICE PRIOR TO CEMENTING PRODUCTION CASING IS <br />REQUIRED. EMAIL: CHUCK. BROWN ING@STATE.CO.US AND <br />DAVID.ANDREWS@STATE.CO.US. <br />(4) PRODUCTION CASING MUST BE CEMENTED FROM TOTAL CASING DEPTH <br />TO SURFACE. COGCC VERBAL APPROVAL IS REQUIRED PRIOR TO DRILLING <br />OUT PRODUCTION CASING AND PRIOR TO PENETRATING THE MINE <br />ADIT/DRIFT. EMAIL PRODUCTION CASING CEMENT BOND LOG AND <br />PRODUCTION CASING CEMENT SUMMARY TO <br />DAVID.ANDREWS@STATE.CO.US. A CEMENT BOND LOG IS REQUIRED TO <br />VERIFY CEMENT COVERAGE FOR THE PRIMARY CEMENTING ATTEMPT AND <br />TOP -OUT REMEDIAL CEMENT (IF ANY). <br />(5) THE PRODUCTION CASING CEMENT SUMMARY SHALL INCLUDE: SACKS, <br />YIELD, SLURRY WEIGHT (FOR THE LEAD CEMENT, IF USED, THE TAIL CEMENT, <br />AND THE TOP -OUT CEMENT, IF USED); HOLE SIZE, CASING SIZE, CASING <br />SETTING DEPTH, FLOWING CASING (LIFT) PRESSURE IMMEDIATELY PRIOR TO <br />BUMPING THE PLUG, PRESSURE TO BUMP THE PLUG, COMMENTS ON <br />RETURNS (FULL, PARTIAL, ETC.), AND VOLUME OF CEMENT RETURNED TO <br />SURFACE. <br />Date Run: 1011812013 Doc [#400469695] Well Name: Oxbow Mining LLC 2 Page 4 of 5 <br />