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880 Wolverine CT <br /> CPX Piceance Holdings, LLC Castle Rock, Co 80108 <br /> (303) 489-8773 <br /> July 29, 2016 <br /> State of Colorado <br /> Department of Natural Resources <br /> Division of Reclamation, Mining and Safety <br /> 1313 Sherman Street, Room 215 <br /> Denver, CO 80203 <br /> Re: Tepee Park Ranch Shale Borrow Pit, Permit No. M-2008-027 <br /> CPX Piceance Holdings, LLC <br /> Annual Report of Operations <br /> Dear Sir/Madam: <br /> The Tepee Park Ranch Shale Borrow Pit, Permit No. M-2008-027 ("Permit") is up for renewal on August 5, <br /> 2016. The permit was originally granted on August 5, 2008 to Black Diamond Minerals, LLC ("BDM")to <br /> operate a shale borrow pit within the area known as Tepee Park Ranch ("TPR") in Garfield County, CO. Since <br /> then, MRD Operating LLC in and CPX II Operating LLC (CPX) have been the owners of the shale borrow pit. A <br /> report of the operations is noted below and a check for the annual fee is enclosed. <br /> CPX complied with the mining plan outlined in the Permit. Extraction of shale rock at the Borrow Pit was <br /> also permitted through the Garfield County Building and Planning Department through a Special Use Permit. <br /> CPX also complied with all of the conditions of that permit. <br /> All construction work done at this site was conducted under a Stormwater Management Permit issued by <br /> the CDPHE. Best Management Practices were implemented as defined in the Stormwater Management Plan <br /> ("SWMP"). The required inspections were conducted and documented by Titan Field Service of Rifle, <br /> Colorado.There were no incidents of non-compliance with the SWMP. <br /> All construction work done at this site was conducted under a Stormwater Management Permit issued by <br /> the CDPHE. Best Management Practices were implemented as defined in the Stormwater Management Plan <br /> (SWMP). The required inspections were conducted and documented by Titan Field Service of Rifle, <br /> Colorado. There were no incidents of non-compliance with the SWMP. <br /> 2016 Activities: <br /> Approximately 50 tons of shale rock was extracted to date. The rock was used to maintain roads, well pads, <br /> and stormwater management features. <br /> 2017 Activities: <br /> Extraction of rock going forward into 2017 is expected to be about the same as 2016 (50-75 tons). <br /> If you have any questions or require additional information, please contact me at griggs.mary@comcast.net <br /> or (303) 912-8292. <br /> 1 <br />