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Colorado Division of Reclamation, Mining & Safety <br />14 December 2006 <br />Page 2 of 4 <br />Development Activities <br />Exxon Mobil Corporation continues to fund activities intended to bring about the <br />development of oil shale resources in Western Colorado. It is ExxonMobil's intent to <br />conduct experimentation at the Colony Project site in furtherance of these development <br />activities. To do so requires that ExxonMobil retain the mine bench, buildings, and <br />infrastructure at the site in order to access the Mahogany Zone of the oil shale resource. <br />The testing of fracturing procedures at Colony in the 2007-2008 time frame is an example <br />of one activity ExxonMobil intends to accomplish. ExxonMobil is also examining <br />crushing, conversion and upgrading technologies with the objective of identifying <br />significant cost reductions and new step-out process design concepts applicable to oil <br />shale development. <br />ExxonMobil continues to manage and evaluate research relative to the spent shale <br />research plots located at the Colony Project. The purpose of these research plots is to <br />assure that spent shale deposits can be properly reclaimed. ExxonMobil continues to <br />expend approximately $100,000 annually in conjunction with this development activity. <br />In this regard, we are enclosing a recent report prepared by Lachel Felice & Associates <br />which summarizes our research relative to the weighing lysimeter for your information <br />and files. <br />ExxonMobil also manages and stewards an extensive portfolio of water rights in support <br />of the Colony Project, and is awaiting the final order from the Water Court approving its <br />most recent diligence filing. We understand that the final order will be issued in the near <br />future. <br />Environmental Monitoring <br />ExxonMobil continues an active program of environmental monitoring at the Colony <br />Project site. This includes regular monitoring of air quality and surface and groundwater <br />quality in support of its Prevention of Significant Deterioration air permit and Colorado <br />Discharge Permit System water discharge permit. Monitoring results show that the site is <br />stable without air or water quality issues. <br />Reclaimed Areas <br />The following describes the status of the 401 acres that have been reclaimed or are <br />otherwise in a condition such that release from the MLRB permit is appropriate: <br />110 acres described in the 1982 ISP were in a final reclaimed form as of <br />completion of construction activities on the land including: <br />0 76 acres with near vertical rock cut cliff faces; <br />0 23 acres of steep talus slope disturbance associated with the pre-permit <br />Pilot Mine; and <br />0 11 acres of miscellaneous small areas where reclamation was completed. <br />