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~• OXY USA WTP LP ~xY Asubsidary of Occidental Petroleum Corporation `~ Rocky Mountain Assets Team October 11, 2005 Franklin Miller Occidental Oil Shale Inc. 2480 Forttme Drive Suite 300 Lexington, Kentucky 40509 Re: Lower Mine Bench Well Location Section 25 T7S R97W Gazfield County, Colorado Dear Franklin: s creemway Pkva, sae t to, Houston rx noas-0sos PO Box 27757, Houston TX 77227-n57 As you are aware from our various discussions, the Rocky Mountain Asset Team (`RMAT") is preparing to drill gas wells in locations in Township 7 South Ranges 96 and 97 West, on lands owned in fee by Occidental Oil Shale Inc ("OOSI"). RMAT is awaze that the captioned well location is located on what is known as the lower mine bench and RMAT proposes to construct a well pad and drill one or more natural gas wells on said Lower Mine Bench. This development could require long-term (estimated 30 plus years) use of at least a portion of the Lower Mine Bench and the Lower Bench Road which begins at the Logan Wash Road and terminates at the Lower Mine Bench. Production of natural gas may require installation of a gathering line(s). It is proposed that the gathering line(s) would be installed on the surface from a point on the hillside above the upper mine bench access road down to the lower mine bench road and possibly over to the well pad. OOSI has conducted oil shale mining operations at the site and is currently pursuing final reclamation of the surface facilities. OOSI has obligations to reclaim facilities including the Upper and Lower Benches, Upper and Lower Bench Roads, the Reseazch Mine Bench and Road, and the Lower Access Road through both the Colorado Division of Minerals and Geology (DMG) and the Bureau of Land Management (BLM). OOSI has performed much of the remediation work but is willing to conclude it's remediation operations to allow RMAT to utilize the location. RMAT recognizes that additional remediation obligations exist and is prepared to assume the responsibilities for the following: RMAT will asstune responsibility for the Lower Bench Road and Lower Mine Bench;