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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1373 Sherman St., Room 275 <br />Denver, Colorado 80203 <br />Phone: (303) 866-35b7 <br />FAX: f303) 8328106 <br />September 4, 2007 <br />EnCnna Oil & Gas (USA), Inc. <br />2717 County Road 215, Suite 100 <br />Parachute, CO 81635 <br />MINED LAND RECLAMATION BOARD <br />112c ANNUAL FEE INVOICE AND REPORT REQUEST <br />PLEASE READ CAREFULLY <br />COLORADO <br />O I VISION O F <br />RECLAMATION <br />MINING <br />- &- <br />SAFETY <br />Bill Riper, Ir. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Canany <br />Division DlreClOr <br />Natural Resource Trustee <br />Under the terms of your Reclamation Permit and Colorado Statutes, you must submit Annual Fees and Annual <br />Reports. You must pay the Annual Fee and submit an Annual Report each year until reclamation responsibility <br />release is granted. The Annual Fee is not a renewal fee. The fee and the report are for LAST YEARS mining and <br />reclamation season, and MUST be received even if your operation was in an inactive state. The fee and report are <br />due ON OR BEFORE your permit anniversary date shown below. The Annual Report and Fee requirement is <br />not met anti! we have received the following components: fee, report. and associated man. If no new <br />disturbances or reclamation have occurred daring the previous year and no new chanties to the previous <br />year's moo are necessary, then no new moo is required. provided that the Operator shall state this in thG <br />Annual Report. <br />If you have requested reclamation responsibility release from the Division of Reclamation, Mining and Safety (the <br />"Division") but your permit is not released by your anniversary date listed below, the annual fee MUST be paid. If <br />the permit is released before the anniversary date, then by Statute, you do not pay an annual fee or submit an <br />annual report for that year. <br />PLEASE NOTE: IF THE ATdA1IJAT. FF,F„ ANNIJAT, REPORT, AND A MAP ARP, NOT RF.CF.IVF.D ON OR <br />BEFORE YOUR ANNIVERSARY DATE, A FORMAL NO"LICE OF VIOLATION AND A BOARD ORDER TO <br />PAY CNIL PENALTIES BQ THE AMOUNT EQUAL TO THE ANNUAL FEE $ $791.00 WILL BE <br />AIJTOMATICAT_J.Y ASSF.SSF,D. NO PERMITS FOR NEW MINING OPER-ATIONS SHALL. BL GRANTED <br />TO ANY OPERATOR WHO IS CURRENTLY FOUND TO BE IN VIOLATION IN THIS STATE (C.R.S. 34- <br />32.5-120 OR C.R.S. 34-32-120) UNTIL THE VIOLATION IS ABATED. <br />Division records indicate $ $791.00 tee is due <br />Permit No.: M-2005-069 <br />Operation Name: West Fork Pit <br />Anniversary Date: October 13, 2007 <br />Total Fee Due: $$791.00 (Due on or before your Anniversary Date) <br />If your records indicate different facts than those stated above please notify the Division. <br />Please return the enclosed annual report FORM, a MAP, and a CHECK or MONEY ORDER made payable to the <br />Division of Reclamation, Mining and Safety, 1313 Sherman St., koom 215, Denver, Colorado 80203. <br />Thank you for your cooperation in this matter. If you have any questions, please feel free to contact Jim Dupler at <br />(303) 8GG-6277. <br />Office of Office of <br />Mined Land Reclamation Denver Grand Junction • Durango Active and inactive Mines <br />