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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, col orado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />August 4, 2008 <br />Mr. Roger L. Day / <br />American Shale Oil, LLC r <br />P. O. Box 1470 <br />Rifle, CO 81650 <br />COLORADO <br />D IV IS I ON OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />Harris D. Sherman <br />Executive Director <br />Ronald W. Cattany <br />Division Director <br />Natural Resource Trustee <br />RE: AMSO RD&D Project - Phase I, NOI No. P-2008-046, otice of Deficiency <br />Dear Mr. Day: <br />On July 7, 2008, the Division of Reclamation, Mining and Safety (DRMS) received your <br />Notice of Intent (NOI) to conduct Prospecting at the AMSO RD&D Project - Phase I <br />site. The following deficiencies were noted in the NOI. Please respond to these <br />deficiencies as soon as possible, and no later than September 24, 2008 so the decision <br />date set for October 3, 2008 can be met. If you cannot adequately respond by September <br />24, 2008, please submit a written request for extension of the decision date. <br />Deficiencies Noted: <br />1. The NOI states that hydrologic testing may include straddle- <br />packer testing within the corehole and long-term aquifer testing <br />within holes TM-1 through TM-4. Please indicate what criteria <br />will determine whether packer or long-term aquifer testing will be <br />done? <br />--2-.--- The NOI states that if drill holes are to remain open for more than <br />30 days after completion of drilling, a packer seal will be placed in <br />the hole to prevent aquifer cross-contamination. Based on DRMS <br />knowledge of the movement of ground water in the Piceance <br />Basin, there is significant concern about cross-contamination of <br />aquifers. Please demonstrate that a maximum of 30 days of the <br />open hole condition provides an adequate margin of safety against <br />cross-contamination? Additionally, please indicate measures to <br />be taken to determine if cross contamination is occurring and <br />provide a contingency plan that will be implemented should <br />aquifer cross-contamination be identified. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines