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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, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />September 5, 2008 <br />Mr. Franklin Miller <br />Occidental Oil Shale, Inc.? <br />C/o Glenn Springs Holdings, Inc. <br />2480 Fortune Dr., Ste. 300 <br />Lexington, KY 40509 <br />pivision °i and Safety n <br />Mining <br />Re: Logan Wash, Permit No. M-1977-424, Amendment Approval, Revision No. AM-1 <br />Dear Mr. Miller: <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 />On August 5, 2006 the Division of Reclamation, Mining and Safety approved the Amendment application submitted to <br />the Division on September 5, 2006 addressing the following: <br />Incorporation ofpipeline and evaporation pond into the permit. <br />The terms of the Amendment No. 1 approved by the Division are hereby incorporated into Permit No. M-1977-424. All <br />other conditions and requirements of Permit No. M-1977-424 remain in full force and effect. Per Rule 3.1.3 DRMS is <br />granting Occidental Oil Shale, Inc.'s (OOSI) request for a 10 year extension of the reclamation period, beginning August <br />5, 2008, to allow for attenuation of contaminants found in the retort discharge. OOSI must be aware that approval of this <br />amendment does not relieve OOSI of it's obligation to complete reclamation of the site within that 10 year timeframe. <br />The extension should effectively allow for adequate attenuation of most contaminants in the retort discharge. However, <br />DRMS recognizes that boron and sulfate in the retort water discharge are showing little to no attenuation during the <br />sampling history. Therefore, DRMS will expect OOSI to put forth considerable effort in each of the next ten years to <br />identify a solution to the problem of perpetually draining retort discharge containing levels of boron and sulfate in <br />exceedance of surface and ground water discharge standards. <br />The estimated reclamation liability amount of $543,180.00 exceeds the $236,752.00 performance bond currently held. If <br />you have not already done so, please submit additional bond in the amount of ($306,428.00). The revision will not be <br />final until the bond is approved by the Division. <br />If you have any questions, please contact me at 970-243-6368. <br />Sincerely, <br />ASteveS.uey <br />Environmental Protection Specialist <br />Cc: Julia Christensen - BLM Grand Junction Office <br />Office of <br />Mined Land Reclamation Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines