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<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 />ATE OF COLORADO <br />VtECF.1 tl rao <br />SEp 0 4 2009' <br />Dim of Reclarnstion, <br />Miming and Safety <br />August 31, 2009 <br />Mr. Roger Day <br />American Shale Oil, LLC <br />110 E. 3'd Street, Suite 210 <br />Rifle, CO 81650 <br />COLORADO <br />D I V I S 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: Americaryd'hale Oil, LL , AMSO RD&D Project -Phase II Modification, MD-02,VNotice of Intent (NOI) <br />P-2008-046, Approval. <br />Mr. Day, <br />The Division of Reclamation, Mining and Safety has completed the review of the above referenced Notice of <br />Intent modification application. It appears that all issues have been addressed and the application meets the <br />requirements of the Act and Rules. Therefore staff is pleased to inform American Shale Oil, LLC that <br />Modification No. 2 is approved. <br />Modification No. 2 addresses the following: <br />• Construction of a second access road for the Test Pad adding an additional 0.3 acres. <br />• Complete tomography wells TM-5 and TM-6 and construct and complete T-1, the heater <br />producer test well. <br />• The modification Increases the total disturbance from 10.0 acres to 10.7 acres. <br />The terms of the Modification No. 2 approved by the Division are hereby incorporated into Permit No. P-2008-046. <br />All other conditions and requirements of Permit No. P-2008-046 remain in full force and effect. <br />Staff calculations estimate the additional cost to reclaim the site to be $40,880.00, added to the existing required <br />reclamation bond amount of $392,100.00 for a total reclamation bond amount of $432,980.00 . The estimate is <br />based on the increased reclamation liability associated with Modification No. 2. American Shale Oil, LLC must <br />submit and have accepted the Financial Warranty for the modification to the permit to become active. For <br />questions regarding bond placement please contact Elizabeth Taliaferro at phone no. (303) 866-3567, extension <br />8148. <br />If you need additional information, please contact me at the Division of Reclamation, Mining and Safety, Grand <br />Junction Field Office, 101 S. 3rd St., Suite 301, Grand Junction, Colorado 81501, telephone no. 970.241.2042. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines