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C". 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 />COLORADO <br />D I V I S ION OF <br />RECLAMATION <br />MINING <br />SAFETY <br />Bill Ritter, Jr. <br />Governor <br />September 11, 2009v/ <br />Mr. Richard S. Mykitta <br />Shell Frontier Oil & Gas Incz <br />P.O. Box 478 <br />Meeker, CO 81641 <br />Harris D. Sherman <br />Executive Director <br />fterp-1ri D Ronald W. Catt <br />v?• Division Director <br />or <br />Natural Resource Trustee <br />SEP 17 2009 <br />Divisian of ReclamAh"' <br />Mining and Safety <br />Re: Shell Frontier Oil & Gas Inc., 2009-1 RD&D East Lease Appraisal, File No. P-2009-024,V <br />Correction of Financial Warranty. 7 <br />Mr. Mykitta, <br />The Division of Reclamation, Mining and Safety has reviewed the letter received September 9, 2009 that clarifies <br />what bond will cover the required additional $612,434.00 of reclamation cost associated with the approved Shell <br />Frontier Oil & Gas Inc. (SFOGI) Notice of Intent application, P-2009-024. Originally SFOGI requested that the <br />additional reclamation costs be covered by the Safeco Insurance Company of America Statewide Prospecting <br />Bond No. 5862516 which is intended to cover SFOGI NOIs on private land. SFOGI has requested that the <br />DRMS utilize the existing Travels Casualty and Surety Company of America Statewide Prospecting Bond No. <br />104806644 which is intended for all prospecting that occurs on public land. <br />The current Statewide Prospecting Bond No. 104806644 of $28,000,000.00 appears to be adequate to cover the <br />additional required reclamation cost of $612,434.00 at this time. <br />If you need additional information, please contact me at the Division of Reclamation, Mining and <br />Safety, Grand Junction Field Office, 101 S. 3rd St., Suite 301, Grand Junction, Colorado 81501, <br />telephone no. 970.241.2042. <br />Sincerely, <br />! / - <br />Z 7 <br />Travis Marsh-all <br />Environmental Protection Specialist <br />Cc: Steve Shuey, DRMS <br />Paul Daggett, Bureau of Land Management, White River Field Office <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines