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T sS,Da A3u1 <br />' 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 /> <br />January 11, 2010 A ?® <br />Mr. Tom L. Ad 1 1 any 212010 <br />aUOn' <br />ExxonMobil f Fteclam <br />° <br />P.O. Box 2567 Miffing and Safety <br />Mini <br />Houston, TX 77252 <br />COLORADO <br />D I V IS I ON OF <br />RECLAMATION <br />MINING <br />SA ETY <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. Notice of Determination That Permit No. M - 1980 -047 "Also Known as Colony <br />Shale Oil Project, is a Designated Mining Operation. Notice that the proposed <br />operations must be submitted as a Permit Amendment <br />Dear Mr. Adams <br />As a result of a review of your operational conditions, to include pertinent site geology, hydrology and <br />geochemistry, associated materials to be or being extracted, chemicals, reagents and processes proposed <br />for use or in use, and other applicable file documents, the Division has determined that your proposed or <br />existing operation, File No. M-1980-047, is a Designated Mining Operation (DMO). This determination <br />is made in conformance with the provisions of Rule 7.2 of the Minerals Rules and Regulations of the <br />Colorado Mined Land Reclamation Board. Specifically, the determination that your operation is a DMO <br />is based on the following: <br />Colorado Revised Statute (C.R.S.) 34-32-103(1) defines "acid or toxic producing <br />materials" as "natural or reworked earth materials having acid or toxic chemical or physical <br />characteristics." The proposed operations specified in the Technical Revision application <br />submitted by ExxonMobil and received by the Division of Reclamation, Mining and Safety <br />(DRMS) on December 21, 2009 that indicates toxic materials in the form of kerogen and <br />hydrocarbon gas will be exposed or disturbed as a result of mining operations. <br />• C.R.S. 34-32-103(3.5)(a)(II) defines a DMO as " a mining operation at which acid- or <br />toxic-forming materials will be exposed or disturbed as a result of mining operations." <br />Mining operations proposed at the Colony Shale Oil Project will disturb toxic-forming <br />materials through pyrolisis of oil shale (marlestone). Thus, the Colony Shale Oil Project <br />meets the criteria for a DMO. <br />If you agree with this determination, you are required to notify the DRMS by mail of your concurrence <br />within 30 days of the date of this notice and proceed to comply with the requirements of Subsection of <br />Rule 7.2.3 of the Hardrock Rules and Regulations. If you disagree with the Division's determination, you <br />may appeal this notice in writing to the Division within 30 days of the Notice date, (Rule 7.2.4). <br />The DRMS has determined that the proposed operations included in the Technical Revision application <br />must be addressed through the Permit Amendment process. Therefore, the technical revision fee is being <br />returned and is enclosed. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines