2010-01-11_REVISION - M1980047 (2)

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DIVISION OF RECLAMATION, MINING AND SAFETY Department of Natural Resources 1313 Sherman St., Room 215 Denver, Colorado 80203 Phone: (303) 866-3567 FAX: (303) 832-8106 January 11, 2010 Mr. Tom L. Adams ExxonMobil P.O. Box 2567 Houston, TX 77252 STATE OF COLORADO RECEIVED JAN 2 5 2010 Division o< - 'ion, Mining ano Safety COLORADO D IV IS I ON OF RECLAMATION MINING SAFETY Bill Ritter, Jr. Governor Harris D. Sherman Executive Director Ronald W. Cattany Division Director Natural Resource Trustee RE: Notice of Determination That Permit No. M - 1980 - 047, Also Known as Colony Shale Oil Project, is a Designated Mining OperationYNotice that the proposed operations must be submitted as a Permit Amendment Dear Mr. Adams As a result of a review of your operational conditions, to include pertinent site geology, hydrology and geochemistry, associated materials to be or being extracted, chemicals, reagents and processes proposed for use or in use, and other applicable file documents, the Division has determined that your proposed or existing operation, File No. M-1980-047, is a Designated Mining Operation (DMO). This detennination is made in conformance with the provisions of Rule 7.2 of the Minerals Rules and Regulations of the Colorado Mined Land Reclamation Board. Specifically, the determination that your operation is a DMO is based on the following: Colorado Revised Statute (C.R.S.) 34-32-103(1) defines "acid or toxic producing materials" as "natural or reworked earth materials having acid or toxic chemical or physical characteristics." The proposed operations specified in the Technical Revision application submitted by ExxonMobil and received by the Division of Reclamation, Mining and Safety (DBMS) on December 21, 2009 that indicates toxic materials in the form of kerogen and hydrocarbon gas will be exposed or disturbed as a result of mining operations. • C.R.S. 34-32-103(3.5)(a)(II) defines a DMO as " a mining operation at which acid- or toxic-forming materials will be exposed or disturbed as a result of mining operations." Mining operations proposed at the Colony Shale Oil Project will disturb toxic-forming materials through pyrolisis of oil shale (marlestone). Thus, the Colony Shale Oil Project meets the criteria for a DMO. If you agree with this determination, you are required to notify the DRMS by mail of your concurrence within 30 days of the date of this notice and proceed to comply with the requirements of Subsection of Rule 7.2.3 of the Hardrock Rules and Regulations. If you disagree with the Division's determination, you may appeal this notice in writing to the Division within 30 days of the Notice date, (Rule 7.2.4). The DRMS has also determined that the proposed operations included in the Technical Revision application must be addressed through the Permit Amendment process. Therefore, the technical revision fee is being returned and is enclosed. Office of Office of Active and Inactive Mines Mined Land Reclamation Denver Grand Junction Durango