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<br />American Shale Oil, LLC? <br />110 East 3`d Street, Suite 201 <br />P.O. Box 1470 <br />Rifle, CO 81650 <br />Phone: 970-625-4324 <br />Fax: 970-625-4318 <br />February 17, 2011 <br />RECEIVED <br />FEB 18 2011 <br />Mr. Travis Marshall <br />Colorado Division of Reclamation Mining & Safety <br />101 South 3`d Street, Suite 301 <br />Grand Junction, Colorado 81501 <br />RE: Responses to Notice of Deficiency, NOI No. P-2008-046, MD-5 <br />Dear Mr. Marshall: <br />GRAND JLINCTION r[ELL) OFFICE <br />DIVISION OF <br />RECLAMATION MINING A SAFETY <br />American Shale Oil, LLC (AMSO) has prepared this letter in response to your letter dated <br />February 16, 2011 regarding a Notice of Deficiency in AMSO's January 31, 2011 submittal of <br />Modification 05 to NOI No. P-2008-046. A response to each of the issues identified in your <br />referenced letter is provided below. <br />1. AMSO acknowledges that DRMS has increased the post-operational monitoring period <br />from three years to five years. Therefore, post-operational monitoring will be conducted <br />quarterly for a one-year period (four events) following operations and annually thereafter <br />for an addition four-year period (four events) rather than an additional two-year period as <br />was previously approved. During each sampling event, groundwater samples will be <br />collected from one downgradient well completed in the L3 hydrostratigraphic unit and <br />one downgradient well completed in the B-Groove hydrostratigraphic unit. In addition, <br />one surface-water sample will be collected at the monitoring station established on Black <br />Sulphur Creek. A cost estimate for each sampling event, prepared by Western Water & <br />Land, Inc. (WWL), is provided below <br />Labor - 27 hours (2 people at combined rate of $125.00/hour): <br />Travel - vehicle expense: <br />Supplies/Field Instrumentation: <br />Sample Shipment: <br />Laboratory Analysis - 3 samples/round at $1,200.00/sample: <br />Total per 1 event: <br />$ 3,375.00 <br />200.00 <br />225.00 <br />100.00 <br />3,600.00 <br />$ 7,500.00 <br />Total per 8 events: $60,000.00