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-+A r'`'l, S 55 <br />4/26/2011 <br />REGEIV? <br />HAY 0 2 2011 <br />_PR?h? <br />MEMO / <br />Shell Frontier Oil & Gas ? <br />Division of lkeciamation, <br />Kriiog ar,d ?af?ty <br />RE: Received phone call from Greg Monson at 10:00am reporting a spill incident at the East <br />Lease Appraisal Prospect, P-2009-024. ;/ <br />Mr. Monson reported the following: <br />• 135-4-298 (SAW 2) an L4 hydrology monitoring well, was drilled and cased to 1,500' <br />and then drilled to a TD of 2,000'( -500' with no casing). <br />When drilling was complete the driller was air misting on way out of hole to purge/clean <br />out hole. During the process water was recovered on the surface and directed into tanks. <br />While removing the water diverter from the drilling equipment, suspected trapped air <br />(probably in a vug/void) forced approximately 100bb1 of water from borehole onto <br />surface. The majority of the water (-80bb1) was captured on site and was collected into <br />a pit and recovered. Approximately 20 bbl was not recovered due to it being spilled on <br />surface and infiltrating. The surface that the spill occurred on was stripped of topsoil <br />and graveled therefore no vegetation was compromised. <br />The fluid spilled had a TDS of -32,000ppm due to it being from the water bearing zone <br />immediately above the dissolution surface. <br />The surface is approximately 350' above the Uinta aquifer therefore the potential for the <br />spill to impact the aquifer is minimal to non-existent. <br />Mr. Monson will follow up with a written report once all details regarding the incident <br />are obtained.