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PERMIT #: P-2008-046 <br />INSPECTOR'S INITIALS: THM <br />INSPECTION DATE: April 5, 2011 <br />OBSERVATIONS <br />This inspection was conducted as part of the normal program established by the Colorado Division of <br />Reclamation, Mining and Safety. The ASMO RD&D Project is an Oil Shale Prospecting site located <br />approximately 25 miles west of Rio Blanco, Colorado southwest of Piceance Creek Road. Roger Day of AMSO <br />and Paul Daggett of the BLM were both present during the inspection. <br />The ASMO site is nearing the completion of construction of the required structures for the research project <br />and according to Roger Day the plan is to begin the heating phase of the operation July 1, 2011. Various <br />construction and drilling contractors were observed on site during the inspection. The drilling of the <br />remaining tomography wells on the TM-Pad was occurring during the inspection. The overall appearance of <br />the site was in order and free of unnecessary debris considering the amount of activity taking place during the <br />inspection. <br />The pads inspected were very muddy during the inspection due to melting snow. However, no evidence of <br />erosion or off site damage from erosion was observed. <br />All topsoil stockpiles appeared to be stabilized with adequate amounts of geo-textile matting and were easily <br />identified due to the signs posted on top of them. <br />No problems or violations were observed during the inspection. <br />Photos that show the conditions observed during the April 5, 2011 inspection are included at the end of this <br />report. <br />Responses to this inspection report should be directed to Travis Marshall at the Division of Reclamation, <br />Mining and Safety, Grand Junction Field Office, 101 South 3rd Street, Room 301, Grand Junction, Colorado <br />81501, phone no. (970) 241-2042. <br />Page 2 of 4