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<br />Shell Exploration & Production <br />RE.-CE=V60 Shell Frontier Oil & Gas Inc. <br />3737 Bellaire Blvd. <br />MAY 2 0 2011 Houston, TX 77025 <br />May 12, 2011 Division of Reclamation, <br />Y ring and Safety RECEIVED <br />FED EX TRK # 7970 8969 5952 MAY 1 3 2011 <br />Mr. Paul Daggett (Ref: Oil Shale RD&D Lease COC 69166) GRAND JUNCTIo;v HELU OFFICE <br />Bureau of Land Management - White River Field Office DMSION OF <br />220 East Market Street RECLAMATION MINING & SAFETY <br />Meeker, CO 81641 <br />FED EX TRK # 7947 5076 7760 <br />Mr. Travis Marshall (Ref: NOI No. P-2009-024)" <br />Colorado Division of Reclamation, Mining and Safetll__? <br />101 South 3rd Street, Suite 301 <br />Grand Junction, CO 81501 <br />Gentlemen: _ 20 0? _ 2 c-) / <br />SUBJECT: FOLLOW-UP WRITTEN REPORT - GROUNDWATER RELEASE v <br />EAST RD&D APPRAISAL PROJECT <br />SHELL FRONTIER OIL & GAS INC. <br />RIO BLANCO COUNTY, COLORADO <br />In follow-up to our verbal reports on April 29, 2011 to the Bureau of Land Management (BLM) at <br />10:20 am MST, the Colorado Division of Reclamation, Mining and Safety (CDRMS) at 10:10 <br />am MST, and our courtesy call to the Colorado Department of Public Health and Environmental <br />(CDPHE) Release and Incident Reporting Line, this letter provides the follow-up written <br />summary of the reported event. <br />Date and Time of Occurrence <br />The event occurred at approximately 11:00 am MST on April 28, 2011. <br />Location of Incident <br />The release occurred while drilling hydrology appraisal well 135-4-298-SAW2(L4) on Shell <br />Frontier Oil & Gas Inc.'s Oil Shale Research, Development and Demonstration (RD&D) Lease <br />(Lease No. COC 69166) located on Federal land under BLM management in the SE1/4 of the <br />NW1/4, Section 4, Township 2 South, Range 98 West, 6'h Principal Meridian, in Rio Blanco <br />County. Appraisal of the oil shale resource is being conducted at this site under the jurisdiction <br />of the CDRMS. <br />Nature and Cause <br />After reaching total depth during drilling of the open hole (1-4) section of the appraisal well using <br />pressurized air/water mist, the drill string was tripped out of the hole and the wellhead diverter <br />(used to direct groundwater from the well to surface tankage) was removed so that the well <br />could be capped. However, prior to capping the well, pressurized air was released back into <br />East RD&D Appraisal-Spill Report-05121 1.doc <br /> <br />