2011-07-14_PERMIT FILE - P2010026

• Permit No: P2010026
• IBM Index Class Name: Permit File
• Doc Date: 7/14/2011
• Doc Name: Response to your review of 06/09/2011
• From: Shell International Exploration & Production
• To: DRMS
• Email Name: THM
• Media Type: D
• Archive: No

Shell Frontier Oil & Gas Inc.
FINANCIAL WARRANTY CALCULATION
SUBSURFACE RECLAMATION COSTS
Site: East RDD Pilot Project Date: July 12, 2011
Task no.: 10
Lab analytical costs:
Analytical suite
I Cost
JSuite description
BETX
BETX
$56
Benzene
$56
Included as part of BTEX analysis
BETX + selected metals, inorganics & semi -VOA's
Expanded
$420
Temperature
$0
NA - temperature monitoring transducer only
Assumptions:
1 - Natural cooling of the pyrolyzed reservoir is expected to take 2 years after cessation of production.
2- Two years of reservoir temperature monitoring necessary during post - production cooling phase.
3- Five years of ground water monitoring at pad 138 -4 -298. Includes two years of initial monitoring during
post - production cooling phase followed by three years of additional monitoring required to demonstrate
compliance with ground water quality standards.
4- Reservoir voids filled with water using SFOGI -owned water hauled from private well in Corrral Gulch.
Monitoring costs:
Manpower: Operator: $50,000 Per technician per year
0.5 1/2 time technician
$25,000 Total per year
O & M: Pumps & controllers: $35,000 Monitoring well pumps & equipment
Electricity (portable generator): $6,424 Power for well pump operation only
Waste disposal: $10,000 Waste water from monitoring wells only
Reporting: $25,000
$76,424 Total per year
Monitoring: YEAR # WELLS PARAMETERS # SAMPLES/YR COST/YR
Observer wells: 1 6 Temperature 4 $0.00
2 6 Temperature 4 $0.00
Hydrology pad 138 -4 -298: 1 5 Expanded 4 $8,400.00
2 5 Expanded 4 $8,400.00
3 5 BTEX 2 $560.00
4 5 BTEX 2 $560.00
5 5 BTEX 2 $560.00
Reservoir filling costs: Water truck - 3,500 gal. capacity:
Cost of water *: $0.00 /gal. Total gallons: 378,000 Total water cost: $0.00
Cost of hauling *: $57.96 /hour Gallons /load: 3,500 Hours /load: 1.00
Total hauling time (hours): 108.00 Total hauling cost: $6,259.75
Total reservoir filling cost: $6,259.75
* Water hauled from SFOGI -owned well in Corral Gulch using diesel powered on- highway water truck.
Total job cost: YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 FILL RESERVOIR
$109,824 $109,824 $101,984 $101,984 $101,984 $6,260
Total: $531,861
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