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DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />August 1, 2011 <br />Shell Frontier Oil & Gas, Inc. <br />3737 Bellaire Blvd. (BTC 4024) <br />Houston, TX 77025 <br />PLEASE READ CAREFULLY <br />MINED LAND RECLAMATION BOARD <br />NOTICE OF INTENT TO EXPLORE ANNUAL FEE INVOICE <br />Under the terms of your Notice of Intent (NOI) and Colorado Statutes, you must submit Annual Fees. You must <br />pay the Annual Fee each year until reclamation responsibility release is granted. The Annual Fee is not a renewal <br />fee. The fee is for LAST YEARS exploration season, and MUST be received even if your operation was in an <br />inactive state. The fee is due ON OR BEFORE your NOI anniversary date shown below. <br />If you have requested reclamation responsibility release from the Division of Reclamation, Mining and Safety (the <br />"Division ") but your NOI is not released by your anniversary date listed below, the annual fee MUST be paid. If <br />the NOI is released before the anniversary date, then by Statute, you do not pay an annual fee for that year. <br />PLEASE NOTE: IF THE ANNUAL FEE IS NOT RECEIVED ON OR BEFORE YOUR ANNIVERSARY <br />DATE, A FORMAL NOTICE OF VIOLATION AND A BOARD ORDER TO PAY CIVIL PENALTIES IN THE <br />AMOUNT EQUAL TO THE ANNUAL FEE $$86.00 WILL BE AUTOMATICALLY ASSESSED. NO NOI <br />FOR NEW EXPLORATION OPERATIONS SHALL BE GRANTED TO ANY OPERATOR WHO IS <br />CURRENTLY FOUND TO BE IN VIOLATION IN THIS STATE (C.R.S. 34- 32.5 -120 OR C.R.S. 34 -32 -120) <br />UNTIL THE VIOLATION IS ABATED. <br />Division records indicate $86.00 fee is due <br />NOI No.: P- 2009 -024 <br />Operation Name: 2009 -10 RD &D East Lease Appraisal <br />Anniversary Date: September 1, 2011 <br />Total Fee Due: $86.00 (Due on or before your Anniversary Date) <br />If your records indicate different facts than those stated above please notify the Division. <br />Please return an annual REPORT and a CHECK or MONEY ORDER made payable to the Division of <br />Reclamation, Mining and Safety, 1313 Sherman St., Room 215, Denver, Colorado 80203. <br />Thank you for your cooperation in this matter. <br />M: \OSS\MR1\ANNFEE\LETTERI SEPT- 2011 -P\P- 2009 -024 FI.DOC <br />Office of <br />Mined Land Reclamation <br />STATE OF COLORADO <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />— &— <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pirleda <br />Director <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />