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AMERICAN <br />SHALE OIL <br />LLC <br />S <br />July 26, 2011 <br />Mr. Travis Marshall <br />Colorado Division of Reclamation Mining & Safety <br />101 South 3r Street, Suite 301 <br />Grand Junction, Colorado 81501 <br />Mr. Kent Walter, Manager <br />White River Field Office <br />US Bureau of Land Management <br />220 East Market Street <br />Meeker, CO 81641 <br />Ms. Wendy Cheung <br />US EPA Region 8 <br />Mailcode: 8P -W -GW <br />1595 Wynkoop Street <br />Denver, CO 80202 -1129 <br />a0$ - O' <br />TWA %32. .ss� <br />RE: American Shale Oil, LLC — Casing Cement Operations & Evaluations <br />Qa,a. cvaA.u04: o <br />et- <br />American Shale Oil, LLC <br />110 East 3 Street, Suite 201 <br />P.O. Box 1470 <br />Rifle, CO 81650 <br />Phone: 970 - 625 -4324 <br />Fax: 970 - 625 -4318 <br />Rr-CE <br />AUG 04 2011 - ? <br />Divl;; n o i2eciam n, 1J ' <br />Mining and Safety <br />Dear Mr. Marshall, Mr. Walter, and Ms. Cheung: <br />American Shale Oil, LLC (AMSO) has completed installation of cement seals within the annulus of each <br />well on the TM Pad at AMSO's oil shale RD &D site in Rio Blanco County, Colorado. The wells on the <br />TM Pad include the production well (T1 -P) and area of review wells TM -1, TM -2, TM -3, TM -4, TM -5, <br />TM -6, and BH -1. Cementing operations were recently completed at well T1 -H located on the Test Pad; <br />however, cement evaluation logging has not yet been completed. The cement log and evaluation for well <br />T1 -H will be submitted under separate cover. <br />Wells BH -1 and TM -1 were drilled and casings cemented in 2009. Well BH -1 was conventionally <br />cemented using a light- weight slurry and glass beads. Cementing was performed at well TM -1 by placing <br />neat cement within the annulus using tremie methods. The remaining wells were drilled this year, and <br />cementing was accomplished by forcing nitrogen foamed cement into the annulus using down -hole <br />pressure. <br />During drilling of the referenced wells, circulation was generally well maintained with typically very little <br />losses in the lower portion of the well bores and only some minor losses reported higher in the well bores. <br />Except for well TM -4, cement was visually observed at the ground surface during cementing operations, <br />indicating cement was present within the annulus of each well throughout the cemented interval. It is <br />