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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 11, 2011 <br />Mr. Harry H. Posey <br />Shell Exploration & Production Company <br />P.O. Box 481 <br />Houston, TX 77001 -0481 <br />Re: Shell Exploration & Production Company, Notice of Intent (NOI) P- 2010 -026, Review <br />of Multi - Mineral RDD Lease, Third Notice of Deficiency. <br />Dear Mr. Posey, <br />The Division of Reclamation, Mining and Safety (DRMS) has reviewed the Shell Exploration & <br />Production Company response to the DRMS Notice of Deficiency letter received July 14, 2011 <br />regarding the Multi - Mineral RDD Lease Notice of Intent to Conduct Prospecting Operations <br />(NOI), No. P- 2010 -026, submitted December 30, 2010. All original deficiency items have been <br />addressed by Shell's July 14, 2011 response. <br />The July 14, 2011 response included a revised reclamation cost estimate. The revised <br />reclamation cost estimate is less than the DRMS staff reclamation cost estimate. Please review <br />the enclosed Reclamation Cost Estimate and notify DRMS staff of any errors immediately. The <br />additional reclamation cost liability will need to be accepted by Shell and submitted in an <br />approvable form in order for the NOI to be considered active. <br />Please submit a response as soon as possible. If your response to the remaining adequacy issue <br />is not received the request for the NOI may be denied. <br />If you need additional information, please contact me at the Division of Reclamation, Mining <br />and Safety, Grand Junction Field Office, 101 S. 3rd St., Suite 301, Grand Junction, Colorado <br />81501, telephone no. (970) 241 -2042. <br />Travis Marshall <br />Environmental Protection Specialist <br />cc: Paul Daggett <br />BLM -White River Field Office <br />220 East Market Street <br />Meeker, CO 81641 <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 />SAF ETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />