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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 />October 5, 2011 <br />Dear Mr. Day, <br />Mr. Roger Day <br />American Shale Oil, LLC <br />P.O. Box 1470 <br />Rifle, CO 81650 <br />Re: American Shale Oil, LLC, Notice of Intent (NOI) File No. <br />Monitoring to Confirm Adequate Isolation at Well TM -2. <br />On October 4 2011 American Shale Oil, LLC requested approval from the Division of <br />Reclamation Mining and Safety (DRMS) to conduct downhole monitoring at Well TM -2 to <br />determine if Halliburton's rating of "fair" cement to pipe bond is adequate and provides hydraulic <br />isolation of the retort test interval from the overlying L3 hydrostratigraphic unit. DRMS staff <br />agrees that the proposed test is beneficial to the operation and will also yield a greater <br />understanding of the hydraulic isolation that exists. Therefore the DRMS approves the request for <br />the proposed additional monitoring. Also, after the proposed testing has been completed <br />American Shale Oil, LLC has agreed to conduct a Mechanical Integrity Test (MIT) that requires <br />Well TM -2 to be filled with water and pressurized to 1,000 psi. The MIT will demonstrate if the <br />well's integrity remains intact after the proposed testing has taken place. <br />If you need additional information, please contact me at the Division of Reclamation, Mining and <br />Safety, Grand Junction Field Office, 101 S. 3rd St., Suite 301, Grand Junction, Colorado 81501, <br />telephone no. 970.241.2042. <br />Sincerely, <br />Travis Marshall <br />Environmental Protection Specialist <br />cc: Mr. Steve Shuey, DRMS <br />Mined Land Reclamation <br />Mr. Paul Daggett <br />BLM – WRFO <br />220 East Market <br />Meeker, CO 81641 <br />- -14✓n,sss <br />STATE OF COLORADO <br />+' NI cONFI Nl!0AL <br />RECEIVED <br />OCT 1 120 <br />Division or Ke%iamation, <br />Mining and Safety <br />008 -046, Proposed <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. Pineda <br />Director <br />Office of Office of <br />Denver • Grand Junction • Durango Active and Inactive Mines <br />