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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 />November 4, 2011 <br />Mr. Roger Day <br />American Shale Oil, LLC <br />P.O. Box 1470 <br />Rifle, CO 81650 <br />Loretta E. Pineda <br />/ Director <br />Re: American Shale Oil, LLC, AMSO RD &D Project, MD-06, Notice of Intent (NOI) P- 2008 -046, <br />Approval. <br />Dear Mr. Day, <br />The Division of Reclamation, Mining and Safety (DRMS) has completed the review of the above <br />referenced Notice of Intent modification application. It appears that the application meets the <br />requirements of the Act and Rules. Therefore, staff is pleased to inform American Shale Oil, LLC that <br />Modification No. 6 is approved. <br />Modification No. 6 addresses the following: <br />• Revise the plugging and abandonment procedure for any well with logging information that <br />indicates that the top of cement placed within the annulus outside the longstring casing is below the <br />ground surface. <br />The terms of the Modification No. 6 approved by the Division are hereby incorporated into Permit No. P- <br />2008 -046. All other conditions and requirements of Permit No. P- 2008 -046 remain in full force and effect. <br />Staff calculations estimate the additional cost to reclaim the site to be $ 288,342.73, added to the existing <br />required reclamation bond amount of $546,893.00 for a total reclamation bond amount of $ 787,390.73. <br />The estimate is based on the increased reclamation liability associated with Modification No. 6 and the <br />recent updates to the DRMS reclamation cost estimating program. American Shale Oil, LLC must submit <br />and have accepted the Financial Warranty for the modification to the permit to become active. For <br />questions regarding bond placement please contact Barbara Coria at phone no. (303) 866 -3567, extension <br />8148. <br />If you need additional information, please contact me at the Division of Reclamation, Mining and Safety, <br />Grand Junction Field Office, 101 S. 3rd St., Suite 301, Grand Junction, Colorado 81501, telephone no. <br />970.241.2042. <br />Sincerely, <br />Travis Marshall <br />Environmental Protection Specialist <br />Office of <br />AAinnfl 1 anrt Parlamatinn <br />STATE OF COLORADO <br />NOV 062Q11 <br />Dviglon of Reclamation, <br />Mining and Safety <br />Danvar • Grand Junction • Duraneo <br />COLORADO <br />D I V I S I O N O F <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Office of <br />Active and Inactive Mines <br />