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PERMIT #: M- 1983 -194 <br />INSPECTOR'S INITIALS: THM <br />INSPECTION DATE: November 14, 2011 <br />OBSERVATIONS <br />This inspection was conducted by the Colorado Division of Reclamation, Mining and Safety in response to a <br />release of reclamation liability request for six wells, five of the wells have been plugged and abandoned and one <br />appraisal well that was not drilled. The purpose of the inspection was to verify the wells have been P &A'd. <br />Carl Meyer and Eric Simms accompanied the inspector during the inspection. <br />All P &A'd wells were observed during the inspection. Re- grading and revegetation of the well pads had also <br />been completed for the well pads associated with the P &A'd wells. Various revegetation successes were <br />observed from established vegetation to zero vegetation on the most recently re- graded well pad. The Division <br />will release the operator of the reclamation liability for the plugged and abandoned wells. <br />A reclamation cost estimate without the costs associated for the P &A'd wells will be sent to the operator under <br />separate cover. <br />The inspection conducted on November 14, 2011 was only a partial inspection to view the abandoned wells and <br />no other components of the operation were inspected. <br />If you need more information regarding this inspection report please contact Travis Marshall in the DRMS <br />Grand Junction Field Office at (970) 241 -2042. <br />Page 2 of 4 <br />