2012-12-12_REVISION - P2010026 (3)

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4.0 GROUND WATER MONITORING AND RESPONSE For the ELHT, the primary focus of the test will to evaluate the tendency for hotspots to form along the heater. The three heated intervals are widely spaced to prevent superpositioning and production rates will occur only as necessary to relieve internal pressure. Given the significant over burden pressures exerted by the rock, the lack of superpositioning of the heaters and the management of pressure by flow from the heater wells and the inclined observer /producer well, the risk of any containment breach is considered negligible. By design, the location of the heated intervals for the ELHT is located upgradient of the 138 -4 -298 well pattern. As such, the 138 -4 -298 well pad and specifically the L -4 well as well as the 135 -4 -298 well associated with the East RDD will also provide appropriate monitoring for the ELHT. Baseline monitoring data from the 138 and 135 well pads has been collected and submitted as part of the East RDD project requirements. 5.0 IN SITU DEVELOPMENT PLAN — ELHT 5.1 Development Plan The ELHT consists of three 1000 -foot long heaters installed on the East RDD lease at a pad site located adjacent to East RDD Pilot (Figure 2). The purpose of the ELHT is to test the tendency for hotspots to form along commercial mineral insulated (MI) heaters installed in a horizontal orientation. This testing supplements the data that will be generated at the East RDD Pilot by testing heaters in a nonvertical orientation and will inform Shell for future commercial design and deployment. Testing will involve: • Construction of a drilling pad located adjacent to and hydraulically up gradient of the 138 hydrology pad. • Installation of three horizontal heaters in three characteristically different non- water- bearing intervals of oil shale to test heater performance. Two heaters will be installed in higher resource intervals within the Saline Zone and one heater will be installed in a high resource interval within the Illite Zone. The two heaters in the nahcolite interval will test a high nahcolite condition and a low nahcolite condition. • Installation of deviated observer /producer well adjacent to the heater wells to provide additional pressure relief and gas production during heater testing. • Tie in of ELHT wells to the East RDD Pilot production facilities (i.e., separator, tanks and flare system). To the extent possible, that East RDD and ELHT will utilize two distinct separators for monitoring of produced fluid volumes. • Collection of temperature data along the entire length of the heaters during start up and ramp up of power to assess the development and severity of hotspot formation due to variation of the geothermal properties of the rock. 3