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miilidarcy in the remainder. The Saline Zone contains layers of nahcotite of various morphologies <br />that alternate with kerogen -rich layers and are remarkably continuous across the basin. Nahcolite <br />morphologies that appear In the Horse Draw mine occur in the same sequences at the East RDD. <br />Thus, it is inferred that the physical conditions at Horse Draw mine persist wherever the saline zone <br />exists, and since the Horse Draw mine is dry, it is inferred that the Saline'Zone is dry at the East <br />RDD. During mining in the 1970s and 80s, operations were conducted on 4 separate working levels <br />in the saline zone, all of which remained dry during mining. More recently, in 2009, Shell investigated <br />the conditions inside the Horse Draw Mine Shaft and found that the mine remained dry after more <br />than 25 years since the mine shaft was sealed at the surface. <br />PART II. Permit Considerations (40 CFR §146.34) <br />Geologic Setting <br />The Piceance Creek Basin located in northwestern Colorado is an elongated structural. and <br />stratigraphic depression, trending northwest - southeast. The basin is bounded by the Uinta Uplift to <br />the north, White River Uplift to the east, Sawatch Uplift to the southeast, and the Douglas Creek <br />Arch to the west. The Basin encompasses approximately 8.90 square miles, is asymmetric, and is <br />structurally deepest In the northwest where crystalline basement rocks are estimated to be 24,000 <br />feet below ground surface. The basin contains reserves of coal, natural gas, oil shale, and is also <br />mined for the sodium mineral nahcolite. <br />In the area of Shell's East RDD Project Site, the Piceance Creek Basin Is dominated by Uinta <br />Formation outcrops that overlie the Green River Formation, both of Eocene age. The Uinta <br />Formation is characterized by fine to medium grained sandstone interbedded with siltstone, sandy <br />siltstone, many siltstone, and thin beds of coarse grained or pebbly sandstone. The underlying <br />Green River Formation is locally divided into three members; the Douglas Creek Member at the <br />base, Garden Gulch Member above, and Parachute Creek Member at the top. (Locally at the Shell <br />East RDD site, the Douglas Creek Member has not been identified.) <br />The Parachute Creek Member is the thickest and most economically important unit in the Green <br />River Formation. The Parachute Creek Member has a large areal extent and contains all of the <br />commercial resources of oil shale and nahcolite. Oil shale, which is kerogen- bearing manstone, and <br />dolomite manstone; are - the dominant iithologiea ofthe Parachute Creek Na it colite beds <br />and segregates are present in the Saline Zone, which occupies the lower part of the Parachute <br />Creek Formation in basin center. Notable concentrations of dawsonite occur within the Saline Zone, <br />and halite occurs sporadically in the upper Saline Zone and principally at the basin deposition center <br />(i.e., not at the East RDD project). <br />The Saline Zone constitutes the most Important resource interval in the entire Piceance Creek Basin. <br />It not only contains tremendous quantities of oil shale but mineable concentrations of nahcolite and <br />significant concentrations of dawsonite, and halite in basin center where the upper contact of the <br />Saline Zone is overlain by the hydrostratigraphic L4 WBI. Recent resource assessments by the U.S. <br />Geological Survey Indicate that the Saline Zone in the Piceance Creek Basin represents an in -place <br />oil. shale resource of about 1.9 million barrels per acre and nahcolite resources on the order of 4.5 <br />billion tons, or 542,541 tons per acre. The U.S. Department of interior indicated that dawsonite <br />resources in the Saline Zone comprise approximately 195,000 tons per acre. <br />The Saline Zone is bounded at the top by the Dissolution Surface, and at the base by a horizon that <br />marks the lowermost occurrence of nahcolite in the R2 zone. Besides parts of the L4 and LO zones, <br />the Saline Zone at the East RDD lease area also includes all of the R4, L3, R3, L2, R2, L1, R1, and <br />LO stratigraphic zones. <br />Permit CO32210 -00000 4 FINAL PERMIT Statement of Basis <br />