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STATEMENT OF BASIS <br />SHELL FRONTIER OIL & GAS INC. <br />CLASS III SOLUTION MINING • <br />RIO BLANCO COUNTY, CO <br />EPA AREA PERMIT NO. CO32210 -00000 <br />CONTACT: Wendy Cheung <br />U. S. Environmental Protection Agency <br />Ground Water Program, 8P -W -GW <br />1595 Wynkoop Street <br />Denver, Colorado 80202 -1129 <br />Telephone: 1- 800 - 227 -8917 ext. 312 -6242 <br />This STATEMENT OF BASIS gives the derivation of site - specific UIC Permit conditions and reasons <br />for them. Referenced sections and conditions correspond to sections and conditions in the Permit. <br />EPA UIC permits regulate the injection of fluids into underground injection wells so that the injection <br />does not endanger underground sources of drinking water. EPA UIC permit conditions are based <br />upon the _authorities_set_forth in regulatory provisions at-4OECFR- Parts -144 and146,- and- address - <br />potential Impacts to underground sources of drinking water. Under 40 CFR §144.35, issuance of this <br />permit does not convey any property rights of any sort or any exclusive privilege, nor authorize <br />injury to persons or property of invasion of other private rights, or any Infringement of other Federal, <br />State or local laws or regulations. Under 40 CFR §144 Subpart D, certain conditions apply to all UIC <br />Permits and maybe incorporated either expressly or by reference. General Permit conditions for <br />which the content is mandatory and not subject to site - specific differences (40 CFR Parts 144, 146 <br />and 147) are not discussed in this document. <br />Upon the Effective Date when issued, the Permit authorizes the construction and operation of <br />injection wells so that the injection does not endanger underground sources of drinking water, <br />governed by the conditions specified in the Permit. The Permit is issued for the operating life of the <br />injection well or project unless terminated for reasonable cause under 40 CFR §144.39, §144.40 and <br />§144.41. The permit is subject to EPA review at least once every five (5) years to determine if action <br />is required under 40 CFR §144.36(a). <br />Permit CO32210-00000 <br />FINAL PERMIT Statement of Basis <br />