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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />COLORADO <br />Colorado 80203 <br />t v t s t o v o f <br />TDenver, <br />IARMAON <br />Phone: (303) 866 -3567 <br />MINING <br />FAX: (303) 832 -8106 <br />_ &— <br />SAFETY <br />July 1, 2013 <br />John W. Hickenlooper <br />Florentio Vuelvas <br />Governor <br />Shell Frontier Oil & Gas, Inc. <br />Mike King <br />3333 Highwat 6 South, M 1074 <br />Executive Director <br />Houston, TX. 77082 -3101 <br />Loretta E Pineda <br />Director <br />Mahogany Research Project, Permit P- 2012 -014, Annual Fee Invoice and Report Request <br />PLEASE READ CAREFULLY — ACTION REQUIRED <br />Please attach your COMPLETED written Annual Report and Annual Report Map to this form <br />Under the terms of your NOI and Colorado Statutes, you must submit Annual Fees and Annual Reports (including a map). You must <br />pay the Annual Fee and submit an Annual Report each year until reclamation responsibility release is granted. The Annual Fee is not <br />a renewal fee. The Fee and Report are for LAST YEAR'S exploration and reclamation season, and MUST be paid even if your <br />operation was inactive. <br />The Annual Report and Fee requirement will be considered submitted when we have received the following components: <br />1. ANNUAL FEE ($86) <br />2. COMPLETED ANNUAL REPORT <br />3. ASSOCIATED MAP as required by rule <br />If you have requested reclamation responsibility release from the Division of Reclamation, Mining and Safety ( "Division ") but your <br />permit is not released by the anniversary date listed below, the Annual Fee MUST be paid. If the permit is released before the <br />anniversary date, then by Statute, it is not necessary to pay an Annual Fee or submit an Annual Report for that year. Division records <br />indicate the $86.00 fee is due for the following NOI(s) on or before the Anniversary Date: <br />Permit: P- 2012 -014 <br />Operation Name: Mahogany Research Project <br />Anniversary Date: August 7, 2013 <br />Return the enclosed Annual Report FORM, a MAP, and a CHECK or MONEY ORDER made payable to: Division of Reclamation, <br />Mining and Safety, 1313 Sherman St., Room 215, Denver, CO 80203. If your records indicate these documents and fees have already <br />been submitted, please notify the Division. <br />If you have additional comments and/or information that should be provided to the Division, please attach it to this form along with <br />your written report and map. Annual Report instructions are enclosed. If you have any questions, please feel free to contact Jim <br />Dupler (303)866 -3567 x8119 or Christine Brookshire (303)866 -3567 x8132. Thank you for your cooperation in this matter. <br />IF 'I IIE COMPLETE ANNUAL F E F SUBMI'l TALS ARE NOT RECEIVF D ON OR BEFORE YOUR ANNIVERSARY DATE, <br />THE ENFORCEMENT PROCESS WILL AUTOMATICALLY BE INIAI 1ED. ENFORCEMENT ACTIONS WILL RESULT IN <br />CIVIL PENALTIES AND POSSIBLE REVOCATION OF YOUR PERMIT. PER RULE 5.6(2) FAILURE TO SUBMIT AN <br />ANNUAL REPORT FOR TWO CONSECUTIVE YEARS SHALL CONTITUTE EVIDENCE OF ABANDONMENT OF <br />PROSPECTING. <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />