INSPEC45127

• Permit No: M1980047
• IBM Index Class Name: Inspection
• Doc Date: 12/15/2006
• Doc Name: Response to Problem No. 2
• From: Exxon Mobil Corporation
• To: DRMS
• Inspection Date: 7/19/2006
• Media Type: D
• Archive: No

ExxonMobit
Global Services Company
Colony Shale Oil Project
P.O. Box 2567
Houston, Texas 77252-2567
December 14, 2006
Colorado Division of Reclamation, Mining & Safety
Grand Junction Office
101 South 3`d Street, Suite 301
Grand Junction, Colorado 81501
Attention Steve Shuey
E~onMobil
Re: Colony Shale Oil Project -Garfield County, Colorado
MLRB Permit Number's a nd~
DEC 15 2006 +~
GRAND JUNCTION FIELD OFFICE
RECLAMATION M~NlNG & SAFETY
Ladies and Gentlemen: ~eS~?nse, ~(-~ PIYI~Evi1 .(f~, ~ t ~? 7-19'O~? i~ISP. r~pL, (/
'1
This letter sets forth the response of Exxon Mobil Corporation to item number 2 in the
Inspection Report for t~h/e Colony Shale Oil Project dated September 6, 2006 (inspection
date was July 19, 2006 wherein the DRMS requested that ExxonMobil "submit notice of
their decision to either reactivate or reclaim the site."
ExxonMobil does not believe the site is in "a maintenance mode" as described in the
DRMS Inspection Report. We continue to engage in development of the permitted lands.
ExxonMobil, however, proposes that it work with the DRMS to clarify that there are now
some areas currently included in the MLRB Permit at the Colony site that should be
removed from the Permit because either (1) reclamation is complete, or (2) the areas
should be accorded a change in use so that they are no longer part of the permitted area.
Although we outline these areas in this letter, ExxonMobil proposes that a meeting be
scheduled with DRMS in January 2007 to discuss this further and determine the proper
procedural mechanism for a technical revision to reduce the affected lands subject to the
Permit. Importantly, ExxonMobil will not request any change to its current financial
warranty to assure reclamation of the Colony Project site.
Background
The MLRB permit for the Colony Shale Oil Project was issued October 23, 1980, with
subsequent amendments in 1981, 1982, and 1984. There have also been seven technical
revisions, the last being in 1992. The Project area is in Garfield County at the north end
of Parachute Creek, 12 miles north of the Town of Parachute. The total permitted
acreage is 6,778 acres. Of this amount, 1,127 acres was listed as disturbed in the 1982
Interim Site Plan ("1982 ISP"). In 2000, the total affected area was reported as 1,131
acres. This last number includes, in all probability, some acreage associated with
pipeline construction separate from the Colony Shale Oil Project.
An ExxonMobil Subsidiary