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1 <br />4 <br />Shell Exploration & Production <br />RECEIVED <br />J U LY 31, 2009 <br />HAND DELIVERED AUG 0 3 7009 <br />DIVISIon of Reclamation, <br />Attn: Steve Shuey Mining and Safety <br />Grand Junction Field Office <br />Colorado Division of Reclamation, Mining and Safety <br />101 South 3`d, Suite 301 <br />Grand Junction, CO 81501 <br />p-a00q- oaq <br />Shell Frontier Oil & Gas Inc. <br />P. O. Box 478 <br />Meeker, Colorado 81641 <br />Subject: NOTICE OF INTENT TO CONSTRUCT PROSPECTING OPERATIONS <br />2009-10 RD&D East Lease Appraisal <br />Section 4, T2S-R98W 6th PM, Rio Blanco County <br />Dear Mr. Shuey, <br />Shell Frontier Oil & Gas Inc. (SFOGI) hereby submits the attached Notice(s) of Intent <br />(NOI) to conduct prospecting operations (both Public & Private Forms) on public lands <br />managed by the Bureau of Land Management for the 2009/10 RD&D East Appraisal <br />Program. The purpose of drilling activity associated with this NOI is to facilitate a better <br />understanding of the oil shale resource by drilling a series of hydrology holes and <br />obtaining core information at some of these drill hole locations. The Project includes <br />hydrology drill holes at 3 new drill pad locations, including 135-4-298, 137-4-298 and <br />138-4-298. As described in the NO[, SFOGI intends to drill 8 hydrology holes on Pad <br />137-4-298 and 138-4-298, and 4 hydrology/core holes at Pad 135-4-298. <br />The attached NOI package contains the following detailed information on hole locations <br />and depth, drilling activity, pad layout, plugging and abandonment, and reclamation <br />activities.. <br />After completion of logging, testing and coring procedures, all holes covered under this <br />NOI will be abandoned and reclaimed in accordance with applicable requirements. All <br />materials, construction methods and completed wells shall conform to Colorado Water <br />Well Construction rules (2CCR 402-2), Rule 5.4 of the Hard Rock/Metal Mining Rules <br />and Regulations, and to any additional Bureau of Land Management, county and local <br />ordinances. <br />Each hole on a pad is requested to be permitted for the estimated maximum total depth. <br />Financial warranty will be provided to reclaim the drill pads and proposed access roads <br />and plug and abandon holes. Each drill pad disturbance will not exceed 1.5 acres <br />which is a conservative estimate of disturbance for which the financial warranty <br />calculations are based upon. Well construction reports will be submitted within 60 days <br />of completion, as required by Office of State Engineer, copies will be forwared to the to <br />the Department.