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<br />STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3567 <br />FAX: (303) 832-8106 <br />February 23, 2011 RIECEIVO <br />FEB 2 5 2-a i i <br />Mr. Harry H. Posey ` Division or Reclamation, <br />Shell Exploration & Production Company R,4inIng and Saf?ty <br />P.O. Box 481 <br />Houston, TX 77001-0481 <br />COLORADO <br />D I V I S ION OF <br />RECLAMATION <br />MINING <br />SAFETY <br />John W. Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E. Pineda <br />Director <br />Re: Shell Exploration & Production Company, Notice of Intent (NOI) P-2010-026?Review of <br />Multi-Mineral RDD Lease, Notice of Deficiency. ? <br />Dear Mr. Posey, <br />The Division of Reclamation, Mining and Safety (DRMS) has reviewed the Multi-Mineral RDD Lease <br />Notice of Intent to Conduct Prospecting Operations (NOI), No. P-2010-026, submitted December 30, <br />2010. The NOI has a few clarifications that need to be addressed in order for the notice to be considered <br />adequate to begin operations. <br />1. Initial review of the NOI submittal revealed that a hydrologic sampling and analysis plan was not <br />included with the original submittal. Please submit a hydrologic sampling and analysis plan that <br />complies with the requirements of Rules 3.1.6 and 3.1.7. Also, please specify proposed reporting <br />intervals. <br />2. Hydrology pad 138-4-298 is not identified/mislabeled on the East RD&D Pilot Facilities Plan <br />figure located in the figure section. Please provide a revised facilities layout figure that clearly <br />locates the 138-4-298 point of compliance. <br />3. Is the proposed location of a single L4 hydrology monitoring well sufficient to serve as an "early <br />warning" or should additional wells be installed to the northwest and southeast? If no other <br />wells are necessary please give a reason that explains why only one "early warning" well is <br />sufficient. <br />4. As discussed during the February 2, 2011 conference call between Harry Posey and Division <br />staff, the Division will require a pressure test after the production operation has ceased for each <br />well to assure that the integrity of the casing, cement and reservoir containment relative to the <br />overlying L4 WBI are all still intact. <br />5. In Section 62.4 Subsurface Reclamation, it states "Afterwards and after the reservoir is cooled <br />to an average temperature below the boiling point of water at formation pressure the voids <br />Office of <br />Mined Land Reclamation Office <br />Denver Grand Junction Durango Active and Inactive Mines