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<br />S? American Shale Oil, LLC <br />A)IERICAN <br />S) .\LE OIL <br />LORV <br />RECEIVED <br />AUG 0 7 2009 ? <br />GRAND JUNCTION FIELD OFFICE <br />DIVISION OF <br />RECLAMATION MINING & SAFETY <br />August 7, 2009 <br />Mr. Travis Marshall <br />Colorado Division of Reclamation, Mining and Safety <br />101 South 3rd Street, Suite 301 <br />Grand Junction CO 81501 <br />RE: American Shale Oil, LLC - NO} No. P-2008-046 V <br />Notice of Deficie cy MD-02 ? <br />r,FO?5 Q <br />Dear Travis, <br />RECHlvED <br />AUG 1 1 2009 <br />Division of Reclamation, <br />Milling and Safety <br />American Shale Oil, LLC (AMSO) is submitting this response to the Colorado Division <br />of Reclamation, Mining and Safety (DRMS) Notices of Deficiency dated June 17, 2009, <br />and July 7, 2009, for AMSO NOI Modification MD-02. Each deficiency noted by the <br />DRMS is presented in italics below followed by AMSO's response to that deficiency. <br />From the June 17, 2009 DRMS letter <br />1. In the Plan of Development Volume 1 of 3, Page 43, it states "Aquifers are known to <br />exist below the mining interval in some locations in the basin but not in other <br />locations. " Please explain the meaning and relevance of this statement <br />AMSO Response: <br />It is AMSO's understanding that it is the policy of the DRMS to require groundwater <br />monitoring above, within, and below underground mining activities. AMSO plans to <br />develop the oil shale resource in the illite oil shale mining interval near the bottom of the <br />oil shale column. The Wasatch Formation lies below this mining interval. Within the <br />Piceance Basin, information contained in the literature and from other oil shale <br />developers in the Basin indicates that water can be found in the Wasatch Formation in <br />some locations and not in others. AMSO has completed its MWP 2-WS Monitoring well <br />in the Wasatch Formation. Monitoring well MWP 2-WS is sealed with cemented steel <br />casing to the top of the Wasatch Formation, with the open interval extending <br />approximately 100 feet below the casing point. Pressure transducer readings and <br />downhole video have demonstrated that the well is dry. In addition, an exploration hole <br />(BH-1) has been sealed with cemented steel casing to the top of the RI zone, with an <br />open hole extending from the casing point to the bottom of the hole (approximately 70 <br />feet below the top of the Wasatch Formation). Fluid is flowing into the large open <br />110 Fast 3rd Street. Suite 201 P.O. Box 1470, Rifle CO 81650/2honeā€¢970-6254324 facsimileā€¢970 625-4318