President Ford visits shale country

SHALE COUNTRY is provided as a public service by the leaders of the oil-shale industry. Published monthly as a source of information for those interested in industry developments, SHALE COUNTRY is made available to shale-area residents without charge through various community outlets. However, should a reader wish to receive SHALE COUNTRY each month for 12 months through the mail, please send your request to Mountain Empire Publishing, Inc., 180 Cook St., Suite 414, Denver Colo. 80206 along with a check for $5.00 to cover costs of postage and handling in the United States. Outside the United States, the cost is $10.00 for regular mail or $21.00 for air mail. SHaLe counTRY Volume 1, Number 12 December 1975

o CRE CONTENTS • Rangely -{ II c·. 2 Guest Editorials U·a "'Irl Oil-Shale Development-Observations Cob from Industry

3 Overview/Highlights of 1975 Where Now, SHALE COUNTRY?

4 Situation Report In Shale Country U.S.A. (Inside back cover), Wirth testifies at Congres­ Oil Shale-1976: Review/Preview sional hearings (p. 18-19), NBC cameras take a look at shale (p. 20), and on the federal tracts, work goes on as usual (po 10-13). 10 Environment Baseline Studies Lead the Way

14 Vignette Who's Who in Shale

18 Voice of the People .. Opportunity to Speak Out ~ .- ,­ ~ "~ .. \.- .~' 20 Potpourri Shooting Shale-for National TV

Inside Back Cover Map-Shale Country U.S.A. Edward S. Safford, Publisher and President Gregory A. Williams. Executive Vice President Alys Novak, Vice President and Editorial Director m A PUBLICATION OF ~ MOUNTAINEMPIREPuBLISHING,INC. Richard L. Ronald, Vice President-Sales Jonijane Paxton, Managing Editor

Evelyn DiSante, Associate Editor PhOIO Credits pilotos and artwork have heen provided by Ashland Oil. Inc.. Atlantic RIchfield, Colony Development Operation, Kathy Carlton, Assistant Editor Carol Edmonds, Gulf Oil Corp., Ray lewis, Brian Novak, Parana Oil Shale Demonstrallon, Shell Oil Co" Standard Ray Lewis, Art Director 011 of Indiana, Sonia Petroleum Co., Sun Oil Co., The Oil Shale Corp" Westco. Brian Novak, Production Consultant Catherine Kilker, Circulation Director SHALE COLr...TRY © 197$ by Mountain Empire Publl$hing, Inc Afl rights ~e.,erved. Maleriallrom this mOigazine may Carol Edmonds, Regional Editor be reprinted, wilh credit fine to SHALE COGNTRY, Mounlain Empire Publishing, Inc, Published monthly. Executive and Editorial 100 Cook 51" Suite 414, Denver, Colo. 80206 (303) 388·5931, Third Class Bulk Postage paid a1 Denver, Colorado. COUNTRY by As-hrand Oil, Inc., Atlantic The Regional Editor can be reached at: Richfield Co., Gulf Oil Corp" Shel! Oil Co" Standard Oil of Indiana, Petroleum Co .. Sun Oil Co., The Oil Shale Corp. The opinions expressed in Ihis publication ale those of individuals and do not necessarily 3154 Lakeside No. 304 reflect the viewpoinfs of the publkation's sponsors or the oil~shale a Whole. Grand Junction, Colo. 81501 (303)242-3905

Shale Cou ntry December 1975 1 Guest Editorial I ~ bility. are to adapt successfully in a continually ! Oil-Shale Development­ "We have made energy mistakes in changing environment. This is particular­ Observations the past because the goal was to keep ly true today if we recognize that oil is energy cheap-at any cost. The cost, in too valuable to burn if the energy it From Industry declining reserves and imbalance of pay­ provides can be obtained in some other ments, has become too high. way." During the past year, leaders in the "Shale oil hasa time and a place in this (July 1975) shale industry have used the pages of nation's energy picture. We know where this magazine to express their ideas it is and how to get it. We still have a Charles D. Hoertz, about the energy crisis, governmental choice." General Manager, energy policies and problems facing the (March 1975) Synthetic Oils emerging shale industry. These are ex­ Dept., Ashland cerpts from some of their comments: Harry Pforzheimer, Program Director, Oil, Inc. Paraho Oil Shale Demonstration " ... Oil shale Charles H. Brown, has been virtually Senior Vice Presi­ " ... To be as effective as possibIe in accelerating the development of an oil­ ignored by the de­ dent, The Oil signers of our na­ Shale Corp. shale industry in an environmentally­ tion's energy pro­ "If the dollar acceptable manner, we at Paraho feel gram. Oil shale is drain for foreign that a full-sized module should be built far more than simply another energy oil is serious and put into operation as soon as possi­ ble. And we feel this can be accom­ resource. The Green River oil-shale de­ enough to warrant posits constitute the largest known re­ consideration of plished faster, at lower cost, and with less impact on the surroundings at serve of hydrocarbons in the world. unprecedented Anvil Points while completing the These are needed now, and soon will be gas taxes or peace­ current Demonstration because an needed more than ever to meet many time rationing, it is serious enough for environmentally-acceptable oil-shale everyday needs dependent on oil and domestic oil shale to be given a fair. . operation already is being conducted gas. It is absolutely essential that we chance to prove or disprove its econom­ there and is complete with supporting move ahead in utilizing this valuable ic and environmental feasibility as an facilities and personnel ..." resource...." energy source for the future. (August 1975) " ... Only government and industry (May 1975) working together can break through the Keith Doig, Vice uncertainty and give oil shale a fair eval­ Granville Dutton, Manager Joint Opera­ President, Shell uation; and it should be soon-the lead tions, Sun Oil Co. Oil Co. time required to construct a shale com­ " . .. Fortunately the U.S. has ample " ... Valuable plex is long--6-7 years from drawing petroleum resources to become essen­ time has been lost board/resource evaluation to full pro­ tially self-sufficient given proper eco­ in jawboning the duction, 3-1/2 years even for our Colony nomic, ecological and political condi­ objectives of Proj­ plant, which is virtually ready for con­ tions. The real problem is that the cost ect Independence struction start." of developing these potential reserves without enough (February 1975) far exceeds historical U.S. energy prices constructive ac­ which have been maintained by the fed­ tion. We, the pub­ Walter T. Herget, President, Rio Blanco eral government at an artificially low lic, must understand our nation faces a Oil Shale Project level for 20 years... .It serious, long-term energy problem, and " . .. we must develop oil shale-this (June 1975) that this problem will not just go away. important new source of energy. The We must convince our political leaders dream that once was cheap energy has H. E. Bond, Vice President, Atlantic that constructive, dedicated action is turned into a political and economic Richfield Co. needed now. The expediency of politiCS nightmare for the United States. Let's be " . .. we must maintain the ability to is not the cure for the illness that will realistic and not let ourselves continue remain flexible in selecting among overcome our nation if we do not to be trapped into thinking that energy capital-intensive options. The world en­ improve our energy production and will ever be artificially cheap again. On ergy situation with its interrelated finan­ become less dependent on foreign the other hand, if it's going to cost, let's cial and energy supply impacts requires sources." be sure we have control over its availa- a flexible posture if we, as a company, (September 1975)

2 Shale Country December 1975 Loo~ng Ahead

shale, Detailed Development Plans, land rehabilitation, to name a few. We have sought out spokesmen for industry and for citizens. We have visited the oil-shale communities to learn of their current problems and concerns about oil-shale impact. And we have been on the scene when officials, panels and seminars addressed oil-shale-related questions. For exam­ ple, we were there when President Ford visited Anvil Points and when the Oil Shale Environmental Advisory Panel con­ vened in Denver, Meeker, Vernal, Rangely and Grand Junction. As we predicted in January, there has Where Now, been no oil-shale harvest-jobs and fa­ cilities have yet to open up. But there around the country-from Congression­ SHALE COUNTRYl have been some industry decisions, al offices in Washington, D.C., to gro­ though many of them tentative, and cery stores in Roosevelt, Utah. By the With this 12th issue of SHALE COUN­ some indications of government policy. way, S,HALE COUNTRY is mailed to al­ TRY, as the magazine completes its first For example, all of the operators of the most every state in the union (and some year of publication, it is time to ask: federal lease oil-shale tracts-C-a, C-b foreign countries). Where are we in oil-shale development? and U-a/U-b-are outlining their projec­ We hope our readers will continue to Do we know more than we did a year tions in lengthy Detailed Development let us know what they like or don't like ago? And what's ahead? Like the January Plans for filing with the Area Oil Shale about our coverage. And we hope that as 1975 issue of SHALE COUNTRY, this Supervisor's Office. And on all the feder­ SHALE COUNTRY starts its second year, issue is a guide, a map to what has al tracts, the lessees have their first year you will continue to share your concerns happened with glimpses of what may of environmental baseline data finished with us. We have found many of our happen; it will try to link the past to or nearly finished-from the tagging of readers are in the same spot President present and future. The January 1976 wildlife to the study of microscopic plant Ford found himself before his visit to issue, also a guide, will delve even more and animal life in the streams. And the Anvil Points. They know of oil shale, but into the outlook for the com ing year. We lessees have begun to get a handle on they don't know the specifics. We want are calling these two issues, "A Guide to the sites' ecology. to continue to provide those details. The Oil Shale-1976," Part I (December) and Apparently our readers have found President observed, "Until you see the Part II (January). this publication useful. Our letters-to­ actual operation, I don't think you can Where have we been? SHALE COUN­ the-editor tell us the magazine is read appreciate the potential or the prob­ TRY was started to fill a need­ lems." SHALE COUNTRY aims to offer translating the maze of documents, per­ the next best thing to being there­ sons and programs into a readily­ giving the reader a keyhole view of the understandable picture for the citizen changing shale scene. concerned about how oil shale may Where are we going? As the only regu­ touch his life. Thus, in the past 12 lar, general-interest publication on oil months we have looked at the projects shale, we hope to continue to serve as a on federally-leased shale land (Rio useful reference source for citizens, leg­ Blanco and C-b in Colorado; White River islators, students, the news media and in Utah) and we have examined other others. We can't give our readers all the shale ventures, including Paraho Oil answers, since neither the companies Shale Demonstration at Anvil Points, nor the government has them. But we Colo., and the Colony Development will continue to hunt for information, to Operation at Parachute Creek, Colo. view the changes and to ask those classic We have tried to delineate major issues questions-What are the real numbers? in oil-shale development--..:taxes, water, Who's who in shale? What's happening net energy, mining, in-situ processing of on the sites? What's coming? The Editors

Shale Country December 1975 3 I Situation Report I Oil Shale-1976: Review/Preview

By Alys Novak

The oil-shale industry strides across 1975 and into 1976-with some questions still on its mind

President Ford visits shale country; Gear up, gear down slackened while inflation had doubled. the lessees of four federal tracts amass a Over the years, many companies have Result: some components of the oil­ ton of environmental and planning data; acquired oil-shale land holdings, but the shale industry geared down once again. two in-situ leases are contemplated; federal government owns 80 percent of The most significant sign of this slow­ private ventures seek government the shale deposits, via its vast public­ down was an announcement in October commitments ... these are just some of land domain in the Mountain West. 1974 by Colony that its plans to build the 1975/1976 highlights of the oil-shale Thus, for this reason, as well as policy America's first commercial oil-shale industry. But before getting into the and economic reasons, the government plant were being indefinitely delayed today and tomorrow of the industry, let's has always held control of the go/no-go because of inflation, tight money and review some history. button for oil shale. the lack of a national energy policy. Neither oil shale nor the oil-shale in­ In 1973, that button was given a slight Many old-timers took the announce­ dustry is new. The deposits developed in push by America's energy crisis. The ment as proof that, once again, the prehistoric times and the industry first push: the announcement of a new fed­ promised shale boom was going bust. budded centuries ago. But, although the eral oil-shale prototype leasing program. Oil-shale development plans did not United States holds the largest oil-shale In January 1974, that program officially die, however, in 1975. Several private deposits in the world, commercialization got started with the opening of competi­ ventures, particularly Paraho, pushed of this vast American resource has not tive bidding by private companies for six ahead with field-testing efforts; and the yet come. Cheaper crude oil sources and 5,000-acre oil-shale tracts, two in each of program on the federal tracts moved government indecision have kept the oil the three oil-shale states (Colorado, into an intense data-collecting stage. So, in the shale. Utah, Wyoming). No bids were made for let's now focus on oil shale-197511976. During this low-profile period, how­ the Wyoming tracts, which were thought (To gain additional perspective on shale ever, there have been several notable to have in-situ potential, but are leaner country and oil shale, see the map on experiments, including the U.S. Bureau deposits. The four other tracts were bid the inside back cover.) of Mines oil-shale development project for and awarded-for record-high Lessees aim at OOPs at Anvil Points near Rifle, Colo., in the amounts. 1940s-50s. Also active in recent years During 1974, the federal tract opera­ The goal of the federal oil-shale proto­ have been several significant private tors and several other shale ventures type leasing program is to generate es­ ventures, such as the Colony Develop­ geared up planning, design and environ­ sential information about shale's envi­ ment Operation and the Paraho Oil mental study efforts. However, by the ronmental impacts and commercial via­ Shale Demonstration. end of the year, energy-crisis panics had bility. The leases specifically state that In terms of technology, oil-shale pro­ each step of the lessees' proposed envi­ ducers generally plan to use above­ ronmental and development plans must ground plants to process the shale. Thus be approved by the federal Area Oil they will first mine the shale, usually Shale Supervisor's Office (AOSSO) be­ from underground mines of the room­ fore initiation. And even prior to this and-pillar type. Once the shale has been approval, these plans must be reviewed mined, it will be crushed into smaller by OSEAP-the Oil Shale Environmental pieces and then fed into oil-shale retorts Advisory Panel. that are designed to heat the shale to The big step that each lessee has been high temperatu res-heat is needed to aiming at in 1975 is the timely submittal turn the kerogen in the shale rock into a of a Detailed Development Plan (DDP). form of crude oil. Finally, the shale oil Each DDP must include conceptual in­ will be treated before being piped to formation on what the lessee plans to do refineries. in its commercial program, when it will In-situ processes, the retorting of oil be done, and how it will meet environ­ shale in place, have also been investigat­ C-b federal-lease shale tract in Colorado: mental criteria. DDPs must be filed with ed. Pure in-situ methods, once proven, site of intensive data-gathering in 1975, as the Shale Supervisor on or before the would require no mining; present modi­ this project prepared its Detailed Develop­ third anniversary date of the lease. Upon fied methods do require some mining. ment Plan. approval, the lessees will move toward

4 Shale Country December 1975 actual operation as soon as possible to per day would be reached by 1985. port from contractors and from other take advantage of the financial incen­ "In terms of mining and processing, company personnel. tives built into the leasing program; we plan a modular approach of expan­ "Basically, there has been no change early development permits a direct off­ sion to full-scale commercial operation. in our mining and processing plans as set of the last two (of five) bonus pay­ Initially, a single TaSCa II retort pro­ outlined in our preliminary and explora­ ments. ducing about 7,000 barrels of oil per day tion plans submitted at the beginning of By the end of 1975, DDPs were in the will be built, followed by a second the lease program. That is, we still plan works at the C-b Shale Oil Project, and at TaSCa II 7,000 barrel-per-day retort to use the TaSCa II retort and to do the C-a and U-a/U-b projects. All expect module after 3 years. Expansion to a underground, room-and-pillar mining. to submit theirs early in 1976. It will then full-scale operation of some 50,000 bar­ In regard to C-b's water situation (this take about 6 months for review/approval rels per day would occu r after this 6-year tract was designated to test for under­ of each plan. So 1976 will be a year for period and could also include a gas­ ground mining that could have water much discussion of DDPs. Therefore, combustion type retort. problems), Loucks reports: "We don't let's look at the progress of each lessee "We are planning above-ground re­ know the answer to our water question more closely. (More information about torts because they would be reqUired for yet, and won't until we do more work on these projects and others is given in the conventional open-pit mining or under­ the site. This, however, won't hold us "Vignette" section.) ground operations with present technol­ up. We will develop additional hydro­ Colorado Tract C-a: In January 1974, ogy. In-situ retorting could be employed logic information a~ a normal part of our Gulf Oil Corp. and Standard Oil Co. later, if that technology proves feasible. efforts. And we have developed several (Indiana) successfully bid for the first We have been studying the relative eco­ alternatives for handling the water; it's oil-shale tract offered under the federal nomic, environmental and technological just a matter of choosing the best envi­ program. The winning bid: $210 mil­ values of both open pit and under­ ronmental/economic way." lion-the most costly per-acre federal ground mining. We favor open pit since Loucks also reports that "By Novem­ mineral lease ever executed. The project it allows greater resource recovery." ber, a full year's worth of environmental took its name-Rio Blanco Oil Shale (Government lease program designers baseline studies were completed, so we Project-from the county in which the designated the Colorado C-a tract as were free to finish up our DDP. We also tract is located. having the most potential for an open­ have begun the initial engineering de­ During 1974 Rio Blanco chose staff and pit operation.) sign work with a local (Denver, Colo.) contractors and began data-gathering ef­ "In terms of people, we expect the contractor, Stearns-Roger, leading to­ forts. In 1975, these efforts intensified. In initial operation to require a peak con­ ward Phase I work in 1976. We already addition to detailed environmental base­ struction force of 800 workers and a have completed a major study on mine line studies (see "Environment" sec­ permanent labor force of 370 for the first design, hydrology and rock mechanics, tion), Rio Blanco concentrated on many module. For the expanded operation to which will serve as key input for our other major categories, such as mining 50,000 barrels per day, the construction engineering design work. engineering, hydrology and geology. It work force is expected to be about 2,200 "Our DDP team has worked for 5 solid also emphasized community planning at its peak; the permanent force would months on the plan, cooperating all the (see "Newcomers" section in the Janu­ be about 1,150." way with the Shale Supervisor. We sub­ ary 1976 issue), and it studied C-a's pow­ During 1976, Rio Blanco Oil Shale Proj­ mitted several drafts for review to the er, pipeline, water and other peripheral ect specifically hopes for submission and AOSSO, a complete draft for OSEAP to needs. In C-a's case, as well as the other approval of its DDP; for resolution of review in late October, and then the tracts, the studies are designed to cover questions about water rights and off­ final copy goes to the AOSSO. We feel every development aspect, to provide tract disposal areas; and for initiation of that the plan is well thought out and that t very detailed data, and to examine alter­ telephone system installation, electric we know what we can do as engineers iI natives covering the environment, tech­ powerline construction and access road and as solid citizens. nology and economics. construction. "We hope for approval of the plan by s Presently, the Rio Blanco staff num­ Colorado Tract Cob: The C-b Shale Oil mid-1976, so we are working full speed bers less than 100 and should remain at Project, a joint venture of Ashland Oil, to get detailed designs from our contrac­ this level during 1976. Other 1976 projec­ Inc., Atlantic Richfield Co., Shell Oil Co. tors. Once the plan is approved, our tions recently were reported by J. Blaine and The Oil Shale Corp., also geared up current projections indicate that about Miller, Rio Blanco executive vice presi­ in 1974. In 1975, key C-b events have 400 craft people would be needed, dent. He said: "We are now in the final been its work to complete its DDP for starting next summer to undertake Phase stages of preparation of our Detailed submission and a switch in operators. I. This will include sinking shafts, build­ Development Plan, which we plan to Bob Loucks, of Shell, who now serves ing roads and surface facilities, and in­ submit in March 1976. At that time we as C-b project manager, reports: liOn stalling materials-handling equipment." will also provide a Community Develop­ June 1, Arco resigned as operator and Loucks concludes, "The DDP is exten­ ment Plan for information purposes. Shell took over this responsibility. How­ sive exposure of our plans. It's 1,200 "If our DDP is approved within 6 ever, there has been no change in phi­ pages long; it's a public document; and months of its submittal, we would antici­ losophy and minimal change in staffing. it includes information not only on our pate the beginning of construction in We now have about 30 full-time staff development plans but also on our pre­ mid-1977. Production of 50,000 barrels members. Of course, we also get sup­ development and post-development in-

Shale Country December 1975 5 tentions." White River, Ramsey says, ultimately an­ where to provide housing for workers Utah Tracts U-a/U-b: Aiming for early other process could be chosen. He ex­ that would serve a plant. White River is submission of a DDP in the first quarter plains, "We think the Paraho retort has considering a new community (to be of 1976--15 months before the due the best chance of being the one we discussed in the January 1976 issue). date- White River Shale Project officials would select. But we haven't eliminated Another big concern is water; however, have made a number of tentative deci­ the other processes entirely." while White River officials had originally sions on how to develop Utah tracts U-a - While observing that "The more I see thought they would need 36,000 acre· and U-b. Their present scenario calls for of this business, the harder it is to make feet each year for both the project and limited initial production in a prelimi­ a firm decision," Ramsey does cite sev­ any community, they now say the nary stage White River describes as its eral other expected White River project amount will be less than that, assuming "commercial development phase." decisions: the Paraho process is used. Two princi­ Full-scale production would be some­ -This shale project will start with one pal alternatives for water are a dam on where between 50,000 to 100,000 barrels the White River or piped water from the a day-White River Shale Project's origi­ Green River, a more costly option. nal production goal. The initial phase may be conducted in Private efforts fluctuate Colorado in conjunction with the Paraho Several private oil-shale ventures re­ Oil Shale Demonstration at Anvil Points. mained in the spotlight during 1975; the Reason? White River is looking for ways progress of some of the key efforts now to save time. If its DDP is approved in will be reviewed. late 1976, then White River would still Colony Development Operation: Back have only a few months to spend money in 1964, this joint venture of private that could be credited against its fourth industrial firms was formed with the ob­ bonus payment. Since Paraho already jective of constructing America's fi rst has a semi-works retorting plant, its con­ commercial oil-shale plant. Since then, struction of a full-sized retort could take some of the partners have changed and less time than if White River were to so have some of the plans. build its own retort in Utah. But the During this period, Colony obtained Paraho scale-up will be delayed by the substantial private oil-shale properties in Energy Research and Development Ad­ Colorado; its semiworks plant, which ministration'S request for another utilizes the TaSCa 1/ retorting method, environmental-impact statement. So if was operated periodically over several White River officials decide Paraho won't years and successfully processed more save them time, they may opt to build than 1,000 tons per day; $12 million has their own module from scratch. All three been spent for preparation of definitive White River companies-Sun Oil, Phil­ designs and construction estimates for lips Petroleum and Sohio Petroleum­ the project; and the venture spent more are also Paraho participants. than $3 million on environmental stud­ White River Program Director Earl ies. Also roads were begun, new com­ Ramsey says a White River module munity plans were made, water rights would be capable of producing between This TOSCO II semiworks retort has been were acquired .•. then came October 1,000 and 4,000 barrels a day and could tested at and above its design capacity of 1974 and the suspension announcement 1,000 tons per day by the Colony Develop­ be "very similar" to Paraho's proposed from the present four venture part­ ment Operation, and has produced more module. The White River plant would than 100,000 barrels of shale oil. ners-Ashland, Arco, Shell and TaSCa. require about 2 years to engineer, de­ Hollis Dole, general manager, reports sign and construct, and 1 year to operate that as of 1975, "Colony is still in a state and demonstrate, according to Director of suspension. Our position is no differ­ Ramsey. The plant would probably be ent than it was 1 year ago, and we expect located somewhere in the center of the mine; later there may be two connected to continue in this state until political, two-tract area. Once the full-sized mod­ mines. economic and energy policies are better ule was proven, the project would be -Disposal of spent shale will be in understood. expanded-more retorts would be built. Southam Canyon, probably entirely on­ "Nevertheless, during 1975, we did Operation of a commercial plant would site; shale under that canyon is located continue our environmental studies and be dependent on the production rate at a depth where it could be mined later, our socioeconomic planning, and we but could require some 2,000 workers, even with the spent-shale disposal pile completed construction on access Ramsey estimates; at the peak of con­ on top of it. roads, and a railroad spur. In other struction, there could be as many as -The two federal tracts will be devel­ words, we concluded all those things 3,000 to 4,000 workers. oped jointly, with the approval of the that were underway, with the main While the Paraho process of retorting Dept. of Interior. thrust being the filing of our master plan shale appears to have top billing for A big decision still unresolved is for Colony's proposed new community,

6 Shale Country December 1975 called Battlement Mesa. We submitted a Ridley, manager of operations, says the and would provide an opportunity to rezoning application to the Garfield decision should be made sometime in monitor the environmental impact of County Commission for this 3,000­ mid-1976, and that Oxy could be in pro­ full-scale equipment before commercial acre planned-unit development near duction by early 1979. He testified in plants are built. Instead, the Paraho proj­ Grand Valley in the spring and it has October in Washington, D.C., "The big­ ect encountered a new hurdle: a gov­ been approved. Also, our draft gest constraint is land." The current site ernment request for an additional environmental-impact statement has can be developed commercially, but its environmental-impact statement. been completed by the Bureau of Land small size and low grade ore would make To review, the Paraho project, located Management and will soon be through profitable operations difficult. "Given a 10 miles west of Rifle and just off 1-70, the review process. And we are working 25- or 30-gallon-per-ton site, there was designed to test an oil-shale retort on all our background permits, so we would be absolutely no question (about invented by john jones, Jr. Jones' com­ will be prepared to go forward again. But profitable commercial operations)," Rid­ pany, Development Engineering, Inc., presently, we are in a standby position, ley says. Denver, leased Anvil Points from the with a minimal maintenance staff. So Occidental Petroleum may get into government. DEI is operator for Paraho; "As for 1976, everything depends on the federal government's prototype leas­ the Energy Research and Development the government. If a federal synthetic­ ing program for in-situ oil-shale devel­ Administration is the government's gate­ fuels policy is set forth, and if the Colony opment. Oxy has nominated two tracts keeper. Jones and Harry pforzheimer of partners choose to reactivate the proj­ Sohio Petroleum enrolled 17 private ect, how fast we get going depends on companies as financial participants (see the time of the year. It would take 6-9 Paraho "Vignette" listing), and launched months under the most optimal condi­ the project in late 1973. This year the tions." participants hiked their original $7.5­ million budget to $9 million. Occidental: In the midst of construct­ The existing project is slated to termi­ ing a large underground retorting cham­ nate in july 1976. However, Paraho has ber near DeBeque, Colo., Occidental proposed, as its next logical step, to Petroleum Corp. was predicting that the build and operate an expanded oil-shale company would have the first plant. The price tag for costs of construc­ commercial-sized retort operating in this tion and 30 months of operation would country at year's end. The retorting be $76 million. The loose ends were to chamber, slated to be completed by the be tied up, and the proposal funded by end of 1975, "demonstrates a major ad­ the end of 1975. Instead, late in the year, vance-the ability to build a large (in­ ERDA decided to require a new EIS for situ) retort," in the words of Dick Ridley, Paraho's expansion plans; Paraho had executive vice president of Occidental hoped that only the environmental as­ sessment already prepared by the Bu­ Oil Shale, Inc., a subsidiary of Oxy's Oil Paraho Oil Shale Demonstration, which and Gas Div. headquarters at the Bureau of Mines facility reau of Mines would be required. Now, This shale research operation, which at Anvil Points, Colo., aims to move soon preparation and approval of the new began in 1972 on a 2,000-acre site in from its present semiworks testing stage to a document may take 9 to 13 months. Logan Wash, is taking a different ap­ full-sized commercial module. Meanwhile, private investors are not proach to oil shale. Oxy is the principal likely to commit funds pending results company in recent years to investigate a from the EIS. modified in-situ techniques-all but 10 But Program Director Pforzheimer is to 20 percent of the rock is retorted in Colorado, and it is likely to bid on a far from stymied. He has applied for underground. Oxy has used convention­ Colorado tract. Meanwhile, the compa­ government funds to tide the Paraho al mining techniques to dig a mine some ny plans to concentrate on producing project over while the EIS is being pre­ 1,500 feet long, and has carved out and shale oil from its commercial-sized sin­ pared, and to permit preparation for the fired three relatively small retorts, each gle chamber. proposed expansion. about 32 feet on the horizontal side and At the Anvil Points facility two retorts from 70 to 120 feet high. Each chamber Paraho Oil Shale Demonstration: Pa­ already have been installed and operat­ was slightly bigger than its predecessor. raho, a contraction of Portuguese words ed, a pilot plant and a larger semiworks The fourth room is about 120 feet on meaning "for the good of mankind," plant. Both are junior in size to the each side and some 300 feet high. While also denotes a private oil-shale project proposed full-scale commercial retort. capacity of the smaller chambers was that proposed in 1975 to follow its on­ The smaller retorts have good track re­ about 30 barrels of oil a day, capacity of going operations with gradual and or­ cords. A 56-day continuous run of the this newest chamber is 300-500 barrels a derly expansion by construction and op­ semiworks retort last March yielded day. It would take 40-50 chambers the eration of one full-sized commercial re­ 10,000 barrels of shale oil that were re­ size of this largest chamber to operate a tort called a module. Paraho argues that fined into seven different fuels for the commercial plant. the module approach will accelerate the U.S. Navy. Will Oxy build a commercial plant? development of an oil-shale industry Now that results on these small-scale

Shale Country December 1975 7 retorts have shown a pattern of success, operation of a pilot retort at our Cleve­ has grown to become not only a leader Paraho is eager to move ahead. A $6­ land, Ohio, test facility. This means that in the shale industry, but also the na­ million appropriation has been request­ when the land exchange with the BLM is tion's 28th largest oil refiner/marketer, ed from ERDA's phased-funded pro­ consummated, we will be ready to begin and a leader in developing related tech­ gram. The money would allow Paraho to construction of a full-sized module on nologies for recycling scrap tires and continue design work for expansion, to our land in Colorado." For mining/ upgrading coal. However, The Oil Shale order long lead-time items, to begin economic reasons, Superior wants to Corp. is best known for the TaSCa preparations for more mining, and to exchange 2,500 of its acres for 1,700 shale technology, a continuous­ continue R&D on the existing equip­ acres of BLM land. retorting process that takes place in an ment. Otherwise, cautions Pforzheimer, "What about 1976? Surely the most enclosed chamber without a direct fire. "We're reaching a hiatus pretty quick important item pending for Superior is TaSCa also is known as a partner in where we will begin to let people go." the land exchange. At this time, there the Colony and Cob shale efforts and in There are no layoff plans now; but the has been no change in the status of the 1975, it continued its participation in current project is slated to end in July. exchange because BLM is still working these ventures. And in 1975 it licensed its So would employment for the 100 work­ on its own environmental and economic TaSCa II process for retorting oil shale ers at the plant-unless ERDA provides analyses of the proposed switch. How­ and its mining, crushing and spent-shale the $6 million or the scale-up is funded. ever, we are hopeful of meeting with disposal technologies to Gulf Oil Corp. If the expansion does proceed, a total of and Standard Oil (Indiana) for use in 300 workers would be needed. developing their federal lease tract C-a. Paraho also is asking for a government In addition, TaSCa announced plans loan of 75 percent of the construction to develop its shale lands that it has costs of building the $52-million com­ leased from the State of Utah. These are plex. The remainder of construction located about 35 miles south of Vernal, costs as well as $24 million in operating Utah. In regard to this project, Mike costs would be provided by industry. Spence, vice president of TaSCa, re­ The loan would be repaid at the end of ports that "In 1975, we have carried out a the demonstration, when Paraho would soils sampling program, air survey work sell the entire complex to ERDA. and other field studies on the Utah leas­ As he told President Ford when the es. Pending final approval by Utah of a Chief Executive toured Anvil Points in unitization agreement, we plan to spend August, Pforzheimer sees the expansion $8 million in resource evaluation, envi­ as a way to accelerate "oil shale's ability ronmental and preliminary design pro­ to make an important contribution to­ grams between now and the mid-1980s, ward alleviating the national energy leading to the eventual construction of a shortage." Construction of the expand­ 75,OOO-barrel-per-day plant." On the C-a tract, Rio Blanco Oil Shale Proj­ Vice-President Spence explains that ed project could begin in 1977, and ope­ ect's numerous studies have included core rations could get underway in 1978, he drilling to obtain geological and hydrological TaSCa has acquired 29 oil-shale leases says. The plan calls for construction of samples. in Utah over the past few years, which one full-sized retort, identical in every add up to 14,680 acres in four physically respect to the 10-20 retorts a commercial separate, but nearby, blocks. The unit­ plant would require. ization agreement covering the leases them before the end of the year to will allow them, for development pur­ Superior: This firm became interested resolve any questions. If the land ex­ poses, to be treated as if they are a in oil-shale development because it has change is consummated in a timely separate entity. held 6,500 acres in fee land in the fashion, we will open a mine on our He also notes that included in the first Piceance Basin for about 40 years. In property in 1976. And, we are ready to phases of the development program will 1967, it began studying the land and begin mining immediately. We would be a core-hole drilling program, the in­ discovered that the oil shale on the not transfer the pilot retort from Cleve­ stalling of a 100-200-foot meteorological property contained nahcolite and daw­ land, but rather, we would begin engi­ tower to measure air-quality characteris­ sonite, which made it different from neering for the full-sized module. We tics, the tapping of several underground other sizable blocks of fee acreage in the would first open the mine with a pilot wells to determine water quality and Basin. As a result, the company has adit to get final rock mechanics data, a quantity, plant and animal studies, and spent several years developing an recovery rate for mining, and a final test the continuation of soils work. Revege­ "integrated process," which reportedly of the water conditions in the mine. tation studies will be a major part of extracts four products from the shale­ Then we would mobilize the construc­ these efforts too. shale oil, raw nahcolite, alumina and tion of the full-sized retort," says Weich­ TaSCa also plans to open an office in soda ash. man. Vernal soon. Ultimately, if built, its plant Ben Weichman, manager of Superior's will mean 1,500 permanent jobs and an Oil Shale Dept., reports that "Perhaps TOSCO: Two decades ago, The Oil increase of $1 billion to the tax base of the highlight of 1975 was the successful Shale Corp. was founded; since then it the area.

8 Shale Country December 1975 Union Oil Co.: This company became in-situ study is still possible, Coffer says. For now, the design phase of this in-situ interested in oil shale more than 50 years The budget is $400,000 for this design shale project is continuing on schedule. ago when it acquired shale land holdings phase and costs are being borne equally in Colorado; today Union has some by the ten companies. Westco is provid­ 1976??? 20,000 acres of land and attendant water ing the land and day-to-day manage­ It's plain to see that 1976 will be a year rights. It also has developed its own ment; the firm owns 76,000 acres of for critical shale decisions. Not only upflow retorting process and it con­ oil-shale land in Utah's Uintah County. must Detailed Development Plans be structed and operated a semiworks shale Plans call for modified in-situ develop­ evaluated, but also economic and policy retorting facility in Colorado from 1955­ ment-recovery of oil by underground questions must be answered. Thus, the 1958, which ran at rates up to 1,200 tons retorting of the shale after some mining January issue of SHALE COUNTRY will per day. Then it closed down the plant via conventional methods, and fractur­ zero in on the issues and concerns that saying the process could be commercial­ ing of the remaining rock. will affect the status of the oil-shale ized whenever economic conditions If the project goes ahead, local head­ industry-and the shale area itself-for warranted. Two years ago Union an­ quarters will be established in Vernal. years to come. nounced it had reactivated its oil-shale development efforts, and since then it has been conducting various environ­ mental and design studies. Steve lipman, manager of Environ­ mental Development for Union, reports that "In 1975, our emphasis has been on engineering efforts-on designihg a pro­ totype retort operation for our private lands in Parachute Creek. At the same The White River (right)-just north of the time we are completing all of our base­ U-a/U-b federal shale tracts-gives the Utah line environmental studies. project its name and will likely serve as its /lOur 1976 plans depend on what source of water. Westeo's extensive oil­ Washington does-on whether an eco­ shale holdings are marked on the map nomic incentive program for commerical (below) by wavy lines. Of the 76,000 acres of oil-shale plants is approved and if we scattered tracts, a 120-acre parcel, near Ver­ feel these incentives would be adaptable nal, Utah, is the site for a 10-company oil­ shale in-situ venture. The companies are: to our planned program. In any case, we Arthur G. McKee Co., Ashland Oil, Chevron intend to carry on all of our planning on Oil Field Research, Cities Service Oil, Getty the assumption that Washington is get­ Oil, Gulf Oil, Mobil Oil, Shell Oil, Standard Oil ting close to an appropriate incentive (Indiana) and Sunoco. program. Thus, we will be prepared to go forward once the program is ap­ proved. Of course, there would still be many details to work out before begin­ ning actual plant construction."

Westco: A new private shale venture gained attention in 1975: 10 oil compa­ nies (see map) banded together with a it small, independent Utah company, II Western Oil Shale Corp. (Westco), to design an in-place, underground meth­ II od of economically separating oil from ,- shale. And the project could evolve into :f a multimillion-dollar in-situ oil-shale ex­ :I periment. If all goes well, shafts could be :I sunk in March or April 1976 for three JlDrJlflrI large chimneys to process shale under­ a I\lI ground. Whether the current study, II rlJ rI' which ends in January 1976, leads to an il.lU..I1l.l experimental project may be decided as ~ 'A' TRACTS .'C' tRACTS early as the end of 1975, says project director Dr. Hank Coffer, Las Vegas, Westco vice president. Participation of new partners in the

Shale Country December 1975 9 IEnvironment I 1 Baseline Studies Lead the Way 1

Data mountains suggest answers to oil-shale environmental concerns

When considering the environment of tracts, but so must each private venture. toring programs on the shale sites? Basi­ the oil-shale lands, it is first necessary to The federal leases state the environ­ cally, there are four: water (surface and keep in mind the climate and geology of mental requirements quite specifically: ground); air (quality); flora and fauna; this region. These sites are semi-arid liThe Lessee shall conduct all operations and soil (survey and productivity). Ar­ areas defined by ridges and valleys with under this lease in compliance with all cheology is another environmental fac­ steep cliffs of rock, scattered with applicable Federal, State, and local water tor being carefully investigated. clumps of sagebrush and woody shrubs pollution control, water quality, air pol­ How do the shale companies go about and populated by mule deer, jack rab- ' lution control, air quality, noise control, finding out about these factors? The re­ bits, assorted other wildlife ... and a and land reclamation statutes, regu la­ cent SHALE COUNTRY article on the few human beings. tions and standards." The leases also lessees' air quality and meteorological The second faetor to keep in mind is specify that before actual development programs details the thoroughness of that the environment of the shale area is can begin on the leased deposits, the such studies. It explains, for example, being scrutinized like practically no lessees must compile comprehensive that the air-quality measurements being other area ever has. One specific exam­ baseline data on all environmental indi­ taken on the tracts include: particulates, ple: "More will be known about the ces in their leased area to determine the sulfur dioxide, hydrogen sulfide, total makeup and interrelationships of flora conditions existing prior to any develop­ hydrocarbons, methane, carbon monox­ and fauna on the prototype tracts, be­ ment operations under the leases. And ide, ozone, nitric oxide and nitrogen fore mining, than has ever been known they must also conduct a monitoring oxides. The meteorological measures in­ before on an area of this size./I That program of the environment before, clude: air temperature, wind speed and statement, from the recent article in during, and subsequent to development direction, humidity, lateral and vertical SHALE COUNTRY about the study of the operations as a continuing check on turbulence, solar radiation, evaporation ecology of plants and animals on the compliance with the leases. Although and visibility. Special noise studies also federal oil-shale tracts, reflects the ex­ the regulatory procedures and agencies are being conducted as well as analyses tent of just one of the environmental are slightly different for the private shale of air movements and relative humidity. efforts that have been going on in the ventures, they too must adhere to simi­ These studies require the use of such ] shale area in 1975-and before-and that lar stringent requirements and sched­ apparatus as meteorological towers, au­ will continue into 1976 and beyond. ules. Therefore, a discussion of lease tomatic recording instruments, comput­ The reason for this monumental effort environmental programs is applicable to ers, specially-instrumented aircraft, radi­ J is simple. Environmental awareness is a all shale efforts. osondes, and pilot balloons. They also fact of oil-shale life. Not only must the require highly-trained specialists. Thus, federal lessees meet demanding envi­ Measuring, measuring each shale company employs numerous ronmental requirements throughout the What are the key environmental indi­ staff/contractor environmental person­ entire span of their involvement with the ces involved in the baseline and moni­ nel and the expenditures involved run

10 Shale Country December 1975 into the millions of dollars. and waste disposal on-tract would cover Other examples of these detailed oil-shale reserves suitable to open-pit studies: deer movements on the Utah mining and a second movement of spent tracts are being monitored by radio te­ shale is not feasible. Therefore, there is a lemetry; small mammal populations are need for off-tract disposal areas; and Rio monitored by live trapping. Predatory Blanco has applied for the use of off­ } animals are monitored with scent sta­ tract land known as 84 Mesa as a spent­ tions. Insects are sampled with various shale disposal area. This proposal is now 1 collection devices and methods. Aquatic under consideration by Congress. life, both on tracts and in nearby streams From an environmental standpoint, is sampled in Piceance Creek, Yellow though, why and how was 84 Mesa cho­ Creek and the White River in Colorado sen? A recent paper by Rio Blanco's and Utah. Vegetation is mapped using environmental contractors for the Colo­ remote-sensing techniques ... and on rado School of Mines Environmental Oil and on go the studies. Shale Symposium demonstrates the depth of analysis each shale environ­ Tons and tons of tables mental question receives. This paper ex­ What are the shale companies finding Wildlife studies are now being conducted plained that Rio Blanco considered 16 out from all of their environmental stud­ on the federal shale tracts. This ground alternate sites as possible off-tract dispo­ ies? There's not enough room in 300 squirrel was released after it was counted sal areas for spent shale and a decision and its sex was determined. issues of SHALE COUNTRY to include was made to judge these sites solely on even a portion of the pages and tables of the basis of environmental considera­ data findings being generated by the reports to individuals, as available. tions. Then a Decision Alternative Ration studies. Just consider, for example, this How much of this information is nec­ Evaluation (DARE) model was chosen for one paragraph of specifics from Rio essary and meaningful over time, of use in this environmental evaluation, Blanco's Progress Report 3: "During course, is not yet known. So instead of which involved a series of comparisons April, approximately 148 fish represent­ becoming enmeshed in all the details, of the major criteria. That is, nine unique ing 11 species were captured in the let's look at some of the specific envi­ aspects of the environment, such as air White River and lower Yellow Creek. ronmental challenges being tackled by quality, water quality, habitat and animal The major portion of the catch during the lessees and others. use, were identified and further subdi­ April was composed of flannel mouth Spent-Shale Disposal: The problems vided. Then their relative importances and bluehead sucker, mottled sculpin, and projects for spent-shale disposal were judged and assigned numerical val­ longnose dace, and fathead minnow. have incited some of the most heated ues. Next, site inspection scores were The catch was dominated by rough and debates over oil-shale development. The generated for the 16 sites and the two forage fishes with few game fish ob­ key reason: though oil-shale developers series of values were integrated to pro­ served (a small number of rainbow trout, do plan to wet and compact the retorted duce a numerical ranking of all 16 sites. brown trout, and mountain whitefish shale, it will still require disposal areas of In the process of making these numeri­ were found in the White River). High considerable size. cal evaluations, statistical tests were ap­ turbidity generally interfered with fish­ At the present time, most shale com­ plied to test bias and to make other ing efforts during April, as suggested by panies plan to build spent-shale landfills validity checks. the relatively few specimens of mottled in mountain valleys and to revegetate More than 25 people were involved in sculpin captured. Table 2.4-6 presents them. However, in the case of Rio these analyses, including scientists from fish data from April 1975 sampling." Blanco, there is a special problem. If this such disciplines as terrestrial biology, Such data from the shale environmen­ project employs open-pit mining, as an­ chemical engineering, aquatic biology, tal studies, of course, can be found in ticipated, storage of spent shale and atmospheric sciences and soil mechan­ the reports that are constantly being overburden within the leased tract is not ics. The study, which took hundreds of submitted to numerous government feasible for several reasons. In particu­ manhours, concluded that from an envi­ J agencies. The lessees' findings, for in­ lar, overburden and topsoil will be accu­ ronmental standpoint, anyone of four stance, are regularly submitted to the mulated before the ore is mined; the proposed locations could be chosen as I Area Oil Shale Supervisor's Office and volume occupied by spent shale and an overburden and spent-shale disposal they are public documents, available for associated moisture will be greater than site with no significant difference in po­ anyone to review. Indeed, much of the volume of shale in place; no material tential environmental impact. One of these data have been put on file in could be returned to the mine until the these was 84 Mesa, which was finally various shale country libraries. And the pit floor has been cleared, which could chosen as the optimal disposal site after companies will provide many of these take as much as 30 years from startup; economic and technical factors were

Shale Country December 1975 11 I '"

also analyzed, in similar depth. tation projects-is beginning to be an­ Revegetation: Another shale environ­ swered. As a result of federal, state and mental challenge is getting grasses and industry efforts, the Upper Colorado En­ other plants to grow on processed oil­ vironmental Plant Center was estab­ shale piles. Fortunately, this environ­ Technician Is obtaining samples of micro lished during 1975 near Meeker, Colo., mental concern has been under study flora and fauna from stream on federal tract and this center is already working to­ for years, particularly by Colony Devel­ C-a. ward providing improved plant materials opment Operation, which has accumu­ for specific shale-related soil and con­ lated more than a decade of data on servation uses. Plantings will begin next revegetation efforts-as a part of its $3­ 6 feet, and recording of salinity and spring. Expectations of its seed/soil spe­ million environmental program. temperature via sensors that have been cialists are optimistic: they feel that the To date, Colony has experimented installed 7 and 20 inches below the soils. oil-shale land can be reclaimed, and in with more than 60 species of grasses, The quality and quantity of runoff from many cases, to plant communities super­ shrubs and flowering plants on at least the test plots is also being analytically ior to those now existing on the sites. eight processed shale sites. In most evaluated. Processed shale management: Retort­ cases, watering and fertilization have Since 1966, Union Oil Co. also has ed shale, of course, may also find other been continued through two growing been conducting revegetation studies in uses than as revegetated landfills. A seasons, and then the plots have been conjunction with its oil-shale investiga­ $489,000 cooperative research project left on their own, some as long as 6 tions. And findings from these studies being performed by the Paraho Oil Shale years. The results are rated successful by indicate that range grasses and alfalfa Demonstration and the Bureau of Mines Colony rehabilitation specialists. can mature and reseed themselves on indicates that retorted shale could be an At Anvil Points, Colo., a major study of retort "A" shale under natural condi­ excellent material for construction of vegetative stabilization of spent oil tions after initial irrigation and fertiliza­ earth structures such as dams, dikes and shales is underway. The plot work is tion. Just recently, Union initiated a new highways. Preliminary results indicate being done by the Agronomy Dept. of revegetation study; it engaged the CSU the compacted retorted shale has high Colorado State University in cooperation Agronomy Dept. to investigate methods strength and low permeability, meaning with the Bureau of Mines, the Soil Con­ of revegetating retorted and decarbo­ that percolation of leach waters into the servation Service and others, using BM nized shale produced from a Union pilot underlying aquifers and surface streams and TaSCa spent shale. Starting in 1976 retort. And, during the summers of 1974 could be prevented. One of the research similar research will be initiated on and 1975, 28 plots were constructed on project's early indications is that the ad­ Paraho processed shale. Union's shale land. dition of water does not appear to help These studies are particularly concen­ Steve Lipman reported at the CSM compaction. If this is substantiated, this trating on whether vegetation will sur­ conference that Union is currently could significantly reduce water needs. vive once it has been treated and then studying more than 20 plant species at Field tests are adding water to the shale left to natural precipitation conditions. A the newly established plots in the valley before it is compacted to determine ef­ total of 28 separate plots have been and plateau sites. And he stated: Iflt is fects on strength and permeability. seeded by CSU with Western wheat­ too early to make any judgments on the The research in this eight-phase pro­ grass, Indian rice grass, bluebunch long-term survival of these plants, but gram will involve both laboratory and wheatgrass, big sage, winterfat and based upon initial germination, the re­ field tests. Officials say the data should fourwing saltbush-all native to the area. sults appear favorable." apply to all methods of disposal, wheth­ Among the research measurements are Another environmental challenge­ er canyon fills, surface piles, open-pit or monitoring of soil moisture to a depth of where to get the seeds for shale revege­ strip-mining backfills. From early results,

12 Shale Country December 1975 it appears that a compacted, impermea­ course, any changes in the monitoring ble retorted shale membrane would pre­ program are made only with the appro­ vent any percolation of salty water leach­ val of the federal Area Oil Shale Supervi­ ates, and that runoff water could be sor. On-site, then, the second year of safely evaporated or drained to an evap­ Range conservationist for Colony Develop­ the White River Shale Project will high­ oration pond. ment Operation is examining plants grown light a rerun of the first year's environ­ Wildlife: The shale area is the grazing on spent shale. mental monitoring with a few modifica­ territory for many species of wildlife, tions. including a large mule deer herd that What does all this environmental ef­ winters in Colorado's shale-rich Pi­ quilized deer, the animals revived and fort mean? To Rees Madsen, White River ceance Creek Basin. Since their migra­ went on their way-their paths now environmental coordinator, monitoring tion path takes them across tract C-b in monitored by radio. To the criticism that the environment on the federally-leased the spring and fall, Project Manager Bob helicopters chasing the deer might have tracts means more than collecting 2 Loucks reports that the Detailed Devel­ traumatized the animals, Rees Madsen, years of data on wildlife, vegetation, opment Plan for this shale effort includes White River environmental coordinator, meteorology and the like. He explains specific techniques that C-b will use to says that may very well be true to some that while the federal leases require the cause as little disruption to deer habits extent. Project and State Wildlife offi­ lessees to know the condition of the as possible. For example, the choice of cials had hoped to entice the deer with tracts before oil-shale development, revegetation species has been carefully feed, but an early spring brought vegeta­ the intent of the environmental baseline considered. In addition, C-b plans to tion, so artifical feed would not attract program is to eventually determine im­ build fences that will channel deer away the deer. One of the seven deer has pact from oil-shale development. In a from development areas and to grazing disappeared; his collar may have been sense, then, environmental monitoring areas. dislodged. Officials hope to collar two must be done on nature's treadmill, There also will be fences and under­ more deer, one from the resident deer where nothing is static. passes to protect the deer from road herd on tract and another from a migra­ Madsen says, "We must show how 2 traffic. The aim: to let the deer do what tory herd. years (of monitoring) fit into the history they are doing now-passing safely of things. We must not only show what through the area twice a year. Loucks Fine-tuning over time the environment was like during those 2 reports that "Our experts feel that be­ With 1 year's data collected, White years, but whether things are changing cause of our wildlife planning, C-b de­ River project officials say they are fine­ that might continue to change without velopment will not significantly change tuning the amounts and methods of data oil-shale development. We want to be the deer's normal patterns." collection to eliminate programs that neither blamed nor credited with One of the most interesting wildlife seem to be seeking "something that isn't (environmental) changes having nothing programs is the large mammal telemetry there or something that doesn't need to to do with our operations." Hence, study, previously referred to, that is tak­ be investigated." For example, continual Madsen refers to environmental moni­ ing place on the Utah tracts. This study monitoring of at least one normally dry toring as an "environmental inventory." • involves, in part, the use of radios to streambed may be eliminated. And mon­ One thing is sure: in 1976, oil-shale monitor seven deer. To collar the deer, itoring of upstream water flows that developers and government officials will specialists from the State Div. of Wildlife might have been affected by off-site dis­ continue to work at linking the data that Resources, perched in the air in helicop­ posal of spent shale is to be halted, since represent moments in time with the jig­ ters, shot the deer with tranquilizers. project officials have decided the spent saw puzzle of the past and future ecolo­ Collars were then attached to the tran- shale will be disposed on the tract. Of gy of the tracts. A.N

Shale Country December 1975 13 Atlantic Richfield (Areol-One of the four Blanco Oil Shale Project. IVigne-ue] lessees of federal tract Cob in Colorado; also John Hutchins one of the four participants in Colony Devel­ President opment Operation. 1315 S. Clarkson St. Bob Jirsa Denver, Colo. 80210 Who's Who Director, Public Affairs (303) 777-2525 1500 Security Life Bldg. Cleveland-Cliffs Iron Co.-One of 17 partici­ In Shale? Denver, Colo. 80202 pants in the Paraho Oil Shale Demonstration, (303) 573-3595 an oil-shale research and development proj­ .. C-a-One of two federally-leased oil-shale ect on the Naval Oil-Shale Reserves at Anvil A directory of key companies and tracts in Colorado (see box). POints, near Rifle, Colo. Cob-One of two federally-leased oil-shale M.J. Prendergast governmental agencies involved tracts in Colorado (see box). Public Information with the development of oil shale 1460 Union Commerce Bldg. Cleveland, Ohio 44115 (216) 241-2356 There are many companies, govern­ Club 20-Association of 21 Western Slope mental agencies and research groups counties organized to promote their eco­ working with oil shale, and this directory nomic interests. lists some of the names you'll hear very John Vanderhoof often. There are, of course, other groups President 634 Main who are making important contributions Bob Loucks, Grand Junction, Colo. 81501 to the new shale industry, and SHALE Project Manager (303) 242-3264 COUNTRY will try to spotlight as many Cob Shale Oil Project as possible in upcoming issues. For fur­ Cob Shale Oil Projeet-Project title for devel­ ther information about a specific organi­ opment of Colorado tract Cob. Lessees are: zation, contact the person(s) listed. Ashland Oil Co., Atlantic Richfield, Shell Oil Shale-area contacts are listed when Co., The Oil Shale Corp. These companies available. also compose the Colony Development Op­ eration, which is a separate venture on pri­ Key Companies vate land. Arco-See Atlantic Richfield. Bob Loucks Hollis Dole, Ashland Oll-One of the four lessees of Project Manager General Manager federal tract Cob in Colorado; also one of the Cob Shale Oil Project Colony Development four participants in Colony Development Op­ 1700 Broadway, 8th floor Operation eration. Denver, Colo. 80217 Colony Development Operatlon-Consor­ Jay Hill (303) 572-2525 tium of Ashland Oil, Atlantic Richfield. The Project Administrator Cameron Engineers, Inc.-Engineeringl Oil Shale Corp. and Shell Oil Co .• formed to 2520 Lincoln Center consulting firm specializing in synthetic research and develop oil shale on private Denver, Colo. 80203 fuels. Consultant for both government and land holdings, also known as the Dow prop­ (303) 861-8914 industry, and major contractor for Rio .erty. The same companies were successful

The Federal Oil-Shale Prototype Leasing Program Project headquarters: Denver Project title: White River Shale Project* In 1973, the Interior Dept. an­ Lessees: Gulf Oil Corp. and Standard Project headquarters: Salt Lake City nounced the opening of several oil­ Oil of Indiana Lessees: Phillips Petroleum Co. and shale tracts for lease. To date, under Bid price: $210 millon Sun Oil Co. this program, four 5,OOO-acre oil-shale Effective date of lease: March 1974 Bid price: $75 million tracts have been leased to private com­ Colorado Tract Cob Effective date of lease: May 1974 panies, two in Colorado and two in Location: 5,094 acres in Rio Blanco Utah Tract U-b Utah. Expectations are that two more County,1 mile off Piceance Creek Rd., Location: adjoining tract U-a may be leased during 1976; these tracts 20 miles southwest of Meeker Expected yield: 266 million barrels of would be chosen to test their potential Expected yield: 723 million barrels of oil for in-situ development. oil Project title: White River Shale Project* Colorado Tract C-a Project title: The Cob Shale Oil Project Project headquarters: Salt Lake City Location: 5,089 acres on the western Project headquarters: Denver Lessees: White River Shale Oil Corp. flank of the Piceance Creek Basin, Lessees: Ashland Oil Co., Atlantic (Phillips Petroleum, Sun Oil, Sohio Pe­ about 5 miles from Cathedral Bluffs, 14 Richfield, Shell Oil Co. (operator), The troleum) miles off Piceance Creek Rd. in Rio Oil Shale Corp. Bid price: $-<.; million Blanco County, about 70 miles from Bid price: $117 million Effective date of lease: June 1974 Rangely and 50 miles from Meeker by Effective date of lease: March 1974 *U-a and U-b planning is being done existing roads. Utah Tract U-a on a cooperative basis; it is expected Interior Dept. yield estimate: 4.07 bil­ Location: In Uintah County, about 40 that there will be one development for lion barrels of oil miles south of Vernal, Utah both tracts, and that the U-aJU-b proj­ Project title: Rio Blanco Oil Shale Proj­ Expected yield: 244 million barrels of ect will become a three-company ect oil situation.

14 Shale Country December 1975 bidders for federally-leased oil-shale tract the operating company. The 17 financial Max D. Eliason Cob in Colorado; however, the federal tract is backers are: Arthur G. McKee & Co., Atlantic Senior Vice President an entirely separate venture. Richfield, Carter Oil, Chevron Research. Atlas Bldg. Hollis Dole Cleveland-Cliffs Iron, Gulf Oil. Kerr-McGee. Salt Lake City, Utah 84101 General Manager Marathon Oil, Mobil Research and Develop­ (801) 521-3500 1500 Security Life Bldg. ment. Phillips Petroleum, Shell Develop­ Sohlo Petroleum Co.-Standard Oil Co. Denver, Colo. 80202 ment. Sohio Petroleum, Southern California (Ohio). One of three participants in the White (303) 573-3594 Edison, Standard Oil (Indiana), Sun Oil, River Shale Oil Corp., the lessee of Utah Colorado Mining Assn.-Trade association Texaco, Webb-Chambers-Gary-McLoraine federal tract U-b. Also a participant in Paraho composed of companies and individuals en­ Group. Oil Shale Demonstration. gaged in various phases of the mineral in­ Harry Pforzheimer Harry Pforzheimer dustry. Program Director Vice President David R. Cole Jim Gigoux 300 Enterprise Bldg, Secretary and Manager Manager of Community and Grand Junction, Colo, 81501 209 16th St., Suite 402 Governmental Affairs (303) 243-9550 Denver, Colo. 80202 300 Enterprise Bldg. (303) 534-1181 Grand Junction, Colo. 81501 Denver Research Institute-Branch of the (303) 243-9550 University of Denver, consisting of scientists Phillips Petroleum Co.-Participant in the and engineers engaged in contract research Paraho Oil Shale Demonstration, also one of for government and industry. DRI has been two lessees of federal tract U-a in Utah, and involved in oil-shale research for more than one of three participants in the White River 20 years. Shale Oil Corp.-the lessee of Utah federal Dr. Charles Prien tract U-b. Senior Research Fellow John Whitmire Walter Herget, 2390 S. University Blvd. Director of Engineering President Denver. Colo. 80210 Phillips Bldg. Rio Blanco Oil (303) 753-1964 Bartlesville, Okla. 74004 Shale Project Development Engineers, Inc. (DEI)-John (918) 661-5834 Standard Oil of Indiana-One of two lessees Jones, Jr.• president. [See Paraho Oil Shale Rio Blanco 011 Shale Project-Project title of Colorado federal tract C-a (Rio Blanco Oil Demonstration.] for the development of federal tract C-a in Shale Project). Garrett Research and Development Co.­ Colorado. Lessees are Gulf Oil Corp. and Walter Herget See Occidental Oil Shale, Inc. Standard Oil of Indiana. President Gary Western Refinery-Company testing Walter T. Herget Rio Blanco Oil Shale Project methods of refining crude shale oil and con­ President 9725 E, Hampden Ave, verting it into usable fuel. J. Blaine Miller Denver, Colo. 80231 Lloyd Nordhausen Executive Vice President (303) 751-2030 Refinery Superintendent Ted B. Neptune Sun 011 Co.-One of three lessees of federal West of Fruita, Colo. 81521 Manager of Public Affairs tract U-a in Utah and one of three partici­ (303) 858-3611 9725 E. Hampden Ave. pants in the White River Shale Oil Corp,. the Gulf Oil Corp.-One of two lessees of federal Denver, Colo. 80231 lessee of Utah federal tract U-b. oil-shale tract C-a in Colorado (Rio Blanco (303) 751-2030 Wallace Hanson Oil Shale Project). Dick McElroy Manager, Public Relations J. Blaine Miller Manager of Community Affairs North American E & P Group Executive Vice President Parkwood Plaza Box 2880 Rio Blanco Oil Shale Project 1000 N. 9th St. Dallas, Texas 75221 9725 E. Hampden Ave. Grand Junction, Colo. 81501 (214) 744-4411 Denver. Colo. 80231 (303) 234-4884 The 011 Shale Corp. (TOSCO)-One of four (303) 751-2030 Rocky Mountain 011 and Gas Assn. lessees of federal tract Cob in Colorado; also Occidental Oil Shale, Inc.-Subsidiary of (RMOGA)--Trade association with oil-shale one of four participants in the Colony Devel­ Occidental Petroleum's Oil & Gas Div., and committee active in environmental, informa­ opment Operation; and a lessee of shale head of a private oil-shale venture near tional and planning efforts. lands in Utah for planned development. DeBeque, Colorado. Investigating a modified Doug Henderson Tom Siebert in-situ (in-place) retorting process, which Executive Assistant Public Information was transferred to the subsidiary from Oxy's Colorado Petroleum Assn. 1600 Broadway, Suite 1120 Garrett Research and Development Co. 950 Petroleum Club Bldg. Denver, Colo. 80202 Dick Ridley Denver, Colo. 80202 (303) 292-5140 Executive Vice President (303) 825-2259 The Superior 011 Co.-Company engaged in 2372 G Rd. Shell 011 Co.-One of four lessees and oper­ testing retorting and mineral recovery pro­ Grand Junction, Colo. 81501 ator of federal tract Cob in Colorado; also cesses on private shale lands in Colorado, (303) 242-8436 one of the four participants in the Colony near Meeker. Development Operation. Ben Weichman Bob Loucks Manager, Oil Shale Dept. Cob Project Manager P,O. Box 1521 1700 Broadway, 8th floor Houston, Texas 77001 Denver, Colo. 80217 (713) 224-5111 (303) 572-2525 TOSCO-See The Oil Shale Corp, Ron Johnson U-s-One of two federally-leased oil-shale Manager of Public Relations, E&P tracts in Utah (see box), ... 1 Shell Plaza U-b-One of two federally-leased oil-shale Harry Pforzheimer, Box 2463 tracts in Utah (see box), Program Director Houston, Texas n001 Union Oil Co.-Company developing oil­ Paraho Oil Shale (713) 220-1902 shale retorting method at Parachute Creek, Demonstration Skyline Oil Co.-Major oil-shale landowner north of Grand Valley, Paraho Oil Shale Demonstration-Research in Utah, that leases land adjoining tracts U-a John Hopkins and development project located near Rifle, and U-b to Sohio Petroleum Co. and Acting President Colo. Development Engineers, Inc. (DEI) is Cleveland-Cliffs Iron Co, Synthetic Fuels Div,

Shale Country December 1975 15 Union Oil Center Colorado Dept. of Natural Resources. In­ Box 7600 volved in many oil-shale planning studies; Los Angeles, Calif. 90051 also publishes reports on oil shale. (213) 486-6822 John Rold Utah Mining Assn.-Trade association com­ State Geologist posed of companies and individuals en­ 1845 Sherman gaged in various phases of the mineral in­ Denver, Colo. 80203 dustry. (303) 892-2611 Paul S. Rattle Pete Rutledge, Colorado School of Mines-State-supported Secretary and Manager Mining Supervisor institution; sponsors annual oil-shale sym­ 825 Kearns Bldg. Area Oil Shale posium and other seminars on oil shale. Salt Lake City, Utah 84104 Supervisor's John Welles ., (801) 364-1874 Office (AOSSO) Vice President Western Oil Shale Corp. (Westco)-One of Area Oil Shale Supervisor Chuck Morris the largest lessees of state-owned shale Mesa Federal Bldg. Director, Public Affairs lands in Utah. Grand Junction, Colo. 81501 Golden, Colo. 80401 Hank Coffer (303) 242-0731 (303) 279-0300 Vice President Bureau of Land Management (U.S.)­ Colorado State University-State institution 4055 Spencer Division of U.S. Dept. of Interior. Manages 60 involved in oil-shale research, particularly in Las Vegas, Nev. 89109 percent of the country's federal lands and the area of revegetation. (702) 732-1335 administers the federal laws pertaining to Dr. C. Wayne Cook White River Shale Oil Corp.-The lessee of these lands, including those relating to the Dept. of Range Science federal tract U-b in Utah; the corporation resources on these lands, such as oil shale. Fort Collins, Colo. 80521 consists of three companies (Phillips Petro­ Dale Andrus (303) 491-6432 leum, Sun Oil, Sohio Petroleum). State Director Colorado Water Conservation Board­ Harry Pforzheimer 1600 Broadway Division of Dept. of Natural Resources. Stud­ President Denver, Colo. 80202 ies problems concerning water supply, water 300 Enterprise Bldg. (303) 837-4325 use, water rights and water quality, including Grand Junction, Colo. 81501 Bureau of Mines (U.S.)-Division of the U.S. those related to shale development. (303) 243-9550 Dept. of Interior. The Bureau performs re­ Felix Sparks search, provides information and enforces Director laws concerning the extraction, processing, Columbine Bldg., Room 102 use and disposal of minerals. 1845 Sherman Paul Russell Denver, Colo. 80203 Director (303) 892-3441 Denver Mining Research Center Denver Federal Center, Bldg. 20 Denver, Colo. 80225 (303) 234-3754 Earl Ramsey, Bureau of Reclamation (U.S.)-Division of Program Director the U.S. Dept. of Interior. Oversees the devel­ White River opment of water and related land resources Shale Project throughout the U.S., including irrigation, Pat Halligan, White River Shale Project-Project title for municipal and industrial water supply, out­ Executive Director the development of federal tracts U-a and door recreation and flood control. Colorado West U-b in Utah, which are being developed on a Paul T. Sant Area Council cooperative basis. Chief of Governments Earl H. Ramsey Economics and Land Resources Branch (COG) Program Director P.O. Box 11568 Colorado West Area Council of Govern­ 136 E. South Temple, Suite 2150 Salt Lake City, Utah 84111 ments (COG)-Legal grouping of local gov­ Salt Lake City, Utah 84111 (801) 524-5522 ernments on Colorado's Western Slope; in­ (801) 363-7628 COG-See Colorado West Area Council of cludes Mesa, Moffat, Rio Blanco and Garfield Rees Madsen Governments. counties. Formed to address regional con­ Environmental Coordinator Colorado Dept. of Natural Resources­ cerns regarding impacts from oil-shale de­ 1315 W. Highway 40 State agency that regulates and leases state velopment, as well as to channel government Vernal, Utah 84078 lands. The Department has five divisions with funds and avoid duplication of efforts among (801) 789-0571 particular oil-shale responsibilities: Geologi­ its members. Wyoming Mining Assn.-Trade association cal Survey, Bureau of Mines, Div. of Wildlife, Pat Halligan composed of individuals and companies en­ Water Conservation Board and Div. of Water Executive Director gaged in various phases of the mineral in­ Resources. Box 351 dustry. Harris Sherman Rifle, Colo. 81650 William H. Budd, Jr. Executive Director (303) 625-1723 Executive Secretary 1845 Sherman Dept. of Interior (U.S.)-Responsible for the P.O. Box 3076 Denver, Colo. 80203 administration of more than 533 million Casper, Wyo. 82601 (303) 892-3311 acres of federal land. Formulates and admin­ (307) 265-7060 Colorado Energy Research Institute' isters programs for the management, con­ (CERI)-State agency established by the leg­ servation and development of natural re­ Key Governmental Agencies islature to coordinate research on Colo­ sources. Area Oil Shale Supervisor's Office rado's energy studies. *William L. Rogers (AOSSO)-Responsible for supervision of Thomas Vogenthaler Special Asst. to the Secretary operations under the Interior Dept.'s oil­ Director Missouri Basin Region shale leasing and developing program; em­ Box 366 Room 688, Bldg. 67 phasis on industry compliance with environ­ Golden, Colo. 80401 Denver Federal Center mental regulations. (303) 279-0300 Denver, Colo. 80225 Pete Rutledge Colorado Geological Survey-Division of (303) 234-3120

16 Shale Country December 1975 Denver, Colo. 80203 Works for intergovernmental cooperation; (303) 892-2471 also directs the Uintah Basin Energy Plan­ Mountain Plains Federal Regional Coun­ ning Council, which acts as state's advisor cil-Coordinates the participation of federal on basin energy questions. Council also se­ agencies interested in shale development, cures funds for energy impacts and directs including federal planning assistance to oil­ oil-development planning on request of local shale communities. governments. Samuel R. Martinez Chuck Henderson Bill Rogers, Chairman Director, Energy Planning Council Chairman 1961 Stout, Room 14041 Director's Office Oil Shale Denver, Colo. 80202 303 Uintah County Bldg. Environmental Vernal, Utah 84078 Advisory Panel (303) 837-2751 Oil Shale Environmental Advisory Panel (801) 789-2300 Energy Research and Development Admin. (OSEAP)-Assists Interior Dept. in enforce­ United States Navy-Oversees naval re­ (ERDA)-Coordinates major federal energy ment of provisions of the prototype oil-shale serves of oil-shale lands in both Colorado research and development programs; works leases for the protection of the environment. (Anvil Points) and Utah. Cooperates with with industry, universities and other govern­ Basically an advisory body that evaluates other governmental agencies and industry in ment agencies in the development of fossil, development plans and makes recommenda­ researching methods of converting shale oil synthetic and exotic fuels. Has absorbed all tions to Dept. of Interior. Panel consists of into fuel. former Bureau of Mines research centers environmentalists and federal, state and Cdr. PA Petzrick that deal exclusively with energy, including county representatives. Director the Laramie Energy Research Center in Wyo­ William L. Rogers Navy Energy and Natural Resources ming, which has long been considered to be Chairman R&D Office a leader in the field of oil-shale research. Room 688, Bldg. 67 Dept. of the Navy Dr. Andrew Decora Denver Federal Center Headquarters Naval Material Command Acting Director Denver. Colo. 80225 Washington, D.C. 20360 Laramie Energy Research Center (303) 234-3120 (301) 267-2482 Box 3395 Henry O. Ash University of Colorado-State institution; Laramie, Wyo. 82070 Executive Director conducts research on oil-shale development (307) 742-2115 Room 690, Bldg. 67 and impacts; also has extension center in Environmental Protection Agency­ Denver Federal Center Grand Junction. Responsible for researching, monitoring and Denver, Colo. 80225 Ron Lemon regulating pollution control. Also coordi­ (303) 234-3275 Director nates research and antipollution activities of Rampton, Calvin-Governor of State of Office of University-Industry Relations state and local governments, educational Utah. Boulder, Colo. 80302 institutions and individuals. Office of the Governor (303) 492-0111 *Dr. Cooper H. Wayman State Capitol UniverSity of Utah-State institution; the Director, Office of Energy Activities Salt Lake City, Utah 84103 University is energy research center for state, EPA, Region VIII (801) 533-5231 particularly fuels, engineering and mining 1860 Lincoln Socio-Economic Impact Coordinator research. Denver, Colo. 80203 (Colorado)-Appointed by governor; former­ Public Information Office (303) 837-3691 ly called Oil Shale Coordinator. Responsibili­ Salt Lake City, Utah 84112 Federal Energy Admin. (FEA)-Federal gov­ ties include administering oil-shale lease (801) 581-7200 ernment's energy policy-making arm; pro­ bonus money and coordinating state oil­ Utah Dept. of Natural Resources-State vides broad energy policy guidelines, shale planning efforts. agency that regulates and leases state lands. analysis and recommendations to the Ad­ Burman Lorenson The department has eight divisions. ministration, and oversees all facets related 136 State Capitol *Gordon Harmston to energy policy, including taxes and regula­ Denver, Colo. 80203 Executive Director tions. (303) 892-2471 438 State Capitol Phil Gallo Soli Conservation Service-Division of the Salt Lake City, Utah 84114 Synthetic Fuels Policy Planner Dept. of Agriculture. Now establishing plant (801) 328-5356 1200 Pennsylvania Ave., Room 3446 center near Meeker, Colo., to provide seeds Utah State University-State institution; the Washington, D.C. 20461 and plants for oil-shale reclamation pro­ University is looking into water problems (202) 961-6035 grams. involved in energy development. Geological Survey (U.S.)-Division of the Ellis Sedgely *Dr. Thad Box U.S. Dept. of Interior. Determines mineral State Resource Conservationist Dean, College of Natural Resources resources and geologic structure of the Unit­ U.S. Dept. of Agriculture Logan, Utah 84322 ed States. Activities include exploration. 2490 W. 26th Ave., Room 313 (801) 753-7677 mapping and research into geologic princi­ Denver, Colo. 80211 Western Governors Regional Energy Policy ples and processes. (303) 837-3681 Office-Interstate organization composed of *George L. Snyder 10 members, which was formed to unify the Geologist area's goals about the environment and en­ Room 1817-A ergy production, and to convey this input to Denver Federal Center. Bldg. 25 the Administration. Denver, Colo. 80225 William L. Guy (303) 234-3593 Staff Director Herschler, Eel-Governor of State of Wyo­ 4730 Oakland .. ming. Denver, Colo. 80239 Office of the Governor Chuck Henderson, (303) 371-4280 State Capitol Director Wyoming Geological Survey-Analogous to Cheyenne, Wyo. 82001 Uintah Basin U.S.G.S. (307) 777-7434 Energy Planning *Dr. Daniel N. Miller, Jr. Lamm, Richard-Governor of State of Colo­ Council State Geologist rado. Uintah Basin Assn. of Governments­ Box 3008, University Station Office of the Governor Blanket planning agency for three Utah Laramie, Wyo. 82070 State Capitol counties: Uintah, Duchesne and Daggett. (307) 742-2054 ·Also member of OSEAP.

Shale Country December 1975 17 [Yoice of the People I Opportunity To Speak Out

During the fall months of 1975 a series In essence, three themes were broad­ our high quality of life are compatible­ of government hearings related to the cast to Congress by these spokesmen. if we receive the money we require to development of a federal synthetic-fuels One: shale-area residents want a strong serve new population, the information commercialization program kept oil voice in energy-development decision­ we need and enough time." shale very much in the news. Receiving making affecting this region. Two: they The critical responsibilities of the fed­ particular attention were hearings held want Washington to understand that eral government were also cited at the in Washington, D.C., and in Colorado, consideration of federal financial sup­ hearings and elsewhere by the Governor by the Energy Research, Development port for oil-shale development should of Colorado. Governor Dick Lamm feels and Demonstration Subcommittee of include not only consideration of sup­ oil-shale development in Colorado the U.S. House of Representatives port for oil-shale plants but also for the should proceed only if: (1) the federal Committee on Science and Technology. associated i nfrastructu re-health-care government determines the cost to local This subcommittee was seeking addi­ services, libraries, schools ... Third: a governments and shows ways to "fully tional input in regard to a proposed key message voiced by many people of ameliorate these costs"; (2) shale proj­ $6-billion synthetic-fuels development the shale area was "We are not 'anti' ects are built on "the smallest possible loan-guarantee program, a provision oil-shale development or energy devel­ size that is required to demonstrate added to the Energy Research and De­ opment per se. We do insist, however, commercial feasibility"; and (3) the state velopment Administration's 1976 budget on doing it right-with proper concern examines and approves "major and sig­ request by Senators Henry Jackson and for local impacts, for environmental, wa­ nificant reallocations of the state's water Jennings Randolph. ter, socioeconomic needs, for orderly, resou rces." To obtain this input the subcommittee gradual development." Gathering other comments invited a number of industry spokes­ For example, Meeker native and In response to a question by SHALE men, elected officials and private indi­ rancher Bill Brown, a Rio Blanco County COUNTRY concerning the role of the viduals to testify at these sessions. Thus Commissioner and member of the Colo­ Colorado West Area Council of Govern­ they served to highlight the oil-shale rado West Area Council of Governments ments, an aide in the Governor's office, industry's 1975 and 1976 challenges, as (COG), testified before the House sub­ Jim Monaghan, indicated that the Gover­ seen from both industry and citizen per­ committee chaired by U.S. Rep. Tim nor would continue to work with the spectives. Wirth (D-Colo.) at both the hearings in COG as the "viable" structure repre­ The industry viewpoints and insights Colorado and in Washington. He ob­ senting local government. Monaghan will be covered in detail in the January served: said he felt that "COG had not reached 1976 issue of SHALE COUNTRY. The fol­ "Make no mistake about it, the impact its full and optimum ability to deal with lowing discussion presents some of the of energy development upon our region the problems of massive energy devel­ opinions expressed at the hearings and will be great ... Rapid growth creates opment yet, however, they seem to be some relayed in SHALE COUNTRY inter­ such a variety of problems and intensi­ moving ahead into that role." Monaghan views by citizens and officials in Colo­ fies the nature of these problems ... also said that the Governor's Energy Poli­ rado and Utah. We believe that energy self-reliance and cy Council of state officials will continue

18 Shale Country December 1975 U.S. Representative Tim Wirth presided at House subcommittee hearings in Colorado on proposed $6-billion synthetic-fuels development loan-guarantee program.

to shape the broad outlines of state have to furnish that (water for the plants) work at refining wild guesses down into energy policy in its weekly one-half day themselves." good guesses. But people are very funny meetings, and that the Governor plans Water supply is a critical issue, of animals. You may decide they'll live in to designate a Western Slope Advisory course, and it's at the top of the list of Rangely and instead they'll decide to live Committee to the Energy Policy Council. priorities of the Governor's Uintah Basin in VernaL" In Utah, Governor Rampton has also Energy Planning Council. Chuck Hen­ After all the shale-country speCUlation appointed an energy planning council, derson, the council's director, explained about oil-shale development related im­ this one serving the Uintah Basin where to SHALE COUNTRY that other priori­ pa£ts, it still rests primarily with the oil-shale development is likely to take ties, in order, are: plant location, devel­ federal government to determine what place. Of the communities' needs for opment of transportation corridors, fi­ kinds of aid to provide communities front-end money, he told SHALE COUN­ nancing, construction of housing, edu­ struggling to meet the growth from en­ TRY: cational needs, permanent housing and ergy development. And in this regard, "The federal government should have community development. U.S. Rep. Wirth told SHALE COUNTRY some sort of plan for front-end money Currently the council is working with that he feels Congress should look into (in energy development), because it is a the Bureau of Land Management and the four areas before it passes any national problem, but we're not waiting state to develop an overall plan for high­ synthetic-fuels legislation: financing for them." ways serving the Basin. Henderson says government loan guarantees or price Utah's legislature has passed bills al­ the council would like to have two major supports for industry; environmental lowing the oil companies to pre-pay highways, from Vernal and Roosevelt, to safeguards for air and water quality; so­ their taxes; these monies can then go to the oil-shale tracts. The road from Vernal cioeconomic impacts, including "What impacted communities. Rampton also to Bonanza would cover 32 miles. is it? How big is it? How are we going to commented on the following issues: Another comment on community im­ finance it?" and "Who has authority Tax on production of oil shale: "It's pacts comes from Dr. Thad Box, a mem­ where?" bound to come, not this year, but it's ber of the Oil Shale Environmental Advi­ By the time this magazine goes to bound to come. How much will depend sory Panel. Box also is Dean of the Col­ press, some of the hearings related , on economic conditions at the time. lege of Natural Resources at Utah State to synthetic-fuels commercialization Now state tax on conventional oil is 2 University in Logan. He points out that should be completed and some of the percent, much lower than many of the socioeconomic impacts are much like legislation may have passed. However, surrounding states. I suspect tax on oil results from rehabilitating processed several of the questions may still remain shale will be about the same as conven­ shale sites, because the results really for resolution, hopefully, in 1976. There­ tional oil, and it may go up." can't be anticipated. fore, SHALE COUNTRY will look closely State financing of water for oil-shale He comments: "We don't know at many of these, including the commu­ development: "You're talking about the enough about the socioeconomic as­ nity costs of energy development-who water for plants, not the communities. pects of oil-shale development ... We is responsible for financing, in the Janu­ No, the companies themselves would won't know until we try. Meanwhile, we ary 1976 issue. C.E.

Shale Country December 1975 19 IPotpourri I

Shooting Shale -for National TV

NBC-TV newsmen came to shale probably got the most beautiful country are inside a mountain (the Roan Cliffs). country this fall, and the camera crew in Colorado." He also noted that filming of the story with reporter Paul Cunningham did about oil shale, an alternate energy more than breeze into town, shoot a few Reports on the reporter-Pforzheimer source, came at the same time as the rolls of film and jet back to New York. In observed that Cunningham was oil-producing Middle East countries an­ fact, Harry Pforzheimer, Paraho Oil "diligent and very thorough" in his re­ nounced a 10-percent hike in oil prices. Shale Demonstration's Program Direc­ porting at the site. The film crew had And the NBC reporter said that shale tor, who served as NBC's source/guide, intended to spend a morning filming, country gave him the impression that its thought the c'rew shot enough footage but Jim Gigoux, Community Affairs man­ oil-shale reserves might offer an for a couple of feature-length films. All ager for Paraho, says they left Grand "interim" energy solution until nuclear that film, however, was later boiled Junction at 7 a.m. after they "loaded a energy is fully underway some 30 or 40 down to about 4 minutes on NBC's Nov. truck down with equipment and peo­ years from now. 7, 1975, "Today" show, as part of its ple," and they didn't return until 12 Cunningham has some impressions of Bicentennial salute to Colorado. hours later. In addition, Pforzheimer the countryside too. For example, the The NBC crew turned their cameras on spent 4 hours explaining to Cunningham town of Rifle reminded him of Badlands, the town of Rifle, on Paraho just west of the problems, the possibilities and the N.D., a revived old cowboy town. And town, and on the Roan Cliffs that form accomplishments of the oil-shale indus­ he liked Grand Junction-its downtown the backdrop to the Anvil Points Naval try. mall, its college, its nice restaurants. Oil Shale Reserve where Paraho is locat­ Back in New York, Cunningham said When he returned home, the reporter ed. Cunningham said in an interview in a telephone interview that before the told his wife, "I may have found the with SHALE COUNTRY that he was aim­ assignment, he had thought of oil shale place where I want to retire." Cunning­ ing to produce a "primer" on oil shale, as largely a strip-mining development; ham laughed, "I can just see me with my and that the piece also "gave us a chance he was surprised, therefore, to find on hard hat out mining shale:' to show some of the country. You've the site that Paraho's current operations CE.

20 Shale Country December 1975