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23 Oy°°Y Janniiltteffftc] 23 oY°°Y JannIiltteffftc] lis0 OIL SHALE 0 COAL OIL SANDS VOLUME 17 - NUMBER 4 DECEMBER 1980 QUARTERLY T!1 Ertl Repository .'\tthur Lakes Library C½ rd -11School of Mines ROCKY MOUNTAIN DIVISION ®THE PACE COMPANY CONSULTANTS & ENGINEERS, INC. FORMERLY CAMERON ENGINEERS. INC. ") Reg. U.S. Pal. OFF. Cameron Synthetic Fuels Report is published by the Rocky Mountain Division of the Pace Company Consultants & Engineers, Inc. (Formerly Cameron Engineers, Inc.) as a multi-client service and is intended for the sole use of clients or organizations affiliated with clients by virtue of a relationship equivalent to 51 percent or greater ownership. Cameron Synthetic Fuels Report is protected by the copyright laws of the United States; reproduction ofan y part of the publication requires the express permission of the Rocky Mountain Division of The Pace Company Consultants & Engineers, Inc. The Rocky Mountain Division has provided energy consulting and engineering services since 1955. The Division's experience includes resource evaluation, process development and design, systems planning, marketing studies, licensor comparisons, environmental planning, and economic analysis. The Division also has an extensive Information Services Department which publishes a variety of periodic and other reports analyzing developments in the energy field. ROCKY MOUNTAIN DIVISION THE PACE COMPANY CONSULTANTS & ENGINEERS, INC. FORMERLY CAMERON ENGINEERS, SC. S. FRANK CULBERSON, PRESIDENT JOHN 0. BAKER, VICE PRESIDENT-INFORMATION SERVICES SYNTHETIC FUELS STAFF RHONDA J. DETAMORE AGNES K. DUBBERLY THOMAS A. HENDRICKSON CHARLES 0. HOOK EUGENE L. JOJOLA COLLEEN D. KELLEY KENNETH E. STANFIELD WELANA WENDORFF CHERRY CREEK PLAZA It 650 S. CHERRY ST., SUITE 400 DENVER, COLORADO 80222 303/3213919 CONTENTS HIGHLIGHTS ..............................A-i I. GENERAL GOVERNMENT DOE Issues Program Solicitations for Proposals for Financial Assistance of Commercial Synfuels Projects via Loan & Price Guarantees and Purchase Commitments . 1-1 Synthetic Fuels Corporation Will Be the Major Vehicle for Administering Synfuels Commercialization Programs ........................ I-? U.S. Synthetic Fuels Corporation Gets a Chairman, Five Regular Board Members, and Plenty of Controversy . 1-3 Synthetic Fuels Corporation Issues Its First Solicitation of Project Proposals . 1-5 DOE Solicits Proposals for Assistance for Cooperative Agreements and Feasibility Studies of Systems for Direct Combustion of Minerals and Organic Materials . 1-6 The [EA and Its Interests in Synthetic Fuels Are Examined ................ 1-6 World Bank Recommends Oil Importing Developing Countries Expand Their Domestic Production of Fuels ........................... 1-s Missouri River Basin Commission Prepares Water Resources Management Plan . 1-8 Energy Security Act Encourages Production of Alcohols ................. 1-8 ENVIRONMENT EPA's Approach to Regulating First Commercial Synfuels Facilities Reviewed ........... I-Il EPA No Longer Exempts Fugitive Dust from Being Included in Air Quality Review for PSD Permit ..... 1-13 051-IA to Create a Standards Advisory Committee on Synthetic Fuels . 1-13 EPA Contends that Western Energy Developments Need Not Move Forward at "Break Neck" Speed ..... 1-14 BLM Publishes Final Guidelines with Regard to "Areas of Critical Environmental Concern" ....... 1-15 DOE's Environmental Advisory Committee Discovers Oil Shale, Discusses SRC-II EIS . 1-15 GAO Notes an Uneasy Partnership Exists between EPA and the States in Administration of Environmental Programs . 1-17 ENERGY FORECASTS Tenneco Projects U.S. Energy Profile through the Year 2000 ................ 1-18 Shell Updates Its "National Energy Outlook" Assessment for the 1980-1990 Period . 1-21 CEO Reviews Selected Studies of Low Energy Futures for the United States . 1-22 Petroleum Industry Research Foundation, Inc. Reports on the U.S. Energy Perspective—to 1990 ...... 1-23 CEQ Completes Its Global 2000 Report to the President . 1-27 ECONOMICS Synfuels Are a Bargain--if All Costs Are Considered . 1-28 Critical Mineral Needs of the United States Are Not Limited to the Mineral Fuels . 1-28 U.S. GOVERNMENT SYNFUELS PROCUREMENT NOTICES AND PROGRAM SOLICITATIONS LISTED . 1-29 RESEARCH AND DEVELOPMENT SOURCES SOUGHT . 1-34 U.S GOVERNMENT CONTRACT AWARDS LISTED . 1-35 COMING EVENTS . 1-39 RECENT GENERAL PUBLICATIONS . 1-43 II. OIL SHALE PROJECT ACTIVITIES Status of Major Permits Presented 2-1 C-a Proposes Surface Mine for Lurgi Demonstration 2-1 Rio Blanco Ignites First MIS Retort ..... 2-3 Dow Completes DOE Antrim Shale Contract 2-3 Paraho's Plans Are Reviewed ....... 2-4 Union Discusses Project Plans in Shareholders' Report 2-5 LAND Sohio, Cleveland-Cliffs, Superior Announce Joint Resource Holdings 2-6 Independents Oppose Near-Term Oil Shale Leasing ..... 2-6 Interior Announces Results of Oil Shale Technology Nominations 2-8 Russell's "History of Western Oil Shale" Is Published .... 2-8 Interior Files Brief in Opposition to Mineral Patent Applications. 2-8 Southern Uinta Basin Shale Resources Characterized .... 2-9 Status of Oil Shale Legal Proceedings Noted 2-10 ENVIRONMENT Oxy Petitions Colorado for Relaxed SO Standard ........ 2-13 Draft EIS Issued for Paraho Module at Anvil points 2-IS Naval Oil Shale Reserve Draft EIS Issued 2-IS Environmental Control Technology Tested at Laramie ....... 2-20 GOVERNMENT DOE Inspector General Investigates Laramie's Programs ...... 2-21 LETC Participates in Oil Shale Meetings in Morocco, Israel, and Switzerland 2-22 STATUS OF OIL SHALE PROJECTS ............. 2-24 RECENT OIL SHALE PUBLICATIONS 2-30 III. OIL SANDS PROJECT ACTIVITIES Controversy Arises over Syncrude's SO Emissions 3-1 Cat Canyon Steamflood Updated ..... 3-I Suncor Hurt by New Energy Policy 3-4 Alsands and Esso Cold Lake Projects Put on Hold 3-4 PCE Pilot Project Progresses ...... 3-5 Esso Applies for Cold Lake Fuel Change. 3-5 BP Canada Announces New Pilot Project 3-6 DOE Tar Sand Field Experiment Is Completed 3-6 TECHNOLOGY Papers Presented on Hydrothermal Studies ......... 3-9 DOE Heavy Oil Contractors Make Presentations 3-10 Confab '80 Held in Laramie 3-11 Steam Drive Papers Presented at AIME Meeting 3-12 Canada-Cities Service to Perform Pilot Test in Oil Sands near Cold Lake 3-13 Mining at Suncor Discussed 3-13 Conoco Presents Details of Oil Mining Project ........ 3-14 Two Tar Sand Mining Methods Patented .......... 3-16 Three Papers Presented on Shell Peace River Project ...... 3-IS Solvent Extraction Study Results Presented by National Research Council . 3-20 Geotechnical Frontiers in Oil Sand Mining Examined . 3-23 GOVERNMENT Canadian Government Impasse Shelves Oil Sands Plants . 3-25 ERCB Procedures Reviewed . 3-27 Tar Sand Leasing Bill Dies in Senate . 3-30 ECONOMICS Cost of the Combustion Process in Utah Tar Sand Is Projected . 3-31 Heavy Oil Surplus Exists in Canada . 3-33 ENVIRONMENT Environmental Assessment of Utah Tar Sand Test Made . 3-34 Environmental Regulations for Tar Sand Development Are Analyzed . 3-35 STATUS OF OIL SANDS PROJECTS . 3-39 RECENT OIL SANDS PUBLICATIONS . 3-52 IV.. COAL PROJECT ACTIVITIES Great Plains Coal Gasification Project Underway . 4-1 SRC-I/TSL Commercial Plant Economics Presented .................. 4-I Exxon Adds New Partner for the Donor Solvent Project . 4-7 ENVIRONMENT TVA Medium Btu Coal Gasification Demonstration Plant Draft EIS Released . 4-9 Final Report on Environmental Impact of Kaiparowits Coal Development Released . 4-14 NIOSH Assesses Health Aspects of Coal Liquefaction . 4-17 GOVERNMENT DOE and EPA Reach Agreement on SRC-II EIS . 4-19 GAO Says DOE Needs to Develop a Methanol-from-Coal Program . 4-21 GAO Report Promotes Indirect Coal Liquefaction . 4-22 ENERGY POLICY & FORECASTS Market Penetration of Methanol as a Fuel Is Projected . 4-25 TECHNOLOGY The British Gas Westfield Operations Are Described .................. 4-29 Enhanced Oil Recovery Is a Possible Use for Carbon Dioxide from Gasification .......... 4-31 Development of Gas Turbines for Use with Coal-Derived Fuels Discussed by GE Representative ..... 4-35 Enthalpy and Phase Equilibria Data for Coal Gasification Plant Designs Said to Be Inadequate ...... 4-36 CORPORATIONS Update on Westinghouse Coal Gasification Program Given ................ 4.33 Texaco Involvement in Coal Gasification Reviewed . 4-40 LAND to Federal Coal Lease Sale Be Held in January; Includes Small Business Set Aside . 4-43 DOE's Production Goals Criticized by the General Accounting Office . 4-49 Industry Also Critical of DOE's Coal Production Goals ................. 4-SI UI Green River-Mains Fork Final Environmental Impact Statement Released . 4-54 U.S. District Court Rules on Alluvial Valley Floor Issues . 4-57 Surface Mining Activity Reviewed . 4-58 WATER Water Assessment Report for SRC-II Published by Water Resources Council . 4-64 Resources for the Future, Inc. Reports on Water Rights and Energy Development in the Yellowstone River Basin . 4-67 STATUS OF COAL PROJECTS . 4-69 RECENT COAL PUBLICATIONS . 4-102 V. APPENDIX Meeting Report: DOE/EPA-SRC-11 EIS . 5-1 Tennessee Valley Authority Draft Environmental Impact Statement Appendix B Waste Characteristics and Flow Diagrams . 5-5 iv HIGHLIGHTS The Newly-Created United States Synthetic Fuels Corporation is Becoming Operational President Carter, acting under authority granted to him by Article II, Section 2 of the U.S. Constitution, appointed a Chairman and five Board Members of the newly-created U.S. Synthetic Fuels Corporation. Carter acted because the U.S. Senate recessed without having confirmed
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