Mule deer stroll through 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., 231 Detroit St., Denver, Colo. 80206, along with a check for $4.00 to cover costs of postage and handling. SHaLe counTRY Volume 1, Number 7 July 1975

CONTENTS 2 Guest Editorial The Many-Options Dilemma 3 Looking Ahead Examining Shale Country's Health-Care Facil ities-Utah 4 A Look At Utah: From Sego lilies to Shale 7 Situation Report U.S.A. Oil Shale: Asset or liability? 9 Potpourri Shale-country interests are expressed by readers (p. 20), and Utah's Shale-Down Under Gov. Rampton (p. 18-19), while SHALE COUNTRY takes a look at Utah 10 Community Profile (p. 4-£), and shale development assets and liabilities (p. 7-8). Rangely: Still Swimming in Oil 12 Guest Column Air Quality and Meteorology in the Prototype Oil-Shale Program 14 Environment Putting Wildlife on the Map 15 Real Estate Corner A Room at the Top (of Shale Country) 16 Newcomers Johnny Van: Colorado's Henry K? 17 Vignette Burman Lorenson: Coordinating over Coffee 18 Voice of the People Utah's Gov. Rampton: 'Door still open to shale development' 20 Readers Speak Out

Edward S. Safford, Publisher and President Gregory A. Williams, Executive Vice President Alys Novak, Vice President and Editorial Director A PUBLICATION OF Richard L. Ronald, Vice President-Sales t!:\ ~ MOUNTAINEMPmEPuBLISHING,INC. Jonijane Paxton, Managing Editor Evelyn DiSante, Associate Editor Photo Credits Kathy Carlton, Assistant Editor Front Co"er, Dennis Van Horn, Ecology Consultants, Inc.; p. 2, AReO; p. 3, Design West; p. 4-6, Cameron Engineers, Skyline Oil, Carol Edmonds; p. 7--8, Club 20; p. 9, Doug Nelson; p. 10-11, Carol Edmonds; p. 12-13, Roger Tucker, Jim Gigoux, Contributing Editors Diagram, Rio Blanco Oil Shale Project, Photo, Roger Tucker, Area Oil Shale Office; p. 14, Ecology Consultants, Inc.; p. 15, Colorado Tra... el Development Section; p. 16, Carol Edmonds; p. 17, Tom Byers; p. 18-19, Governor's Office, Ray Lewis, Art Director Carol Edmonds; p. 20, Ray Lewis; Inside Back Co"er, Roger Tucker, Area Oil Shale Office. Brian Novak, Production Consultant SHALE COUNTRY © 1975 by Mountain Empire Publishing, Inc. All rights reserved. Material from this magazine Catherine Kilker, Circulation Director may be reprinted, with credit line to SHALE COUNTRY, Mountain Empire Publishing, Inc. Published monthly. Executive and Editorial offices, 231 Detroit St., Denver, Colo. 80206 (303) 388-5931. SHALE Carol Edmonds, Regional Editor COUNTRY is supplied to residents of Western Colorado and Northeastern Utah and to others..outside the shale area with a special interest in the industry. Third Class Bulk Postage paid at Den"er, Colorado. SHALE COUNTRY is sponsored by Ashland Oil, Inc., Atlantic Richfield Co., Gulf Oil Corp., Shell Oil Co., Standard Oil of Indiana, Sohio The Regional Editor can be reached at: Petroleum Co., Sun Oil Co., The Oil Shale Corp. The opinions expressed in this publication are those of specific individuals and do not necessarily reflect the viewpoints of the publication's sponsors or lhe oil-shale industry as a 105 Lilac Lane whole. Grand Junction, Colo. 81501 Postmaster: Please send all mail, address changes, (with old address, new address and zip code), subscription orden, undeliverable copies and Fonn 3579 to SHALE COUNTRY, 231 Detroit St., Denver, Colo. 80206. (303)242-3905

Shale Country July 1975 1 Guest Editorial

The Many-Options energy-resource utilization. The invest­ and ability to satisfy the new source ment options include oil and gas (both performance standard for sulfur dioxide Dilemma onshore and offshore), coal, tar sands, emissions. We would like to start pro­ oil shale, nuclear and petrochemicals. duction at the properties we hold, in­ Thus, there are limited capital dollars cluding one near Gillette, Wyo. This By H. E. Bond, Vice President available and a number of energy­ property could be producing 10 million Atlantic Richfield Co. resource options available. tons per year by 1978 and double that The capital problem is particularly amount by 1985-if pending environ­ The energy issue that has been con­ acute for those projects that are highly mental litigation could be resolved. fronting the nation for the past 18 capital intensive. Because of the wildly We see no prohibitive economic con­ months is comprised of a myriad of inflating costs of 1974, we have already straints in continuing to enlarge our complexities; however, the solutions been forced to withdraw from participa­ company's stake in the chemicals indus­ that are needed are not complicated. tion in a major tar-sand project and to try. Toward that general objective, we First, we must conserve energy; second, postpone a large shale-oil project. Tar are planning to invest in the neighbor­ we must expand the rate of development sands and oil shale are of great impor­ hood of a billion dollars in this area of of domestic energy supplies to reduce tance, and will be developed eventually. our business over the next 5 years with our dependence on imported oil to a But for the moment, without some form construction going forward on four new tolerable level; third, we must look to of government assistance, the econom­ plants at our Channelview, Texas, site, as the federal government to provide re­ ics do not provide adequate incentive to well as a substantial expansion of our search funds for high-cost new technol­ investment. Houston refinery, to provide the feed­ ogy areas, such as solar and fusion, that Coal is certainly our most abundant stock. could provide the nucleus of our energy energy source with recoverable deposits The question that naturally arises con­ supplies in the post-hydrocarbon era. in the U.S. in the neighborhood of 200 cerning an adventure in chemicals ofthis A key to the near-term problem of billion tons. Western coal, such as that kind by our company or any other oil developing our domestic energy re­ found in the Powder River Basin of Mon­ company is: where are we headed? Do sources lies in the energy industry's abil­ tana and Wyoming, is most valuable be­ we see our long-range stance as an oil ity to raise much needed capital. If prof­ cause of its low effective sulfur content company, energy company, chemical its continue to erode as expected over company, or a hybrid of all three. the balance of this year because of infla­ Probably the last, I would say. We are tion, punitive tax legislation, and a gen­ in the petrochemical business for the eral deterioration of overseas earnings, rather obvious reason that, whatever the industry is going to have to reduce temporary fluctuations in the market, we its earlier investment plans. The im­ foresee a long, sustained period of mense volume of domestic investment growth in petroleum-based chemical necessary over the next 10 years, proba­ products, especially considering the lim­ bly between $400 and $500 billion, can itations that are more evident every day be generated by allowing the market­ in the availability of natural gas for use as place to do its job in pricing energy on a feedstock. Our best guess at the mo­ supply-demand basis. The potential ment is that the share of domestic oil squeeze on available capital places the devoted to chemical feedstocks will industry in a precarious position at a probably double by 1990. time when it is being called upon to In summary, we must maintain the respond with a yeoman-like effort to ability to remain flexible in selecting increase domestic energy supplies. among capital-intensive options. The Since Atlantic Richfield's capital pro­ world energy situation with its interrelat­ gram is more than $2 billion this year ed financial and energy supply impacts alone, compared to a capital base of requires a flexible posture if we, as a about $5 billion, and the competition for company, are to adapt successfully in a available capital keen, the company continually changing environment. This must carefully analyze all capital­ is particularly true today if we recognize intensive alternatives to determine that oil is too valuable to burn if the where to channel its dollars to get the energy it provides can be obtained in best investment return and the best some other way.

2 Shale Country July 1975 Loo~ng Ahead

"The second alternative is not really a health-care training center. If this goes Examining Shale good choice either, since the present through, we will have three faculty Country's Health-Care hospital site is limited and it would not members, three residents, and three be possible to expand the facility beyond medical students here at all times, in Facilities-Utah 50 beds." addition to other personnel in training." That leaves the third choice: a new Arnold points out that although some of hospital on a new site. Arnold says a new these personnel would be in the hospital 48-bed hospital could be built for only temporarily, others would be there "under $5 million," but to do this, a full-time as faculty. hospital district must be established. Ar­ On a long-term basis, Arnold says, Health-care facilities in shale country nold explains that "The establishment of "We want to move from being a rural are of concern both in Colorado and in a district would change the governing general practice hospital to being a more Utah-although there are pronounced authority of the hospital, and would en­ complex specialty-intense medical-care differences in the situation between the hance the ability of the authority to tax. facility, so we can handle 20,000 to 30,000 two areas. In this two-part article, SHALE The county is limited as to the amount of people." However, he explains that this COUNTRY takes a look at the medical mills it can charge for the hospital, and is not accomplished quickly, since it and health-care capabilities of the shale the amount needed for the new hospital takes 3-10 years to build a staff. And, says region: this month, what's happening in would exceed that limit. To set up the Arnold, with the energy industries­ Utah is presented; next month, the Col­ hospital district, the County Commis­ natural gas, oil, tar sands, and eventually orado situation. sioners will put a public notice in the oil shale-pressing forward, population newspaper, and half the regular voters growth could come rapidly. He states: New hospital on the horizon will have to oppose, the plan for it to be "Now we have to serve 18,500 people. In In Vernal, Utah, Uintah County Hospi­ defeated." Arnold feels that a hospital 5 years, we may have to serve 20,000 tal Administrator John Arnold enumer­ district will be established, and that the people, and by 1980, who knows? We ates some of the problems that may third alternative will get underway soon. have to keep growth in mind at all times. affect the area's health-care quality in "If oil shale is into the production the near future: "Right now," he says, Where do doctors come from? phase in 2 years," he continues, "we "we have six physicians in Vernal. One The shortage of doctors in the area is would be faced with providing health­ of them will be leaving soon to under­ the other pressing problem. One plan care services for that industry. We must take a surgical residency; another will suggested to meet the shortage and to have candid dialog with the shale indus­ most likely be retiring this summer, so afford specialized medical care for Utah try to help us assess and predict the that will leave us short of physicians. shale-area residents is outlined by Ar­ situation. We are anxious to discuss Another problem is Uintah County Hos­ nold: "We are affiliated with the Un iver­ every option with the shale developers pital, which was licensed in 1949 as a sity of Utah School of Medicine and we and their staff, because in the health­ 31-bed acute-care hospital. The facility have jOintly applied to the Dept. of care industry, you have to translate what has been out of standard for 10 years, so Health, Education and Welfare for fund­ you don't do into reality-and that could we can only get a temporary license to ing to establish an interdisciplinary mean dead people." j. P. operate for 6 months at a time." In an effort to solve the problem of hospital facilities, the County Commis­ sioners and the Hospital Board recently commissioned a study by Design West Health Facilities, Inc., of Logan, Utah, to evaluate alternatives for facilities to serve the area. Arnold explains that the team came up with three programs: (1) to continue to maintain Uintah County Hospital, which would cost from $100,000-$300,000 per year; (2) to remod­ el the present hospital, at a cost of some $3.7 million; (3) to pick a new site and build a new facility. Arnold says that the first alternative is not viable, and that Model by Design West is of proposed new hospital for Uintah County.

Shale Country July 1975 3 IA Look..At I great hue and cry that we want to stop all development."

Utah, the dark horse? UTAH: It is this cooperative stance toward industry, as well as the fact that Utah is From Sego Lilies to Shale not being as carefully scrutinized byen­ vironmentalists as are the front-runner By Carol Edmonds oil-shale tracts in Colorado, that impels some observers to predict that Utah may Welcome mat is made of pioneer spirit; but be the dark horse in commercial oil­ safeguarding environment is not overlooked. shale development. While the state's de­ posits are not thought to be as thick as in Colorado, the Uintah Basin is still a vast storehouse of lithe rock that bu rns." Oil-shale mineral rights in Utah are ex­ It was once a detoured state, an arid is the public going to be willing to see tensive and updated core drillings may land as attractive as a prickly cactus to the country despoiled by the recovery of someday show that total oil in the Utah the Westward-moving pioneers. But mined resources." shale equals the total of Colorado's. then the Mormons settled on the land, The most well-known oil-shale project irrigated much of it and established a Reclamation's low profile in the state is the White River Shale kind of truce with the countryside. An example of this qualified welcome: Project, a three-company endeavor on Today Utah, a land of 83,000 square the Utah legislature has just passed a 10,000 acres of federal land in the Uintah miles-bigger than the combined states mined land reclamation act, which ap­ Basin. Known as U-a and U-b, these of New York, New Jersey, New Hamp­ plies to oil shale, among other mined tracts were leased by Phillips Petroleum, shire, Vermont and Massachusetts-is resources. It provides for a governing Sun Oil and Sohio Petroleum in May and home for 1 million people (compared to board (over oil, gas and mining) to re­ June of 1974. White River project officials 32 million in those five Eastern states). quire that all mining operators file no­ say commercial development could While no longer unsettled, Utah still has tices of reclamation plans before any occur in the early 1980s. patches of desolation, still has vestiges mining begins. The board may require Another big oil-shale landowner in of pioneering spirit, still is ready to wel­ miners to furnish proper surety to guar­ Utah is Skyline Oil Co., headquartered come an unproven, controversial new­ antee fulfillment of reclamation plans. in Salt Lake City. The company owns comer to the state. The newcomer: oil­ Violation of the act can be punished by a 16,154 acres-much of it adjoining U-a shale commercial development. fine of $1,000 per day for each day of and U-b-which it has leased to Sohio Utah's welcome mat for oil shale is contempt. Aim of the reclamation act: to Petroleum Co. and, in part, to Cleveland made in part of Utah's past. As Gordon return the land "to a stable ecological Cliffs Co. like Sohio, Cleveland Cliffs is a Harmston, executive director of the condition compatible with past, present participant in the Paraho Oil Shale Dem­ state's Dept. of Natural Resources, ex­ and future local land uses." onstration Project, involving testing and plains, "Maybe in Utah we remember The law was not enacted hastily. Two refinement at Anvil Points, Colo., of the our Utah heritage. We remember when years ago a similar attempt to pass a Paraho oil-shale process. Sohio is ex­ our ancestors were eating sego lilies, reclamation bill met loud objections pected to use its Skyline-leased lands as when they really didn't have enough to from mineral developers. But this year part of the White River Shale Project. eat or wear. Maybe we just recollect the state officials say they worked closely Another owner of Utah lands that con­ importance of making a living." with the bill's prime sponsor, Rep. Gen­ tain oil-shale deposits is Texaco, Inc., This heritage translates today into an evieve Atwood, a geologist, and repre­ also a Paraho participant. Companyoffi­ oil-shale welcome mat, an attitide both sentatives of the mining industry, to in­ cials in Denver say Texaco's oil-shale receptive and insistent that technology sure passage of a reclamation act that the lands in Utah amount to some 10,900 be used not only to develop the re­ Governor describes as offering "proper acres just southwest of the federal tracts, source but also to protect the ecology. protection without too much burden on and that Texaco has "no development This outlook is well expressed by Utah the industry." State natural resources plans at this time," pending results from Gov. Calvin Rampton, who told oil-shale chief Harmston, whose department the Paraho demonstration. developers in March, "As far as this state houses the act's governing board, says The state of Utah has also leased a vast is concerned, we're in favor of the devel­ the reclamation bill will have "a low amount of state land in the Uintah Basin opment of these resources ... (But), profile at first. We're not trying to kill to oil-shale developers. Close to 274,000 we've got to recognize that never again industry. We don't want to have the acres are under lease, according to

4 Shale Country July 1975 Donald G. Prince, assistant director of The state's supervision of oil-shale de­ they expect a settlement within 2 years. the Div. of State lands in the Utah Dept. velopment in Utah could someday ex­ While the suit is being settled, the of Natural Resources. The leases, good tend to the two federal prototype tracts $120 million in bonus bid money being for 20 years, cost the oil companies 50 of U-a and U-b. Whether that happens paid by the White River Shale Project in cents an acre for the first 10 years, $1 an depends on the outcome of a suit in U.S. annual installments has been impound­ acre for the second decade, in addition District Court in Salt lake City. The issue ed. Neither the state nor the federal to future royalty payments. dates back to the Utah statehood act, government can touch the funds until The Utah state leases have no environ­ which gave the state four sections out of the suit is settled. The state has pledged mental-impact statement (EIS) require­ every township. Many of these town­ that if it is awarded the lands, it will ment as such. However, companies are ships were preempted by national parks enforce the provisions of the federal required to submit mining development and other federal uses, so Congress lease. plans and environmental assessments to voted to allow the state to choose other a statewide environmental coordinating land of equal acreage elsewhere in the Spotlighting local role committee, which can approve that state­ state. Included in Utah's selections were Another part of the oil-shale welcome ment or require a full-fledged ElS the tracts of U-a and U-b (selected by the comes from local governments, who from the state agency administering the state before the tracts were bid). The seem receptive to shale development land. The Oil Shale Corp. (TOSCO) has U.S. Interior Dept. is claiming the value and eager to shape its impact. The state worked with this committee in TOSCO's of the in-lieu lands far exceeds the value administration is very sensitive to the preliminary planning for a 75,000 barrel­ of the lands given up by the state, but role of local government and its desires a-day oil-shale complex on some 14,688 Utah officials contend the law's in-lieu for autonomy-especially since 1974 acres in five blocks of Utah land west of land selection provisions say nothing when the legislature enacted a state land the federal shale tracts. about land value. State officials have said use bill; the Governor signed it, but then

011 companies, Indians, governments, and individual interests own or lease oil-shale holdings, in a scattered pattern, in Utah. Sohio, Phillips and Sun Oil are developing federal lands and several companies have leased state lands-Western Oil Shale Corp. is one of the biggest. Other companies leas­ ing nearly 274,000 acres of state lands in­ clude Atlantic Richfield, Diamond-Sham­ rock, Amoco Production, Shell (TOSCO has options on this land), Forest Oil, Aztec Oil and Gas, Texaco, Midland Oil, Cayman and Seneca Oil. Many patented and unpatented ~rtii'"""""."..,....IIL_,~IIt:.:.;.""'!I'~--f" claims are also held by individuals and com­ panies. And many acres are privately owned; t--'''1II'!::''''--c1I~ for example, Skyline Oil Co., a major land­ owner, is leasing more than 16,000 acres to Sohio, Cleveland Cliffs. (Map is reprinted with permission from Cameron Engineers, Inc., Denver, and has a 1974 copyright.)

Shale Country July 1975 5 Heritage shapes present-Utah Dept. of Natural Resources Chief Gordon Harmston, whose forefathers helped settle Utah, says most persons in the state remember their heritage, when Utah pioneers "really didn't have enough to eat or wear"-a recollec­ tion that makes them acutely aware of the importance of making a living.

a people-initiated referendum defeated we know what they are." Utah averages 1.4 million acre-feet of the measure 2 to 1. One way the problems are being iden­ water a year, says Daniel lawrence, di­ A Governor's order last November ap­ tified is through the "Utah Process," a rector of the Utah Div. of Water Re­ points local officials to coordinate "oil­ state planning effort that uses computers sources. About one-half of that entitle­ resource development" (including oil and identifies "alternative futures," dif­ ment was depleted last year. A new act shale) under the direction of the Uintah ferent combinations of possible devel­ passed by the state legislature will en­ Basin Assn. of Governments, the region­ opments-such as oil shale and tar able Utah to provide some of that water al governing association for the counties sands-and their impact on tax base, for oil-shale interests. Under the bill, the of Daggett, Duchesne and Uintah. property values, population and other state engineer reviews applications to Known as the Planning and Develop­ conditions in local communities. renew water allocations. If an applicant ment Advisory Council, the group con­ has not made good on his proposed sists of 13 local government representa­ Savoring precious water water use in the past 5 years, his award tives, aided by a technical committee of One problem Utah has attacked may be cancelled and the water retu rned state, local and industry officials. The head-on is the availability of water. Ob­ to the public. council is to act as a clearinghouse for oil servers have said, "Water in Utah is As more oil companies show interest development. Since May, an executive precious, savored as champagne might in locating shale activities in Utah, its director has been employed by the be in another state," and state officials government officials keep a close eye on council. He is Chuck Henderson, a are working intently to have that water the state's unique shale country. Some member of the Interior Committee's available for at least the first phase of of the characteristics they particularly Oil-Shale Environmental Advisory Panel oil-shale development. The Utah Board note: most of Utah shales are buried and past chairman of the State land of Water Resources resolved in May to more deeply in the earth, so surface Board. Part of his job, as described by segregate 36,000 acre-feet of White River mining is not an issue or a fear (but there the Uintah Basin Assn. executive direc­ water a year for oil-shale projects. And is concern about how to handle spent tor Clinton Harrison, will be to "translate the board is considering a reservoir site, shale); it does not appear that the oil into English, so that they can be used by about 4 miles southwest of Bonanza, shale itself is so situated that dewatering elected officials," the numerous oil­ Utah, for 116,000 acre-feet of storage, or salinity will be major problems; shale studies, such as reports being re­ which would provide water for U-a and Utah's shale deposits cover a larger area searched through Utah State University. U-b and also provide flood control, silt and are probably thinner than in Colo­ Such studies need to be intimately retention and irrigation for the Indian rado. linked to local needs rather than to aca­ lands below. The Utah water board has Adding it all up-the physical outlay of demic questions of interest to profes­ met with the Colorado Water Conserva­ shale, the state's welcome mat, the pio­ sors, Harrison points out. "We need a tion Board to begin talks on sharing the neering openness to shale development, lot of good technical answers," includ­ White River among Colorado and Utah the result could be that oil shale may one ing answers about the impact of growth energy projects as well as for the needs day join sego lilies in sagas about re­ on the communities' schools, utilities of the Ute Indians. sources and sustenance for the Utah and property values, Harrison says. He With 23 percent of the Upper Basin people. adds, "We can handle the problems if States' allocation of the Colorado River,

6 Shale Country July 1975 ISituation Report I employment, which is seasonal ana often pays less than the minimum wage, is four times greater in Colorado West. OIL SHALE: Its other major sector, tourism employ­ ment, is also seasonal and pays minimal Asset or Liability? wages. The influence of the unavailability of by Jim Gigoux sufficient full-time, gainful employment opportunities and the resultant impact on Colorado West migration are reflect­ ed in the fact that 50 percent of the 21 counties lost population between 1960 and 1970-continuing an outmigration Putting some perspective into the question. trend. The development of the oil-shale asset could potentially help alleviate many of these socioeconomic inequities by cre­ ating new and higher-paying, full-time "Will oil-shale development be an The Economic Facts and Figures employment opportunities in shale asset or a liability?" is a topic that will country. It would affect state economics generate debate almost anyplace in Why will oil-shale development be an as well. Assuming the level of economic shale country. The debators natu rally asset to shale-country citizens? A look at activity in Colorado West had equaled consider the issue from their particular the present economic situation provides that of the Denver metroplex from 1969 vested viewpoint. In this article, the au­ some clues. to 1972, Colorado would have accumu­ thor's viewpoint is based on shale­ Currently, agriculture and tourism are lated about $10 million more in state country economic considerations and an the major contributors to the region's income taxes. analysis of its socioeconomic statistics. economic base-and the cause of some A review of Webster's definition of the economic imbalances. By comparing sta­ Planning for People and Environment two terms provides some focus. Webster tistics for Colorado West (the 21 coun­ The public usually associates the liabil­ defines asset as "any item of value and ties west of the Continental Divide that ities of a shale industry with environ­ that which is a resource" and liability as are SOcioeconomically representative of mental and social impacts and aesthetic "a debt which is owed, whether payable the tri-state shale area of Colorado, considerations, all of which are complex in money, other property or services." Utah, Wyoming) with similar data for the and subjective issues. This is not to s In view of its energy needs, America is five-county Denver-area metroplex and imply there will be no real liabilities n becoming more and more aware that its for the 50 United States, a socioeconom­ connected with a shale industry. The e oil-shale resource has value and has the ic disparity and an historic economic lag problem lies in segregating the magni­ y potential to be a very significant asset. In are revealed. tude and degree of the true liabilities terms of liability, however, there is a For example, a comparison of 1970 from the emotional issues. The auditor e quandary: to whom is an oil-shale indus­ data shows that median family incomes must consider the legitimate issues and e try "debt" owed, how much and in what of Colorado West residents are consid­ industry's attempts to mitigate these t form-money, property or services? erably lower than those of Metro­ concerns before assessing the extent of if The enigma of a rational audit of oi/­ Denver and the U.S. (Graph 1). In fact, as the liability. g shale assetstliabilities is compounded Graph 2 shows, many more Colorado Socioeconomic: Criticism of oil-shale further by the auditors' motives. Thus, West families have a below-poverty­ development in socioeconomic terms a the liability portion of the balance sheet level income than those in the other two generally centers around the popu­ poses a more complex, abstract and sub­ areas. Graph 3 pinpoints the cause: em­ lation-increase impacts, the resulting so­ jective issue than the more straightfor­ ployment opportunity limitations. With cial and psychological problems and the ward asset consideration. the exception of the manufacturing and public infrastructure "front-end" costs National/international factors certainly agricultu ral employment sectors, there associated with growth. The situation at must have a great influence on a deter­ is not a great disparity between Colo­ Rock Springs, Wyo., where coal devel­ mination of whether oil-shale develop­ rado West and Metro Denver. But, man­ opment occurred explosively and with­ ment will be an asset or liability. How­ ufacturing employment, which usually is out proper planning, is often quoted as ever, this discussion will confine itself to not seasonal and pays higher wages, is an example. Critics are also quick to local and regional considerations that more than three times greater in the emphasize that Colorado is the 7th have a direct effect on shale country. Denver area. Conversely, agricultural fastest-growing state in the nation and

Shale Country July 1975 7 Utah the 13th, and that a shale industry These funds will be used to assist local discussed in SHALE COUNTRY; for ex­ would accelerate this growth. governments in the planning and con­ ample, see the article on air quality and The fact that in 1970 Colorado, Utah struction of public facilities to meet the meteorology, p. 12-13.) and Wyoming ranked respectively as the demands created by an anticipatedshale Consequently, as of this date, the total 38th, 41st and 49th states with the lowest industry. environmental liabilities of an oil-shale population density is ignored. Another "Anticipated" is a key word. Most of industry are still being audited. How­ often-overlooked fact: Colorado West, the oil-shale "growth" talked about has ever, the systematic method of develop­ with a land area of more than 44,000 been created by emotion, speculation ment, under the continuous scrutiny of square miles, has a population of about and media reports. In actuality there are local, state and federal regulatory agen­ 200,000, and 11 of its counties keep los­ now less than 1,000 total employees en­ cies, and the commitment to develop a ing residents because of a stagnating gaged full time in oil-shale industry ac­ shale industry on a limited-scale, economy. tivities. These employees are dispersed prototype-basis, insures that each phase More important, though, is the fact from Salt Lake City to Denver. Many are of a developing shale industry will be that concerted local, state and federal natives of shale country who might analyzed and evaluated in advance to efforts already are at work to prohibit the otherwise be underemployed and/or minimize potential environmentalliabili­ development and duplication of a Rock have had to move from the area in quest ties. Springs trauma in shale country. In par­ of employment. Thus, the industry has ticular, the Colorado West Regional had a minimal population impact on Auditing the balance sheet Council of Governments and the Uintah shale country to date. And generally In summary, at this time, an asset! Basin Planning and Advisory Council­ speaking, most public officials and resi­ liability audit indicates that the oil-shale locally controlled and staffed entities­ dents of the shale area feel that the resource represents a significant asset to are evaluating, planning and coordinat­ socioeconomic liabilities of growth shale country and the nation. It also ing growth and development plans in would be a welcome change to their shows that a rational determination of close cooperation with industry repre­ historical problems of having to meet the type and magnitude of the accounta­ sentatives and many, many local, state the increasing demand for public serv­ ble liabilities is being conducted. At this and federal governmental agencies. ices in the face of a dwindling tax base. stage of pre-development it appears that Also, industry groups, such as the White Environmental: Air, water, flora, fauna the potential liabilities are possibly over­ River Shale Project and the Colony De­ and archeology are other concerns and stated. If so, the excess of assets over velopment Operation, are spending vast issues associated with oil-shale develop­ liabilities will accrue to shale-country sums to plan new communities for a ment-and recognized as potential lia­ residents as an eventual surplus on the shale industry workforce. bilities, as evident by the mandated fed­ balance sheet-a capital surplus direly Another source of socioeconomic aid eral lease terms. (The detailed scope of needed by shale country as evidenced will come from industry's multi-million­ the environmental assessments being by the socioeconomic lag of the region. dollar oil-shale bonus lease payments. conducted by industry are continuously In the author's opinion, this nation is capable of solving the socioeconomic and environmental liabilities associated Metro-Denver (l)Trade & R.h:Jil with a shale industry. However, it also (1) Including Lodging & Finance seems that before the final audit can be (2) Manufi;J.I",ing (3) Construction made, the public must face the alterna­ (4) Agriculture (5) Mining tives involved in making a decision (6) Other about oil-shale development. The alter­ 1.2% natives: Denver West -to sacrifice by reducing the demand Graph 1-Median Family for liquid petroleum Income Comparisons, 1970 Colo...OO Wet' -to suffer the consequences in the

14 event of a national emergency or OPEC embargo -to accept the potential environmental and socioeconomic liabilities -to pay all costs associated with mini­ mizing the liabilities, if use of the oil-shale asset is desired. West Denver Prior to his employment with Paraho 011 Shale Demonstra­ tion Project, Gigoux was Executive Director of aub 20, an Graph 2-Percent of Families Graph 3-Percent Employment organization representing and promoting the economic in· terests of the 21 Colorado counties west of the Continental Below Poverty Level, 1970 in Selected Industries, 1972 Divide.

Sourc••: U.S. Dept. of Commerce, Census of Population, 1970; U.S. Statistical Abstract, 1972

8 Shale Country July 1975 IPotpourri I there was quite a lot. So to mine one were the moving force. And today, no resource, they had to mine the other." commercial oil-shale plants operate in Exported-to USA: Shale oil produced Australia. by this turn-of-the-century industry was Still, Nelson points out, "There is Shale­ used to enrich manufactured gas and to some current activity in Australia, but it produce paraffin wax and lighting kero­ is very preliminary when compared with Down Under sene. In addition, Australia's oil shale what's going on in America's Piceance industry was an export business. Up Basin." Some companies, he explains, until 1911, more than half a million tons are drilling, coring and assaying shale of oil shale were exported to the Nether­ and minerals in Australia's shale country. lands, United Kingdom, Italy-and the One such project, consisting of TOSCO, Marrangaroo, Katoomba and the Ca­ United States. CSR Ltd. ( a major Australian industrial pertree Valley-what do these areas Over the next two decades, the Aus­ company), and Australian Aquitaine have in common with the towns of tralian oil-shale industry dwindled­ Minerals Pty. Ltd., is exploring the feasi­ Grand Valley, Rangely and Vernal? They until World War II brought a new de­ bility of recovering petroleum products are all located in shale country. But, in mand. In this period, shale was mined, and vanadium from oil-shale deposits at the first case, the names refer to depos­ not because of coal seams, but because Julia Creek, Queensland. its in a shale country on the other side of of oil shortages. During World War II, For the next decade, however, Nelson the world-in Australia. Japanese forces cut off Australia'S out­ feels that there is little hope for a revival Australia's shale deposits lie in the side sources of oil. Thus, Nelson ex­ of the oil-shale industry in Australia. eastern portion of that country, in the plains, "The mining of shale in Australia "The price on oil produced in the nation states of Queensland, Tasmania and, es­ was a defense measure to get a full array is set by government edict until Septem­ pecially, New South Wales. Australia has of needed oil products." ber 1975," he notes, "and this price is less oil shale than the United States and However, the Australian shale industry very low. No one knows if the new labor its deposits are very thin-but some are did not survive long after the war. The government, which is inclined toward also very rich in shale oil content. The end came in the early 1950s, when the socialism, will keep the lid on conven­ richer deposits of Shale Country USA are Glen Davis plant, which once employed tional crude prices," he adds. "But, if found in seams more than 15 feet thick thousands of people, closed its doors. the government does keep the ceiling, and they yield 25 gallons, or more, of oil High costs, partly as a result of the then it will be a long wait for oil shale to per ton of shale. The richer Australian problems of mining sufficient shale, rise again in Australia." E. D. shales, on the other hand, can range from 1 foot to 6 feet thick but, in the large Glen Davis deposit, for example, the average oil yields were 50 to 100 gallons per ton of shale. In fact, the richest shale that has ever been record­ ed was found in Australia: in the Mar­ rangaroo deposit one thin lens of shale yielded 237 gallons of oil per ton. Australia's shale industry got off the ground when American frontier energy developers were just beginning to dream of an oil-shale treasure chest. In December 1865, the first Australian shale mine opened. From then through the first quarter of the 20th century, several Australian oil-shale mines operated. Ac­ cording to Doug Nelson, a Denver con­ sultant in synthetic fuels who spent sev­ eral years in Australia, coal ignited the first oil-shale industry Down Under. "In the early 1900s," he explains, "the oil shale was mined because they had to Glen Davis oil-sbale plant once employed thousands of people. mine it. The seams of shale were found Today only a general store, a post office and a curio shop scattered through coal seams, of which stay as reminders of Australia's World War II shale industry.

Shale Country July 1975 9 ICommunity Profile I

RANGELY: Still Swimming in Oil

"Where in the Hell is Rangely?/I reads 'J a bumper sticker distributed by the " Rangely Chamber of Commerce. Anoth­ er bumper sticker gives a clue: "*1-The

Arabs! Rangely has oil too! /I A map gives the answer: Straddled between Utah and Colorado shale country and along­ side the White River, Rangely is today an outpost in the northwest, energy­ resource rich corner of Colorado. And outpost it is. If Rangely residents want dinner at a deluxe steak house-or if they want to buy a refrigerator, or a particular pair of boots-they must drive 55 miles west to Vernal or 90 miles south to Grand Junction. Nearest neighbor in On the Rangely Scene: (1) Doctors on call­ the county is Meeker, 60 miles away. New medical clinic, next to 28-bed Rangely The trademark of Rangely is oil. Again hospital, serves as offices for town's doctors. and again, townsfolk stress, "If it weren't Nearby a Mormon church with gym, theater and other recreational features is being built; (2) for the Rangely oil field, this town would Pump maker-John Neiberger of BJ Pumps, shrivel up to half-a-dozen ranchers." Inc., inspects one of the company's submersible The Rangely Basin, discovered in 1933, electric pumps, which may someday be used in wasn't tapped until World War II; then oil-shale production to flush out underground oil shortages brought oil development water. Neiberger is a Rangely pioneer and a city councilman; (3) "We're an oil town," say the and incorporation of the boom town of people of Rangely and the landscape proves it. Rangely, which previously had been Since 1967, water flooding of the wells has sparsely settled by Indians and ranchers. increased total oil output; Another locally fa­ Today few Rangely natives are under mous landmark is the Rangely golf course, the age of 30. One of the town's "Nine Holes of Hell," characterized by sand. "pioneers" is John Neiberger, a Meeker native who moved to Rangely as a boy in 1940, when the townsite had no water, no sewer, a few dirt roads, a post office and general store. Tents and tarpaper shacks sprang up with an oil boom in 1945. Young John Neiberger enrolled in the town's grade school and was one of two students in the first grade. Two years later, in 1945, when Neiberger reached 1 the third grade, the oil field had attract­ ed thousands of new residents to Range­ ly, and school children of all grades attended classes in shifts. Streets in the town were laid out wherever people had driven.

10 Shale Country July 1975 Today John Neiberger, a Rangely city For example, the town's Chamber of "When you're anticipating and ready for councilman, is one of 1,650 town resi­ Commerce secretary Katheryn Collier, growth, and it's going the other way, it's dents, and he remarks of the early-day who lives on top of one of Rangely's frustrating." oil settlers, "How in the hell they did as steep hills, some days can only get a Also anticipating energy development well as they did without any help, I don't trickle of water from her faucets. City is the Colorado Northwestern Commu­ know." like most of Rangely, Neiberger officials point out that Rangely's limited nity College, a nine-building campus es­ depends for his livelihood on oil. He is tax base has not kept up with growth and tablished in 1963 in Rangely and now manager of the local Byron Jackson has restricted financing of utilities. The serving 177 students in residence, and Pumps, Inc., which employs 12 persons. town is upgrading its water system to 700 extension students in other parts of ') Biggest employer in the area is the handle 6,000 persons and is adding stor­ western Colorado. College officials are Rangely oil unit, operated by Chevron age at higher elevations to alleviate low­ adding a petroleum technology course Oil Co. for 43 companies. It employs pressure areas, Neiberger reports. to the 1976 offerings. I more than 80 men, and at least that many With water Rangely's top need, up­ work for outside contractors, reports graded housing is virtually a "luxury," How many people? Jimmy Thompson, unit superintendent. says Giltz. Some 30 to 40 men could find Helping to map out growth for Range­ The oil field is good for another 30 years, immediate work in Rangely, but they ly is the consulting firm of James Bowers estimate company officials. can't come until they locate housing, & Assoc. of Grand Junction, which according to Cecil Lollar, president of points out that a number of energy proj­ Oil is king the Chamber of Commerce and owner ects could dramatically hike the town's "No one comes to Rangely unless of a real-estate agency. population. For example, a reservoir they're connected to oil," remarks Harry New housing developments are on the may be built 6 miles east of the town for Peacock, a Rio Blanco County Commis­ drawing boards. Lollar, an attorney who Rangely domestic and agricultural use sioner who moved to the town from found himself swept into real estate by and for a Moon Lake Electric Assn. pro­ Florida when he was in his 20s. "That's the town's critical housing needs, is posed power plant. And Moon Lake may what I tell my wife when I track dirt on planning a 95-acre subdivision calling for locate a power plant 10 miles east of her beautiful carpet-if it weren't for 137 single-family homes and 220 apart­ Rangely to supply power to Rio Blanco that oil, she wouldn't have that carpet." ments and townhouses to be construct­ Oil Shale Project in the county and Peacock is an oil producer/dirt and drill­ ed over a 6-year period. Lollar also un­ White River Shale Project in Utah as well ing contractor. derlines the need to upgrade existing as other industrial users. As a county commissioner living in housing. Of the 19 new homes built in The big energy development is likely Rangely, he says, "We don't want anoth­ Rangely last year, 15 were sold to local to be oil shale. Rangely is less than 25 er Rock Springs, Wyo., where the county residents who moved out of existing miles from Utah shale country and about got all the income and the city got all the Rangely residences. 70 miles by existing road from the Rio growth." The commissioners will dis­ One small dent in the dearth of hous­ Blanco Project, and about 25 miles via a courage new cities until the two commu­ ing is coming from the public schools, proposed road. Townspeople say Range­ nities of Rangely and Meeker are which provide bUilding-trades classes; ly could become the center of oil-shale "healthy with growth," he says. students are constructing a house that activity and they hope the town won't s "Healthy growth" means in part avoid­ may sell for around $60,000. skyrocket in population. But they would ing any more helter-skelter develop­ Not hurting for funds, the school dis­ like Rangely to grow to around 5,000, a ment, such as the town's current cross­ trict has for years benefited from the population base more likely to attract word-puzzle arrangement of streets, federal taxes on production of the restaurants, supermarket chains and rec­ or the location of a trailer court next to Rangely oil fields. Last year production reational businesses. Main Street businesses. "Rangely has from the fields jumped from 43,000 to Regardless of whether the town gets already been impacted by energy devel­ 55,000 barrels a day; and as a result, the much aid to absorb any growth, many opment," observes city manager Dan school district's assessed valuation shot Rangely residents express confidence Giltz. "We need money now, not to up by almost 57 percent to $78 million. they can cope with any boom. Giltz says accommodate new impact (from oil So the Re-4 Rangely school district has the town's geographic isolation makes I shale), but to upgrade existing facili­ "some slack," some room for growth, in the people adventuresome. Lollar says ties." the words of School Supt. Walter Stah­ that although the town will need federal A number-one "now" need is an im­ lecker. However, enrollment in the money for highways and waterworks and proved water system. Claude White, grade school, junior high and high may find itself with scant outside help, chairman of the planning commission, school amounts to just 600 students, "The old-timers who lived in the tents states that Rangely has always been which is a decline of 30 students over the are saying, 'We did it once before, so "backwards" in its utilities development. previous year. Stahlecker observes, what? We can do it again.'" C. E.

Shale Country July 1975 11 IGuest Column I Air Quality and Meteorology in the Prototype Oil-Shale Program

By Roger A. Tucker, Meteorologist, Area Oil Shale Office USGS, Grand Junction, Colo.

In accordance with the leases, detailed Up. up and away-Technician on U-b tract environmental baseline data must be (left) makes last-minute adjustments before collected on surface water, groundwa­ releasing helium-filled pilot balloon and ra­ ter, meteorology, air quality, flora and diosonde. The radiosonde will measure wind fauna, soil surveys and productivity as­ speed and direction, relative humidity and temperature as part of the upper air studies. sessment. These data will be used to determine the conditions existing prior to oil-shale development on the leased At the present time, the main activity lands. (Each type of baseline-data stud­ of the federal prototype leases is collec­ ies will be discussed in a series of articles tion of environmental baseline data as in SHALE COUNTRY beginning with me­ required by the lease terms. Environ­ teorology and air quality.) mental data must be collected for a peri­ The meteorology (atmospheric phe­ od of at least 2 consecutive years, 1 year nomena and weather) and air-quality of which must precede submission of a section of the federal prototype oil-shale detailed development plan. leasing program did not just happen-it

MAIN 60 METER TOWER 30 M level ~ "-""­ AT, WS, WD ___ ~ ~

SITE '1 10 Me'er 10 Meter level Tower

NO, NOx ' THe, CH4, S02 H2S/·.):~iI!J.",~"""" CO, 031 Particulates.. Porticulote Size Visibility, Noise, Evaporation

Example of a meteorological and air-quality data acquisition system for the oil-shale tracts. The system includes a central station and three remote monitoring stations. Information collected at each of these remote stations is radioed to the central station minicomputer for preliminary analysis and storage. On the tracts the air-quaHty measurements include particulates. sulfur dioxide. hydrogen sulfide, total hydrocarbons, methane. carbon monoxide, ozone, nitric oxide and nitrogen oxides. The meteorological measurements include: air temperature. wind speed and direction. humidity, lateral and vertical turbulence, solar radiation, evaporation and visibility. Air movement is being measured at 32.81 feet (10 meters). at about the middle and at the top of each of the meteorological towers. Relative humidity is monitored at the 10-meter height. Special studies are being done to determine background sound levels and ambient radiation level on the tracts. was well planned. Considerable re­ suspended particulates, using, when ap­ specially-instrumented aircraft, radio­ search and effort were spent prior to the plicable, automatic instruments with sondes and pilot balloons. A monostatic approvals of the exploration plans on continuous records. The lessee shall also acoustic sounder is used to further ex­ meteorology and air quality, and the monitor, under the same conditions, hy­ plore the upper atmospheric structu re approvals were based on guidance from drocarbons, oxides of nitrogen, and and to determine temperature inver­ many agencies, both federal and state. other pollutants, where the Area Oil sions. This instrument detects inversions Principal guidance came from the 16­ Shale Supervisor has determined that aloft and displays them in graphiC form point federal policy on air-quality and such monitoring is necessary to deter­ to a height of 3,281 feet (1,000 meters). meteorological monitoring on the oi/­ mine baseline air quality or to conduct Trace diffusion studies also are being shale leases. This policy covers such an effective monitoring program. made to determine the diffusive capabil­ items as suspended particulates, radio­ In addition, the lessee shall establish a ity of the atmosphere. This is accom­ activity, ground-level meteorological meteorological station in reasonable plished by following colored smoke re­ monitoring for wind speed and wind proximity to each proposed plant site leased from a tethered balloon and direction, humidity measurements, visi­ (retorting and processing) to monitor at watching the motion and decay both bility measurements, solar radiation and least 95 percent of the time over each from the ground and with an instru­ • upper atmospheric testing. lease year during which monitoring is mented aircraft. Another important document consid­ required. The lessee shall monitor: (1) The most modern equipment and ered was the air-quality guidelines pre­ wind direction and speed (vane and ane­ technology are being used to measure pared by the Oil Shale Environmental mometer) at three levels, one at least 100 and sample the meteorology and air Advisory Panel, which were submitted feet (30.48 meters) above the surface of quality on the prototype lease tracts. An by its air-quality work group after con­ the plant site, one at about 30 feet (9.14 example is the integrating nephelome­ sidering comments from the Colorado meters), and one at an intermediate lev­ ter. This device is used to measure light and Utah air-pollution control agencies. el; and (2) temperature at two levels, scattering through the air. This measure­ These guidelines were prepared not only one at least 100 feet and one at about 30 ment provides a quantitative index of air for the environmental baseline data­ feet above the surface of the plant site; clarity (visibility). collection program, but also for use dur­ and humidity at one level. Also, the What are we finding oun As one might ing the planning, development and op­ lessee must maintain records of all base­ expect, the air quality on these remote erational stages of the oil-shale leases. line data-collection and monitoring pro­ oil-shale tracts is good to excellent. Na­ Each lessee is required to adhere to grams and submit copies to the Area Oil ture, however, seems to be the biggest local, state and federal air-quality regula­ Shale Office. polluter. In the fall and early winter, tions. The national ambient air-quality What is being done1 The lessees are observed ozone levels on the Utah tracts standards apply to each of the oil-shale doing all these things and more, as de­ were in excess of the federal air-quality states, unless the state has developed tailed in their exploration plans. At the standard. The reasons for this are un­ more stringent standards, in which case start of the lease program, each lessee known at this time and further studies these would apply. Section 110 of the submitted for the Area Oil Shale Super­ are being made to determine the cause Clean Air Act of 1970 requires the states visor's approval an exploration plan and frequency of high ozone values. It to develop plans to achieve these stan­ specifying his meteorology and air­ has been noted that sagebrush and other dards. The Environmental Protection quality program. In general, meteorolo­ plants naturally produce a nonmethane Agency has established standards for the gy and air-quality programs on the Colo­ hydrocarbon level that frequently ex­ emission rates. rado and Utah tracts are basically the ceeds federal standards. Sulfur com­ The principal agencies that have, and same, allowing for variations in the num­ pound levels also fluctuate for yet un­ are, assisting the Area Oil Shale Supervi­ ber and types of instrumentation. For explained reasons. sor's Office, USGS, in monitoring the example, the two Colorado tracts have As far as the meteorology is con­ meteorology and air-quality program are 200-foot (60.96-meter) meteorological cerned, large amounts of data have been the Environmental Protection Agency in towers while the Utah tracts have 100­ and will be collected. From the data that Denver, the Colorado Dept. of Health in foot (30.48-meter) towers. Both of these have been analyzed, we have found that Denver, and the Utah Div. of Health in heights meet the lease stipulations. The large variations in wind speed and direc­ Salt Lake City. The state and federal diagram illustrates an example of how tion occur from site to site because of air-pollution control agencies serve as the meteorology and air-quality data are the complex terrain characteristics. As advisors and provide guidance and com­ sampled and compiled (on an almost anticipated, very cold temperatures ments on all documents to insure that all continuous basis). occur in the Piceance Creek Valley; dur­ air-quality requirements will be met. In addition, special upper air studies ing January the temperature dropped to The oil-shale leases require that each are conducted each quarter to obtain - 52 deg F (-47 deg C) at the air-quality lessee shall monitor air quality, over at information on wind speed and direc­ station near Rock Creek School. This is least 90 percent of each lease year, dur­ tion, relative humidity and temperatures very close to the Colorado record low ing which monitoring is required, for at altitudes up to 6,000 feet (1,828.8 me­ temperature of -60 deg F (-51 deg C) sulfur dioxide, hydrogen sulfide, and ters). These data are collected by recorded at Taylor Park.

Shale Country July 1975 13 IEnvironment I Putting Wildlife For decades the remoteness of widespread plant diseases that may be shale country protected its native on the Map hard to spot from the ground." inhabitants from man. Gradually, towns In turn, the mapping of vegetation and cities sprang up in the valleys and plays a key role for wildlife surveys. For plains areas, forcing the deer, elk, owls example, States explains that large mam­ and eagles into more mountainous mals, such as deer and elk, are counted country. But today, even this remote, "during regular aerial surveys. The stan­ rugged area, underlain with coal and oil dard flight pattern covers a 140-square shale, is a magnet drawing energy devel­ mile area on and around tract C-a. This opers-and threatening the animals who allows us to plot, for instance, changes make their home there. in the distribution of deer in the area. Some observers fear that energy de­ Transfer of these plots to vegetation velopment could spell disaster for the maps from the remote-sensing program region's wildlife, particularly the deer will let us look at seasonal patterns of herds. In an effort to learn how much deer distribution in relation to vegeta­ foundation these fears have and how to tion distribution. soften impacts, several organizations are "By putting together information on now conducting studies of local ecosys­ the interrelationships among soils, vege­ tems, including wildlife, that could be tation and wildlife," States notes, "we affected by energy development. Among can get a basic understanding of how the these groups is Ecology Consultants, ecosystem operates, thereby permitting Inc. (ECI), Fort Collins, Colo. ECI is re­ realistic projections of how mining and sponsible for defining the terrestrial retorting operations may affect local eco­ ecology of the 5,OOO-acre federal tr~ct systems. Where potential damages are C-a in Colorado, the tract on which Rio The great horned owl calls shale country anticipated to be unacceptably high, Blanco Oil Shale Project is planning de­ home, as do many other species of wildlife, measures for minimizing these impacts, velopment. including the mule deer. including those on wildlife, will have to At ECI, Dr. Jim States, project manager be included in Rio Blanco's development for terrestrial investigations, explains plan. Finally, a long-term monitoring that the data base must provide a listing program will be developed to continual­ of local plants and animals and some and animals. "We must attempt first to ly evaluate the effectiveness of impact measure of their seasonal and annual find out how local soils and other factors mitigation measures, as well as to detect abundance. To gather these data, mem­ control the distribution of vegetation," effects of the operation that may not bers of a 14-person team from ECI make he explains. "Then, because most ani­ have been anticipated." regular trips to the shale area, investigat­ mals select where they will live on the As ECI's Dr. States points out, the ing normal plant and animal interac­ basis of predominant vegetation, we impact on wildlife is "a very explosive tions. The ECI team's studies cover all must look at how the distribution of issue." Thus, in anticipation of "a lot of terrestrial species including plants; large animals is controlled by the distribution hard questions," ECI is preparing docu­ mammals, such as elk and deer; small of vegetation." mentation of the precise procedures mammals; mammalian predators; birds, From soils to animals: ECI's vegetation used in the study. "Then, if questions from songbirds to eagles; reptiles and studies include quantitative sampling of are raised, we will have complete rec­ amphibians; insects; and threatened or all vegetation types, range condition and ords in support of a scientifically-sound endangered species, such as the pere­ trend surveys, and measurements of program. People are very concerned grine falcon. present use of local browse and forage about the effects of oil-shale develop­ Baseline data projects are sometimes plants by wildlife. "One phase of this ment on this region," States notes, "and described as cataloging efforts-but in program," States notes, "involves the critical decisions for alleviating these Dr. States' view, ECI studies go beyond use of remote-sensing studies using in­ concerns will be based on our informa­ mere listing. In fact, he says, the focus of frared aerial photography," He adds, tionn-decisions that will affect the fu­ the program is to determine the interre­ "These photos will provide information ture of shale country's abundant wild­ lationships between soils and vegetation for vegetation mapping and detection of life. E. D.

14 Shale Country July 1975 1 '-\ ------______r-­ IReal Estate Comer I

A Room at the TOr (of Shale Country

Alluring scenery is one factor that draws tourists to shale country-and keeps lodging facilities filled.

• If you're looking for a room at the inns more of a tendency to expand their nomic base than does tourism . of shale country, you have plenty of facilities these days, rather than building Hacking reports the occupancy rate choices. But you'd better make reserva­ new motels. The reason: the money for Vernal's 409 units is almost always 100 tions in advance if you're going during market. "Hotel/motel operations are percent in the summer, and that for tourist season, because the spectacular finrung money hard to come by," he several years, occupancy has also been scenery and variety of recreational facili­ says, "as is everybody. I have not no­ high during the off-season as a result of ties almost guarantee full lodges in sum­ ticed any new motels opening in the area energy-related commercial traffic. She mer. And, during the past few years, the this year, although we have had two new points out that a lack of housing has energy industries in the region have motels open' in Grand Junction in the contributed to the occupancy of lodging helped to fill guest space regularly on a past year. However, we are certainly not facilities. She, too, has noted that motel year-round basis. reaching the saturation point on lodging space is sometimes used for offices by Room-watchers in the shale region space available. We could probably fill the energy companies, "although I think generally agree that at this time there are up new motels, especially during the it's probably on a very short-term basis," adequate spaces to handle the current summer months." she says. level of tourist traffic; however, those Isaacson has noted that in the Colo­ One problem facing the lodging in­ e without reservations may have a hard rado shale area, motel space is frequent­ dustry in Vernal is the fact that the inter­ time occasionally. The peak of the tour­ ly utilized as both housing and office state highways have bypassed the com­ ist business varies from location to loca­ space, particularly on a short-term basis. munity. So, says Hacking, "We have tion on a seasonal basis, although sum­ He points out that this is not a new launched an advertising campaign to mer is admittedly the time for catering to trend: "Motels have traditionally been lure tourists into the area. We have the family tourist. However, in the fall, used as transitory-operations bases placed ads in 'Better Homes and Gar­ hunters come in to stalk big game in the when an industry, such as the shale dens,' 'Redbook' and the 'L.A. Times,' Rifle/Meeker area, and this accounts for industry, is beginning to gear up. Staff plus several other publications, featur­ an increase in motel/hotel traffic there in members will use motel rooms as living/ ing Dinah the Dinosaur (a cartoon logo), October and November. office space for a short period of time and offering tourist information. We until permanent facilities are found, or have been quite successful with this, and Tourists need rooms, and .•• when there is a shortage of housing and now have a full-time person at the But besides the tourists traipsing office space," he says. Chamber just to fill requests from pro­ through shale country, Bruce Isaacson, spective vacationers." assistant to the president of Club 20 in ••• so do the energy companies At this time, the shale area's lodging .. Grand Junction, says, "I have observed a On the Utah side of the border, Dixie industry appears to be in a fairly stable, . great deal more traffic on a year-round Hacking, Vernal Chamber of Commerce optimistic position. Although the gaso­ basis; the energy industry has created office manager, reports no substantial line shortage of a couple of summers commercial travel in the area." Isaacson differences between the hotel/motel sit­ ago did have an impact on the region's .. feels that in the Grand Junction commu­ uation in Vernal and that in Colorado. tourism industry, Dixie Hacking points nity, at least, there are sufficient lodging The Utah shale area, like the Colorado out that the region is now seeing more facilities to handle accommodations re­ area, is the home of striking scenery and tourists from in-state and nearby states. se quirements. However, he says, "There is lures tourists. As Hacking says, "Our Occupancy rates are high overall, and a· probably a shortage of facilities in the economy would be hurting if tourists though facilities may be needed in the U· Rifle/Meeker/Craig area, although I'm stopped coming," although she adds future, experts report an adequate sup­ d· just guessing." that the energy industry in the region ply of rooms now. J. P. Isaacson says lodging managers have accounts for a larger share of the eco­

Shale Country July 1975 15 COlorado's immediate past Gov­ board, Vanderhoof has set out to ernor may introduce "shuttle diplo­ "secure a good way of life" for Colorado macy" to the state's diverse interests­ West in the face of energy development. East and West Slopes, recreation and Example: he organized a "VIP" tour for natural-resource development, environ­ news media management to see oil­ mentalists and industry, and others. In shale and coal sites. He wanted these fact, "catalyst" and "mediator" are executives to see for themselves where words John Vanderhoof uses to describe shale and coal country is, what it looks the job he holds as President of Club 20, like, "the logistics of the whole prob­ a West Slope association of 21 counties In the Governor's chair a year ago, today lem," such as the impact on a town of organized in 1953. The job has been, in a John Vanderhoof is in Grand Junction at 3,000 when its population doubles over­ Club 20's offices. He stumps for "a consen­ sense, tailored for the man. sus of opinion" among West Siopers prepar­ night. Vanderhoof saw the tour as infor­ The man offered West Siopers a ing for energy-development impacts. mational, "NOT trying to sell oil shale or wealth of political experience and clout, coal." accumulated during 20 years, starting in The former Governor tells news me­ 1951, as a state representative, as lieu­ dia, chambers of commerce, legislators, tenant governor (1971) and as Governor [Biicomers I conventions and others that oil-shale (1973). He assumed the latter post when development "is going to change things John Love was named President Nixon's Johnny Van: not so much for the earth's surface but energy chief. In 1974, Vanderhoof bid Colorado's for people." He asserts that actual dis­ for the Governorship in his own right, ruption of the earth's surface will be and lost to the minority whip of the Henry Kl minuscule-like two or three dots on the House, Dick Lamm. map of Colorado. Coal will have a larger During the Lamm-Vanderhoof cam­ From Governor to Club 20 Chief impact on the earth's surface, but he paign, The New York Times described adds, "That doesn't mean the whole Vanderhoof as "slow-speaking, a folksy Rocky Mountains are coming down." politician who works in shirt-sleeve West Slope needs "a consensus of opin­ A major energy impact Vanderhoof is casualness ... 'Johnny Van' is regarded ion" if its voice is to be heard Vander­ addressing is community financial as the kind of guy who can lean on a hoof sees Club 20 acting as "a catalyst in needs. He has referred Colorado law­ fence to talk wisely about the weather a non-political, non-provincial way, makers to legislation, passed in Wyo­ and sensibly about the economy." moving people to common ground," ming this year, creating a Wyoming Lobbying against catastrophe-What interacting between business, local, Community Development Authority to attracted this "shirt-sleeve politician" to state and federal government. authorize state bonds up to $100 million Club 20, an organization that has tradi­ 'Zap!' It's Vanderhooft-About the for local public projects and housing tionally promoted tourism, mining, time of the 1974 election, Club 20 had needs. Vanderhoof thinks the Wyoming transportation, land use and water inter­ been hunting for ways to combat fund­ scheme may have some applications to ests of Colorado West? In Club 20's ing and staff shortages. Club 20's Bruce Colorado in helping to answer a "top five-room offices in downtown Grand Isaacson, recalls that when Vanderhoof priority-to provide the method by Junction, Vanderhoof leans forward lost the election, club leaders said, "Zap, which impact money (from shale and across his desk and talks with animation here's our man." The former Governor coal) flows freely and rapidly to the com­ about using "the only thing I've ever was a drawing card; he helped raise new munities involved without a whole lot of been good at-arbitrating the differences funds to pay his $40,OOO-a-year salary red tape." between people." and expenses and to expand staff from So Vanderhoof is shuttling between He says that as petroleum products business and industrial interests. Van­ Denver, Grand Junction and other places become dearer, energy development­ derhoof reports no one source of fund­ in his Cessna Skylane as he seeks to oil shale, coal, uranium-is inevitable. ing is so excessive that it can dominate represent one-third of the state's geog­ "The impact, whether I like it or not, is overall Club 20 policy. He is the club's raphy and one-tenth of its people who going to happen." He thinks Club 20 can first paid president. comprise the West Slope. He says that as playa major role in making the impact Receiving direction from a monthly a mediator, he must aim to "meld" the on Colorado's West Slope an opportuni­ meeting of the Club 20 executive com­ area's diverse interests to achieve "a big ty rather than a catastrophe. He says the mittee and quarterly meetings of its enough sound." C. f.

16 Shale Country July 1975 - "I 've been on the job since it?' But now I feel that basic anger has revised drastically after the JBC heard February," says Burman Lorenson, disappeared and I'm the beneficiary of a the pleas of the local officials. If the "when I was invited by Gov. Dick Lamm relaxed attitude, even though at first request was reasonable, the JBC was to become the Oil-Shale Coordinator for some people were disappointed be­ responsive. In short, the local people

the state of Colorado. Previously I had cause Gov. Lamm didn't appoint a West­ 'made the budget: If .. held a number of planning positions in ern Sloper to the post." Lorenson points out, however, that "A Colorado, including serving as Weld Lorenson explains that "We have basic problem in utilizing the oil-shale County's planning director and as one of money in our budget for a staff of four funds is the lack of hard facts about real the state's five planners administering employees-George Wear (assistant impacts." That's why, he says, "We're • House Bill 1041, Colorado's major land­ oil-shale coordinator based in Rifle at now developing a Technical Assistance use legislation." He continues, "I'm 9 the Colorado West Area Council of Gov­ and Planning program, which would be hours short of a college degree, which is ernments headquarters) and I and two funded on a $200,OOO-each basis by the unusual for my position, but I feel I have secretaries. However, we can also draw state, some industrial firms (oil shale a good history in planning and I feel I on other state agencies for help." and coal) and the federal government. can sit down with local officials and This year the Office of the Oil-Shale If approved, the program would pro­ resolve issues over coffee." Coordinator will be administering about vide funds for a number of planning $10 million (as of press time) of the lease aids-most importantly for a growth- bonus monies. These funds are intended to be used primarily for capital construc­ tion projects involving schools and roads in five western Colorado energy­ L!ignette I impacted counties (Rio Blanco, Garfield, Routt, Moffat, Mesa). Of the $10 million, about $8.5 million will be spent in the Burman Lorenson: two counties (Rio Blanco and Garfield) Coordinating that contain the oil-shale deposits. Lor­ enson points out that "If we went on the over Coffee basis of where the worst impacts are now, that would be Moffat County, which is experiencing intensive coal de­ g velopment. But there's no special source 0 of dollars to handle coal-related impacts, n so some of the oil-shale funds will be g used for this purpose. But primarily we g Lorenson was named to replace Don­ are trying to respond to growth impacts monitoring information system, sub­ 0 ald Rapp (former Gov. Vanderhoof's in oil-shale areas-real or imagined." computerized, that would prOVide fre­ p oil-shale coordinator) on an interim The reality of oil-shale impacts was a quent reports on shale-related activity. y basis until the end of the fiscal year (June key question when the legislative Joint Then, next year we would know the d 1975). The post has now been funded for Budget Committee (JBC) was developing impacts so funding would become far .., fiscal 1976 and as Lorenson says, its recommended oil-shale budget ap­ less of a guessing game." I "Someone has to administer the oil­ propriation for 1976, explains Lorenson. Summing up, Lorenson says his goal shale lease bonus monies and to coordi­ Although the COG had requested $40 is: "To prepare the oil-shale area for nate state oil-shale planning efforts. million for four counties (not including growth ... to make sure there is suffi­ .. Since no one has said that I won't be Routt) and their school districts and cit­ cient water ... sewage services ... here, I expect to have the job." ies, the JBC was thinking in terms of $5 proper planning ... wise use of funds. Lorenson took over a hot seat. As he million for five counties. Then the JBC If oil-shale creates impacts, we must be puts it, "When the office was established agreed to visit the shale area and to view ready for them. And I am progressing on ~ in July 1974, many in shale country had on-the-spot the impact of oil-shale the basis that there will be an oil-shale ~e initial questions about the role of the growth i Lorenson and George Wear ar­ industry and will continue to do so until fig oil-shale coordinator. The feeling was: ranged the tour and public hearings. The someone proves there isn't going to be IE. 'It's our money, how come you guys got result, as he reports: "The budget was one." A. N. I

Shale Country July 1975 17 Voice of the People

Utah's Gov. Rampton: 'Door still open

On a boat in the Flaming Gorge of hand with ecological preservation. compatible with the best interests of our Utah in 1967 Governors Calvin Rampton, Meeting ecological considerations will people. But we want to be regarded as Stan Hathaway and John Love met to be easier for Utah than it will be for partners in this effort and not as antago­ draft an oil-shale policy for their three Colorado, Rampton suggests, because nists." Other points he covered are sum­ states-Utah, Wyoming and Colorado. Colorado's oil-shale beds are, in many marized below. Today, of the three chief executives, places, nearer the surface and lend only Rampton is still a governor, in his themselves better to su rface mining than Q. You have said that oil-shale plants home state of Utah. And since 1967, do the deeper beds of Utah. and related developments should 'lie federal oil-shale leases, more restrictive A familiar figure on the Utah scene, lightly on the land . .. and . .. not de­ than the three governors proposed, Rampton is a third-term Governor, hav­ spoil our countryside.' How will Utah have been bid-but oil shale still re­ ing held the office since 1965. He is also insure such development? mains untapped commercially. immediate past head of the National A. The Mined Land Reclamation Act Gov. Rampton recently told the Oil Governors Conference. Before his elec­ (passed by the state legislatu re in 1975) Shale Committee of the Rocky Mountain tion as Governor, Rampton had served at will make sure we protect the land. Also, Oil and Gas Assn. that state government different times as an administrative as­ a (Governor's) planning commission is not to blame for the lag in shale sistant to a Utah Congressman, as a with representatives of local and state development. He pointed out that when county attorney, as the state's assistant governments is beginning studies on the U.S. Dept. of Interior made some attorney general and had practiced law new towns, roads, schools (and other oil-shale leases available in 1968, "Oil for more than 15 years in a Salt Lake City needs of oil-related development in the had just been found on Alaska's North firm. eastern Utah counties of Uintah, Slope and frankly, you majors dropped In an interview with SHALE COUNTRY Duchesne and Daggett). us like hot potatoes, and we just and during a recent meeting with oil­ couldn't get you interested for several shale developers, Rampton talked about Q. You're referring to the advisory coun­ years in even looking at oil shale proper­ Utah, oil shale and ecology, new towns, cil you appointed last November. How ties in our states." But today, Rampton planning and the state's role in private would you assess its progress, especially II> observes, both government and industry oil-shale development. He began by tell­ as compared to the similar planning are "now very deeply interested in the ing the oil-company executives: "We council set up for the five-county area development of the oil shale." feel that oil shale is a major asset of this affected by the Kaiparowits power plant He points out that another change in state and we want to make sure your in Southwestern Utah? the past few years is in attitude; the methods use all of the product, and that A. They (the Uintah Basin group) are not public now requires that any contempo­ a minimum is left to waste in the earth. nearly as far along as the Kaiparowits rary economic developmeht go hand in We want to make sure that the method is group is, but tl'at's because Kaiparowits

18 Shale Country July 1975 • to shale development'

Not a foe-Utah Gov. Calvin Rampton says the state favors devel­ opment of oil shale as "a major asset," and that Utah will work to insure that methods of extracting the shale use all of the product and leave a minimum "to waste in the earth."

~--~------..--...--.. ----­

has been at it several months longer. But keep them alive; third, to provide ade­ Q. What is your view of the oil-shale they (Uintah Basin) are proceeding well. quate water for agriculture to produce industry today, its pitfalls and its pros­ One of the things we still have to deter­ the food we're going to need; and, pects? mine is where the water is going to come fourth-and I'm sorry I have to put this A. Its problems are, of course, the costs from for oil-shale development. in the fourth category priority, but I of recovering the shale and getting the think that it is, to provide the water that oil out of the shale. Second, it has the Q. You recently told oil-shale company is needed for industry, including the environmental problem of disposing of officials, 'As far as the initial develop­ development of natural resources. And spent shale. The actual preparation (to ment of oil-shale properties in Eastern then, depending on the methods used begin commercial development) is, I Utah, I think there's no question we will to produce oil shale-the state of the suppose, at a lull, but there's a lull in all have the water there available for you.' technology-you'd have to determine oil activities. What 'initial' size of industry do you what that (amount of water) would yield have in mind? at the time of the commercial develop­ Q. Do you think a federal subsidy is A. We can certainly allocate up to ment of oil shale. going to be necessary for commercial 100,000 acre feet of water. We do have development of oil shale? most of our allocation of the Colorado A. I would hope not. River allocated, except for almost Q. You have maintained that industry 600,000 acre feet-unused even though may have to help foot the bill for new Q. If Utah's claims to the federal oi/­ it is allocated. We're going to ... make towns. What portion of the cost? shale lands, which include the prototype I, certain, first, that water is not held by A. In the Kaiparowits area, where we're leases of the U-a and U-b tracts, are people who have no intention of devel­ fu rther along, we expect that industry recognized by the courts, would there oping it, and second, and above all, that may advance all of the money-$40 mil­ be any difference in state enforcement ,­ it is not held for ransom by speculators lion. A bill (passed in the last state legis­ of the leases, even though the state has i\! to sell off to the highest bidder when it lative session) provides that industry agreed to honor the terms of the federal Y had never been put to proper use (in the may advance money for social develop­ leases? g fi rst place). ment to accommodate their industry, A. It would not be materially different. a We believe that we do have, if we then deduct from their sales tax as the But I think we can react more quickly to ,t properly use it, sufficient water in this plan is completed. The incentive is that new situations. We're here; and thus we state to do these things for an indefinite industry is not going to be able to get have a deeper concern both with the It period of time: first, to provide commu­ employees without agreeing to it economic impact and the environmental s nity water for people; second, to have (helping fund community development impact. C. E. s enough water to flow in our streams to through tax pre-payment).

Shale Country July 1975 19 IReaders Speak..Out I

Editor's Note: During a week in May, our "For the most part, I think the articles are "The article I enjoyed most was the inter­ regional editor Carol Edmonds traveled informative. I've been looking very closely for view with residents in Vernal; it showed that through the Colorado-Utah shale area, tap­ oil-company propaganda, and so far I have they have done some planning and this is the Ing comments and suggestions on SHALE not seen any overt propaganda." way the magazine can help prepare for a COUNTRY magazine from the people who James Martin, Attorney city's future. If other people are like me, the live and work in that area. Her purpose was Colorado Rural Legal Services question and answer section with people in to assess the impact of the now six-month Grand Junction, Colo. your own area is especially good because old magazine on this, its most important, they ask the questions a person really has. audience. Here are some extracts from her "SHALE COUNTRY is a unique attempt to Often a reporter sees things his way and may interviews. inform people. I like the style, it's more than not know what questions need to be an­ just a fact sheet. It gives you a real feel for the swered." character of the area." Larry Bagley, city administrator In Colorado West ••• Conni McDonough Roosevelt, Utah "I think the magazine is very worthwhile Mesa County Planning Department and something needed. It seems like straight Grand Junction, Colo. information, although you're doing it for oil­ shale companies. You've done well present­ "I think you should cover little towns like "Don't leave out stories about the Ute ing both pOints of view." Dinosaur, there's potential here, too. There's Indian Tribe; we're also in the middle of Duane Rehborg, housing possibilities, etc., in the small towns some oil-shale country. Keep the magazine Rio Blanco County Planner that have not been covered." factual, to the pOint, without a lot of propa­ Meeker, Colo. Glen Burns, Dinosaur Market owner ganda." Dinosaur, Colo. Dennis Mower, Uintah and Ouray Council "The job so far is exceptionally well-done, Fort Duchesne, Utah on a high professional level, useful in getting the information communicated in the area. I And from Utah ••• "From what I've read about our own area, would recommend, however, that you deal it seems very factual. The general public more with the day-to-day problems in the "SHALE COUNTRY is very timely, because seems to show an interest in the magazine. area. That is, record what a local resident a lot of people in this area don't know what is Of course, all our businesses will be affected, had to say about the roads to Bonanza, for going on, and one is often afraid of the so we want to know what is coming up. I example. You don't have to deal directly with unknown. I especially like the biographical hope you keep up with future planning. I oil shale, because school overcrowding, sketches of people that I've read about else­ realize it's hard because sometimes even the hospitals, roads, etc., become in effect, oil­ where. I also enjoy the community profiles; it oil companies don't know. The more we shale problems. This will make the magazine personalizes the magazine this way and know what to expect, the more it helps to even more topical and exciting." makes people feel involved. The citizens of make good plans, rather than a hit and miss Frank Cooley, Attorney this area have dreamed about the possibili­ proposition.' , Meeker, Colo. ties of extracting oil from shale for a long Dwight Wetenkamp, Mgr., Chamber of time, and now it seems to be about to hap­ Commerce "We feel basically that the magazine has a pen. I hope the project is followed through; Vernal, Utah personal meaning to us because it deals with whether or not it proves economical is an­ the problems of northwest Colorado and for other question ..." that reason, many of us feel it is our maga­ Paula Bell, Chamber of Commerce zine for our area." Roosevelt, Utah Cecil Lollar, Pres., Chamber of Commerce Rangely, Colo.

"I thought I would never be interested in this sort of thing, but you have to know what is happening and the magazine helps me to keep up with the news. Never having lived in either a town this size, or an oil town, SHALE COUNTRY helps me to understand Rangely's particular characteristics and problems. I am going to save my copies, so my two young sons will be able to read about the kind of town they lived in as youngsters." Joann Martin, Housewife Rangely, Colo.

"SHALE COUNTRY is the best publication having to do with oil shale that I know of. I like the way it puts the stories about oil shale into language that everyone can understand. It faces the future of oil shale in a realistic manner and doesn't attempt to overselL" Wayne Aspinall, retired Colo. Congressman Palisade, Colo.

20 Shale Country July 1975 'r­ at Ie

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