I ·f 'I j'. , On the cover: Summer at Anvil Points

Shale country experts take a look at the area's past (p. 9-10); and its future, via its women's resources (p. 11-13), the Navy (p. 14), and John Welles (p. 111-19).

Industry Interview 1 The Chance to Build a Benchmark Industry Update 2 Recent Oil-Shale Looking Ahead 3 Dial Ma Bell for Growth Information A Look At 4 What's the Status of the Federal Shale Lease Situation Report 8 Shale in the ~K.li1-/,,\ Alternate Fuel Environment 9 Archeologists Preserve Shale Country's Past-for the Future Community Organization 11 with Growth-Related Ills Vignette 14 Real Estate Corner 15 Boom Town Guest Column 16 A Position on Oil-Shale Voice of the People 18 Multi-Faceted View of Oil Shale Potpourri 20 Letters to the Editor

Edward S. Safford. Publisher and President Brian Novak, Production Director Gregory A. Williams. Executive Vice President Debbie Slack, Production Assistant Alys Novak, Vice President and Editorial Director Catherine Kilker. Circulation Director Richard L. Ronald, Vice President-Sales Heather McHugh, Copy Desk Jonijane Paxton. Senior Editor CarOl Edmonds. Regional Editor Evelyn DiSanle. Senior Editor Kathy Carlton. Associate Editor The Regional Editor can be reached at: Teddy Orr. Rae Marie Rosenblatt, 3154 Lakeside. No. 304 White River Shale Project, Contributing Editors Grand Junction, Colo. 81501 Ray Lewis. Art Director (303) 242-3905 SHaLe counTRY month for 12 months through the mail. please send your request to Volume 2, Number 8 August 1976 Mountain Empire Publishing. Inc., 100 Cook St.. Suite 414. Denver, Colo. 80206 afoog with a check for $5.00 to cover costs of postage and handling Shale Country (j 1976 by Mountain Empire PubliShing, Inc. All rights reserved, Material from this magazine may be reprinted. with credit fine in the United States. Outside the United States, the cost is $10,(1) for to SHAlf COUNTRY, Mountain Empire Publishing, Inc. regular mail or $21.00 for air mail. PubHshed monthly. hecullve and Editmial offices. 180 Cook St•• Sui'e 414 Denver, CoAo. 80206 (303) .lIJ8..S911. Third Class Built Postage paid at Photo Credits Denver, Colorado. SHALE COUNTRY is sponsored by Ashland Oil, In(,. Front cover, Paraho; p. 1, Rio Blanco; p. 3, Mountain Bell; p. 4-7, Carol Allanlit;: Richfield Co.• Culf Oil Corp., Shell 0 .. Co.• Standard Oil of Edmonds, Brian Novak; p. 8, Cleveland Cliffs, Abe Silverstein; p, 9-10, Ind"'n~, Sohto Perroleum Co., Sunoco Energy Development Co., The Oil Dr. Bruce Rippeteau; p. 11-13. Carol Edmonds; p, 14, Cdr. Rick Wilson; Shale Corp. The opinions e:!lpressed in this publkation are those 01 p. 15. BaC; p. 16-17, White River; p. 18-19, Jerry Peters, Colorado5chool specific indiYiduals and do not ne<:essarily reneet the vM:Mpoints 01 the of Mines; Inside Back Cover, C-b. publication's sponsors or the oil-shale industry as il. wtde,

SHALE COUNTRY is provided as a public service by Ihe leaders of Ihe oilwshale industry. Pubhshed monthly as a source of information for those A PUBLICATION OF interested in industry developments, SHALE COUNTRY is made available m to shale·area residents without charge through various community out­ ~ MOUNTAINEMPlREPum.!sH:ING,I.Nc. lets. However, should a reader wish to receive SHALE COUNTRY each

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fact of life that energy companies And the possibility of that opportunity is A have faced is that energy develop­ very attractive to me. I try very hard to ment impacts communities. And that's focus my life toward that type of positive why all the oil-shale ventures put much activity. high-level management emphasis on S.c. Where is oil shale going? community relations. One key example: T.E. Our request for a suspension illus­ the appointment of Tom Ten Eyck as trates the obstacles still in the way of Vice President of Community, Govern­ oil-shale development. I don't think the ment and Public Affairs for the Rio BIan­ Congress and the general public under­ co Oil Shale Project (RBOSP). Ten Eyck, a stand that the energy problem is real. I civil engineer with years of experience in "I think we can provide a model-and that am convinced there is a problem and natural resources and government was potential is exciting," says Tom Ten Eyck, there is a solution, of which oil shale Vice President of Community, Government asked recently to discuss his role and must be a part. But there's such an array and Public Affairs for the Rio Blanco Oil responsibilities with SHALE COUNTRY. Shale Project. of obstacles, such as the contemplated Shale Country: What does your job en­ new Clean Air Act amendments that tail? would preclude most industrial develop­ Ten Eyck: Basically, I serve as a facilitator ment in this region. Industry Interview and as a spokesman, That is, I try to keep I I S.c. Should the industry give up? the people who will be affected by our T.E. No, but I think we'll have to expect development of federal oil-shale tract the situation to get worse before it gets C-a informed about our plans-and I try The Chance better. We're kind of a pendulum socie­ to find out what their concerns and ideas To Build ty; we let environmental problems get are so that we can respond to them. One almost completely out of hand before way I do th is is by spending a great deal A Benchmark we did something-and then we overre­ of time talking with people in the town acted. Now we have the same situation of Rangely and in Rio Blanco County, with energy. So I expect the energy where our tract is located, I also spend problem to get very critical before we time at the Colorado Legislature. I am Regional Council of Governments; I realize what's happening-and then, if registered as a lobbyist and in th is case, I spent 10 years with the federal Bureau of we are not careful, we may enact cras'h try to provide information to legislators, Reclamation; I worked in Spain as a civil programs that really impact the commu­ as well as to government officials at all engineer designing irrigation systems; I nities and the environment. So, I find levels. I also give speeches about RBOSP spent 6 years as the Executive Director of some environmentalists' antideveJ­ and about oil shale-whenever and the Colorado Dept. of Natural Re­ opment campaigns to be very intellectu­ wherever I'm asked. sources. So I do feel I have an under­ ally disturbing exercises. S.c. How long have you been with standing of what it means to be both a S.c. Where is RBOSP going? RBOSP? government official and a citizen work­ T.E. We will have risked $150 mil/ion by T.E. About 6 months. Previously I was ing with government. the end of the year on this project. with Cameron Engineers, Inc., which is S.c. Was this the prime reason for your Should we spend $150 million more Rio Blanco's management contractor, so taking th is job? when there are other alternatives that I became very familiar with the project. T.E. The thing that interested me most have less risk? We may come to the As I did, I developed a high degree of about the project was the potential for conclusion that oil shale is not worth respect for Walter Herget, RBOSP presi­ being involved in the first really new investigating further. But right now we dent. So when Rio Blanco needed some­ industry that is paying appropriate atten­ happen to think America needs it and we one to work with communities, and of­ tion to environmental and socioeco­ think our development plans will work. fered me the job, I readily accepted. nomic concerns-before development. S.c. What do you think about shale S.c. Do you feel you bring a special In fact, I feel that Rio Blanco very possi­ development? sensitivity to th is job? bly is going to have the distinction of T.E. It's just got to come. We don't have T.E. I have served on the Jefferson Coun­ making industry history. We have a mag­ any alternative other than to use every ty School Board, on the first Colorado nificent opportunity to demonstrate that energy source we have. And we know Board for Community Colleges and Oc­ development can be economically the oil-shale resource is there and it's cupational Education, on Denver's first profitable-and environmentally right. immense. AN.

Shale Country August 1976 1 Industry Update

Paraho progresses has been concentrating its efforts on DDP Congress did not intend these products to and required environmental work for From the on-going Paraho Oil Shale be regulated. But, since no commercial months, now continues to emphasize sus­ shale oil is presently being produced, the Demonstration, near Rifle, Colo., come pension and to encourage consideration price control point, though indeed signifi­ two items of major interest. One: Paraho of government-supported modular-sized cant for shale, could be termed moot at completed the largest known shipment of plants as the next step in oil-shale devel­ the moment. crude shale oil to the West Coast last month. This shipment, totaling 3,668 opment. White River officially sought sus­ pension in July. barrels, went to southern California Edi­ One name changes, one doesn't son's Highgrove electric-power generation Rio Blanco Oil Shale Project-As de­ The Oil Shale Corp., long known as facility near Los Angeles where it is now tailed in this issue's article on the federal TOSCO, is now officially the Tosco Corp. undergoing extensive combustion testing oil-shale lease program, because of air­ In late July, shareholders approved this to determ ine the best and most economi­ quality and off-tract disposal problems change in the company's name. The cal method of using the synthetic unre­ that directly relate to conservation of the firm's president, Morton M. Winston, says fined fuel. The tests, which are being con­ oil-shale resource, Gulf Oil Corp. and the name change reflects the growth and ducted in compliance with strict San Ber­ Standard Oil Co. of Indiana in july asked diversification of the company in several nardino County anti-pollution regula­ the federal government to allow them to fields, in addition to its historic leader­ tions, indicate another potential use for suspend operations on their leased tract, ship role in oil-shale technology and de­ shale oil, although this fuel is not yet C-a, for 24 months. The suspension velopment. However, he adds, "We are commercially competitive. would postpone tract development and unchanged in our dedication to the devel­ Second: as of press time, neither gov­ delay the fourth and fifth lease bonus opment of synthetic fuels." ernment nor Paraho officials could com­ payments of $42 million each. In the re­ ment on their negotiations regarding the quest the companies also asked that they Grand Valley, Colo., is still Grand ERDA-Defense Dept. program to fund be permitted to complete the 2-year en­ Valley. As our recent article on this well­ the production of 100,000 barrels of vironmental baseline required before any known oil-shale community reported, Paraho shale oiL But it looks like the pro­ development could begin in the future. some of its residents were trying to get gram, which is to last 2 years, could offi­ Walter Herget, president of Rio the town's name changed to Parachute. cially begin quite soon. The program in­ Blanco, emphasizes that this request does Well, Parachute didn't fly. When this cludes refining of the crude shale oil by not mean that the companies have lost name change came up for a vote, a major­ others and testing of the products. The interest in oil shale. He reports that the ity of the citizens voted for "no change." estimated total cost stated for the entire venture will continue actively working on A.N. project is $12-$15 million. governmental and community affairs and on economic analyses. Also Rio Blanco will continue engineering and mining work in-house, although less contractor Senate aide tours shale area Projects pass in review work is expected to be done during a sus­ Tom Laughlin, the aide who assists Cob Shale Oil Project--This shale ven­ pension period. Sen. Floyd Haskell on energy matters re­ ture, the first to seek suspension from the lated to the Interior and Insular Affairs federal lease terms, still hangs tight as of Committee, recently toured Paraho Oil Shale Demonstration and Occidental Oil press time, waiting word on its request. FEA makes moot point for shale Though suspension was the featured topic Shale's in-situ project. He also met with The Federal Energy Administration re­ of discussion at the July Oil Shale En­ executives of the Rio Blanco Oil Shale cently ruled that price and allocation vironmental Advisory Panel meeting in Project, as well as local public officials. regulations on oil do not apply to syn­ Vernal, Utah, a decision on any of the Laughlin told SHALE COUNTRY's re­ thetic fuels processed from oil shale, tar suspension requests was not announced gional editor that proposed changes in the by the Area Oil Shale Supervisor. sands or coal. This point has been unclear use and distribution of bonus-bid monies since these price controls went into effect from oil shale are likely to be enacted White River Shale Project--Vernal and because the agency's mandate from Con­ through measures in the coal leasing act Salt Lake City will be the sites this month gress to control prices and allocation of (if Congress overrides the Presidential for hearings on this project's Detailed crude oil did not define the term "crude veto) and the Land and Water Conserva­ Development Plan. White River, which oil." FEA has now concluded that the tion Fund bill. C. E.

2 Shale Country August 1976

~...------"­ Loo~ng Ahead

Dial Ma Bell For change this composition, and what this ble, poles, distribution boxes, for exam­ Growth Information means to us is an increase in demand ple), one begins to understand Ma Bell's and a change in the sources of our pressing need for accurate market fore­ revenue. But, since telephone service is casts. he telephone, now 100 years old, a capital-intensive industry, we need to Marquez's predictions already indi­ T makes far-away sights and sounds know some fairly precise facts and fig­ cate the need for another Grand junc­ quickly and easily accessible. And in ures before we add to our servicing tion switching office expansion in 1979, shale country, one way Mountain Bell capacities." but that addition should suffice until continues to shrink our world is by And what do Marquez's predictions about 1982. He adds, though, that the keeping precise tabs on how and where say about Grand junction? To begin most difficult-to-measure variables are the population is growing. with, he sees a peak growth period in the political and environmental ques­ tions surrounding Western Slope devel­ Because of the expense and intricacy the area from about 1980 to 1985. This opment. "A change in energy policy can of today's telephone system, Mountain projection assumes that at least one significantly alter our predictions," says Bell needs to look carefully ahead into commercial oil-shale plant will materia­ Marquez. telephone communication needs. The lize during that time. Together with the And what will this mean to shale-area person looking into the futu re of the energy industry, Marquez sees manufac­ residents? First, of course, it means that Western Slope is Nick Marquez, one of tu ring and government employment ten Colorado commercial forecasters. playing a strong role in the growth of the people living and working on the West­ Marquez watches growth and employ­ Grand junction exchange. He then ern Slope will enjoy good telephone ment trends in the Mountain Bell servic­ translates this data into the number of service in the years to come. And sec­ ing area that covers Colorado west of new telephones required, which during ond, since Mountain Bell prefers to em­ Gunnison to the Utah border and from the next 5 years-from now to year end ploy out of the local labor market, addi­ Rifle on the north as far south as Duran­ 1980-will equal approximately 6,678. tional phone service will mean more go. He explains that a commercial fore­ jobs. Finally, Mountain Bell's market Expensive supply to meet demand caster "is part economist, part demogra­ forecasts provide one more reliable To accommodate this demand, Moun­ pher and part employment specialist." source of information concerning the His job: "Since a new switching office or tain Bell has recently completed a $6­ Western Slope. Because Ma Bell is will­ a major addition to an existing one takes million addition to Grand junction's ing to share information with other peo­ Mountain Bell 2 to 3 years to plan and central-switching facility. When one construct, we need to predict demand looks at the cost of this additional plant ple who need to know the facts about well in advance." capacity and adds to it the yearly $3- to growth, many in shale country can bene­ To be exact, Marquez takes a comput­ $5-million cost of outside plant expendi­ fit from her-and Nick Marquez's­ er look at the Western Slope 20 years tures in the Grand junction district, (ca­ expertise. R.M.R. from now by way of 5-year increments. Forecaster Marquez says, "We use the counties' population estimates, but as far as people are concerned, we need to know more than numbers. We need to learn what age groups will comprise the population, where the employable peo­ ple will work, where they will live and in what kind of housing. "Let's take a look at Grand junction, for example. This city has experienced a fairly steady growth rate of about 2 per­ cent per year since the late 1950s. Grand Junction's revenue dollars have tradi­ tionally come from tourism, agriculture, government employment and coal min­ ing. Energy impacts will, of course, Mountain Bell's new plant addition lights up Main Street in Grand Junction, Colo.

Shale Country August 1976 3 IAL~Atl

What's the Status of the Federal Oil-Shale Leasing Program?

By Carol Edmonds

Amid Blackboards, OOPs, Flow Charts: the Mining Supervisor's Perspective

ive years ago, the President of the drawn up, and bids from private oil mine design, manpower needs, water F United States requested the Secre­ companies were accepted from January requirements... 2. Each of the three tary of the U.S. Dept. of Interior to begin to June of 1974. Leases were awarded in projects has submitted a Detailed Devel­ "a leasing program to develop our vast oil Colorado and Utah, but industry submit­ opment Plan, tracing the most probable shale resources, provided that environ­ ted no bids for the Wyoming tracts. path toward commercial development. mental questions can be satisfactorily Since the leasing, three other mile­ Public hearings on the OOPs have been resolved." The Interior Dept., proceed­ stones have occurred in the federal gov­ held. 3. One lessee, the C-b Shale Oil ing on the basis of that charge, prepared ernment's prototype oil-shale leasing Project, has sought suspension of its a six-volume environmental-impact program. These are: 1. Collection of lease terms, Citing technical problems statement, (EIS), released in 1973. It ex­ "environmental baseline" data, describ­ with rock mechanics and the uncertain­ amined a proposal for "two prototype oil ing the environment before oil-shale de­ ties and obstacles facing the oil-shale shale leases in each of three states of velopment, has passed the 1-year mark industry as its reasons. Another lessee, Colorado, Utah and Wyoming," and the for all the tracts. The second year of data White River Shale Project, is now consid­ resulting environmental impacts of pro­ collection, required before any commer­ ering suspension. And, the Rio Blanco ducing from these lands a total of some cial development can begin, is nearing Oil Shale Project has just requested sus­ 250,000 barrels of shale oil a day. completion. Many other data also have pension because of the confusing status On the basis of the EIS, leases were been collected, covering such factors as of the federal Clean Air Act and its "no­

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From Paper to Production-When? transmitted to Washington, D.C., Ramsey calculations." Only if C-b managers cannot notes. So, White River sees a need to allow see sufficient improvement in resource recov­ With the federal prototype oil-shale pro­ time for Congress to pass the legislation erability through revisions in current room­ gram heading toward suspension of opera­ necessary for oil-shale development, and will and-pillar design will the project research tions, it appears that getting from the paper­ request a 2-year suspension of lease terms other mining methods, Ireson says. work stage into commercial production re­ (see Guest Column. pages 16-17). Two big question marks about suspension mains a big shale hurdle. But suspension Examining resource recovery-Tract C-b involve monitoring of the environment dur­ hardly means extinction. As one of the les­ formally submitted its request for an 18­ ing suspension, and any revision or rewriting sees. White River Shale Project. put it. month suspension on March 2, 1976. The of the DDP following suspension. Ireson "While many difficulties are yet to be re­ application notes, "Exploratory operations to notes that the lease requires only 2 years of solved. (White River) recognizes that good date have revealed technical uncertainties environmental baseline data collection and progress has been made and maintains its with respect to rock mechanics and their monitoring, to be completed by November interest in pursuing the path of commercial effect on attainable extraction ratios." Ex­ 1976 for C-b. Anything after that point will production of oil from shale." Yet an interim plains C-b's manager of leasehold develop­ require a "meeting of the minds" of the period appears necessary. States Earl ment, AI Ireson, "We plan to review the Mining Supervisor and lessee, he says. Much Ramsey. White River Shale Project program present room and pillar mining plan (set forth of the data collected show a cyclic pattern, director. "We sense that the urgency of the in the DDP) to see if we can improve on Ireson notes, and the lessee would be in­ oil crisis has passed. The general public has extractive efficiency. It (improving resource clined to let that information stand. On the almost forgotten the (Mideast oil) embargo recovery) may be as subtle as using pre-split other hand, data that show rapid fluctuations we had 3 years ago." This relaxed attitude blasting or a small reduction in some of the could lend itself to continued measurement, about energy supplies has apparently been design factors for the pillar and roof span Ireson feels.

4 Shale Country August 1976 significant deterioration" regulations, plus unresolved problems connected with needed additional federal land for off-tract waste disposal and road and land needs for Rangely, Colo., the town where Rio Blanco expects most of its employees to live.

AOSS tackles DDPs Suspension or not, the DDPs are being scrutinized. The DDPs epitomize the federal lease requirement for meticu­ lous, careful analysis of proposed oil­ shale projects on the public lands. The leases also require that each DDP must be approved by the Area Oil Shale Su­ pervisor (AOSS) before the first shovel­ ful of dirt can be tu rned to construct an the DDP, the status of the program, and It would, of course, be possible for the oil-shale plant. AOSS Pete Rutledge has the implications of suspension. lessees to put together a DDP that would said he will rule on each DDP within 6 Shale Country: What do the federal leas- be very specific. But it would be ficti­ months after it is submitted. And he is es require in a OOP? tious. It's better to recognize the uncer­ scheduled to announce this month a Rutledge: The DDP should answer as tainties. Qecision on the first DDP submitted to many questions as possible (about plans S.c. How has your office analyzed the his office-from project Cob. Rutledge for commercial oil-shale development). public and government agency response has already said that although the op- For each question, we ask, "Do we have to the OOPs? tions include rejection or blanket appro- an answer?" If we don't, then we ask, R. We've taken everybody's letters, the val, his most likely action will be to "Do we have a plan for getting an an~ advice from the Oil Shale Environmental "conditionally approve the DDPs"; that swer?" The DDP is a hybrid. We knew it Advisory Panel and transcripts of the is, approval probably will be given based cOllld not be the engineering design for public hearings and compiled them in on the requirement that the lessees everything, since we'd be deciding cer­ one book. Then we've looked at each rewrite certain sections of the docu­ tain things as we go along. It is sufficient comment, and translated all the salient f ment. for the DDP to trace a path so that we points to index cards, which are coded I In a recent interview, Rutledge re- have a basic understanding of what is according to subject matter and our fil­ ~ _____V_ie_w_e_d __ fo_r_S_H_A __ lE__ C_O_U __N_T_R_Y_t_h_e_a_im __ S_O_f ____p_ro_p_o_s_e_d_.______in_g __ S_y_st_e_m_, __ a_n_d_t_h_e_s_e_a_r_e __ re_f_e_rr_e_d ___ to

Along these same lines, Cob Project Manag­ velopment until the status of the Clean Air noted a need for utilities and pipeline rights­ er Bob Loucks observed during public hear­ Act, its standards and the "no-significant de­ of-way and an unavoidable delay in a Colo­ ings on the DDP that the four companies terioration" regulations is determined. The rado water court trial to review Rio Blanco's which have been involved in the Cob project application also stated that lack of action at request for groundwater on tract C-a. The have spent some $12 million for work that led the Congressional level to pass bills which letter specifically requested a 24-month sus­ to the DDP. He said, "We are concerned that would allow the Interior Dept. to lease addi­ pension of operations; the suspension would some well-meaning environmental specialists tional land to the lessees for non-mining postpone the fou rth and fifth payments of $42 would have us continue to do over and over uses, such as processed shale disposal, could million each for the time of the suspension, more detailed environmental studies. Obvi­ result in waste of the oil-shale resource. On­ while allowing the companies to hold the ously, there must be a reasonable limit-we tract disposal would require underground lease. believe that we are approaching the limit room-and-pillar mining which would result in However, though suspension may be in the now." the recovery of only one-fourth to one-fifth of offing for all three projects, each DDP posi­ As to any DDP rewriting after a suspension the amount which could be obtained by tively states the long-term goal is commercial period, Ireson says that if the mining plan open-pit surface mining and off-tract dispo­ development. As spelled out by Rio Blanco required only minor adjustments, "We would sal. The application also noted continuing Oil Shale Project, "Our ultimate goal (on tract (then) expect little or no rewriting, perhaps needs for a new road from tract C-a to Coal is to engage in commercial production of one or two attachments." Rangely and additional federal land' for shale oil and associated by-products at as Walt for Action-Suspension has been re­ Rangely to facilitate orderly population high a production rate as is feasible, consis­ quested by the Rio Blanco Oil Shale Project. growth. tent with environmental, technical and eco­ The application pointed out that Gulf and In the letter to Pete Rutledge, Area Oil nomic constraints that now prevail or may Standard will be unable to proceed with de- Shale Supervisor, Gulf and Standard also exist in the future."

Shale Country August 1976 5 S.c. When will the program have accom­ haven't proven much of anything. Our , plished its goals, which include develop­ paper studies indicate the basic problem ing a mining and retorting technology is one of economics, and there are so for commercial oil-shale production? many things that affect that. R. let me answer that in terms of a S.c. When would you make a decision specific tract, taking C-a. Obviously, on the suspension requests, and on there is a law of diminishing returns what basis would you decide? involved here. The initial phases answer R. There is a provision in the Mineral more questions than later phases-in leasing Act, allowing suspension for terms of quantity of questions, not im­ "conservation of the resource," which is portance. For the C-a project, it appears very broadly defined. We would also all of the questions will not be answered have to consider the oil-shale leases. Not all doom and gloom-Mining Supervisor until the open pit starts moving-so that The decision logically would come be­ Pete Rutledge sees promise in the federal they are moving in front, reclaiming in fore the fourth bonus payments, which oil-shale leasing program, and also observes back. (Current C-a plans call for back­ are due in March, April and June of 1977. that, if the leases are suspended, "I think it filling to start after some 30 years of (At that point, the lessees are required to would be extremely wasteful to throw out 2 production at 55,800 barrels a day.) As a make the fourth bonus payments or to years of experience." mining engineer, I give a lot of weight to offset them with development costs. If the question of the ability to be able to the leases were suspended, there would move the open pit and reclaim it as you be no bonus bid payments during the move. I do not believe any mining com­ suspension.) Suspension should be some expert in our office for a response. pany would ever be justified in com­ granted some 6 months before the (See related story, this page.) From all mencing an open-pit operation in this fourth bonus payments are due, to allow this, I don't believe there's anything in­ area, whether it was totally on their own for the vagaries of bureaucracy. surmountable in the DDP (submitted by capital or whether it was a combination When making a suspension deCision, Cob). We may require that it be expand­ of the public's and private, without the we would be asking two questions: ed by imposing certain conditions or by option of continuing that pit. What should be done under the suspen­ asking the lessees to rewrite certain por­ S.c. However, the program could prove sion to maintain the integrity of the tions, such as the monitoring program. unfeasible before that 30-year point. Is environmental baseline? Are there some But we aren't talking about major revi­ that right? things that both the lessees and govern­ sions. R. Yes. But, as soon as we go through ment would /ike to continue monitoring We view the DDP as a dynamic operation of full-size retorts, we should to learn more about certain questions, document-just as the prototype pro­ get some answers to the economic such as air quality? gram is dynamic. questions. Up until now, however, we As to what is likely to happen, I have

Fathoming a DDP located in the Area Oil Shale Supervisor's fuels will cause cancer of the lungs, skin and Office, in Grand Junction. scrotum. That comment was referred to a Mission: to decide what is needed to make To illustrate the review process, the Mining staff expert in the Mining Supervisor's office. the voluminous Detailed Development Plan Supervisor's Cob Tract Coordinator Eric The response: a reference to the May 1976 pass muster. In other words, the DDP, which Hoffman describes some of the procedures meeting of the Oil Shale Environmental Ad­ spells out plans for commercial development used to evaluate C-b',s plan: "Each staff visory Panel, when Dr. Merril Coomes, a of oil shale on a federal tract, must meet the person was assigned a major area of analy­ scientist who works with Cob's carCinogenic standards in the federal leases. The leases sis, such as mining development, ore han­ research, presented findings that indicate require, among other things, "a detailed dling, air-quality control and erosion control. processed shale does not pose a carcino­ description ... of the procedures to be fol­ Each of these subject areas fits into one of genic hazard." lowed to assure that ... the lease four major areas: monitoring; development For each such comment on the DDP. the operations ... will meet and conform to the and operations; environmental protection Mining Supervisor's staff writes a suggestion environmental criteria and controls incorpo­ and environmental baseline. for disposition. if they find the comment is rated in the lease ..." "From comments, written and oral, sub­ significant, they may suggest that a condi­ Given public testimony and reams of ad­ mitted to the Mining Supervisor, more than tion of approval be attached to the lease. The vice from organizations and government 200 index cards were prepared-listing the result: what Hoffman calls a "composite bot­ agencies, how is a/l this information sifted? essence of each comment. For example, one tom line," spelling out conditions of appro­ That is the task of the Mining Supervisor, card noted that Morey Wulfson, of Environ­ val, which Rutledge himself must finally Pete Rutledge. and his staff, who are part of mental Action of Colorado, had stated that agree should or should not be required of the U.S. Geological Survey, and who are there is documented evidence that synthetic the lessee.

6 Shale Country August 1976 sent the Interior Dept. a plan of action Ten Oil-Shale Commandments? Hardlyl number of barrels that could be produced from the lease plans, Madsen says. The sole on the Cob request for suspension of "The Bibles" of fundamental oil-shale law limit to production was imposed by the num­ operations. Cob claimed the formation wouldn't even fill one bookshelf, and they ber of leases issued and by the difficulties of was structurally weaker than anticipated. don't begin to compare to the libraries of law complying with restrictions in the lease itself. The plan of action suggests that we need books and regulations governing other ener­ One of the key lease requirements: "The to verify that claim. It also suggests that gy minerals such as oil, gas and coal. The lessee shall conduct all operations in com­ pliance with all applicable Federal, State, the suspension be limited to a specific basic oil-shale legal references are the Min­ erai Leasing Act of 1920 and the oil-shale and local water pollution, control, water time frame or event, and that some leases (published in the Federal Register, quality, air pollution control, air quality, maintenance of the leasehold be re­ Vol. 38, No. 230 on Nov. 30,1973). Providing noise control, and land reclamation statutes, quired. background is the six-volume Final Environ­ regulations and standards." If that plan is approved, I think that mental Statement for the Prototype Oil Shale The attaChed stipulations provide that "continued compliance with changing pollu­ Interior would draw up its own agree­ Leasing Program (issued by the Dept. of Interior in 1973). tion control laws is required." In other ment for a suspension of operations Interpreting these laws and advising the words, the regulations provide for commer­ (rather than simply signing the agree­ Mining Supervisor on their implementation cial development of oil shale without undue ment proposed by the lessees). Cob re­ is the job of the U.S. Office of the Solicitor, environmental damage. quested an 18-month suspension, and 18 whose regional office is located in the Den­ In addition to compliance with all pollution control laws, the lessees are also subject to months is probably within the time ver Federal Center. From that office attorney Lowell Madsen advises government agen­ applicable state and local laws. There is frame we would consider. cies from the U.S. Geological Survey to the some potential conflict over jurisdiction. For S.c. Would a new or revised DDP be U.S. Fish & Wildlife about oil shale, coal and example, Rio Blanco County Commissioners required, following suspension? other leasable minerals on lands managed in Colorado have insisted that the lessees of the federal oil-shale tracts must apply to the R. We've been diligently planning for 2 by the Interior Dept. He explains, "My func­ county for permits to change the zoning on years. I think it would be extremely tion is to represent all these people (in the various Interior Dept. agencies). We try very those lands from agricultural to industrial. wasteful to throw out 2 years of experi­ hard not to take an advocate's position be­ Lawyers for both the county and federal ence and go back to square one. Of tween two or more agencies. I'm more of a government had tentatively agreed to coop­ course, if there were major changes dur­ referee." And since oil shale does not have erate to avoid litigation. However, a suit filed recently by the State of Wyoming may deter­ ing a suspension, we would review them extensive regulations governing extraction mine the issue of federal-state control of with the panel and go back to the public. or a large body of case history (court deci­ sions) for guidance, "We're really plowing leased lands; Wyoming is challenging the Meanwhile, what happens to your S.c. new ground," Madsen notes. Secretary of the Interior's coal leasing regu­ office during suspension? Defining 'prototype'-Among the more lations. R. We would most likely continue oper­ hotly debated issues in the oil-shale proto­ In short, the word to describe oil-shale law today is "evolving." From the morass of ating at the same staff level for the next type leasing program is the meaning of the word "prototype." Part of the concept is regulations, statutes and court decisions, year. You know, the lessees have spent defined in the Final Environmental State­ federal policy on oil shale is shaped daily. millions for the work done so far; the ment (Vol. III, pp. 1, 2) that describes the And, in the absence of specific regulations government has invested innumerable objectives of the program: governing extraction, it appears that oil­ dollars, and something ought to come -To provide a new source of energy to the shale law will never be reduced to a simple set of "commandments." out of all this. For example, we're work­ nation by stimulating development of com­ ing with the Environmental Protection mercial oil-shale technology by private in­ dustry. Agency on a feasibility study to comput­ -To insure environmental integrity of affect­ erize all the environmental data gath­ ed areas and to develop environmental safe­ ered on the tracts, so that it can be used guards and restoration techniques that can for other purposes (in addition to oi/­ be reasonably incorporated into the plan­ shale development). Overall, we're try­ ning of a mature shale industry. -To permit an equitable return to all parties ing to blend together the environmental in the development of this publiC resource. data and other information. Right now, -To develop management expertise in the it's hard to see the light at the end of the leasing and supervision of oil-shale resource tunnel of oil-shale development. But, development, to provide the basis for future who knows? Oil shale has had a varied administrative procedures. Within this overall framework, the environ­ history. I'm not all doom and gloom. mental statement examines impact of two With that kind of resource sitting out prototype oil-shale leases in each of three there, there's got to be some light some­ states. While the statement refers to "proto­ where. type development on public lands which, And the light, from Rutledge's vantage when combined, could support a production point, may be fueled by shale oil. potential of about 250,000 barrels per day," Referee-Solicitor Lowell Madsen explains Madsen says that number represents "the that "prototype" development is limited by best estimate, given current technology, of the number of tracts the government leased, output." The statement wasn't limiting the not by any ceiling on production.

Shale Country August 1976 7 Situation Report bustion may cause smoking engine ex­ hausts and higher temperature combus­ tion systems. In contrast, the haze factor is reduced when shale oil is used as a jet Shale in the Sky­ fuel. An Alternate Fuel Notes John Jones, inventor of the Par­ aha oil-shale retorting process, "Re­ search is needed to better understand why shale oil is burning more efficiently in jet engines." In the meantime, Silver­ stein's group is interested in shale oil's hen the administrator of the Na­ combustion efficiency, since part of the W tional Aeronautics and Space Ad­ committee's task is to study fuel con­ ministration asked a non-profit national servation. Silverstein explains, "We're Investigating shale oil, Dr. Abe Silverstein, research group to study alternatives to looking at higher efficiency for aircraft, one-time director of NASA's Lewis Research oil as a source of aircraft fuel, the group as well as a backup for current aircraft Center in Cleveland, sees shale oil as having looked at oil shale from the very begin­ fuels in the event of an oil embargo.// potential as an aircraft fuel because of sup­ ning. The beginning was 2 years ago Such considerations received heavy ply and efficiency reasons. when an ad-hoc committee was formed play during the tour last June of Paraho. under the Aeronautics and Space Engi­ Committee chairman Silverstein said neering Board; the Board is part of the that his group concluded, "Shale oil is National Research Council, which in an important fuel. An effort should be committee members are accustomed to turn is an investigative and study arm of made to push ahead more rapidly on working with the difficult. For example, the National Academy of Science and manufacturing and testing." Silverstein, now a consultant for Repub­ National Academy of Engineering. lic Steel Corp. of Cleveland, at one time Spurred by the Mideast oil embargo, Link between aircraft, ship fuel? headed NASA's Lewis Research Center the group was formed at NASA's request The whole research area related to in Cleveland and directed some of the to investigate alternate fuels for military using shale oil for transportation needs first manned space flights. Today, he and civilian aircraft. The ad-hoc commit­ "will require complete performance agrees that a pioneering spirit is com­ tee consists of some 15 representatives tests," Jones states. And he notes the mon in both the space industry and in or retired executives from the major intriguing possibility of parallels be­ this nation's efforts to tap oil shale for airlines, aircraft building and aircraft en­ tween the applicability of using shale oil such uses as aircraft fuel. c.£. gine industries, the military, NASA, and as a fuel for aircraft and for shipping various government agencies. Their in­ vessels. For instance, tests made last vestigation has included an on-site in­ year using Paraho shale oil to fuel an iron spection in June 1976 of a private shale­ are vessel on the Great Lakes indicate oil venture, the Paraho Oil Shale Dem­ that certain similarities may emerge be­ onstration at Anvil Points, near Rifle, tween the use of shale oil for aircraft and Colo. ships, he says. Following the inspection, the chair­ According to Jones and Silverstein, an man of the committee, Dr. Abe Silver­ immediate research need is to continue stein, discussed with SHALE COUNTRY such transportation-fuels testing on shale oil's potential as an aircraft fuel. He large quantities of refined shale oil. said: "The fuel you make from shale oil Jones explains that one reason for long­ is akin to kerosene (presently used as a term research is the possibility that un­ fuel product); it has paraffin ic character­ desirable residue from shale oil might istics./I The paraffinic nature of the shale accumulate in jet engines. oil relates to its simple straight-chain While Silverstein'S committee has per­ hydrocarbon chemistry, as contrasted to formed on-site evaluation of shale oil, its the aromatic, ring-compound character­ mission is far from finished. In addition istics of some fuels, such as coal. Aro­ to its investigation of shale oil, the group matic fuels such as naphthene are more also is examining other alternative. To sea with shale? Use of shale oil for another transportation need, shipping, was difficult to bum and may sacrifice com­ sources for aircraft fuel. The task may tested last year aboard the SIS EDWARD B. bustion characteristics-meaning less seem complex and oil-shale production GREENE, flagship of the Cleveland-Cliffs efficient use of energy. Incomplete com- itself may seem distant. But the ad-hoc Iron Co. Great Lakes fleet.

8 Shale Country August 1976 Environment Archaeologists Preserve Shale Country's Past- for the Future

By Teddy Orr ..

hat do today's shale-country in­ ties." and became tribal-level cultures based W habitants have in common with But, what is known about shale coun­ upon that immense new energy of sea­ Spanish explorers, gold-rush miners and try's past is fascinating. According to Dr. sonal farming. Finally, the Euro­ nomadic Indians that roamed northwest­ Rippeteau, the earliest evidence of American explorers appeared in strength ern Colorado hundreds of years ago? human beings in that area dates back to about 200 years ago, and, of course, after Quite a bit, says Dr. Bruce Rippeteau, between 15,000 to 10,000 B.C. "These them, the pioneers and precious metal­ State Archaeologist for Colorado. He ex­ earliest inhabitants belonged to the Pa­ seekers. Today, the population of shale plains: "Many of those who used to live leoindian Culture or the Desert Cul­ country is relatively large and is predicat­ in the northwestern portion of the state ture. later, we see a cycle into the Plano ed upon the modern cultural behavior of were motivated in ways similar to today's Culture, whose people hunted bison needing energy elsewhere but being residents. For example, the Indians and from the plains as late as 6,000 B.C.," he able to afford an exploitative economy the early furo-American pioneers dwelt says. Next came the Archaic period. by outside support." there to farm and hunt. Those same "During this period, it appears that the factors motivate many of the families people did not rely on anyone food Archaeology is ... that live or move there today. Others in source but rather foraged among an ex­ Such knowledge of former shale­ the past came on a temporary basis, tensive selection of plant and animal country inhabitants is possible through often just to extract particular economic food resources." Then, Dr. Rippeteau the science of archaeology. Archaeolo­ resources. And, this is also true today. says, in the first centuries A.D., cultigens gy, Dr. Rippeteau explains, "is a tool that But instead of flint or turquoise, today's came to shale country. "These Fremont helps us recreate the days and worlds of temporary residents are seeking oil, gas, Culture people developed large agricul­ yesterday's humans. For example, ar­ oil shale and coal. Thus, it's very likely tural villages, usually located near water, chaeologists find artifacts and features that hundreds of years from now, an archaeologist will find the remnants of our modern energy extraction; and he will be able to draw conclusions about what our life must have been like in shale country in the late 1900s, just as we are now doing with cultures that inhab­ ited that region as long ago as 15,000 B.C." According to Dr. Rippeteau, most of what is known about shale country's past has been learned from the cultural re­ sources that archaeologists thus far have found in Colorado's Piceance Basin and its neighboring areas. But, "We've only begun to explore the surface," he says. "Right now we're not sure just what the Cultural resources managers and development firms are getting together early in the planning total range of cultural resources are in phase to see that cultural resources are adequately considered along with the rest of the development. Here, Dr. Calvin Jenning, Director of the Laboratory of Public Archaeology at the shale-country area. It is wise that our Colorado State University (far left), Dr. Bruce Rippeteau, State Archaeologist for Colorado, and legislation requires us to find out before Dr. Bruce Lutz, Director of the Archaeology Laboratory at the University of Northern Colorado, losing them because of our other priori­ study maps after a field inspection of a prehistoric site.

Shale Country August 1976 9 (artifacts that are difficult to remove, rest of the development," says Dr. Rip­ of data possible." such as house walls or stone fire pits) peteau. He adds that while the State of and interpret their relationships within Colorado has laws that deal with cultural Pulling it together the site, between sites, and across space resources, most laws actually affecting Dr. Rippeteau feels there have been and time. Archaeology uses the surviv­ shale development are federal because problems coordinating the various ing material culture to reconstruct social of its vast land ownership. However, energy-related developments in Colo­ culture, and in rare cases, mental cul­ these laws largely require consultation rado's northwestern area-coal and ture. And, it's the only way we have of and the concurrence of the State Ar- shale, for example. And, it seems that knowing about Pre-history, which cov­ energy developers have often been con­ ers the period of time before people fused or uninformed regarding the legal wrote or were written about." Archaeol­ compliance procedures relating to ar­ ogy is a social science, Dr. Rippeteau chaeology. Thus, Dr. Rippeteau feels 1 explains, and thus is different from pale­ one of his primary roles as State Archae­ ontology, which deals with animal fossils ologist is to help energy companies usually from a much older time period. comply with the laws and to coordinate A recent challenge developed in the the archaeological aspects of the field of archaeology is that of cultural energy-related projects that impact cul­ resource management, according to Dr. tural resources in Colorado. Therefore, Rippeteau. "Cultural resources include he says, "Since becoming State Archae­ examples of past human behavior, as ologist, I have made an effort to always represented by cultural information, that be available via telephone to answer can be inferred from the surviving ar­ questions. Also, to help energy­ chaeological evidence. Some cultural re­ development firms know what their re­ Dr. Rippeteau's office has sponsored com­ sources should be preserved and stud­ pliance workshops, such as this one held last sponsibilities are under the law, we have ied since they are often unique and June at the State Museum in Denver. sponsored compliance workshops and always non-renewable. Once they are an oil-shale archaeology symposium. gone, there is no way to get them back We also will be distributing guidelines unless we make assumptions about what on what constitutes good archaeological it is we want to know/' he says. Dr. chaeologist. "And, the federal oil-shale and cultural resource management re­ Rippeteau explains that the concept of leases themselves may even have provi­ ports and what those reports must in­ cultural resources as deserving manage­ sions for specific cultural resource pres­ clude. And, we are working on major ment started only as recently as the 1960s ervation." proposals for expansion in the State Ar­ and is just now hitting its stride. Prior to Dr. Rippeteau notes that under the chaeology office so that we can better this time, Dr. Rippeteau says, "We ar­ interlocking 1966 National Historical serve energy-related agencies and com­ chaeologists and cultural resource pro­ Preservation Act, the 1969 National Envi­ panies in the whole area of compliance." fessionals had to work primarily on a ronmental Policy Act, the 1971 Executive Are there any reasons besides the salvage basis-often just ahead of the Order, and the 1974 Archaeological Con­ legal aspects why people should be con­ bulldozer. Now, we have a whole set of servation Act, archaeologists may survey cerned with preserving cultural re­ laws that gives us a proprietary interest to locate and then evaluate any discov­ sources? Says Dr. Rippeteau, "Knowl­ in most state and federal (or ered cultural resources to determine edge and wisdom are the justification governmentally-related) land-use devel­ their significance to the public. "If the and the reward for our present labors to opments. And, these laws are so strong evidence merits it, we have the authority preserve as many unaltered samples of and representative of deeply held na­ to mitigate the impact of development the past as still happen to remain. To tional values that courts consistently rule on those cultural resources. If the evi­ illustrate, let me quote the French ex­ in our favor. We don't have many battles dence does not merit the National His­ plorer La Rouchefoucault Liancourt, who to fight anymore to get compliance with toric Register, which is considered first, in A.D. 1800 wrote (while camped direct­ the procedures that regulate cultural re­ management of the resource may well ly upon one of the very sites which sources," he says. be accomplished through methods such would later create our awareness of the I as avoidance procedures that are stipu­ largest single prehistoric phase of Amer­ Legal links to shale lated in the leases. The first choice is ican prehistory): 'Fancy must live in fu­ "So, these laws are the reason the preservation, perhaps through earth ture ages, to find occupation in this State Archaeologist is involved in oile burial, but in many cases this is not infant country; past ages can exist here shale development-to see that these possible. Then, we require a state-of­ only for generations not yet born. 'I can non-renewable cultural resources are the-art excavation complete with labora­ only add to that thought by saying that adequately considered along with the tory study and the very best publication much of the future is now."

10 Shale Country August 1976 No price tag-"We're all going to have to be more concerned with each other. That's the kind of thing you can't put a price tag on," said Mesa County Commissioner Maxine Albers.

Reaching the 'non-brazen'-"The very people you're trying to reach are the least able to project themselves. When you move into a new town, just brazen people like me go to clubs or meetings," said Dorothy Minkle I of the Area Council on Aging. I Community Profile I

Case History: Coping with Growth-Related Ills

By Carol Edmonds

he human needs ofpersons living in plan of attack, and approach that other women face in a rapidly-growing com­ T rapidly-growing towns should not communities might find useful. A re­ munity. She quickly sketched a theoreti­ be shoved aside in the rush to build source person who assisted the women cal way of looking at the needs of the sewers and trailer courts-and they are was Gulf Mineral Resources's Donna C. individual in a community. Davidson definitely under scrutiny in shale coun­ Davidson. began by listing three general needs of try. For example, the special needs of Start with a blackboard full of lists of the individual: women in boom towns and ways to meet needs that a fast-growing town is experi­ Community-Having a sense of be­ them were considered at a day-long encing, and where do you go from longing, participating, sharing. Having brainstorming session of 15 women there? When the room is full of the people to talk to and to do things with; leaders, which was held in Grand func­ community leaders who listed those having friends you can turn to for help; tion, Colo. in june 1976. needs, the answer may be that you jump feeling that you are accepted as an indi­ Grand junction is near Paraho Oil immediately to practical solutions, and vidual. All this is difficult in a boom town Shale Demonstration, Occidental Oil then you develop programs to carry where long-term residents may snub Shale, Inc., and Rio Blanco Oil Shale them out. That was the approach adopt­ newcomers. Project; all three have offices in Mesa ed by 15 women leaders in Grand Junc­ Identity-The individual as she sees County. Grand junction, a city ofsome tion recently during a seminar held to herself, and as others see her, in various 28,000 persons, including oi/-shaJe em­ identify the priority needs of women in roles within the family and the commu­ ployees, is the county seat. In the midst shale country's high-growth communi­ nity. When a newcomer arrives in town, of traffic from Interstate-70 and Western ties and to find ways to meet those she must rebuild her identity within that Colorado's major airport, the town is needs. Organizing the 1-day workshop community. I absorbing growth from government, was the Virginia Neal Blue Women's Variety-of roles, activities, recrea­ tourism and other energy developments Resource Center, based in Grand Junc­ tion. In a boom town there are not such as uranium; Grand junction seems tion, and community development plan­ enough outlets for creative energy; typi­ likely to continue its rapid growth, with ner, Donna C. Davidson of Gulf Mineral cally, variety is another new bar or gas or without oil-shale development. So Resources Co. pump in town. these women, not wanting growth to Opening the meeting, Davidson pre­ looking at these needs, Davidson said overwhelm their town, set out to mar­ dicted it would be "practical and action­ that people having different lifestyles try shal it. The following describes their oriented," aimed at attacking problems to meet them in different ways. Example:

Shale Country August 1976 11 A person's way of earning a living will tor to charge no more than $3 per child public elementary school as a neighbor­ strongly influence when they have free per day. The paltry fee hardly allows the hood community center and as a focal time and how they spend it. A rancher operator to meet expenses-thus creat­ point from which to develop neighbor­ with a seasonal round of activities is ing a shortage in child-care homes. The hood activities. A community director likely to have different recreational women agreed. would be hired to identify needs, match needs and desires than a shift worker County Commissioner Albers contin­ them with existing resources and set up with a daily round of activities. Another ued, "Our educational systems are fail­ programs. factor: family. Persons in a boom town ing to work at helping students learn to -Working through a voter registration may be geographically separated from live with each other." Said Virginia Pipe, campaign, League of Women Voters, their family so newcomers must search a volunteer with the Women's Resource and Women in Government to identify within the community to meet needs Center, "Yes, we need a preventive and encourage women to become active previously answered by their family. thing rather than a mop-up." Referring in public affairs and civic organizations; Where grandparents or a sister might to preventive measures, Albers observed the Women's Resource Center can pro­ have taken the kids for a weekend so the that isolation, lack of personal relation­ vide workshops in public affairs and parents could get away from it all, now a ships, is a cause of many boom town leadership training for women. new friend or a babysitter must be problems. She suggested that a feeling -Getting quantitative data on the num­ found. of unity is often achieved in a neighbor­ ber of battered wives and violence vic­ hood. "We need to encourage the tims in the area; estimating the needs Answers? Self·reliance, not the feds neighborhood concept," she said. that a sanctuary house would have to The most cost· effective way in the fulfill; and contacting other sanctuary long run to meet these new needs in a Alcoholism and public rest rooms programs to gain further knowledge of boom town is through development of Selecting from the list of specific com­ how to develop one. the community's own local resources, munity problems, each woman in the Members of the group took individual rather than relying on federal programs group described what she thought was a responsibility for doing the first round of or waiting for outside intervention, Da­ top priority problem the group ought to jobs that had to be done in order to get vidson observed. Therefore, the planner address. Among the top problems: alco­ the projects started. For each of the urged the group to "focus on what we holism and other drug abuse; a need to groups, one of the first orders of priority can do from this room." educate the public about growth-related was to get more people involved in the The women Davidson addressed are, human need problems; a sanctuary for project. The Women's Resource Center as she described them, "activists, execu­ battered wives, rape victims and others; will serve as a focal point for reporting tives, leaders," among them a county and communications among service or­ progress and the workshop will meet commissioner, city council member, ganizations. again in 2 months. Davidson commend­ mental health worker and director of a Asked to describe their second priori­ ed the group's approach, noting that program for the mentally retarded. Thus, ty concerns, the women's answers they had come up with "systematic, mul­ there was hardly a pause before the varied: development of neighborhood tipurpose projects" that would answer women started enumerating women's and other groups that encourage per­ many of the needs they had listed ear­ needs in the community. Observed Dot sonal relationships and group feelings of lier. Hoskin, a woman active in a nationwide unity; educating the power structure to What can other towns learn from the effort, Women in Government: "House­ the needs of women and educating Grand Junction experience? Davidson hold violence is one concern. I've talked women to participate in the power struc­ says that merely listing the problems is with some mothers (at a continuing­ ture; public rest rooms. not enough. "It you want to solve them education class); at least a half-dozen The women then discussed what you have to organize. You have to devel­ there had been beaten by their hus­ problem areas would be the most fruitful op the human resources, the physical bands or their mothers had been beaten to attack, taking into account the re­ resources and the financial resources to by their husbands. They need some sources that would be available to start meet the problems-and that's hard place to go." with. Three distinct areas emerged: en­ work." She said the most important Responded Maxine Albers, a county couraging women to involve themselves thing about the process at the Grand commissioner, "That brings to mind in the power structure; creating "neigh­ Junction workshop was that the women child abuse, something I've been terribly borhoods"; establish ing sanctuaries for assessed the strengths and the resource conscious of. It points up the need for female victims of violence. base they had to start with; then chose a child care to help these mothers." Mar­ During the next hour of the session, limited number of objectives that could garet Moorehead, from the State De­ three small working groups developed be achieved, starting with what was partment of Social Services, observed strategies for: available. Each implementing strategies that child-care homes are subject to -Developing a pilot project in coopera­ included a plan to increase the resource state regulations, permitting the opera­ tion with the school board to use a base-to pull itself up by its own boot­

12 Shale Country August 1976 r- straps. "The significant achievement of oped will meet more than one of the some extra knowledge and skills to do the workshop," Davidson said, "is that needs originally listed." things they're perfectly capable of doing each of the proposed programs is a Summing up her role, Davidson said, if they want to.... It's an attitude: If 'seed' program; one that can grow from "It involves giving people the encour­ you're willing to work, you bloody-well h a small beginning and when fully devel- agement and faith in themselves and can fight City Hall!" P n e

'Enormous Strength' At the Grassroots problems. Davidson is now doing her enormous strength and capacity among doctoral dissertation research on a sub­ people who live in the West and new "You've come a long way, baby," is an ject that she feels will be helpful to both people who are coming in. It's a question idea that might apply to companies in communities and industry: "Increasing of organizing all this energy and talent to boom towns and the persons who work the Response Capacity of Human Service get it tackling those boom-town prob­ for those companies. It also applies to Systems in Boom Towns." As she talks lems; that's an art in itself." The aim, she Donna Davidson, a community develop­ about human services and human re­ states, is to help a town set its own ment planner who has worked since Jan­ sources, it is clear that the idea of the priorities and resource allocations as uary of 1975 for Gulf Mineral Resources company's role in an impacted town has rapid growth causes sudden demands for Co. Davidson assists towns experiencing come a long way. Referring to herself and increases in government services and impacts from energy-company develop­ to Gulf Mineral Resources, Davidson disrupts human service systems. But the ment. For example, she recently worked says, "Our attitude is that town develop­ people must guide their own planning, so with the New Mexico State University ment should be a joint effort between the that they develop what Davidson calls "a Grants College to organize a 3-day work­ citizens of the community, industry and sense of town," the feeling about their shop, "Developing Local Responsibility state government." town that, "We like it because we made it for Growth Management," in Grants, N.M. Where does Davidson fit into all this? that way." Gulf Mineral Resources is developing a Never as a dictator. "It is not my job to tell In planning for growth, Davidson advis­ uranium mine near Grants. In addition to somebody else how they should live in es townspeople that there is no "one right organizing seminars and workshops, their town. That would be presumptu­ way" to grow. "Where a town starts from e Davidson works within Gulf as a consum­ ous," the planner says. Instead, she may determines what its own inner strengths er advocate, calling attention to problems inform citizens in fast-growing towns are and where it's going to move," she g that will affect Gulf employees living in about how other persons are handling says. "You start with the strengths you boom towns. She sums up her job as a similar problems. She explains, "One of have and build on that." While she may communication link between the compa­ the most important things I do is to put refer citizens to "certain processes that ny and the community. people in contact with each other. Just have worked in a number of communities t Working out of Gulf's Denver offices, trading phone numbers can be a signifi­ and are likely to work here," she encour­ 1­ Davidson, who is single, has come a cant act." ages the citizenry to rely on the town's "long way" from her native New York City Davidson assumes a different role when history and character. Davidson says she and from Pittsburgh, Pa., where she she helps local citizens to recognize their is especially impressed with the indepen­ worked as an administrative assistant to own abilities. She explains, "I see an dent attitude of rapid-growth communi­ the vice president for academic affairs at ties in the West. She finds they are still e Carnegie-Mellon University. She later untainted by the "Let-George-Do-It" atti­ n worked in Pittsburgh as a management tude. Townspeople and the companies in s consultant. Eventually she decided that it the towns need to press the federal gov­ was time to consider a new career. So "I ernment for more local control, Davidson decided to go for broke," she says, then states. But at the same time, local people jokes, "I went broke." She returned to must acquire skills and capability to exer­ school and struggled on a slender budget cise that control responsibly. while she earned a master's degree in In fact, she sees the rapid-growth West­ public works administration at the Uni­ ern communities as a fulcrum pOint for versity of Pittsburgh. After she had com­ "moving from an overgrowth of federal 1 pleted the academic requirements for a bureaucracy to a better balance." One of \ doctoral degree in economic and social her key hopes: these towns must set development at the same university, she examples of "restoring power and capa­ was employed in a new job Gulf Mineral Self-reliance is the key-"It is not my job to bility to local government and to the ordi­ Resources had created. The company tell somebody else how they should live in nary citizen." was moving from exploration into devel­ their town," says Donna Davidson, Gulf Min­ (Donna Davidson may be reached at opment activities and needed a person erai Resources community development Gulf Mineral Resources Co., who could work with communities deal­ planner who helped organize women's 1720 S. Bellaire, Denver, Colo. 80222 ing with social and economic impact needs workshop in Grand Junction, Colo. (303) 758-1700.)

Shale Country August 1976 13 IVignette I everyone else is waiting. So we decided we'd better go ahead with our own research-but we will not duplicate what others have already done." Asked how he pulled such an assignment-a 3-year tour-Wilson an­ The swered: "I'm in the Naval Civil Engineer Corps, which is responsible for doing Navy's basic construction for the Navy and Ma­ rines and for handling the petroleum Man reserves. As for my qualifications for this • job, I have a civil engineering degree In and a master's degree in petroleum en­ gineering. In addition, through a Navy­ Shale industry program, I spent 10 months with an oil company, training as a petro­ Country "We are now activating quite a program for our oil-shale reserves," reports Commander leum engineer." Rick Wilson, Officer in Charge of the Naval On the job, Wilson says, "In a typical Petroleum and Oil Shale Reserves in Colo­ week, I travel about 30 percent of the rado, Utah and Wyoming. time-visiting consultants, operators, other officers in Washington, D.C., and "When I walk down the street in ming Naval Reserves," says Wilson, "we the oil and oil-shale reserves. When I'm my uniform, most people think now have 150 oil wells producing about in the office, I get involved in contractual I'm a fireman," says Commander E. R. 3,000 barrels a day. In addition, we are procedures, but basically I do most of the Wilson. Well, when the place is Casper, activating a development program that necessary planning. For example, a lot of Wyo., who would imagine that the uni­ will add 400 to 500 more wells over the my effort went into planning for the form is Naval and the wearer is the next 5 years, with a production peak of addition of 500 wells. Presently we have Officer in Charge of the Naval Petroleum about 20,000 barrels a day." a small staff, just one other officer and and Oil Shale Reserves in Colorado, Wilson adds, "I also manage the Na­ one secretary. By September, we'll have Utah and Wyoming? vy's oil-shale lands, which are all in this four Naval officers and 14 civilian staff Actually, even though Commander region. Until recently, there has not members because of our expanded oil "Rick" Wilson, who usually wears street been much activity related to these re­ and oil-shale programs." clothes, has only been in Casper for serves. But that will soon change. The Before oil and shale came into his life, about a year, the Navy has been part of Navy has decided to initiate an exten­ Wilson served as director of construc­ the shale area's local scene for years­ sive, 6-year engineering and environ­ tion at the U.S. Embassy in Cambodia, in indeed, since 1915. Wilson reviews the mental predevelopment program on its public works in Hawaii, and as a compa­ story: "Back in the early 1900s, when the shale reserves. We'll begin in Colorado ny commander (Seabees) during theViet­ Navy converted from coal-burning to this summer by drilling core holesj by nam war-after being recalled from oil-burning ships, it knew it would al­ fall we expect to select an operator: and civilian life where he had his own con­ ways need petroleum reserves. So, by 1978 we anticipate opening an office, struction business. Today, Wilson says, thousands of acres of petroleum and probably in Grand Junction, with a staff "I like my assignment, and my wife and oil-shale were set aside for the Navy as a of 50-100 to handle this program. The three children and I love Casper." future source of fossil fuels. Many of goal: to provide Congress with enough What does Wilson feel about the fu­ these lands were in shale country and data so it can decide if it wants to devel­ ture of oil shale? "Of cou rse I have no that's why the Casper office was estab­ op these oil-shale reserves. We have idea what Congress will choose to do lished, and it's been open almost all of 56,000 acres of oil-shale lands in Colo­ about the Naval oil-shale reserves," he the time ever since, though on a relative­ rado and 89,000 acres in Utah, but we are says. "But I am sure that someone, ly quiet basis." concentrating on Colorado first. We will, someday, will develop oil shale, proba­ But right now, says Wilson, "The of­ though, be evaluating our Utah shale bly under a joint government-industry fice is in a period of change-and rapid, reserves soon." program so that the risks can be shared. tremendous expansion." The main rea­ Why is the Navy activating such a There are too many BTU's of energy son: The recently-signed Naval Reserve major oil-shale program when other locked in oil shale for it never to be Production Act that opened up these shale ventures are slowing down? Wil­ developed, even if more exotic fuels petroleum reserves for full-scale devel­ son replies: "Originally we meant to become available." opment. For example, "On the Wyo­ monitor the programs of others'-but A.N.

14 Shale Country August 1976 IReol Estate Comer I dington. "What we do is accumulate will be shipped to Chicago? Severance socioeconomic data, assess impacts and taxes, whereby corporations in effect translate them into human and physical pay for part of the capital improvements, needs," Coddington explains. are one solution to this problem. Cod­ BBe's report to the Boom Town Fi­ dington cites another, a situation in Boom Town nancing Study takes the form of tables which a corporation puts up some of the Financing and graphs depicting such factors as capital-improvement dollars (as the oi/­ population projections, revenues, ex­ shale industry has in the Rifle-Meeker and Housing penditures and capital facilities required area). in five counties, six cities and related Both Coddington and Bolt feel an effi­ school districts on the Western Slope. cient legal mechanism for sharing state The communities studied were Craig, and county revenues with growing­ Rangely, Grand Junction, De Beque, pained municipalities is needed, be­ Paonia and the proposed new town of cause, according to Coddington, "it is olitical I environmental I economic Battlement Mesa. The study measures the municipality rather than the county P question marks surrounding energy needs according to low, medium and that must offer capital-intensive services development make the Western Slope a high population projections as they re­ like water and sewer." high-risk area as far as housing finan­ late to the type of energy-related proj­ Also one method for sharing federal e ciers and developers are concerned. ects that may materialize. To summarize, revenues with municipalities-the 75­ There are also doubts as to the area's the results of the study to date suggest percent EPA funding for required water soundness regarding investment in local that city governments in almost every and sewage treatment plants-needs to government bonds on a large scale. For instance will be hard-pressed to meet be streamlined, says Coddington. He these and other reasons, the housing the demands for services and capital adds, "Since there is a 3-year time lag issue is one of the most persistent prob­ finances likely to be imposed on them. between the application for such fund­ lems facing those who must find answers On the other hand, counties and school ing and its receipt, if we were advising a to energy-development questions. districts will find their positions en­ community on financing water and sew­ One of these people is Ross Bolt, hanced through the location of commer­ er, we would advise them to finance coordinator of the Boom Town Financ­ cial facilities with high tax valuations. these services on their own." Finally, ing Study; a 1-year grant from the U.S. Coddington emphasizes that his firm's Economic Development Administration Money: not the only maHer work for the study was limited to re­ il to the Colorado Dept. of Local Affairs Coddington, however, is quick to add quirements imposed by Bolt's staff. finances this project. In order to get a that there are other than dollar terms The final report of the Boom Town balanced input of information, this study involved. One of these factors concerns Financing Study is expected to be dis­ has pooled the resources of people with whether or not people will bond them­ tributed in late November. Persons in­ diverse backgrounds: government per­ selves to the highest possible extent for terested in a copy of this report may sonnel, bankers, accountants-and an services for something that will be ex­ write to: Colorado Dept. of Local Affairs, oil-shale representative. And this group ported out of the state. For example, will Boom Town Financing Study, State Cen­ agreed that its task involved more than they pay for a sewer system for new tennial Bldg., 1313 Sherman St., Room hOUSing-related population increases employees of a coal plant when the coal 518, Denver, Colo. 80203. R.M.R. and prospective requirements for public facilities, for example. "The projection of housing needs is an incredibly complex task," says Bolt. "For Services Impacted by Growth .. example, it is obvious that most people will live where amenities are-in cities The community services most directly -Hospital facilities and services and towns with the best public services impacted by growth were considered in -Detention facilities , the Boom Town Financing Study in terms -Juvenile treatment and custody l and facilities. So before deciphering of related capital-improvement items. facilities and services housing needs, we decided to take a Total projected expenditures were con­ -County and municipal courts careful look at public-sector financial sidered in terms of the cost of capital -Standard academic educational needs in six sample areas of the Western improvements plus operating costs. programs in the grade, junior high and -Fire protection high schools Slope." -Police services -Public housing The tasK of gathering and summarizing -Water -Libraries data went to a private consultant team, -Sewage treatment -Recreational facilities Bickert, Browne, Coddington & Assoc. -Solid-waste collection/disposal -Administrative space (BBC), of Denver, headed by Dean Cod­

Shale Country August 1976 15 IGuest Column I

A Position on Oil-Shale Development

By the White River Shale Project

The White River Shale Project recently submitted its Detailed Development Plan, which is being reviewed atpublic hearings this month and by the Area Oil Shale Supervisor's Office for about 6 months. When the DDP was submitted, White River also released a position paper that discusses some ofthe problems the venture's developers perceive in regard to oil-shale development. The statement is presented below.

he White River Shale Project was by inflation), the projected price of shale ever-increasing expenses are not. Also, T formed in June 1974 by Phillips Pe­ oil required to yield a 15-percent return there is no assurance that the political troleum Co. and Sunoco Energy Devel­ on investment (1975 dollars) exceeds $20 actions needed to make oil-shale devel­ opment Co., the owners of federal oil­ per barrel on a 100-percent equity in­ opment commercially attractive will shale lease Ua, and Sohio Petroleum vestment basis. occur by the time the technological un­ Co., the owner of federal oil-shale lease 3. The present stage of retort technol­ certainties have been eliminated. Ub. The project was formed for the ogy is not adequate to allow for pro­ Not withstanding all of the aforemen­ express purpose of establishing a plan ceeding directly into commercial devel­ tioned problems, the White River Shale for joint development of the leases. opment. Project firmly believes that from our In the ensuing time period, as the 4. A commercial oil-shale installation national-interest viewpoint, a program White River project team proceeded will consist of very large and complex for oil-shale development should be car­ with carrying out its charge, some very units of mining, retorting, and upgrad­ ried to the point that the major technical significant external events occurred, and ing, all close-coupled and interdepen­ and economic uncertainties are re­ some internal conclusions were dent. A high operational risk is involved solved. Thus, we are recommending the reached, which impact seriously on the since each operating unit must have a following programs for the development development of an oil-shale industry. high availability, or "on stream" factor, of oil shale: Some of the most significant problems to maintain the desired production lev­ Demonstration Modules Should be currently associated with the commer­ els. Failure to achieve this availability has Built: As a first step, a program should cialization of oil shale are: a disastrous effect on project economic be created that insures demonstration of 1. In the past 2 years, a period of viability. a wide range of technologies for shale devastating inflation, the estimated cost 5. There is a great deal of uncertainty processing. A carefully considered num­ to construct a 100,000-barrels-per-day and risk relative to environmental issues ber of modules should be built. These shale-oil plant has escalated from the and political issues. The measures and modules would allow for demonstration $600 million range to more than $1.5 costs associated with providing an and evaluation of the technology using billion. The latter cost has been verified environmentally-acceptable oil-shale fa­ full commercial-scale equipment. The in a detailed study carried out for White cility are difficult to predict in the pres­ module would most probably be a single River Shale by one of the country's lead­ ent stage of development. On the polit­ retort coupled with attendant mining ing contractors. ical side, one area of greatest concern is and other required supportive facilities. 2. As a consequence of the sharp in­ the situation where product prices could The demonstration phase will provide a crease in capital requirements (caused be subject to some form of control while sound base for predicting capital, envi­

16 Shale Country August 1976 ronmental, and operational costs for an expanded commercial facility. WHITE RIVER SHALE PROJECT Modules will Require Joint Govern­ Estimate of Capitol & Operating Costs' ment-Industry Funding: Our studies (Millions of 1975 Dollars)

indicate that construction and operation Capital Operating Shale Oil of a module will cost in the $100-$200 Costs Costs BPeD million range and will be unprofitable. In MM$ MM$/Yr. Produced light of the technical and economic un­ Pre-Phase I 87.5 o certainties, this cost level precludes the Phose I--Mine Opening 4.0 0.5 o possibility of demonstrating a wide Phase II--Single Retort Operation 136.3 12.4 ± 5,000 range of technologies sponsored entire­ Phase III & IV--Commercial Operation 1,382.4 122.6 100,000 ly by private industry. We believe the most realistic approach would be joint Total Capital Cost 1,610.2 government-industry funding through the technology development phase. A basis for industry to acquire the govern­ ment's interest in the plant should exist. Estimate of Sales Price of Upgraded Shale Oil If the technology is successfully demon­ $20.00/Barrel strated and if economic conditions per­ mit, the plant could then become the Based on: core for an expanded commercial ven­ l00",{, equity financing I ture. FOB Cosper Wyoming Subsequent Commercialization May 15% return on equity No commun ity financing Require Government Support: Synthetic 1975 dollars--no esca lotion 20-year commercial life fuels cannot be competitive in today's 100,000 barrels per day price-regulated market (or at today's world market prices), and there is no assurance whether or when free-market pricing conditions will again exist. In 'Capital estimates based on conceptual design of the "Most Probable Plan" of oil-shale addition, it is likely that some form of development as described in the Detailed Development Plan for Federal Tracts U-o and U-b. government support may be required to make shale commercialization finance­ able and competitive in the energy mar­ nology and money. Thus, the White of a joint industry-government program ket. Until the modular demonstration River Shale Project intends to submit a for the module stage. As is the case in phase is completed and a firm evaluation proposal to the government for joint most research and development pro­ of the economics can be made in the industry-government development grams, the modulardevelopmental oper­ light of the economic environment at through the modular stage. ation costs will exceed the generated that time, we (White River) are unwilling A very poor utilization of the resource revenue. Therefore, the funding for this to speculate now on either the nature or would be to proceed directly to con­ stage should not require loan pay-back magnitude of government support struction of a commercial facility which, but rather incorporate a mechanism for which might be required. based on the present state of knowl­ future buy-back of government interests Financial Assistance for Communities: edge, might well be environmentally, on an agreed basis from subsequent .. When conditions for commercialization technically and economically unaccepta­ commercial plant profits. do occur, it is essential that government ble. Information gained from the modu­ In addition, the White River Shale assistance should also be available for lar approach can be expected to suggest Project must have assurance from the the communities that will be impacted modifications to mining, retorting and government prior to payment of the dis­ by the construction of the commercial environmental protection techniques cretionary fourth and fifth bonus pay­ oil-shale plants. which would increase the ultimate re­ ments that ownership of the federal In summary, we (of White River) are covery of shale oil from the ore and tracts can be retained by the lessees until willing to continue our efforts to develop thereby contribute to the overall conser­ such time that economic and political oil shale to meet the country's future vation of the resource. conditions will permit prudent develop­ energy demand. We are willing to dem­ White River Shale Project intends to ment of the tracts to commercial capaci­ onstrate jointly with the government request a suspension of the lease terms ty, or until the initial term of the leases what this will require in terms of tech- in order to allow time for establishment has expired.

Shale Country August 1976 17 Many-Faceted View of Oil Shale

John Welles, Vice President for Institutional Planning and Development for the Colorado School of Mines, offers some thoughts on oil shale from a rare and unique perspective.

e serves on Colorado Governor Dick my particular perspective on Colorado downstream and foresee what state gov­ H Lamm's Energy Policy Council. He is and energy development. I have no spe­ ernment should do in the future. Vice President for Institutional Planning cial role, but I do try in particular-when I feel the Energy Policy Council func­ and Development for the Colorado I can-to bring to bear what the academ­ tions reasonably well, and I suspect it School of Mines. He directed the Indus­ ic community can offer. That is, I make will continue to operate, though there trial Economics Div. of the University of suggestions about how Colorado's aca­ may be a better arrangement on the Denver Research Institute for 18 years. demic institutions can support energy­ horizon. But, one of the greatest prob­ He holds a B.E. from Yale and an M.B.A. related activities. Also, to the extent that lems with such a group is the sense of from Wharton; his major fields of inter­ I have had experience in dealing with insufficient time to explore all the issues, est are technology transfer, industrial industry and government on energy and all the facets of each issue. To do so location, industrial market research, and matters, I try to bring the perspective of would take a full-time Council with a economics of research and develop­ these two groups into the discussion. In full-time staff and I don't think that's in ment. He helped prepare the U.N. Con­ short, I try to make sure that the people the cards yet. Actually, the Council is ference on the Human Environment and on the council realize how the academic, trying to make up lost ground. Colorado he believes that business prosperity government and industry communities should have started such planning 6-8 without population growth is possible. think and how they probably will react to years ago, but no one, on the state or He also feels that Colorado has a respon­ state energy policy initiatives. national level, had such foresight. sibility to the nation to develop-and We are a policy-advising group in that S.c. What is your role at the Colorado share-its energy and mineral resources, we assist the Governor in formulating School of Mines and how does it relate including oil shale. He is John Welles; the state's position on energy matters. to energy development? and this many-faceted individual was re­ Thus, for example, the Council has ad­ I.W. Generally, I help the School of cently interviewed by SHALE COUNTRY dressed the issue of federal incentives Mines make long-range plans and devel­ to get his unique perspective on oil for oil-shale development. We've also op its financial resources. I also handle shale. looked at the question of offsite disposal legislative and public affairs. More spe­ Shale Country: What is your role on the land for oil-shale developers. The Coun­ cifically, the School is in a period of Energy Policy Council? cil also often considers the socioeco­ critical change. So I view my major role Welles: The Council consists of seven nomic impacts of oil-shale growth and as strengthening its program in two key members-the Directors of the Depart­ how these may be ameliorated through areas. First, the state seems to have ments of Natural Resources, Local Affairs state policy and cooperation with indus­ decided that it does not want to fund the and Agriculture; the Assistant Director try and the federal government. In brief, School at a level the School feels it needs of the Department of Health; two mem­ we try to consider all major interrelated to provide quality education. So I am bers of the Governor's staff; and me. We Colorado energy policy issues and give dealing with the question of how to consider issues that come before the our thoughts to the Governor. Our func­ develop financial sources to augment Council at the Governor's request or at tion is really three-fold. One: we give the School's budget. our initiative. him specific recommendations on issues Second, the world has changed a great My role is to function as one of the as he requests. Two: we alert him to deal in the past 30 years. Mining compa­ seven and to consider these issues from issues coming up. Three: we try to look nies are going from small to multina­

18 Shale Country August 1976 tional size. And, their scope has broad­ terms of the public interest. now we are a net importer of energy. So ened; mining has become a high­ So, I feel there is an increasing need for us to say to the rest of the nation, technology industry. No longer is it a for faculty members with their "We're not going to share our re­ pick-and-shovel industry; now it de­ credibility-they presumably have less sources," is wrong. If we are extra­ pends on sophisticated sciences and in­ of a vested interest-to step forward and endowed with energy resources, we strumentation. And the whole area of link themselves into the policy arena. have an obligation to share. minerals and energy policy has become This may be accomplished by presenting Therefore, Colorado will need to de­ very complex. Therefore, the School of expert testimony in Congressional hear­ velop its oil-shale, coal and other re­ Mines has to expand its scope to match ings, or fulfilling speaking engagements, sources. However, we also have a need the needs of the world. or writing articles for popular maga­ to develop our resources in as environ­ For example, in terms of oil shale, zines. mentally sound a way as we economical­ there are several ways that the Colorado Also, we want to maintain our service ly can and in a way that conserves the School of Mines can continue to work to industry and government in the resource. We must recognize we have with this industry. First, we should be continuing-education field. We want to an obligation to future generations; thus very sensitive to the needs of the indus­ keep on presenting conferences, cours­ we must provide access to resources that try for mining engineers and minerals es, special institutes, like our annual Oil may be unrecoverable now, but are po­ economists. We want to be sure that our Shale Symposium. tential reserves for the future. undergraduates and graduates are being S.c. Mr. Welles, you've addressed your We, as a state, also need to forge a real targeted to meet the needs of the indus­ official government and academic roles. partnership with the federal government try, as well as the needs of the state What about your personal perspective and with industry in terms of having and federal governments, consulting­ on oil shale? good cooperative relationships-rather engineering firms and research insti­ J.W. In my opinion, contrary to what than fighting as we have in the past. tutes. These are the markets for our many people may feel, we must have Western energy development is ex­ graduates and we want to be sure we are energy availability-at least a minimum tremely complex. It's not just oil shale in turning out enough people-and the amount in order to have a healthy econ­ Colorado, but in Utah and Wyoming right kinds. omy. We need energy in order to have too-and it's water for the region, and For example, we need to know from jobs, tax revenues, homes and food. If railroads and population centers and industry if it will mostly be doing under­ we don't have energy and a healthy utilities ... ground mining of oil shale. In this case, economy, people won't think about any­ S. C. Do you feel oil shale will be devel­ we need to know how many mining thing else because they'll be hungry. oped? engineers will be required, how many And hungry people are not worried J.W. Almost every forecast counts in oil safety inspectors, how many lease about the environment, about culture, shale as a future energy source. And I supervisors.... In the research area, about anything much except food. feel oil shale is going to be developed­ we want to train students so they can do We must realize that right now we when the price is right, and when water oil-shale R&D. We also want to make have no inexhaustible source of energy availability is assured, and when the sure that the Mines faculty can provide that we can tap in sufficient amount to policy-makers get their acts together so assistance to the industry by contribut­ keep our economy going with the same they don't keep tying the industry up in ing to the basic store of knowledge number of people at the same income knots and when industry and govern­ about mmmg, crushing, retorting, level for more than 30 or 40 years. Thus, ment can assure environmentalists that refining ... of oil shale. we must be searching for a way to cut the job can be done in a sound Finally, in the service area, there is a back on our use of exhaustible manner-that is, the cost-benefit trade­ role that is not being well filled today­ resources-while at the same time we offs are reasonable. that of trying to link technical know-how must be looking for new sources to And that leads to perhaps the biggest with mineral policy-making needs. Min­ replace our energy supplies. And it is problem of all in energy and minerals ing schools have not adequately fulfilled imperative that we do this thoughtfully, development-communication. It's trag­ their obligation to society to provide so that the transition involves minimal ic how easily and often misunderstand­ information and knowledge, for exam­ disruption-so that our economy ings arise because some information is ple, when mining-related legislation is doesn't break down and so we can con­ not communicated. We need effective being considered that may be detrimen­ tinue to have a good life. networks that transfer information to tal to America's interests. The mining What does this mean for Colorado? It everyone who needs to know what is industry has had insufficient under­ means that since we have far more than going on ... credible information. And standing of lawmaking and at the same our share of energy resources, such as that's why a magazine like SHALE time, the general public has not under­ oil shale and coal, in the national interest COUNTRY serves a fine purpose. stood what the mining industry is and we must do our part in producing energy A.N. how minerals should be handled in for the country-and ourselves. Right

Shale Country August 1976 19 Letters To The Editor

Too Pretty? three houses south of the house Pop and an octane of about 60 on the finished raw gasoline. These days, I guess, it would be "I cannot tell you how much I appreciate Mom Blackburn lived in about the time of necessary to hydrogenate the crude shale oil your periodical, SHALE COUNTRY. Having their deaths. June Sherrill to make it a suitable feed to a catalytic handled the reams of technical material that Grand Junction, Colo. cracker. Indeed, hydrogenation was a pro­ is piled in our libraries, I had felt the impor­ cess used by Calvo Sotelo in Spain. to make tance of such a simplication for the people their shale oil a suitable feed. Hydrogenation who haven't the knowledge to read those (Thanks, Mrs. Sherrill, for clarifying the story surrounding Pops Place.) is not a cheap process, other than using reports. hydrogen from an established refinery. and "I would, however, suggest that the beauti­ With Modification even then most of the world's shale oils are ful photographs on the covers of this maga­ relatively high in sulphur and nitrogen. the zine are a bit misleading. They attract read­ "In your April 1976 issue of SHALE COUN­ removal of which is an additional processing ers it is true, but they also must bring forth TRY, page 2. the statement was made that cost. the cries of the non-resident. vociferous en­ 'shale oil.. is directly substitutable for im­ "Although one must be disappointed at vironmentalists. The shale country is not ported oil on a barrel for barrel basis: I feel it the recent decisions of Congress and the pretty country, but is a drab, dry and desolate is needless to state that I have been a protag­ down-turn in oil-shale activities, I feel your area with sparse vegetation and little wildlife. onist for shale oil for nearly all my profes­ readers should be aware of the inherent Would an occasional cover of this grey coun­ sional life; however, I fear I must point out chemical disadvantage of shale oil from the try shown like it really is be a bad idea?" that this statement is not true. Shale oil is a viewpoint of the manufacture of gasoline to Mrs. Elberta Francis man-made product, just as coal gas is man­ modern standards." Grand Junction, Colo. made from coal. Because shale oil is a manu­ factured product, its chemistry is notably R. F. Cane different from crude petroleum oil and, Head of Department, Dept. of Chemistry (Editor's note: Mrs. Francis, it would be a Queensland Institute of Technology good idea and it's one we have thoughtabout hence, for any transport use, other than Queensland. Australia often because we well realize that shale coun­ boiler fuel, shale oil cannot be directly fed to try certainly could not win any beauty contest. a modern refinery as can petroleum. (Mr. Cane is, of course, right; shale oil It is stark, it is barren, it is arid, it is desolate. "Using a chemist's terminology, shale oil must be modified somewhat before it is fed But somehow our photographers have made is said to be 'unsaturated' and, hence, either into a refinery. However, then its refined those characteristics very photogenic. At the before being fed to a refinery or at some products are directly substitutable for crude same time, many other readers have express­ stage during the refining process, it has to be ed to us their appreciation for our presenta­ modified. In the very early days of thermal oilrefined products, as coalgas would notbe. tion of shale country's "best side." They say cracking, the undesirable properties of shale By the way, SHALE COUNTRY will feature an that the magazine and its four-color covers oil were not that important. and acid treating article on the refining of shale oil in its Sep­ attractnationalattention to an area that is very the cracked distillate was sufficient to attain tember 1976 issue.) important to America, but has received little recognition in the past. But your point is an important one and one others have also passed onto us. So we will seriously consider featuring some grey piC­ tures on the cover; we already do inside the magazine. In the meantime, if other readers of SHALE COUNTRY have an opinion about the proper way to "picture" the area, please let us know.)

Pops Place "In your November 1975 edition of SHALE COUNTRY magazine. someone sure misled you on the Dinosaur story. Pop Blackburn, deceased and buried on Orchard Mesa, was founder of 'Pops Place: In 1942 he sold it to Earl and Ivia Gadd (my parents). Later they sold it to Floyd Cady and then bought it back and kept it until about 12 years ago. I think he sold it to Escalante Land & Cattle Co. out of Scottsdale, Ariz. After my folks sold out, it was closed and no longer called Pops Place. Yes, shale country is grey-and drab, and dry and desolate-but still well worthy of Presently I live in Grand Junction, just national attention.

20 Shale Country August 1976 it d d e

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