On the cover: winter In Utah shale country

Oil-shale development impacts on towns like De Beque (p. 10-11), are being discussed on both the state level (p. 15) and In Washington (p: 7-9), but some shale-cou ntry residents are not impressed (p. 20).

Industry Interview 1 Will New Clean Air Act Rules Zap Energy Independence? I~dustry Update 2 Recent Oil-Shale Developments Looking Ahead 3 On the Road to Shale Cou A Look At 4 Oil-Shale Resources: How Much? Situation Report 7 lawmakers Face Classic Shale Taxes Community Profile 10 De Colorado-From Cowtown to Shale Town Environment 12 More Shale Health Research Real Estate Corner 13 Building a Stable Economy Newcomers 14 White River's Rees Madsen: Fielding Queries Vignette 15 Four Colorado Views on Oil Shale Guest Column 16 Wyoming Offers Socioeconomic Insights Voice of the People 18 Vernal Banker Expects 'People Resources' Will Channel Growth Letters to the Editor 20 You and Shale

Edward S. Safford, Publisher and President Brian Novak, Production Consultant Gregory A. Williams, Executive Vice President Catherine Kilker. Circulation Director Alys Novak, Vice President and Editorial Director Suzanne Sharratt, Copy Desk Richard L. Ronald, Vice President-Sales Carol Edmonds, Regional Editor Jonljane Paxton, Managing Editor Evelyn DiSante, Associate Editor The Regional Editor can be reached at: Kathy Carlton, Production Editor 3154 Lakeside No. 304 Paula Massa, Robert Pettigrew, Contributing Editors Grand Junction, Co. 81501 Ray Lewis, Art Director (303) 242-3905 SHaLe counTRY Volume 2, Number 2 February 1976 Mounlain Empire Publishing, Inc" 100 Cook St., Suite 414, Denver, Colo. 00206 along with a check for $5.00 to cover costs of postage and handling SHALE COUNTRY 1976 by Mountain Empire Publishing, Inc in the United Stales. Outside the United Stales, the cosl is $10.00 for regular mail or $21,00 for air mail. Published monthly. Executive and Edllorial offices, 160 Cook 51., Suite 414 Denver, Colo, 80206 388-5<131, Third Class Bulk Postage paid at Photo Credlh Denver, Colorado. COUNTRY is sponsored by Ashland OiL Front Cover, River Shale Project; p. 1, AmPflCan Petroleum Atlantic Richfield Co" Gult Oil COfP" Shell Oil Co., Srandard Oil Institute; p. 3, NO\lak; p, 4-6, USGS.; p. 7~9, Senafor Haskell, Carol Indiana, Sohio Petroleum Co" Sunoeo Energy Development Co" The Oil Edmonds. Tom Byers; 10-11, Paula Massa; p.12, TOSeO; p. Btlan Shale Corp. The opinions in this publication are Ihose 01 Novak; p. 14, Carol p. 15. Congressional Oifrees, specrllc individuals and do reflect the viewpoints 01 Ihe Edmonds; p. 16--17, Robert p. 18-19, Carol Edmonds; p. 20, publication's sponsors or the oil-s:hale as a whole. Ecology Consultants, fnc,; Inside Cover, Mike CrOS5

SHALE COUNTRY is provided as a public service oil-shale industry. Published monthly a~ a for those interested in indu§try developments, SHALE COUNTRY is made available to shale·area residents without charge throvgh various community out­ A PUBLICATION OF lets. However, should a reader wish 10 re-cej"e SHALE COUNTRY each MOUNTAINEMPrREPuBLISHING,INc. month for 12 months through the mail, please send your reque~t to

--""._------­ many states would be off-limits to new development under the IIndustry Interview I Class I restriction covering pristine areas. The key point: not only would development be restricted in Class I areas, but also Will New Clean Air Act Rules in Class" and III areas because buffer areas, or shadow zones, would be needed to protect the air in Class I areas from outside f Zap Energy Independence? emission sources. Result: one report indicates that in the West, When two companies withdrew from the Cob Shale Oil with its extensive deposits of oil shale, uranium and coal, the Project, a Shell Oil vice president said the project would die if inhibitive effects of the regulations would be extremely severe. roadblocks persist. In particular, he said that the proposed Because of such implications for energy development, in non-degradation amendments to the Clean Air Act could effec­ January 1975 the American Petroleum Institute and nine tively wipe out all oil-shale development and much of the energy-resource companies filed, in federal court, a petition nation's potential coal and uranium development. (now pending) to review the regulations. API's brief emphasiz­ To find out more about these amendments, SHALE COUNTRY es: "If allowed to stand, EPA's significant deterioration regula­ asked industry experts on the topic to provide some insights. So tions could virtually destroy this country's goal of energy here's some background information. self-sufficiency, aggravate the already overcrowded and pollut­ The Clean Air Act, passed in 1970, was designed to control air ed conditions of our urban centers, and deprive our rural and pollution by regulating emissions primarily in urban areas where economically depressed regions of any opportunity for eco­ the major sources of pollution, automobiles and industrial nomic growth." plants, are concentrated. The EPA announced that any state Robert Farrell, director of environmental affairs for Standard implementation plan that satisfied eight criteria wotJ'/d be ap­ Oil Co. (Ohio), one of the petitioners, told SHALE COUNTRY proved by the Agency. Then in 1972, the Sierra Club and other that under these rules "oil shale probably would not be permit­ environmental organizations sued the EPA Administrator, alleg­ ted to develop at all. Before a company could get a construction ing that state plans should also include controls that would permit, it would have to show whether the facility would have prevent degradation of existing air quality in areas where air any impact on a Class I area, and since most of America's shale quality is better than that required by the national primary and depOSits are in or are close to such areas, this virtually precludes secondary standards. As a result, federal courts ruled that air all oil-shale development. And even if a construction permit quality in undeveloped areas may not be significantly lowered could be obtained, the regulations requiring the best available by new development, even though it poses no threat to health technology-which mayor may not be needed in a particular or welfare. facility-could mean environmental overkill and prohibitive In turn, the EPA drew up "significant deterioration" regula­ capital costs. "In short, the rules could result in a ban of tions, which took effect in January 1975, dividing the nation into everything that could contribute to energy independence." three categories: Class I, consisting of "pristine" aesthetic and A.N. scenic areas, such as national parks and forests, in which Editor's Note: Do you feel these regulations will help orhurt? "practically any change in existing air quality would be consid­ Write to SHALE COUNTRYand to your congressional delegation ered significant", thus, in effect, where any new development and let us know your opinion. would be bannedi Class II, areas where changes normally CANADA accompanying well-controlled, moderate growth would be con­ sidered insignificant, thus where limited development would be , permittedi and Class III, areas where air-quality deterioration ,; I up to national standards would be considered insignificant, and \, thus where states could permit development. The regulations also require a preconstruction reviewi and r any new facility will be required to meet an emission limit that would result from application of the "best available control technology" for sulfur dioxide and particulate matter. Because the new rules caused considerable controversy, Congress realized it would have to review and clarify them. This is still underwaYi indeed House and Senate committees have

"'of come up with their own alternative approaches, which will have ,n 01 to be resolved in conference committee. At press time, it g, appeared that many in Congress lean toward even more strin­ gent regulations. Mineral·fuel resources of Montana, Wyoming, Colorado and Utah 'rhe implications ••. would be virtually blanketed by the shadow zones required by new Clean Air Act rules-thus wiping out almost all potential development Several studies have concluded that as much as 80 percent of of these vast sources of energy.

Shale Country February 1976 1 Industry Update

I '~

Projects Make Projections The Cob Shale Oil Project will con­ stration project is now phasing down. The Bureau of Land Management in Colorado, ! tinue-if at all possible-state the two re­ total labor force has been reduced to reports that information from the hear­ I maining partners, Shell (Operator) and about 40 and more layoffs are expected ings and written comments will be used in Ashland. Bob Meeker of Shell's Mining by April, unless additional financing is preparing the "draft-final." After it's re­ Ventures says, "In 1976, Cob's efforts will obtained. viewed by Interior, the final EIS will be mainly be to submit a Detailed Develop­ The Rio Blanco Oil Shale Project ex­ prepared, printed and filed with the ment Plan and to continue environmental pects to submit its Detailed Development Council on Environmental Quality. The data-collection work. The staff will be re­ Plan in March, says Walter Herget, project total process takes about 6 months. duced to about 11 people, mostly en­ president. He adds that C-a's request for Asked why BLM continued work on vironmental staff." off-tract lands for spent-shale disposal the E IS after Colony suspended its Atlantic Richfield Co., now out of purposes-now being considered by Con­ plans-a question being raised by sever­ C-b, is still in the industry. Arco's H. E. gress-is gathering support from several al-Moore said, "We felt that since there Bond says, "The company has about groups. Other news: C-a water-rights hear­ was a valid right-of-way application, it 40,000 acres of shale land in Colorado ings will be held early in the year; the was a genuine request. We did ask Colony and Utah that it hopes to develop. And Rangely/C-a master plan for community if it wished to withdraw the application we are continuing preparations on the development will be submitted at the and they said, 'No, we want to complete Colony project in Colorado by processing same time as the DDP so it will be a every step of the predevelopment process an environmental-impact statement and matter of public record; C-a's third bonus to demonstrate that we are in a position obtaining other permits." payment will be paid in March, bringing to go ahead speedily.' " The Oil Shale Corp. also remains very the total to $126 million. much in the industry. TaSCa President The White River Shale Project, says More Who's Who Morton Winston says, "Withdrawal from Earl Ramsey, program director, "has Add one more item to the list of sure Cob permits us to give priority to prepara­ completed its first-year baseline environ­ things: directory corrections. The minute tion work on our 14,688 acres of state mental studies; we are finishing our DDP a directory is published, changes occur. leases in Utah, in which TaSCa holds a for April 1976 submission-and we have So here's updated information for SHALE 100-percent interest. We believe public some serious concerns about recent Con­ COUNTRY's December 1975, "Who's support for energy development in Utah gressional actions. We see two major Who in Shale," pg. 14-17 .• is such that one of the first commercial problems facing the oil-shale industry: (1) -Rio Blanco Oil Shale Project; change plants can be constructed there and we development of oil-shale technology of a the phone number for Dick McElroy to continue to believe that development of commercial size has not yet been done; 243-4884. synthetic fuels in America is inevitable." (2) financing for demonstration com­ -Federal Energy Administration; change (The Utah Land Board just approved the mercial modules and for full-sized plants the phone number for Phil Gallo to (201) unitization of these leases and TaSCa is critically needed. In fact, because the 961-6193. plans to begin predevelopment work on three companies (Phillips, Sunoco, Sohio) -United States Navy; add to this listing; the unit in 1976.) Winston also notes that involved in White River are positive that Commander Eric Wilson, Officer in TaSCa will retain its oil-shale interests in outside funding will be needed, we are Charge, Naval Petroleum & Oil Shale Re­ Colorado, including its Colony interest. going to prepare a potential-financing serves, Colorado, Utah, Wyoming, 111 S. The Paraho Oil Shale Demonstration plan for submission to ERDA and other Wolcott, Room 113, Casper, Wyo. 82601, reports that it has produced so much agencies. But the big question in 1976 is: (307) 265-5550, ext. 5411. shale oil since March 1975 that it has had What is the government going to do with -Western Energy & Land Use Team; add to lease 10 railroad tank cars for interim synthetic fuels? The answer doesn't seem this organization to the list. Organized storage purposes. Harry Pforzheimer, pro­ very clear from here." under the Office of Biological Services, gram director, notes that "We are work­ U.S. Fish & Wildlife Service, this group ing with the U.S. Navy and industry to Colony EIS Gets Hearings coordinates information about energy find beneficial ways to put the oil to During January, the U.S. Dept. of the and land use activities related to public work." He also reports Paraho has sub­ Interior held public hearings on a draft lands in the states west of the Mississippi, mitted most of the information needed environmental-impact statement relating including Alaska and Hawaii. Contact: for the EIS being prepared by the U.s. to the construction of the proposed Harry N. Coulombe, Oil Shale Project Re­ Energy Research & Development Admin­ Colony Development Operation oil-shale search Manager, Room 206, Federal istration prior to the proposed scaleup. plant. Bob Moore, who oversees the Bldg., Fort Collins, Colo. 80521, (303) However, he adds that Paraho's demon- preparation of such statements for the 221-2040.

2 Shale Country February 1976 Loo~ng Ahead

of the Roan Creek Road to Occidental's erts explains that the Utah Legislature On the Road experimental oil-shale plant. recently passed the Resource Develop­ "As for the future," Prosence says, ment Act, which states that: "If a road is to Shale Country "we have several shale.-country projects needed to serve principally a new or in the mill, such as improving Highway expanded natural resource, the develop­ 13 through Rifle. Probably the largest er can prepay sales or use taxes for state As energy development of several job, though, will be completing 1-70 highway or state collector road construc­ kinds increases in Colorado and Utah, through De Beque Canyon and Grand tion." highway officials in shale country are Valley for about 36 miles." Back in shale country, Dwight Weten­ planning more and better roads to han­ And according to K.L. Berry, vice pres­ kamp, executive vice president of the dle more vehicular traffic. ident of processing, Rio Blanco Oil Shale Vernal Area Chamber of Commerce, In Colorado, "Planning for road con­ Project has been working with the coun­ says that much of the planning for new struction is the result of a combination ty on plans for: road construction is done through the of efforts by the counties, cities, regional -a 22-mile section of new road from Uintah Basin Energy Planning Council, a councils of governments and groups Rangely to tract C-a, connecting with 14 coordinating agency composed of local such as Club 20, a Western Slope associ­ miles of existing County Road 24 (to be governments of three Utah counties. ation of 21 counties," according to Dick improved), which joins Piceance Creek The main proposal is an access road to Prosence, district highway engineer for Road at Ryan Gulch; and the federally-leased oil-shale tracts the shale area in Western Colorado. He -improvement of 27 miles of Piceance U-a/U-b. The actual route hasn't been explains that "A group makes a formal Creek Road running southeast from decided yet and there are several alter­ request to the State Highway Commis­ Ryan Gulch to Highway 13, the existing native proposals, including one from sion, then the district highway engineer road between Rifle and Meeker. The Roosevelt, southeast through Ouray, examines the proposal and submits his 1975 Colorado legislatu re allocated then to the tracts. Wetenkamp supports recommendation to the chief engineer funds for improvement of the northern a direct route from Vernal to Bonanza for consideration." half of the Piceance Creek Road. Total and south to the tracts. "I feel this is a Prosence notes that "Most of the funding for the 63 miles of new and reasonable proposaL" he says, "since money for road construction and im­ improved road will cost $16.2 million and Vernal will be the most prominent com­ provements on the state highway system Rio Blanco county commissioners will munity in the area." He feels there are is allocated by the federal government, request these funds from the oil shale two reasons the road is needed: "1) To but these funds must be matched by the bonus trust fund this year. transport materials and equipment to state-the bulk of this money comes In Utah, Dick Roberts, fiscal planning the tracts; and 2) to transport workers­ from the state highway users' tax." He and programming engineer with the either from Vernal to the tract-or if also adds that the counties have received Utah Dept. of Transportation, Salt Lake, White River's proposed new community some of the oil-shale lease bonus mon­ says, "We're trying to keep close tabs on is built, to shopping facilities and other ies for road construction, and "Rio energy development. Right now, we are services in Vernal." Blanco, Mesa and Garfield Counties experiencing expanded traffic over the Whatever the outcome of the particu­ have asked the State Highway Dept. to whole area." lar routes, road planning is definitely manage their projects. That means we'll As for financing needed roads, Rob- underway in shale country. K.C. administer the construction, do the de­ signing and open bids on contracts. Bur­ man Lorenson, the Governor's director Vernal for oil-shale planning and coordination, will oversee the entire process."

Some of the oil-shale related projects Roosevelt in the works right now, according to Prosence, are repaving 24 miles of the Piceance Creek Road (which goes through the heart of the shale-deposit Planning for improved highway thru Rifle ---""'Io

U-a/U-b), and constructing a new bridge I , Proposed Road Construction and Road Improvements in Shale Country at De Beque, and approximately 7 miles

Shale Country February 1976 3 IA~Atl

Oi I-Shale Resources: How Much?

By Alys Novak

Geology comes up with an answer in the trillions.

When Project Independence publica­ 600 billion barrels, is in Colorado's the figures for Project Independence's tions or other references state that there Piceance Basin. table on oil-shale resources, which is are trillions of barrels of shale oil in the Donnell, who is chief of USGS's Oil shown. Colorado-Utah-Wyoming deposits, do Shale Section, has been linked with About these figures, Donnell says, "I you ever wonder, "How does anyone shale most of his working life as a geolo­ will stand on those quoted for oil shale really know?" If you do, it's a natural gist. Originally from New England, he in place; the figures for recoverable question. After all, in the United States joined this federal agency in 1948 and shale oil are assumptions. To arrive at as yet there have been only a few oil­ was soon on his way to De Beque, Colo., those, I assumed that one-third of the shale efforts and these have been on a to map oil-shale deposits in the Piceance resource is recoverable. This figure will demonstration-not a commercial­ Creek Basin. Since then, he has been vary with the geologic situation. For ex­ basis. So how can figures in the trillions involved in numerous efforts to obtain ample, in the middle of the Piceance be stated so positively? definitive oil-shale resource data. Thus, Basin, where there is a tremendously The answer is geology. Although U.S. Donnell was the one asked to provide thick oil-shale deposit, there is also a development of oil shale is "new," the tremendous aquifer that would cause science of geology is not, as the accom­ many recovery problems. In some places panying "capsule" explains. More spe­ the rock is actually a lattice work of shale cifically, the answer is that over the years filled with water. If that water were there have been many geological sur­ drained out, it might weaken the section veys of the earth's oil-shale resource and and collapse. Therefore, there are prob­ these have provided substantial data. For lems in coming up with recoverable fig­ example, a survey conducted in 1965 by ures. Perhaps because of present-day Duncan and Swanson indicates that technology and economics, the only there is a world shale oil resource of 2.1 valid figure may be the over-30-gallon­ quadrillion barrels. This figure was de­ per-ton figure. The over-15-gallon-per­ rived by: (1) using data from deposits ton figure is the impressive one because that have been extensively explored; (2) it's so large-but is it economic?" making logical extensions of these data Future technological advances also to other known deposits; and (3) making must be considered. For example, Don­ calculations about deposits that have not nell notes that if an in-situ process is yet been located but that are expected to developed commercially, then the U.S. be found because of geologic evidence. can look at using much more of the oil In a 1964 survey, John Donnell of the shale since this technology should be U.S. Geological Survey estimated that economical in areas where the oil yield deposits of oil shale in the Colorado, per ton is very low. Utah, Wyoming area, yielding at least 10 Economic and technological consider­ gallons of shale oil per ton, contain more ations, of course, are key factors that than 2 trillion barrels of oil. About 750 oil-shale companies must constantly billion of these are in beds that average keep in mind. And that's why they need 25 gallons per ton; 80 percent, or about as much geologic data as they can possi­

4 Shale Country February 1976 bly get. In order to design the best marlstone, nahcolite cavities, or thin tuff technological oil-shale operation and to (volcanic ash) beds or siltstone or sand­ get the best economic returns, they stone. A technique that consists of heat­ must know how close to the surface the ing the shale, called a Fischer assay, is deposits are, how thick, how continu­ used to obtain data about oil yield and ous, how high in oil yield, how much these data are tabulated and plotted in water and/or other minerals accompany graphic form. the oil shale ... Donnell explains that the USGS has control points scattered across the oil­ Core drilling for data shale area that have been core drilled In addition to geologic mapping the and assayed. Now, there are sets of oil-shale areas, geologists also use core assays from about 300 core holes in drilling to obtain information about the Colorado, and about 50 from Utah and resource. This technique provides the Wyoming. He says, "We know details geologist with specific data about the de­ about much of the oil-shale deposit by posit's characteristics. Donnell says this examining the cores and we have all this involves using oil well drilling equip­ information and many of the core sam­ John Donnell, chief of USGS's Oil Shale ment to cut through the rock to the Section, who has spent almost 30 years ples on file." He adds, "The fact that we required depth; then the core of the studying this mineral, is often referred to as do have the assay data has allowed us to hole is brought up to the surface. This the oil-shale geologist. determine that there are a number of cylindrical sample is extracted from the rich oil-shale zones in the Piceance Ba­ ground in a device called a core barrel, examine the sample and plot its charac­ sin." He points out that most of these which protects the core so that the strata teristics foot by foot. In fact, using spe­ assays are done by ERDA's laramie Oil are undisturbed. The geologist can then cial symbols, he can show where there is Shale and Petroleum Research Center.

Shale Country February 1976 5 In evaluating these assays, he says, private companies make their core data get more funds for more drilling." "We find that oil-shale deposits in gen­ available to USGS. Donnell and Pitman also feel more oil­ eral vary in thickness and grade only Donnell points out, however, that the shale mineralogical work remains to be 1 slightly over long distances. In fact, in Geological Survey is mainly interested in done. most areas one control point provides a public lands and, therefore, does not do In summary, after almost a 30-year very good estimate for a 3-mile radius. much work on private lands except in relationship with oil shale, how does J This is in contrast to coal deposits, which the case of land exchanges, such as the Donnell rank this geological resource? vary significantly." Donnell explains that proposed Superior Oil Co.-BLM oil­ He says, "I feel it is very important coal beds were deposited in swamps, shale land exchange. He also stresses because we are going to have to get which are more ephemeral than lakes or that the USGS does much basic research energy from every possible source that oceans. He says, "It is doubtful that a that a company can take and use for its we can. Unfortunately, I don't think that situation existed anywhere on earth like specific needs. the public and Congress and the Admin­ the lakes in which the oil shale of the istration realize the critical energy straits Green River Formation was deposited. we are in. These lakes were in existence for mil­ "Yes, oil shale will be very expensive lions ofyears and the resultwas a tremen­ to develop. But the longer we put it off, dous deposit of energy-unlike any the more expensive it will be. And it other." seems ironic that other countries are already considering mining oil-shale de­ Minerals too posits that are much thinner and leaner Donnell reports that the USGS, in ad­ than those of the Green River Formation. dition to its core drilling and mapping When people from these countries programs, also has people studying the come here, they drool over our thick, mineralogy of the oil-shale area. In these rich shales. studies, he says, "Our main emphasis is "In short, we have a tremendous de­ on nahcolite, dawsonite and analcime. posit and it's a shame that it's not being Soda ash is a byproduct of nahcolite and used. I realize I'm emotionally involved, alumina is a byproduct of dawsonite and but I hate to think that the en~rgy in oil analcime." Explains JanetPitman, another shale will not be utilized. I feel Ameri­ USGS geologist who is involved in this cans must put things in the proper per­ study and in the data processing of oil­ spective. Oil-shale development is not shale information, lilt is important to going to destroy this beautiful country. study these minerals because they influ­ Because of the expense involved-about ence the amount of heat required for $1 billion per plant-probably only three retorting the oil shale and determine the Core samples "tell" geologists about a de­ or four plants at anyone time could be composition of the spent shale." posit's 'mineral content, oil yield, and struc­ built in the Piceance Basin. That means ture on a foot-by-foot basis. This oil-shale USGS also is doing microprobe stud­ sample was taken from one of the oil-shale only 8-10 square miles would be in­ ies, X-ray mineral profiles and more core zones in Colorado's Piceance Basin. volved in oil-shale development at any drilling. Donnell reports that two holes time. Also, you must remember that were drilled recently in the Piceance today the environmental stipulations are Basin, one to a depth of 2,400 feet, the And now ... such that every effort must be made to other to 2,800 feet. The analysis of these Donnell says, "Overall, we have a very assure that the disturbance is as little as two holes has been completed and the good handle on America's prime oil­ possible." data made public. In fact, the USGS shale resource. In many areas, we are If he were part of the oil-shale indus­ issued an open invitation to anyone to down to details on a township basis. Of try, would Donnell put in three or four examine the cores and to get copies of course, in other areas, particularly in operations today? "No," he says, "not the data. "All of the energy companies Utah and Wyoming, we do not have as until I had more assurance from the send representatives to see the cores," much information. And we are missing federal government about the price of explains Donnell. "The more informa­ details in certain areas in Colorado, the product. I don't blame the oil-shale tion they can get about the Basin, the which might cause problems if more companies for refusing to go ahead until better decisions they can make about oil-shale tracts are nominated or more they know they can make money on this their particular projects." In turn, many land exchanges requested. So I hope we development."

6 Shale Country February 1976 ISituation Report I

Lawmakers Face Classic Shale Issues­ Supplies, Impacts, Taxes

By Carol Edmonds

Sometimes legislatures are like the price. Act are likely to include provisions for soap operas-nothing much happens -A proposal, made by Haskell and U.S. impact aid to communities. but the themes repeat themselves over Rep. James Johnson, R-Colo., to lift re­ -The President's proposal for a $100­ and over. This was the case with national strictions on oil-shale lease revenues, billion Energy Independence Authority legislation in the last session of Con­ which can now be spent only for schools may also come to Congress. gress; no major oil-shale related laws and roads. Variations of the Haskell­ -It is also possible that another syn­ were passed. The state legislatures, on Johnson measure include a proposal to fuels loan-guarantee program or other the other hand, were more active in increase the state's share of lease money types of incentives will be developed appropriating impact funds in Colorado to 50 percent and to allow the extra 121/2 and proposed. and in passing land reclamation stan­ percent to be used for any public pur­ -Environmental legislation that will be dards in Utah. Whether the lawmakers pose. Still another proposal would hike considered in 1976 by Congress also can will act on oil shale this year is for the state's share to 60 percent. Other be expected to relate to oil-shale devel­ soothsayers to say, since there are so oil-shale-related proposals expected in opment. many variables-such as who introduces 1976: the legislation, when it comes up for -Amendments to the Mineral Leasing Stateside: appropriations, taxes action, what the nation's energy situa­ At the state level, oil-shale related tion is at the time, and what the publicI legislation is likely to emerge in Colo­ political mood is. For example, when rado, though not in Utah, this year. Congress defeated the synthetic-fuels Major activity in Colorado's General As­ loan-guarantee program last December, sembly will be appropriations from oil­ some observers said the measure was shale bonus bid monies generated by felled less by its merits and more by federal leases for Tracts C-a and C-b. political circumstances-such as the fact Colorado lawmakers appropriated $10 that Congress had a few days earlier million from these oil-shale revenues reluctantly passed a $7-billion loan­ last year, though the Governor and the guarantee program for New York City. Colorado West Area Council of Govern­ So the "mood of Congress" toward oil ments (COG) had requested almost $40 shale can be as variable as the weather. million. The $10-million appropriation But U.S. Sen. Floyd Haskell, D-Colo., was still a quantum jump from the previ­ senses overall in Congress "a general ous year, 1974, when $451,000 had been feeling that oil shale should be tried, that appropriated, largely for contingency it's a potential energy source." It re­ school purposes and state planning. mains to be seen, however, what Con­ Only $325,000 of that initial appropria­ gressional mood oil shale will encounter tion was spent, since oil-shale related in 1976. But it is clear that this year's enrollment growth in the schools was Congress faces several oil-shale issues less than estimated. and proposals, including: Two controversial appropriations of -Price-support legislation allowing oil 1975 oil-shale revenues went to Hay­ companies to contract with the govern­ Burman Lorenson, Colorado reports den-$50,000 to create a south access ment to buy shale oil at an established "growth monitoring is just beginning." road into the town-and to Routt Coun-

Shale Country February 1976 7 ty-$100,OOO for roads related to coal long to Utah, not the federal govern­ mining. The point of controversy: the ment. The inaccessibility of those funds area is being impacted by coal develop­ may be a "blessing in disguise," how­ ment, yet the funds come from oil-shale ever, in the words of Gordon Harmston, lease monies that the Joint Budget Com­ chief of Utah's Natural Resources Divi­ mittee (JBC) of the state legislature de­ sion. He explains that the money isn't 1 cided to appropriate in part to Routt desperately needed now-and the es­ County. crow account continues to draw interest. This year Socio-economic Coordinator Meanwhile, the state may decide to en­ I Burman Lorenson, the Governor's direc­ courage its Congressional representa­ tor for oil-shale planning and coordina­ tives to introduce a bill that would allow tion, and assistant George Wear, have Utah to use now the 37112 percent of the been working with COG and the Gover­ oil-shale bonus bid revenues it would nor's Energy Policy Council in drawing eventually receive, regardless of the out­ up requests for oil-shale appropriations. come of the suit. Gordon Harmston, Utah feels "oil-shale sev­ The JBC will probably look particularly In other matters, Utah's state legisla­ erance tax should wait." closely at an area growth-monitoring ture has had little time to consider any system, funded with some state monies oil-shale related legislation, since its last year; COG now is setting up the short budget session lives up to its name constitutional amendments. These pro­ computerized monitoring of energy­ by convening January 12 and ending the posals are similar to those passed in related growth in Region 11 (Mesa, first week in February-a 20-day session. Wyoming (see p. 16). Moffat, Garfield and Rio Blanco Coun­ Non-budgetary matters must receive the ties). Last year the JBC emphasized it Utah: funds stili frozen consent of two-thirds of the legislature wanted careful documentation of before they can be considered, says In Utah, the oil-shale bonus bid mon­ energy-related growth. But the system is Harmston. ies are in limbo, since the monies are just getting off the ground, so Lorenson A severance tax on coal was expected being held in escrow pending the out­ does not expect the JBC to find any "real to be proposed this session, but state come of a U.S. District Court suit. The evidence of large progress" in monitor­ officials said it is unlikely that such a tax state is contending that the leased shale ing growth. would be applied to oil shale in its infant lands U-a and U-b, among others, be- In terms of oil-shale related legisla­ stages. Harmston points out that over tion, in 1976 the Governor has proposed the years Utah has sought to encourage administrative changes in Colorado's oil-shale development. mined land reclamation standards. And, U. S. Sen. Floyd Haskell (D-Colo.), who Among the legislation passed last year played a key role in inserting Colorado's a major funding bill to receive consider­ in Utah was a mined land reclamation wishes into the proposed synfuels legisla­ ation is a severance tax. Former Gov. tion, senses that even though this proposal act, providing for rehabilitiation of all John Vanderhoof, for example, has been was defeated, "Congress feels oil shale mines. A reclamation board created working with legislators to draft a plan should be tried." under that act will start to enforce the for returning a portion of a severance tax law in July 1977. Until then, reclamation to impacted areas. Vanderhoof's plan, plans are voluntary. Still to be worked developed by Club 20, the Western out by the reclamation board is the Slope organization he heads, would re­ bonding procedure that the act calls for, turn 10 percent of a severance tax on oil says Harmston. shale and coal to the county of origin, 20 In summary, more than any other is­ percent to the state and 70 percent to the sue, money is a universal theme this year cities and counties where energy-plant in state and national legislatures. Being employees reside. Another Club 20 pro­ scrutinized is money for the oil-shale posal would create a state bonding au­ companies and money for the communi­ thority and an energy-impact tax to pro­ ties: how much, when, how should it be vide front-end r:noney for communities. distributed? However, few observers Club 20 has also proposed special taxing were predicting that legislative scrutiny authorities to encompass an entire area would amount to anything more than affected by energy development, thus debate. The problem: The oil-shale in­ allowing sharing of revenues between dustry must have positive public and jurisdictions. Both the bonding authority political support and action to survive and taxing authorities would require in-and beyond-1976.

8 Shale Country February 1976 Anatomy of a Vote right that the people would benefit, but I that we will be literally rolled over by the The issue: whether to support the $6­ think that we ought ... not simply to turn need to do something about energy. If we billion synthetic-fuels program contained the money over on a silver platter to the do not pass this bill, I believe that at a in sections of a bill whose main purpose big energy corporations. time of another crisis, there would be a was to authorize appropriations for the JOHN DINGELL (D-Mich.): My good great pressure on the floor to pass a i Energy Research and Development Ad: friend, the gentleman from Texas synthetic-fuels bill, but that it would not ministration (ERDA). Sections 102 and (Teague) ... has done a good job of get­ have the kind of safeguards which this bill 103 provided for public land for an in-situ ting a piece of legislation to the floor. It is contains ... The legislation ... provides oil-shale demonstration, for loan guaran­ regrettable it is not a good piece ... that there shall be the smallest possible tees to oil-shale companies and other What are the facts? We have here a demonstration projects for commercial synthetic-fuels developers, and for some $6-billion giveaway ... It is probably purposes. Second, the Congress has to $400 million in aid to impacted communi­ going to amount to$1 00 billion before we approve any project over $35 million. ties. The result: the sections died in the get done. It is touted as being a researchl Third, any project recommended by House on Dec. 11, 1975. demonstration program ... That is one ERDA can be disapproved by the vote of The background: SHALE COUNTRY'S whale of a demonstration .. . one body of the Congress. editor, who was present in the House There were no hearings in the commit­ CHARLES MOSHER (R-Ohio): We are during this vote, reports that the tee before this was brought to the floor not bailing out the oil companies. As I see synthetic-fuels loan-guarantee proposal ... This is like "Through the Looking it, we are bailing out the Nation, which is appeared to be judged primarily on emo­ Glass": first we will find them guilty, then in desperate need of this huge commer­ tional grounds, rather than on its merits. we will hear the evidence. cial program. In particular, the proposal attracted the TOM HARKIN (D-Iowa): Does the gen­ MRS. MARILYN LLOYD (0-Tenn.): This ire of those hostile to the oil industry and tleman have a copy of the hearings (01 the is the only bill considered by Congress to it angered several congresspeople for po­ subcommittee)? date which is aimed at increasing the litical and protocol reasons. For example, DINGELL: I have not seen them ... sources of domestic energy. some members were angry that the main TEAGUE: Mr. Speaker, we have tried JOHN ANDERSON (R-IIL): I see my gen­ sponsor, Sen. Henry Jackson, a Demo­ and tried to have them printed ... ial friend, the gentleman from New York JIM JOHNSON (R.-Colo.): All of this cratic presidential contender, had at­ ... He who stood on the floor of this oil-shale land in Colorado lies in my tached those sections as a rider to the House a few days ago and wanted us to district ... This bill has many fine fea­ ERDA bill. They interpreted his move as guarantee $7 billion-not just $6 bil­ tures in it with respect to protection of the strictly a political ploy. Also, many were lion-he wanted $7 billion for New York area involved ... But I think the bill ig­ angry because there had been no House to SUbsidize the fiscal mismanagement, if nores some of the developments that are hearings, and no vote in the House when not downright corruption, that has gone taking place ... the Senator appended those sections in a on in that city over a number of years. Tracts A and B ... are two 5,000 acre­ conference committee. They considered Now when we come to this House with a leased blocks in Western Colorado ... this to be a serious protocol offense. program of $6 billion that would make These two leases are presently being Other reasons for opposition to the this country independent in energy ... developed ... They (the lessees) are sup­ sections emerged during the debate, part he is in opposition ... We need to take posed to make reports (Detailed Develop­ of which is abstracted below from "The action now to meet our future energy ment Plans) soon (in April of 1976) as to Congressional Record." In the excerpts needs. what their plans will be with respect to the that follow, the first speaker is Rep. Ken Strike out Hechler, whose subcommittee of the environment, the development, transpor­ When Mosher pOinted out that Presi­ House Committee on Science and Tech­ .tation and impact on the communities dent Ford and House Minority Leader nology held public hearings after Jackson ... (let's wait and see the plans) ... John Rhodes supported Jackson's meas­ proposed the rider. Chairman of the full TEAGUE: Mr. Speaker, the gentleman ure, Rep. Wayne Hays (D-Ohio) answered, committee is Rep. Olin E. Teague. These from Colorado (Mr. Wirth) went to Denver "The spirit of Christmas is upon us and statements show how Hechler moved to and heard 42 witnesses. He has been our this is the biggest Christmas gift to the strike section 103, and later section 102. liaison with 11 Western Governors. If he does not know what this is all about, I do biggest corporations in the country ... I Abstract' abstracts not know who does ... (Mr. Mosher) said that Senator Jackson HECHLER (D-W. Va.): It (the synfuels TENO RONCALIO (D-Wyo.): Mr. Speak­ and the President are unanimous on this loan-guarantee proposal) puts the Feder­ er, let me make an observation ... I also $6 billion gift ... You know something, if al Government in the business of prevent­ have great respect for the fine young man the people find that out, that may be the ing the private companies from losing but in the well (Mr. Wirth). However, if 2 days reason neither of them is going to be insofar as profits are concerned, the sky of hearings ... make a man an expert in standing out on the East Portico taking is the limit ... (This is) a $6-billion Christ­ this field, God help the Nation on the the oath of office as President a year from mas present which is growing daily ... It issue of energy. now." seems to me ... that if we have a pro­ TIMOTHY WIRTH (D-Colo.): ... Mr. A number of House members guffawed gram that takes the risks out of Speaker, perhaps hearings held on the and applauded, and the synthetic-fuels produc~ion ... we ought to consider the Western Slope do add to one's expertise energy measures died in two votes: 263 to risks to human beings, the risks to con­ 140 to strike section 103, and 238 to 117 sumers, the risks to taxpayers ... A careful reading of the bill will point to strike section 102. The votes of the TEAGUE (D-Tex.): What if these risks out ... we have provided ... the kind of Congresspeople from Colorado and Utah turn out to be beneficial? Who gets the safeguards that are necessary for the were: To strike: Armstrong, Johnson, benefit? Rocky Mountain region. Many of us from Schroeder; Not to strike: Evans, Wirth, HECHLER: Certainly, the gentleman is that area of the country stand in great fear McKay, Howe. (See page 15.)

Shale Country February 1976 9 ICommunity Profile I De Beque, Colorado­ From Cowtown to Shale Town

By Paula Massa

Housing short, land costly

Most Western novels were set in the east of De Beque, 4 miles west of a local Some town residents don't share his rip-roaring cowtown where "the men landmark, the Roan Creek Road. About skepticism. They think "planning for were tough and the whiskey hard." In 250 workers are employed at logan more" must take place now, especially this vein, the town of De Beque could Wash, but only about 10 percent of them since the town's sewer and water sys­ probably provide quite a few plots, be­ live in De Beque, mostly in trailers, al­ tems are stretched to capacity. Mayor cause in its heyday, cattle and cowboys though more probably would do so if Del Rickstrew says the number of taps congregated there to ship cattle by rail to they could find a place to live. Others on the town's recently completed water major marketplaces. drive to work from Grand Junction, system has doubled in a year's time. But today, "rip-roaring" would hardly Grand Valley, Rifle and even farther dis­ "We don't dare let out any more taps describe this little community, which is tances every day. right now,1f he says. "But we'll be okay if located about 32 miles east of Grand we stay the same size." However, he Junction off U.S. 50 at the end of De Oil Shale: Toddler's vocabulary adds, "If we're going to take care of Beque Canyon. The town has steadily The late Dr. Armand de Beque, who more workers, we'll need to expand our lost population from the days when cow­ founded the town nearly 90 years ago, services and we'll need grants." boys and other folks numbered about would more than likely smile to see the Already growth problems pinch the 400. The newspaper office, four mercan­ rekindled interest in oil shale. His son, town. De Beque residents have formed a tile emporiums, a couple of hotels and Armand, a life-long resident of De Committee for law Enforcement to raise saloons, a livery stable and a blacksmith Beque, says oil shale became a part of funds to pay their marshal a full-time shop that once flanked De Beque's main his vocabulary at an early age. Because salary. Mrs. Terry Rigsby, co-chairman of streets all have been replaced by one of that, any "to-do" over expectations the Committee, stresses that the group grocery store, a pool hall, a garage and from oil shale evokes a wry smile from is not "negative to growth. The majority an upholstery shop. de Beque and from a number of other of us want change and welcome But at least one element of the past local residents. growth," she says. But she and others has returned. The "oil in them thar "I've heard about it all my life," com­ want planning to be done in time. Mrs. rockslf has stirred the town once again ments de Beque, recalling the industry's Rigsby, a young housewife, plans to into anticipating growth. The communi­ advent more than 50 years ago. liMy manage a restaurant and bar now under ty, now populated by more than 300 father had oil-shale claims and sold construction and slated for a spring residents, has gained 20 new families in them. There have been plants here be­ opening. Currently the town has no the past few years-this is more growth fore, and high expectations." Asked if place where workers can come for a than the town had experienced in dec­ his views are "pro" or "con," de Beque noon meal. ades. The impetus? Experimentation has answers, "I'm glad the company is here f resumed to extract oil from the rocks because it's meant jobs for local peo­ High mill levy, low property value that tower around De Beque. ple.1f But as far as future development Funds for a town marshal are scarce. Occidental Oil Shale, Inc., has been goes, he adds, "I won't be here to have De Beque has one of the highest mill conducting experiments since 1972 at a any feelings about it either way_I'll be levies in Mesa County, since the town's 2,OOO-acre site, logan Wash, just north­ dead." property value assessment is low. Mesa

10 Shale Country February 1976 1

Armand de Beque (left), who has taught 23 years in the town named for his father, stands in front of modular-classroom building purchased with oil-shale funds. Quiet streets today (above), but De Beque was once the scene for cowboys and cattle who raised dust as the animals were loaded here for shipment to market. Bigger and better welcome-In the past 2 years more have probably seen this sign (right) welcoming visitors to De Beque than have seen it in the past 50 years.

County Commissioner Lawrence Aubert creased enrollments in the schools is community," speculation has been says, "It would take a 2-percent sales tax being accommodated by the addition of going on "forever." Another resident to pay a marshal, and financially the a modular classroom building secured said, "No one would be surprised if they town can't afford it." There are only with $36,000 appropriated by the state. (oil-shale developers) pulled up and left three or four businesses in De Beque School officials estimate that a large per­ tomorrow." that could carry the tax, anyway. Aubert, centage of this year's hike in student Ross Latham, who is still hardy at 83, however, sees more oil-shale impact on population-23 percent over last year­ came to De Beque to be a cowboy back the community of De Beque than on any comes from shale company families. in 1918 from the Blue Ridge Mountains other potential "boom" area in this part Oil-shale funds of $767,253 have helped of Tennessee. Remarking on present of the state, mainly because the workers to build a new two-lane bridge into town oil-shale activity, he said, "I've seen so are already there. and to reroute one of the main roads, much, and I'm glad they're working on it A town resident critical of planning the Roan Creek Road, behind the again." efforts is Fred Frolick, who says, "They school, which leads to the oil-shale And "work" the oil-shalers are. A final will struggle to get a better water and mines. phase of experimentation at Occidental sewer system, yet they can't pay for Occidental development has also mines is to be completed during the next simple things like a marshal or gravel for brought a rise in property values. "There 4 to 6 months. And the company is to the roads." Frolick, who moved to De are no empty houses in De Beque," says begin testing a retort of commercial size Beque 5 years ago, feels that "Things Frolick. "I know a guy who would have to process oil-shale rock underground. were adequate 2 years ago," but adds been tickled to get $30,000 for his 7-acre More important to the town of De that now he thinks impact funds must ranch at one time. It sold (recently) for Beque, Occidental's operations would come from the oil companies or the $40,000, and it could have gone for mean a jump in the company's current government. "People here would be more." total of 250 employees to 600-800 work­ willing to go for a good-sized sales tax, A new 40-unit subdivision in the area ers. but we wouldn't have anything to show will provide some housing, depending "More jobs and more people" have, in for it," he says, referring to the high cost on how many units the sewer and water sum, been termed a good thing for De of improving services. facilities can handle. Beque-healthy for the local economy, On the whole, residents seem more in the eyes of many. But just as many appreciative than critical of Occidental But why plan yet? don't know if they want to see life in the operations. The company has provided While some see planning as essential town change dramatically. "I think it will I jobs for those who otherwise would for De Beque's future, many residents develop but it will take time-it's not an have had to look for ranch hand work or just aren't sure there is much reason to overnight thing," says Doris McMaine, other employment elsewhere. do anything yet. Mayor Rickstrew, who . who runs the grocery store. But she Oil shale has also brought monies has been ranching in the area most of his ended with what seems to be the unspo­ appropriated by the state from oil-shale life, pointed out that while a doubled ken consensus of the townspeople: bonus bid monies. For example, in­ population "might be healthier for the "Nobody knows for sure."

Shale Country February 1976 11 I €nyir~nment I such as mice and hamsters with suspect­ ed carcinogenic materials. This is the procedure the API and present Colony/ Cob studies use. The chemists also report that Colony­ More sponsored investigations indicate that raw shale oil in animal tests is similar in carcinogenic potency to many conven­ Shale tional petroleum products and is less carcinogenic than some industrial fuel Health oils and coal products. The upgraded shale oil, which is the final product, has Research a substantially reduced carcinogenic po­ Gears tency. In regard to the potential carcinoge­ Up Mark Atwood of TOSCO says continuing nicity of processed oil-shale residues, a shale health research will assure that if there recent public concern, the TaSCa sci­ are any potential problems, the necessary precautions will be taken, just as is presently entists note that carcinogenic agents, done in conventional oil refineries and other such as BaP, are found in the residues in industries. concentrations of between 35 and 40 parts per billion. This compares with the The American Petroleum Institute has leum industry. In fact, published results 300 ppb of BaP found in dead oak leaves; launched a study of oil shale and its have been available since 1922, when 1,000 to 5,000 ppb in ordinary coal dust; health implications-in particular, its there was concern about the possible and 10,000 to 100,000 ppb in common carcinogenic (cancer-causing) potential. carcinogenic effects of Scottish shale oil. road asphalt. One ppb is an extremely Budgeted at more than $500,000 for 1976, Researchers discovered then that poor small amount; in distance, its equivalent the study may involve about $1 million hygiene and lack of oil upgrading were would be 1 inch in 16,000 miles. The over a 3-year period. The research is a causing health problems; factory work­ scientists also report that bioassay tests significant trade-association effort, says ers who were constantly splashed by raw of TaSCa " processed shale now Dr. Neill Weaver, director of API's medi­ shale machinery lubricating oil and who underway indicate that the material is cine and biological sciences depart­ rarely took baths occasionally got skin carcinogenically inactive. The research ment; however, he notes that govern­ tumors. sponsored by Colony/C-b will be com­ ment agencies and the private sector Since 1%5, the Colony Development pleted early in 1977. Coomes states, also are, and have been committing con­ Operation and Cob Project venture part­ "Until the tests results are available we siderable funding to similar projects. ners, including The Oil Shale Corp. can't say for certain that oil-shale prod­ "It's a step," says Weaver, "to enable (TaSCa), Arco, Ashland and Shell, ucts are completely harmless. When you oil-shale development with fullconsid­ have independently sponsored about burn anything at high temperatures, eration of health and environmental fac­ $400,000 worth of carcinogenic studies whether it is wood, butter, steak or oil tors; and it is a step in the direction of with some of the nation's top cancer shale, then BaP (a known carcinogen) energy independence." researchers. In a recent SHALE COUN­ will be produced. We can say now that The API research, now being planned, TRY interview with Mark Atwood, you have to look at the whole picture will take about 3 years; it takes 18-36 TaSCa manager of laboratories, and and realize that when you compare shale months to get meaningful biological Merril Coomes, TaSCa organic chem­ oil to other common materials, it has no (animal testing) results. Weaver also ist, these scientists explain that two more carcinogenicity than many petro­ notes that the Institute does not do such major approaches are used today for leum products." research itself; rather, it arranges 'for evaluating the carcinogenic potency of Mark Atwood of TaSCa adds,' established investigators to do it, usually materials. The first is useful just as a "Today's worker will rarely be exposed at academic institutions or commercial screening procedure. It involves chemi­ to raw shale oil, and the few bulldozer laboratories. He says, "You must have a cal analysis of materials for substances workers who will handle spent shale contractor with demonstrated credibility generally found in carcinogenic materi­ wastes will be in enclosed compartments and competence." als, particularly the compound benzo and they will wear respirators. Then the (a)pyrene (BaP). The second-necessary shale will be covered with soil and vege­ Today-not like yesterday for reliable, carcinogenic potency infor~ tation, so there will be no hazard to the As noted, similar research has been mation-is bioassay, which generally in­ general environment." conducted for some time by the petro­ volves extended contact of test animals A.N.

12 Shale Country February 1976 I Real Estate Corner I county/' he continues. "Occasionally a Ronald Stone, Vernal building official, permit will be requested for a small total permit valuation through Novem­ office building or a small store, but that's ber 1975 was about $6 million, compared about the extent of our commercial con­ to $2 million for the entire previous year. struction. " "We've seen an increase of building Building a Milner feels that this situation could activity in all sectors during the past change, however, once the energy in­ several years," Stone reports. "So far in Stable dustry gears up. "Right now, though," 1975 we've issued permits for 125 new he says, "we're not seeing much energy homes-four times the number issued in Economy development. Carbondale, of course, 1974." has a lot of coal activity, and it's about As for commercial construction, that the only area in Garfield that's growing too is showing interesting activity. Ac­ rapidly." cording to Stone, for years Vernal only The economic atmosphere of an area Mesa County, Colo., however, is had two banks. During the past 2 years, is determined by many factors-and one doing more than keeping pace with last however, five financial institutions have of the most important of these indicators year. Through November 1975, the moved to the city. "Other commercial is building permits. Reason: the number county issued 1,053 permits for a total permits are being issued by the county of permits issued and the valuation of valuation of $23.2 million, compared to for airport improvements," Stone says. these permits not only show the health the previous year's 12-month total of B2B "There is also a $700,OOO-swimming pool of the construction industry, but also the permits valued at $15.5 million. But de­ complex under construction, which is amount of mortgage-loan activity and spite the growth increase that these fig­ being financed in conjunction with the the condition of the real-estate market. ures indicate, as in Garfield County, only school board, the city and the county." Thus, keeping in mind that the rest of part of the rise is attributable to energy Once again, however, the reasons for the country is just beginning to recover development. this growth can't be pinned down to from the building slump that hit the As Dick Hollinger, Mesa County's energy development. As Stone says, nation in 1974, shale country, at least chief building inspector explained in last "We're not sure why we're experiencing according to permit statistics, seems to month's SHALE COUNTRY, the county's a boom. There is natural gas in the area, be in comparatively healthy shape. building-permit valuation was influ­ of course, but oil drilling has slowed But statistics don't always show the enced primarily by permits requested for down and some of the rigs are closing. entire picture. In fact, there are many several large developments-such as a We also have tar sands and oil shale, but reasons for the optimistic building state $1.5-million permit for a Fibreboard these resources aren't being developed of affairs in the shale region. Surprisingly Corp. facility in Grand Junction. And yet. We do feel that one factor contribut­ enough, for example, many observers while Hollinger agrees that one stimulus ing to our growth is that we're the only feel that energy development is not nec­ to the real-estate market is an overflow incorporated community in the county." essarily a major contributing factor to of energy development from other Therefore, though energy develop­ the vitality of the area; other factors that areas, Grand Junction is also a natural ment tells only one part of the building are just as important are natural growth growth area; it continues to receive an story, the area's construction activity is and catch-up construction. influx of people, such as retirees, who definitely holding its own. And while the Garfield County, Colo., is a prime ex­ simply want to move to the area. rest of the nation's building situation is ample of this situation. Garfield, while Utah's shale region, especially the creaky, shale country, as indicated by not surpassing last year's building fig­ Vernal area, also seems to be in a gener­ permit valuation, is enjoying economic ures with flying colors, is still on an even al economic upswing. According to progress. K.C. keel. W.e. Milner, county building offi­ cial, reports that 156 building permits, with a total valuation of $3.2 million, were issued through November 1975. This compares favorably with 166 per­ mits with a $3.3-million valuation that were issued for the entire year of 1974. Milner explains that "Most of the per­ mits-about 75 percent-were issued for new residential construction. There's been a housing shortage in the area for a long time and this is still true. We've seen little commercial activity in the

Shale Country February 1976 13 It's a delicate task-mixing environ­ master's degree in 1972. Madsen re­ And," he adds, "I don't have to work mental and practical concerns. But Rees turned to Sohio and was working as a with people who have to be sold on the Madsen feels at home whether he is senior engineer on pollution-control need to be concerned with protecting assessing the ozone levels on oil-shale projects when Harry Pforzheimer the environment." lands in northeastern Utah or weighing "walked into my office and asked me if I Among his interests in the en­ the rationale for spending stockholders' wanted a job in Utah," he recalls. Pforz­ vironmental-baseline monitoring pro­ dollars for a new environmental­ heimer is a Sohio vice president, and gram has been the monitoring of deer monitoring program. To accomplish Sohio is one of the partners (with Sun activity by radio. As an engineer, Mad­ these tasks, Madsen, environmental co­ Oil and Phillips Petroleum) in the White sen is also intrigued with the "artistic ordinator for the White River Shale Proj­ River Shale Project, the lessee of the U-a techniques" of biologists, who rely ect, sees himself as having "a little bit of and U-b federal tracts southeast of Ver­ heavily on experience-rather than pre­ the philosophical approach, but also the nal, Utah. cise rules or theorems-to achieve re­ practical approach." Of the offer, Madsen notes: "Mr. producible, reliable data. It was his practical side that led Pforzheimer came in on Monday. I In addition to coordinating the envi­ Madsen to choose the field of packed that afternoon and flew to Grand ronmental program, Madsen is also environmental-health engineering, be­ Junction. I got back to Cleveland, talked White River's field representative and cause he recognized this as an area with my wife and in a couple of weeks office manager. Coordinating work with where he could combine a career and we were on our way to Utah. We're still contractors and the project's home of­ his fondness for the outdoors. However, kind of reeling from it, although that was fice in Salt lake requires Madsen to slightly over a year ago." Vernal, a new experience--Madsen's parents were Utah natives (he was born INewcomers I in Boise and raised in Seattle), but Mad­ sen had never been to Vernal, nor had his wife. They had expected a town simi­ lar in size to the Salt lake City suburban White River's community of Ogden. Vernal, however, was smaller, and it had a housing short­ Rees Madsen: age (in August of 1974). But, while housing was short, pleasant people were Fielding not. local businessmen, bankers, the "Never a question," says White River Shale Queries Madsens' church-the Church of Oil Project's environmental coordinator latter-Day Saints of Jesus Christ Rees Madsen, about "how little we can get (Mormon)-all were "congenial and by with in our environmental efforts." helpful." Madsen also met many friendly Madsen first pursued a career in civil persons when he spoke to civic groups travel at least half the time. He also engineering, somewhat on impulse. about White River Shale Project plans. serves on many citizen and professional When he registered at Brigham Young These days he still talks to local committees, including serving as: chair­ University in Provo, Utah, the school groups, and persons in these groups man of the environmental technical required him to name a major. He se­ "ask good questions," Madsen finds. committee for the Uintah Basin Energy lected civil engineering, his father's pro­ For example, they want to know details Planning Council, subcommittee chair­ fession, "just to get me started, and so on the timing and magnitude of White man of a revegetation and rehabilitation the dean could sign my slips." While River's programs. Madsen also observes group for the Rocky Mountain Oil and attending school, he married a Brigham that many of them "can't understand Gas Assn., member of the state's Energy Young coed from Cleveland; they spent why more positive national emphasis Task Force Committee on manpower. one summer recess in her hometown, isn't being placed on oil-shale develop­ Yet with all this work, Madsen still where Madsen worked for Standard Oil ment." manages at least one "date" a week with Co. (Ohio). When he graduated from The major part of Madsen's work, his wife, Sandie. "The church encourag­ BYU in 1970, Madsen returned to Cleve­ however, involves White River's envi­ es us to spend time with our families," land to work in Sohio's construction and ronmental efforts, and about this task, Madsen says. In addition to his wife, maintenance department as an engi­ Madsen says he feels comfortable. home means four daughters, age 8 neer. After a year on the job, he was "There's never been a question of how months to 6 years. It also means working awarded a government grant to return to little we can slip by with; we evaluate the on old cars, landscaping a new house, school, this time at Northwestern Uni­ needs, weigh the costs against the bene­ and planning for camping and hiking this versity in Chicago, where he earned his fits, and then do what has to be done. summer. C.E.

14 Shale Country February 1976 spending restrictions on the state's be determined in advance and monitor­ 1 share, 37 /2 percent, of the oil-shale ing occur during construction lease royalties. -Requirement that interests of the Four Colorado The Congressman stresses his belief United States be protected, and if a that the rate of oil-shale development default in the loan occurred, interests in Congressmen­ "has got to be slow." In his words, the patent rights developed under the "There are too many unanswered ques­ guarantees be protected. C.E. Four Views tions-such as questions about reclama­ tion. We need to take it one step at a Agree or disagree? time, one development at a time, one On Oil Shale Why not let your representatives know retort at a time. We can't encourage the about your oil-shale views? Write to them At least one generalization holds true belief that we're going to have this pro­ in Washington, D.C. (20515) at: about Colorado's Congresspeople: their gram develop overnight." FIRST DISTRICT- Honorable Patricia Schroeder Patricia Schroeder maintains that any views on oil shale are far from unani­ Longworth House Office Building-1131 mous, as is apparent from their respons­ legislation to aid communities impacted SECOND DISTRICT- es to this SHALE COUNTRY question: by oil-shale development should contain Honorable Timothy E. Wirth Are current laws adequate to allow Colo.: no ceiling on impact funds. And in her Cannon House Office Building-516 rado to live with and benefit from oil­ opinion, royalties from oil-shale lease THIRD DISTRICT- Honorable Frank E. Evans tracts should be available for other uses, shale development, and, if not, what Rayburn House Office Building-2443 legislation is needed? Their answers, and in addition to roads and schools. She FOURTH DISTRICT- information about each, are given below views the existing federal and state laws Honorable James P. Johnson (Representative Armstrong was unavaila­ on air quality as having enough leeway Cannon House Office Building-129 FIFTH DISTRICT- ble for comment.): to be administered on a case-by-case Honorable William L. Armstrong basis, and as a better approach than rigid frank Evans is the dean of the Colo­ , Cannon House Office Building-223 rado delegation and he sees a particular legislation. need for shale-related legislation on She is opposed to allowing off-site water transactions. He says, "It concerns disposal of spent shale. Ten square miles me that some of the methods of extract­ (the size of a federal oil-shale tract) is ing oil from shale can use so much enough area for a prototype program, water," he told SHALE COUNTRY. she states. "Under current water law, the buyer and Timothy Wirth was a member of the seller make decisions that may change Science and Technology subcommittee water use from agricultural to municipal that held oil-shale hearings in Colorado or from agricultural to industrial. These and Washington, D.C., last fall. He feels decisions might be good for the two "a sound and reasonable basis for pro­ parties involved, but are these proper ceeding with a commercial oil-shale decisions for the state as a whole? I'm demonstration program" will require concerned that there is no mechanism legislation that includes: for the public to be heard on this." -Requirements taking into account James Johnson, representing the dis­ "the need for competition in the in­ trict where the oil-shale lands are locat­ dustry" ed, thinks lithe next logical step" for -Approval of a loan guarantee by the FRANK EDWARD EVANS, Democrat, of Pueblo, Colo.; elected to Colorado House of lawmakers is to await the Detailed De­ Governor of the state where the project Representatives 1960, elected to 89th Con­ velopment Plans each prototype oif­ is located, unless the ERDA Administra­ gress 1964. re-elected each succeeding Con­ shale project will be submitting to the tor finds the proposed energy project in gress; voted for the synthetic-fuels loan­ Mining Supervisor this year. "At that the national interest guarantee bill. point, there may be some legislation -Early participation by state and local JAMES P. JOHNSON, Republican, of Fort Collins, Colo.; elected 93rd Congress 1972, required," he says. And he suggests that officials in planning for the energy fa­ re-elected 1974; voted against the synfuels guaranteed markets may be one answer; cility bill. he also sees a possible need for per­ -Assurance that local community costs PATRICIA SCHROEDER, Democrat. of Den­ mitting the use of additional public resulting from the development's impact ver, Colo.; elected to 93rd Congress 1972. land as disposal sites for spent shale be assessed and provided for before re-elected 1974; voted against the synfuels bill. approval of a loan guarantee from the federally-leased tracts. Johnson TIMOTHY E. WIRTH, Democrat. of Denver, has also sponsored legislation with Sen. -Requirement that project costs, in­ Colo.; elected to 94th Congress 1974; voted Floyd Haskell, D-Colo., to remove cluding water diversion/storage costs, for the synfuels bill.

Shale Country February 1976 15 IGuest Column I Wyoming Offers Socioeconomic Insights

By Robert Pettigrew Mayor, Casper, Wyo. Robert Pettigrew says, "Impact really is prosperity too."

The last time I was on the Western mittee, as it came to be known, hired a wouldn't start until later, 2 or 3 years Slope of Colorado for any length oftime staff and began developing recommen­ perhaps. So there would be plenty of was during the uranium boom of the 50s. dations for the 43rd legislative Session, money-at the wrong time. In those days we didn't know what im­ to commence 5 months later. The second was a problem of geogra­ pact was-so we caffed it prosperity. But, The first step was to gather base infor­ phy. The cities would have to provide there are major differences between mation. A thorough analysis of existing the facilities because that is where the what happened in those days and what is tax laws was made to determine when people would live. The counties and happening now. An obvious difference and whe~e tax revenues were generated. the state, on the other hand, would get is one of magnitude. Also, the problems At the same time, the Committee stud­ the tax revenues because that is where that confront us today are compounded ied the costs of public facilities and serv­ our laws said the revenues would go. So by politics-the politics of energy, the ices. These costs were reduced to a per there would be plenty of money-in the politics of environment. Thus, we are capita basis. For example, how many wrong place. going to have to respond in a different doffars does a community need to put These were serious problems. True, way. into its water-treatment plant for every they were similar to common personal But, we also must remember that im­ new person who comes to town? Finaffy, or commercial financial situations, but in pact is a local problem. The federal gov­ industry models were built and operated such situations, the machinery for mak­ ernment may provide some help but the on paper to help analyze such questions ing loans and transferring funds is well local people -you and I-are going to as: when a 10-mHlion ton/year coal mine established. When it comes to borrow­ have to live with impact, so we should is established, how many people are ing by local governments on the scale have a lot to say about designing solu­ involved? What are the public-facility required, however, the machinery didn't tions for the problem. needs? When and where are tax reve­ exist in the state of Wyoming. It was, in The problem is people; people who nues generated? Where do they end up? effect, against the law. So, the Impact suddenly move in and overwhelm a Weff, the answers from these studies Committee designed legislation to ena­ community; people who need water, came in, and they showed a very inter­ ble local governments to borrow the schools, hospitals and other municipal esting picture. let me recap. If you could large sums needed to front-end public services, which aff take money. How stand back far enough to view the entire facilities. At the same time, it designed smaff communities are to finance these state and could spread your view over a legislation to channel a continuing flow facilities is the crux of this tough, de­ long timeframe, you would see that of revenues back to the local govern­ manding, inescapable problem. there would be enough tax money gene­ ments in amounts sufficient to repay the The state of Wyoming faces the same rated to solve the problems-more than loans. socioeconomic problems that are rapidly enough. In fact, there would be enough coming into focus in Colorado. Here is extra to pay for improvements and serv­ Wyoming takes legislative tack the approach we have taken in facing ices over and above what the present The Committee made eight legisla­ these problems. economy can support. tive recommendations. Specificaffy, the We elected to work at the state level That was encouraging, but there was a Committee recommended the creation through an existing legislative commit­ "catch 22"-two of them, actuaffy. The of a Wyoming Community Development tee, the Wyoming legislative Select first was a problem in timing. Facilities Authority-a kind of state bank, but Committee on Industrial Development must be built before people come. But, more accurately, a state finance agency Impact. In August 1974, the Impact Com­ the tax monies to pay for these projects that could issue tax-free revenue bonds

16 Shale Country February 1976 to the public money market. In turn, the recommended an amendment to that pending the outcome of an environmen­ Agency could use the bond proceeds to Act that would liberalize the areas of tal suit, the completion of impact state­ make loans to local governments of any cooperation between counties and cit­ ments, the resolution of strip-mining jurisdiction or to other public or private ies. This cooperation would allow for a controls, federal leasing policy, an ener­ entities for a variety of public facilities flow of "extra" county dollars to city gy policy. All of these are beyond com­ 1 and housing. State finance agencies, of needs. This amendment also passed as munity and industry control. course, are not a new device; but the proposed. When will the size and shape of the Wyoming Authority was given much Although the proposed legislative rec­ problems come into focus? No one J broader lending powers. For example, it ommendation helped get the proper knows, but, we should use this time for could make loans for a wide variety of revenue flow from one governmental early planning. Unfortunately, that is not public purposes to governments and pri­ jurisdiction to another, the money need­ being effectively done because small vate entities. Thus, it could respond to ed for anticipated facilities and services communities cannot commit sizable diverse needs. For example, one com­ was still short-short by $6 million a year portions of their limited financial re­ munity might need $3 million for a for the next 20 years. Clearly, there was a sources to plan for events that may never water-treatment plant; another might need for new tax revenues, so the Com­ materialize. require $2.5 million for a railroad grade mittee came up with an answer that is I believe this area of planning is one separation; all communities might need possibly unique in tax law. It recom­ where the federal government could as­ capital for housing. This recommenda­ mended a tax on the production of coal; sume an effective role. Thus, we have tion passed the Legislature virtually as but, it was a tax carefully tailored to fit recommended, both to the Federal Ener­ submitted, and the Wyoming Communi­ the problem-no more, no less. The tax gy Administration and to Congress, that ty Development Authority now exists. was designed to bring in $120 million a revolving fund, of say $50 million, be A second specific legislative recom­ over the next 20 years; revenues were established for energy states to use for mendation was for a constitutional specifically dedicated for capital costs of early community planning. amendment that would double the limits water, sewer, highway and road projects In the meantime, we can draw some of bonded indebtedness for cities, coun­ in coal-impacted areas; provisions were conclusions. One: in the near future we ties and school districts. This, too, made for continuing revenues to be are going to experience some kind of passed the Legislature, so at the next pledged to make up debt service defi­ major, energy-related growth, and the general election in 1976, the proposed cits; and finally, it contained a "self­ resulting socioeconomic impact is going constitutional amendment will appear destruct" clause-once the $120 million to be a local problem. Two: we at the on all Wyoming ballots. was paid in, the tax went off the books. local and state levels have the ability and Of course, raising bond limitations This recommendation also passed as the responsibility to meet this problem carries with it its own revenue source proposed. by designing the legislative machinery through the ad valorem tax. But, the One special point about the "Coal ahead of time and putting it into effect. Authority is different. That is, the Au­ Impact Tax" as it is called: while it was thority operates like a bank: it loans being developed, the Committee closely Better off money only if it can be repaid. The "tax communicated with coal industry repre­ We can be optimistic about the future. geography" analysis showed that the sentatives. They recognized the prob­ In the long run, our towns will be much money needed by cities and towns lems facing Wyoming communities and better offthan they are now. For exam­ would go to the state, counties and recognized their responsibility in the ple, Rock Springs, Wyo., long a case school districts by law. matter. For the most part, they fully study of impact ills, is a better town Well, laws can be changed. So, the supported the Committee's coal tax rec­ today than it was 5 years ago-with a Impact Committee made two specific ommendation. much brighter future. So is Gillette be­ legislative recommendations to do ex­ That's the story to date. It's too soon cause of the oil boom that took place in actly that. First, the Committee recom­ to say how effective the Wyoming ap­ the 60s. My town of Casper enjoys excel­ mended that the state double its return proach will be. But we have taken sever­ lent facilities and a high level of services from lIs of sales tax returns to 1/3 of the al important steps. I do see, however, a because of its mineral tax base. There­ collected amount. This would increase glaring gap in our preparations-the fore, we should not lose sight of the fact city and town revenues by 15 percent. problem of early planning by communi­ that while industrial impact has its disad­ This recommendation passed. ties. The enacted impact legislation es­ vantages, it also has its opportunities­ Another potential for redirecting reve­ tablished the financing machinery that the opportunity to build first-class towns nue flow lay in a disparity between city can be used once industrial develop­ with high levels of services-and with and county tax bases. A Wyoming law, ment starts. But hard decisions are not long-term financial stability. "Impact" the Joint Powers Act, allows counties being made, permits are not being is­ really is prosperity too. and cities to work together, but on a very sued and construction schedules are not (Abstracted from a speech given in Grand Junct;on, Colo., limited basis. So, the Impact Committee being set. Everything is pending- November 1975)

Shale Country February 1976 17 IVoice of the People I Vernal Banker Expects 'People

Outdoorsman, banker and city coun­ current director of the Chamber's indus­ some 30,000 (about twice the current cilman Bill Gibson says, "It's great to be trial development group, director of the population in this area), if all the devel­ a part of something new." And the Dinosaurland Regional Travel Board, opments take place. "new" he has in mind is the potential memberofthe Vernal City PlanningCom­ full-scale, commercial oil-shale industry. mission, the Utah Bankers Assn. and Q. What kind of growth do you antici­ A resident of Vernal, Utah, for the past 8 the Vernal Area Community Christmas pate if oil-shale development does not years, Gibson's interest in oil shale Committee. Gibson and his wife Sharon occur? began a few years ago when he under­ are parents of three children, ages 9 to A. I think we would continue to realize took to study the possible socioeconom­ 13. His wife is a kindergarten teacher. about a 3- to 5-percent moderate growth ic impacts of oil-shale development in Gibson's oil-shale observations in­ trend. Uintah County as a University of Wash­ clude: ington banking school study project. Q. What are the current economic re­ Gibson, who is vice president and man­ Q. When you made your oil-shale devel­ sources of the Vernal area? ager of the First Security Bank of Vernal, opment socioeconomic study, what did A. Oil production is our number-one finished his study in 1974. Yet he already you find? economic resource right now. (But) ex­ thinks his research is outdated and that A. First, let me explain that most of my ploration is being curtailed for oil and his growth projections were too low. information came from Chuck Hender­ natural-gas development, because of As a banker, Gibson welcomes the son (now director of the Uintah Basin Congressional oil depletion and price­ new business that growth resulting from Energy Planning Council, established by control moves. Probably number two in oil-shale development will bring. Also, the Governor). He's one of our most revenue is tourism. We're located in a as an outdoorsman who raves about knowledgeable people about the oil­ recreational center, which provides us "the unbelievable array of beauty that shale industry. with an abundance of tourist opportuni­ we have at our fingertips here in eastern In terms of the study itself, we feel that ties, some of which haven't begun to be Utah," Gibson believes that this envi­ we underestimated the population im­ realized or developed. Currently, the ronment and oil-shale development can pact. We feel we didn't even scratch the Flaming Gorge and the Dinosaur Nation­ co-exist. He does foresee some prob­ surface of what the overall effect is going al Monument are the big tourist attrac­ lems-crowded schools, for example. to be on growth. Reason: We were only tions. Farming and ranching are number But he relies on "the attitude of the looking at one oil-shale development three (in the overall economy). Then people" to help find solutions. "People (White River Shale Project, which is part would come phosphate and gilsonite here are certainly not backward," he of the federal prototype leasing pro­ production, and general commerce. Ac­ says. "The Chamber of Commerce is gram). Now TOSCO (The Oil Shale tually, there's no question that we would extremely active and the lions, Rotary, Corp.) and WESTCO (Western Oil Shale grow moderately anyway (without oil Kiwanis and others are working for orga­ Corp.) also are studying the potential of shale). Business attracts business. We nized growth. And we have the people oil-shale development on private oil­ have such a fine area that it attracts resources to accomplish this." shale holdings and on lands leased from people by itself. To find out more about the viewpoints the state. of this Vernal resident/businessman, We had projected a population in­ Q. Exploration in the oil fields has de­ SHALE COUNTRY recently interviewed crease of around 5,000. But by 1980, it clined, as you mentioned. And Uintah Gibson, who is also past president of the now looks like Vernal City and the Ash­ Basin unemployment has stayed around Vernal Area Chamber of Commerce, ley Valley could have a population of 7 percent as jobs have dropped off and

18 Shale Country February 1976 r

t Resources' Will Channel Growth 1

A student of oil-shale impacts, banker Bill Gibson says, "I want to know what effect 'I oil-shale development is going to have on ~_.______m_e__a_s_a_n_i_n_di_v_id_u_a_l_as__w_e_lI_a_s_a__ba_n_k_e_r._"______~

the labor supply has increased. Will this even if it is not the most desirable. lion for the project (White River), suc­ situation continue? However, a major concern is that we cess or failure, and millions more if it A. Yes. However, we are leveling off (in may become too dependent on govern­ gets the green light. the local economy). Nevertheless, we're ment. Then when we're in the middle of fortunate here; there are many areas in a project, if the funds are cut off, what Q. Do you think there will be squabbles the United States experiencing a much can we do? I'd like to see us not become or jealousies between cities wanting im­ higher unemployment rate. too dependent on the federal bureauc­ pact funds, roads and so on? racy. But it's becoming a way of life. We A. I think we're all mature individuals Q. One of the brighter spots in the almost have to fall in line and ask for ou r with one goal in mind-development of Vernal local economy of fate has been share. communities we can be proud of. One construction, mostly housing-up 88 Another source of revenue is the oil­ encouraging sign is that Uintah County percent in the first 6 months of 1975, shale lease bonus money. A major share commissioners and Vernal City have in compared to the same period in 1974. of these funds should come back to the recent months been holding joint busi­ What does the future seem to hold? county of origin, where the growth im­ ness meetings. In the past, the commis­ A. Housing is available. Now, you can pact is. Apparently, however, our state sioners and city have really not worked see "For Sale" signs in the valley. A legislature and the federal government very closely with one another. Now couple of years ago this was not the feel they don't want one county to be we're meeting to discuss common prob­ case. Within the next 2 years, we may be richer than another. But there ought to lems, such as what future growth will confronted with another (housing) be (some way) to get some of this bonus bring. This is a very important first step. shortage. But growth is not going to money back into the impact areas for And I think we can improve this relation­ come as rapidly as it did in 1973 and 1974. development use. ship further. After all, Vernal City is a And (it won't come) until the oil-shale part of Uintah County; it's very impor­ companies are on the verge of starting Q. Utah is also hampered since its bonus tant we work together. construction. money is being held in escrow while the courts decide ownership of certain oil­ Q. One final question-just as a matter Q. If oil shale does become a commer­ shale land (including U-a/U-bi now of curiosity. What made you decide to cial industry, how do you, as chairman of under federal control, the land could study oil-shale impacts several years the financial section of the Uintah Basin become state property). ago? Energy Council, think the communities A. Yes, those monies are held up, but we A. It was something I knew completely will pay for impact from this growth? feel the interest on that money ought to nothing about. It undoubtedly is going How will they pay for the utilities, the be freed. Since the money is being in­ to be an industry that is going to affect us il schools, the streets? vested in time certificates of deposit, as a more than any other industry over the e A. That matter is largely up in the air. minimum, the interest could be freed next few years. Therefore, I want to s Right now Uintah County is seeking EDA and used for master planning to figure know what effect it's going to have on (Economic Development Administra­ out what kind of capital we're going to me as an individual as well as a banker. tion) funds; we are establishing our­ need. And I hope to make a small contribution selves as an Economic Development Dis­ I don't think we're being fair with the toward the solution of our energy crisis. h trict. When approved, we will apply for oil-shale industry if we ask them to put Oil shale is really interesting. I've en­ d funding of various projects based on up front-end money when they've al­ joyed studying it. d priorities. This is the only way to go, ready obligated themselves for $48 mil­ C.E.

Shale Country February 1976 19 Letters To The Editor

It's been a while ..• pleased with the careful balance of subject with the headline only on the article which matter you have achieved. However, in the appears on page 7. July and August issues, two of ECl's photo­ "I believe that the honors for 'First of its •.. since we've had the space to run a graphs were incorrectly captioned. On page Kind' may not properly belong to the Oil "Letters to the Editor" page. But it's time 14 of the July issue, the photograph is of a Shale Environmental Advisory Panel. we did because readers' letters have screech owl (not a horned owl); on page 16 "Quite some time ago, the Missouri Basin been piling up-mostly requests for of the August issue, a red fox is depicted, Systems Group (MBSG), a planning and more information or for subscriptions­ rather than a coyote. pooling association concerned wlth electric but some corrections and complaints "I would appreCiate your indicating these power development in the Missouri River too. So here are some of the key ones. corrections in a future issue. Thank you." Basin developed an environmental adviSOry Stephen G. Martin, Ph.D. committee to provide input in relation to the Vice President proposed Missouri Basin Power Project near Hoot, Screech-We'ye Been Outfoxed! Ecology Consultants, Inc. Wheatland, Wyoming. Fort Collins, Colo. "While I do not know the specific date of "ECI employees working on ecological as­ organization, I do know that the committee pects of oil-shale development on Tracts (Regarding the "coyote" picture), "This is has met regularly and is now known as the C-a, Cob and Union Oil's Parachute Creek a fox-not a coyote. Your point would be Environmental Resources Group. property have read with interest the first more believable if you knew the difference." "If you wish further information, MBSG is issues of SHALE COUNTRY and have been Kerry Evans Denver headquartered, and the executive Rock Springs, Wyo. director is Robert O. Marritz." Dick Easton Editor's Note: You're right, readers-we Asst. to General Manager mislabeled the two animals and we apolo­ Colorado Rural Electric Assn. giZe. Guess we've just had coyotes on our Denver, Colo. minds since our company prepared and pub­ lished a special documentary on sheep Editor's Note: Thank you for your comment. about a year ago, which included a discus­ This is exactly the type of Information we like sion of the sheep-coyote Situation. to pass on to our readers.

Pharmaceutical Services Too Shale Pioneer Reminisces

Oops I SHALE COUNTRY can't tell the differ­ "I have just finished reading the latest "Enclosed is a check for $4.00. I would like issue of SHALE COUNTRY-a most Interest­ ence between a fox (above) and a coyote or a very much to receive SHALE COUNTRY is­ ing publication. I find it difficult to believe. horned owl and a screech owl (below). Back sues since its inception and continue to however, that in your assessment of health­ receive it in the future. to zoology class. care needs in Colorado's shale country no "Only those of us who pioneered the Bu­ mention was made of the delivery of pharma­ reau of Mines Project beginning in 1944 are ceutical services-a job that has been done able to imagine the frustration of free enter­ through the years with little fanfare by the prise vs. government in developing a much independent pharmacist who has served the needed energy resource. country unstintingly." "Your SHALE COUNTRY covers depict John C. Davis, III that beautiful western slope country that is President vast enough to allow a giant-sized oil-shale Davis Bros .• Inc. industry." Denver. Colo. Mrs. Tell Ertl Boulder, Colo. Editor's Note: The basic constraint with this article, of course, was space. We decided to Editor's Note: We are pleased to fulfill your begin our discussion of health care in shale request for a subscription to SHALE COUN­ country with a look at needs. In the future, TRY. And we are well aware of the Ertls' we will certainly have many opportunities pioneering role in shale and, therefore, to review all the various facets of health would very much like to interview you for a services. "Vignette" article for a future issue (article tentatively scheduled for March 1978).

Not the first

"I have just received the August issue of your excellent publication and beg to differ

20 Shale Country February 1976 r 1

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Overlookin g Anvil Po ints BULK RATE U.S. POSTAGE PAID DENVER, COLO. PERMIT NO. 866