Denver Law Review Volume 43 Issue 1 Symposium - Oil Shale Article 6 April 2021 Water for Oil Shale Development Robert Delaney Follow this and additional works at: https://digitalcommons.du.edu/dlr Recommended Citation Robert Delaney, Water for Oil Shale Development, 43 Denv. L.J. 72 (1966). This Article is brought to you for free and open access by the Denver Law Review at Digital Commons @ DU. It has been accepted for inclusion in Denver Law Review by an authorized editor of Digital Commons @ DU. For more information, please contact [email protected],[email protected]. Water for Oil Shale Development By ROBERT DELANEY* Before a shale oil industry can become a reality, a firm and dependable supply of water must be developed. No process yet devised can function without the use of considerable quantities of water. If not in the mining, then certainly water is required in the necessary refining and processing required for the movement of shale oil through pipelines or by other means. The quantity of water required for industrial use varies according to the process being considered. Some processes involving mining and a minimum of refining after extraction require relatively small quantities of water. If the products are refined to the point of use at or near the site of mining, then a much greater supply of water will be required. If the in situ process of retorting, utilizing steam, should be employed, then obviously an enormous amount of water would be necessary.j Apart from water required for removal, refining and processing of shale oil, the industry will require many people. A common estimate is that for each individual directly engaged in the shale oil industry, there will be five persons resident in the area. Using an- other common estimate of one-fourth of an acre foot of water per year per person, a large amount of potable water with low mineral content must be developed suitable for domestic use.1 Assuming the area of water use to be in proximity with the oil shale deposits along the northerly side of the Colorado River from Rifle, westerly and extending northerly into the Piceance Basin, the source of water must necessarily be the Colorado River and the White River, with their tributaries, together with a limited ground water possibility of uncertain potential. The water demand may be expected to increase proportionately as the shale oil industry develops; likewise, since shale oil technology is developing from experimental processes to prototype plants, and may be expected to proceed into full scale commercial production, *Partner, Delaney & Balcomb, Glenwood Springs, Colo.; member, Colorado and American Bar Associations; LL.B., Westminster Law School, 1946. tEditor's Note: Space does not permit detailed attribution of technical data related to mining and refining processes involved in the production of kerogen. For a brief and lucid technical reference work, see East, Oil-Shale Mining, Rifle, Colo., 1944-56 (U. S. Bureau of Mines Bull. 611, 1964). 1 The Mineral Resources Board of the State of Colorado in 1961 estimated that a shale oil production of 1,000,000 barrels per day in western Colorado would require development of a new metropolitan area of 340,000 people, with some 59,130 residents directly employed in the shale oil industry. Mineral Resources of Colorado, First Sequel (1960), 458. 1966 OIL SHALE SYMPOSIUM water requirements should have a corresponding gradual increase. Many indulge in the fallacious assumption that the development of firm water supplies to meet the potential demand may be deferred until technology and other conditions launch the industry. To date, there has been little cooperative planning or unified action by the oil shale interests toward developing water supplies required for a major industry. It is surprising that several of the major oil companies, while expending millions of dollars for the acquisition of oil shale deposits, have failed to take even a second look at water requirements obviously necessary for the development of those deposits. It is more surprising that the United States, with the Naval Oil Shale reserves, the vast amounts of oil shale under control of the Bureau of Land Management, the money spent through the Bureau of Mines on the oil shale demonstration plant with a declared interest in being a major participant in the oil shale program has not taken an active role in studies and planning for water supplies to meet the requirements of the industry.2 If this water supply euphoria continues, the day will almost certainly come when oil shale developers will find themselves seriously handicapped or curtailed by lack of water and at a serious disadvantage with their more farsighted competitors who are now actively engaged in developing supplies of water to keep pace with the development of the industry. The water that could be developed to support a major oil shale industry is subject to the intense competi- tion for water from the Colorado River, and oil shale is in danger of losing by default. The water supply problem has been recognized from the begin- ning of major planning on oil shale development. In 1953 a state financed study was made under direction of the Colorado Water Conservation Board to determine present and potential water re- quirements in Western Colorado in an attempt to secure agreement about transmountain diversions.3 In the course of these studies, an excellent committeee comprised of the best engineers, hydrologists, and other persons obtainable, including representatives of most of the major oil companies, then interested in the area, conducted intensive studies concerning oil shale industry water requirements, and concluded that for a two million barrel per day operation a diversion or stream withdrawal of 625 cubic feet of water per second of time, or 455,000 acre feet of water per year, would be required." 2 While some 31,000 acres of Piceance Creek lands in shale-bearing areas are in Naval Reserves 1 and 3, over 200,000 acres are privately held. Id. at 451. 3 Colorado Conference Committee & Colorado Water Conservation Board, Water Requirements of an Oil Shale Industry, Sept. 24, 1953. 4Id. at 4. DENVER LAW JOURNAL VOL. 43 This would involve a net consumptive use of 400 cubic feet of water per second, or 290,000 acre feet per year with a return flow to the stream of 225 cubic feet of water per second, or 165,000 acre feet per year. It was further stated in their report that: A large scale oil shale operation will require water at essen- tially a constant rate throughout the year. ....5 From available hydrographic data, it seems evident that the only practical and economic source of water to a shale oil industry is the Colorado River, and its tributaries, in and upstream from the oil shale area. It also seems apparent that storage reservoirs will be required to assure a continuous water supply to an oil shale industry of 625 cubic feet per second. The industry hopes that the report of the Conference Com- mittee to the Colorado Water Conservation Board, and, in turn, the Board's report to the General Assembly of the State of Colorado will show: (1) that a potential oil shale development in Western Colo- rado will require an estimated 625 cubic feet per second of Colorado River Water, (2) whether 625 cubic feet per second of Colorado River Water will be available to a shale oil industry, (3) what storage will be required to assure the availability of this amount of water, (4) how the financing, construction and operation of such storage facilities can most appropriately be handled and, (5) the availability of reservoir site or sites, which will be required for storage purposes, to assure a continuous water supply to an oil shale industry of 625 cubic feet per second. 6 In the course of the same studies, a report was written and published entitled: "Report on Depletion of Surface Water Supplies of Colorado West of Continental Divide." Mr. Raymond Hill, an eminent engineer and hydrologist of the firm of Leeds, Hill and Jewett of Los Angeles was the author of the report, which was compiled after months of study and investigation at a cost of nearly fifty thousand dollars. The report is recommended reading to any- one interested in water supplies from the Colorado River or its tributaries. It is stated in the report that: Development of the oil shale reserves in Western Colorado should be anticipated and the consumption of water for industrial, municipal, and other purposes resulting therefrom may reach 300,000 acre feet per year.7 Importantly, it should be pointed out that this is a depletion, or consumed-use figure, and not a stream diversion figure with return flow. 5ibid. 6 Ibid. 7 Leeds, Hill and Jewett, Report on Depletion of Surface Water Supplies of Colorado West of Continental Divide 59 (Bull. No. 1, Surface Water -Series, Colorado Water Conservation Board, 1953). 1966 OIL SHALE SYMPOSIUM The answer to the oil shale water supply problem rests with surmounting both natural and legal obstacles. There is a tremendous fluctuation in the flow of both the Colorado and White Rivers from day to day, from month to month, and from year to year. Most annual runoff occurs within a month or six weeks when the snow melts in the high mountains. In this short interval, water supplies exceed the present adjudicated demands. During the remainder of the irrigation season, in most years, the adjudicated demands exceed th supply, so that, on the Colorado River at least, releases from storage are necessary to satisfy the present irrigation and other adjudicated rights, without taking into account new uses for oil shale.