Senators settle port portion on of oil shale sale bill controversy by Helene C Vernal Express Washington Correspondent A Washington group of Senators this week finally got action on a portion of the oil shale leasing legislation which has been held up In the Senate for a year By prearrangement Sen William L Armstrong R-Colo R put an amendment in the Interior Department 1983 funding bill which made two changes in the law relative to oil shale leasing It would permit one offsite disposal tract of not to exceed acres in Nor Nor- Northwestern Colorado to the holder of federal Oil shale lease C-a C It would permit the Secretary of In in- in tenor to issue not to exceed two such off off- offsite site disposal leases to private operators who are producing oil from shale on privately owned property where there is a federal on condition that each of these federal leases would not ex ex- ex exceed acres None of these three leases in the Arm Arm- Armstrong strong amendment would be for the pro pro- production production of oil from shale directly In In- In Instead stead they would provide enough area on federal land to allow for the tion of an oil retorting facility and other buildings in conjunction with the Ca C-a Calease lease and to allow for disposal of spent shale and other waste on all three leas leas leas- leased ed federal tracts The amendment was worked out by Armstrong and his staff and the staffs of oC Sen Howard H Ohio D-Ohio and of Sen John Warner R Va chair chair- chairman man of the Senate Minerals Subcommittee tee Also sponsoring co-sponsoring the amendment were Sens Gary Hart D-Colo D who op- op opposed op- op opposed posed a term long oil shale leasing bill and Chairman James A McClure R Idaho of the Senate Energy Committee The Senate Energy Committee had reported out a year ago a term long oil shale leasing bill similar to one earlier passed in the House But McClure had hadnot hadnot not been able to get the bill brought up for action in the Senate because of holds that and Hart had hadon hadon on the bill McClure said in a brief stat state statement ment in the Senate on Dec 14 While this amendment does not settle all of oC the issues with respect to oil shale it is isa isa a significant advance I am pleased we have been able to work it out here said he had agreed to the Armstrong amendment because he understood the holder of the C 2 oil shale lease in Colorado has already closed down its facilities in Northwestern Col- Col Colorado Colorado orado because of its inability to get an tract off leasing bill thru Congress The Armstrong amendment would make it possible for that company to reopen its doors and produce oil shale hopefully in inthe inthe the not too distant future M stated Additionally the disposal problems problem of two private oil shale developers with federal were solved by the Armstrong amendment said I think we have come out with a fair compromise the Ohio Senator told the Senate on Dec 14 Hart made the most interesting st state state- statement te- te ment of oC all of the sponsors co-sponsors of the amendment He actually plugged for Cor oil oil oil- pit development of Tract Ca C-a by the Rio Blanco Oil Shale Co This is th the only only prototype lease suitable for this method of operation j issuing the lease will make possible the first test of this poten poten- potentially most efficient form of oil oll shale min min- mining ing Hart told the Senate Basically Hart opposes open pit open pit min min- mining ing because of the environmental im pacts But he urged Senate approval of the Armstrong amendment to allow the first generation of oil shale develop develop- development ment and he noted that he had In traduced a bill along the same lin line several months ago He claimed it was non altho the environmental tal groups arent aren't high on oil shale development period The Armstrong amendment passed by voice vote