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Show Enterprise Review , April 7, 1976 Page 3b Constraints Prohibit Latta Severes Ties with Chamber Syn Plants Marilee by Van DeGraaff Basic technology exists for production of synthetic gas from coal, and synthetic oil, from shale; the technology to produce liquid fuels from coal is less well developed. A number of factors are effectively detering commercialization of synthetics by private enterprise, however. These constraints are in the form of uncertainties that are sufficient to constitute unaccept- able risks and therefore, effectively, prohibit investors. Among the more significant impediments to the development of a synthetics industry, are these: 1. Legislation and regulatory uncertainties. Oil price controls, gas price regulation, threatened divestiture legislation, accessability of federal resources, unreasonable environmental regulations, and uncertain fiscal policy. 2. Financial uncertainty. Synthetic plants are inherently capital intensive. Costs of constructing process units doubled since 1972, resulting in a significant increase in financial risk. In addition, investors may be unwilling to provide capital, because the uncertain legislative and regulatory environment may jeopardise the completion or profitability of the project. have 3. Technological uncertain- ties. Although the process technology has been proven in operlaboratory, or pilot-scal- e ations, substantial uncertainties remain about commercial-scal- e operations. These questions can be answered only by building and operating large-scal- e plants, to pioneer provide field information. 4. Timing uncertainties Abnormally long lead times complicated by delays in environmental approvals, reviews, and litigation. These uncertainties compound the risks inherent in the tremendous investments required by private industry to Latta, secretary-manage- r of the Retail Merchants Association, has anadvance beyond the present nounced her intention to form a new advertising public reladevelopment stage. It is clearly in the national tions firm, and leave her interest to encourage developposition with the Salt Lake ment of a commercially viable Area Chamber of Commerce. Latta said her new firm will synthetic fuels industry. Long be named Merilee Latta and range energy supply and demand projections suggest Associates, and will be located that sufficient conventional in Building 2, Arrow Press energy supplies may not be available to meet Free World demand for liquid and gaseous fossil fuels by the end of the 1990s. At the same time, the U.S. has very substantial domestic reserves of coal and oil shale. Although coal may be utilized directly in many Christensen, Inc. this week industrial and utility applica- announced a major expansion tions, and nuclear energy may of its involvement in Middle become a principle fuel for East markets with the signing electric utilities, the nation of two joint venture agreewill continue to have a large ments which will involve two and unique need for liquid and newly formed companies for gaseous fuels for use as the purpose of servicing and petrochemical feed stocks and marketing Christensen oil drilin the transportation sector. ling, mining, and construction Energy supplies from a com- products and related services. An agreement to acquire 25 mercial synthetic fuels industry offer the potential to help percent interest in a newly formed company, Christensen these longer term needs. The lead time required for Iran, was entered into with construction of a commercial CIPICO Trading and Indussynthetic fuel plant, may trial Corp., an Iranian comrange upward from five years. pany which will hold 75 Therefore, the nation has a percent of the interest. The vital interest in seeing that new company will provide oil commercialization of available tools products and services, technology begins developing and manufacture mining and as soon as possible, and that construction products. An agreement to acquire 40 improved technology for conversion of coal to gas, and new percent interest in a new technology to convert coal to company located in Dubai on liquids, is developed at the the Persian Gulf has been earliest possible date. negotiated with Oil Fields Commercialization of Supply Center Ltd., a comeconomically viable technolo- pany owned by individuals in gies for oil shale and gas from Dubai. The new company will coal can be achieved in mini- provide oil tool products and mum time and at minimum services for the United Arab cost by progressing directly Emirates. from pilot" plants, to Frank L. Christensen, presipioneer plants, or what has dent, said, The formation of been called module con- these two companies will provide a significant extension struction. of Christensens product disBy definition, a pioneer plant has a field test facility tribution and service lines in the Middle East. Increased e consisting of all the and steps required to penetration in this important continued on page 8b produce products, while fully complying with established environmental, safety, and other regulatory standards. Square. She said she expects to open doors to her new office woman office herself, hoping to expand. I look forward to 20. April working with some bright I think the time is to women as I expand, she right go out on my own. I have said. found I am very independent, Latta majored in art at the and I want to earn more University of Utah. She was money, Latta explained. She employed by a Salt Lake added she is opening her advertising firm, and as assisoffice with two very good tant promotion manager at accounts. Latta will operate the one- - KUTV. Joint Venture Involves Christensen Our Integrated Accounting System makes data processing work... at last. An Integrated Accounting System-t- he breakthrough that business and industry have been waiting for. All your business information can now be put into one package. All this information is available at the touch of a keyboard. A typewriter-lik- e terminal connected to our complete computer center is all the equipment required in your facility. Operated by your personnel (they can learn the basic procedure in less than a day), greater accuracy of data entry is assured, with minimum handling of the source document. 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