Show rr P. 14 r d r A Aa Ar i d C J r a r THE SECOND water intake device at far left is approaching Flaming Gorge Dam for far installation installation installation tion on the turbine penstock intake The first unit extreme right has been secured The shutter By y Charles II H. Henderson Director U AG Energy Planning Council There is absolutely no way Utah will not benefit from oil shale development Already Utah has a cash credit coming of or some 30 to 80 million This money is in escrow primarily from the acre White River Shale block lease bonus The state owns acres classified as oil shale lands in Duchesne and Uintah Counties In addition the acres presently in state-federal state ownership litigation could bring the total to over acres of state owned shale lands in these two counties counties coun coun- ties There is additional classified acreage in Wasatch Carbon and Grand Counties The state receives 50 percent of all federal mineral leasing and royalty income and the Federal government owns owns more than three times as many acres classified as oil sh shale le land as Utah These Federal lands are essentially all for oil shale Some few years down the line they will willbe willbe be leased and contribute substantial income to the sta state te The state-owned state oil shale lands tha that are are considered device will allow water to be taken at a higher level to warm up the fishing waters downstream from the dam Where is oil shale now what whit is Utah's future producible have been almost continually continually continually con con- leased for many years and percent of oC this money goes to the state One barrel per stream day plant under the terms of the proto-oil proto shale lease will ill pay royalty approximately approximately approximately ap ap- ap- ap proximately per day per year Staring on the sixth lease year they will pay an escalating minimum royalty until production royalty exceeds exceeds exceeds ex ex- ex- ex the minimum They rhey will pay an additional royalty on all mineral productions or by There are provisions in Cn the lease for certain credits against the minimum royalty payments for the next seven lease years Though the royalty on the low BTU gas produced from the White River plant may be minimal in value for Cor commercial gas it is estimated by engineers to be capable of producing megawatts of power Oil shale development is officially under way Gulf Oil Company and Standard Oil Company of Indiana's Rio Blanco oil shale project in C Colorado lorado received the official EPA approval for go-ahead go construction on the of or orthis this month and the contractor for the development shaft haft is scheduled to begin sinking the shaft early in January THE TIIE GENERAL contractor has the theland theland land for their plant all leveled and graveled the roads rods in good shape has drilled several water wells contracted for power and other essential services including the sinking of oC the 4 million development shaft so oil shale is going gig now Occidental and Ashland Oil Companies were notified their construction construction construction con con- permit had been approved by EPA on December 16 and they are going ahead with construction is producing selling and paying the state royalty on a higher volume of oil shale oil month by month The litigation between the State of Utah and Secretary of oC Interior on the acre lieu in-lieu land selection was argued December 14 before beCore the Circuit Court of Appeals in Denver and anda a decision on the ownership is expected in about 60 days The determined owner should then be able to remove the oil shale claim title cloud within a reasonable period Gulf Oil has acquired a substantial interest and lease agreement with the Division of State Lands subject to a Continued on rl Where is oil shale now Continued from Irom Page 1 favorable court decision on the state In In- lieu licu selection TOSCO Oil Shale Corporation has just completed a 2400 foot loot core hole at their proposed mine shaft location to determine the rock strength hydrology the water zones and the tile oil shalE quality and quantity Their president has Issued a statement that if the US U.S. Congress passes the 3 per barrel tax credit then oil shale is only 5 years away TOSCO's lease is all on Utah state land White River Shale Project has prepared their detailed development plan and is continuing their environmental en en- environmental monitoring which has cost to date over 7 million besides the 73 million bonus payment and engineering for Cor a total of oC over 90 million on The three companies which comprise the White River Shale Project have very recently confirmed their intention of proceeding to construct a modular plant as as' soon as the restraints are removed PROJECTS of this size and complex nature do not happen overnight and depend on so many important factors like water Water is the key to many types of oC resource development and is extremely essential for lor oil shale and power plants Water availability invites development Take the case of Moon Lake Electric Electric- who have asked for lor a supply of 01 water from Irom the White River Storage Project to build a II power plant in Utah Utah would be exceedingly negligent not to develop one of 01 the last water supplies while it is possible This water is essential to assure the development of Utah's own resource lands as well as guarantee substantial development on federal and private lands Standard Oil of 01 Ohio has negotiated a contract with and the Navy to temporarily shut down part of 01 one of 01 their large oil refineries to research the refining of barrels of 01 oil shale oil to determine the maximum quality and productivity of 01 the more valuable and essential products available in higher percent from shale oil than from Irom regular crude oil such as pr premium quality jet fuel luel which is in very short supply along with gasoline and other products essential to our transportation system and the needs of 01 the Navy and the Air Force Along with their associates Arthur McKee Co Cleveland Cliff and others has negotiated a bid with the Navy to plan for and design a recovery system and environmental analysis of the Naval Oil Shale Reserves in Utah and Colorado Oil shale though not really a competitor competitor competitor com com- to coal in total energy ava available Table ble or in readily available locations throughout the USA is considered far more desirable and substantially cheaper and nearer to commercial production than liquids from coal The recoverable barrels of oC oil from shale are substantially greater than are recoverable from all known US U.S. coal Today it is the best alternative for natural crude oil and closely com- com in price to what we have to Import to meet today's today s needs I have given you some information on indirect income from oil- oil shale and possibilities of power development I have not mentioned the direct income from the sale of 01 the water the employment employment em the security of 01 having an instate in- in Instate Instate In In- state supply of 01 oil power paver or or water supply for present and future generations who could face lace very serious energy and s survival problems TilE THE ENGINEERS and their consultants consultants consultants con con- for lor the White River Storage Projects calculations indicate that power produced from Irom the dam and storage project would retire the costs of 01 the project in less than ten years and during that period oil shale and probably water for lor fired coal-fired power generation will contribute additional additional ad ad- revenues I have not mentioned the national security or the balance of payments or their undesirable effect on the state economy and our posterity These are additional reasons we should not hesitate to move forward now to prepare the environmental impact statements and financing arrangements for lor water development now Indecision could very well weIl result In loss of opportunity to acquire and use the water from the White River and create create a potentially dangerous situation where Utah could never develop a substantial income from Irom the oil shale In summary oil shale is now except in Utah where we have some time restraints These restraints are n fluid id and will be removed probably sooner than we can be ready We are now thinking in time of 01 over years of useful life of a water project H nil a perpetual right to use the White river Kiver water for posterity |