OCR Text |
Show 1 Western Resources Oil shale leasing timetable KvHflenfC.Mimberg llshington-The Interior Deport- n't is gfri,,8 up t0 resume i,s oil r. '1 prototype leasing program in the ! ' fi n( 1981 and permanent oil shale ' iJjnj! in the fall of 1983 under a ule approved June 17. ' Tl,e schedule was developed under . . direction of Deputy Under ,'; rotary of Interior Steven P. Quarles t J was approved by both Assistant 1 rior Secretary Guy R. Martin and , 'jjer Secretary of Interior James A. seph on June 17. : jr(in was assigned to head the task which will work out details for ruling the prototype leasing 1 rjram and also prepare for a per- IjaA leasin8 program on May 27, ren Joseph announced Interior's new .jcy on oil shale leasing. ' jiien Interior announced its four-; four-; Slh schedule on moving ahead on oil-: oil-: ;le leasing, Quarles told Western I purees Wrap-up (WRW) on June 18 ' J two most significant dates on the ; jrfule are Sept. 9 and Oct. 1. , (in Sept. 9 the Martin task force is iscted to have its report and commendations on resuming the epartment's prototype test lease - gram-started in 1974 ready for ; ( Under Secretary. ; At that time a decision will be made f i how many tracts will be offered for sse, what technologies will be en-a en-a nira'ged among the preferred alter-; alter-; iives, and we'll start to prepare a specific environmental impact 7 litement (EIS) and a tract fineation," Quarles told WRW. That games, of course, that Joseph will iprove additional prototype test , sang It will take about a year to do t EIS, and the lease sale could follow aafterit is published, if the decision made to go ahead, according to :. arles. On Oct. 1 the schedule calls for a final tport and recommendations on toiing for a permanent leasing rjram to be sent to Under Secretary tseph for a decision. Quarles told EW if Joseph's decision is to go ahead & a permanent oil shale leasing raam, a programmatic EIS will be iertaken, to be completed in about a sr. Permanent oil shale leasing could ur'as'early as the fall of 1983 if the ' fiSfcBt'TSable ktOtay on its cJediile announced on June 19, (arte said. "WE ARE GOING TO SHOW YOU" MARTIN Martin took this WRW correspondent ilaskon June 12 for indicating in the m 5 TOW that Interior's oil shale asing program is mainly rhetoric at ispoint. "You (people in and from the ; fest) are doubting Thomases about oil i tie leasing, and we are going to show : that we mean business," Martin ;; Wed. 5 The sudden pro-leasing stance that Jerior is now taking is out of s . taracter for the Department, long ml to oil shale development, and Irongly environmentally oriented ider Interior Secretary Cecil D. Jidrus. 0 A combination of factors has been W to WRW for the change in the epartment's attitude recently: the "iewed interest of EXXON, the "lion's largest oil company, in oil the President's strong comment com-ment to syn-fuels development and IVessional approval this week of a ,Jssive syn-fuels development "ffam; the coming election; . the e-brush rebellion in the west against wal land "lock-up"; and the amnion am-nion of several key men at the Apartment, including Martin, to "weed Andrus as Secretary of In-"w In-"w next year. tadrus plans to retire from the post end of this year whether or not " Carter wins a second term in rfwember. He has taken no interest at J the oil shale leasing program. ! Martin and Quarles have told on separate occasions they were Jterested in the position of the state of rado officially and Sen. Gary Hart, 'o., personally in a permanent oil leasing program. Jiie schedule announced by Interior 'June 19 includes preparation for pig up to four new leases under the (Partment's prototype test lease p 'Pam, for beginning preparation of TOanent oU shale leasing program, ;i'r for submitting legislation to egress to facilitate oil shale tve'opment. ,; .!J.e four-month schedule "stresses " 'lc Participation and consultation all affected interests in the major states of Colorado, Utah and ""ng," Joseph stated. As chair- ; ;jr of the task force Martin has dy started consultation with the ii -J affected states, environmental, ' ustry and local government leaders. J ; Martin task force will be com- tart! ' 3 Policy steerin8 Committee m o0 the Assistant Secretaries Wi'citor Clyde 0. Martz and c ed by Martin; a Management kt made UP of key senior staff 4 itso'Sentatives from the various l Ln s headed by Deputy Assistant nor Secretary Jim Curlin; and 11 y groups which will work on various aspects of oil shale including legislative proposals; land title conflicts' tract selections; land-use planning; leasing procedures, terms, conditions and stipulations; environmental assessment; socioeconomic effects-technology effects-technology assessment; budget; public participation; and prototype program review. TIMETABLE UNDER FOUR-MONTH SCHEDULE Here is the timetable that has been worked out for the task force and the two committees and 11 work groups for the next four months: June 9-Legislative work group was established and started work. June 17 Memo to Under Secretary on task force structure and schedule was approved. June 20 Submission of initial legislative package to the Office of Management and Budget for approval. June 23 Under Secretary approval of Task Force structure and schedule. July 30 Instruction memo to all task force components on responsibilities and schedules of each. July 1 Work groups start to work. July 8 Notice of public comment period appears in Federal Register. July 8 Legislative work group makes status report to management and policy steering committees. Aug. 8 End of public comment period. Aug. 24 All work group reports due to management committee. Sept. 9 Final report and recommendations recom-mendations on expanded prototype program sent to Under Secretary key date. Sept. 9 Final report and evaluation of existing prototype program sent to Under Secretary. Oct. 1 Final report and recommendations recom-mendations on planning for permanent leasing program sent to Under Secretary key date. Oct. 1-31 Review by Under Secretary and decision on extent of leasing. NEW LEGISLATION Quarles told WRW on June 18 new legislation being sought by the Department is a "must" for oil shale development. Altho the Department believes it has ample authority to lease the multi-mineral deposits of oil shale and sodium deposits in the Piceance Creek Basin of Western Colorado under the 1920 Mineral Leasing Act, "we will seek reconfirmation of our leasing authority because it has been challenged by the General Accounting Office, " he said. This is important to the Department because it is particularly interested in issuing at least one new prototype multi-mineral lease, the working papers show. Quarles said at least two companies have indicated great interest in-terest in multi-mineral leases in Western Colorado's Piceance Creek Basin. Still another problem is the limitation of 5,120 acres per oil shale tract, Quarles told WRW. "That is not large enough for leasing in the Uintah Basin in Utah and it is not large enough to allow a company to mine, process and dispose of shale on one tract," Quarles stated. The background papers prepared for the May 27 decision indicated difficulty in amoritizing "an investment in oil shale on a single lease of 5,120 acres in Wyoming or Utah." After Interior indicated an interest in allowing a company to obtain additional land for off-site- disposal of spent shale, Rep. David D. Marriot, R-Utah, planned to add his bill (HR 7405) authorizing oil shale leaseholders to obtain additional lands for processing and spent shale disposal as an amendment to HR 7242, a tar sands bill reported out of the House Mining Subcommittee on June 5. But he decided not to do so in the face of a concern about the tar sands bill clearing the House because it contains a provision which may be regarded as in conflict with the Windfall Profits Tax Las (PL 96-223 HR 3919), Marriott told WRW on June 5. Another problem that legislation must address is the limitation of one tract per state, Quarles told WRW. Interior favors a legislative change which would permit one firm to hold four leases nationwide, and two leases per state, with an additional lease per state if the company is producing on the first two leases and is within 10 years of completing production on one of them. Quarles said several companies had told him it is not worth it to them to hold a prototype lease to develop a shale oil industry technology if they are not able to follow up with a regular commercial lease. The limitation of a singlejease is a disincentive to investment in oil shale lands and oil shale research and development, the background papers indicated, particularly as a 50,000 barrel-a-day oil shale plant can cost up to $1.5 billion. No legislation is likely to be passed this year on the Department's recommendations. They will have to be considered by the next Congress. |