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Show DOE awards oil shale test plants for Utah, Colorado The U.S. Department of Energy has awarded a design contract to a Colorado firm for a co-funded demonstration oil shale plant to be built in Utah. Paraho Development Corp. of Grand Junction, Colo., has been told to proceed with the desfgn of a facility that could form the first module of a full-scale full-scale commercial plant southeast of Vernal. A second firm, Superior Oil Co., of Englewood, Colo., was also told to design a facility this one to be sited in Rio Blanco County, Colorado. That site is not completely held by Superior now and is the subject of a land exchange proposal between the company and the Interior Department. Once the two companies complete their designs, DOE will decide whether to proceed with either firm into actual construction. Part of DOE's decision on whether to go ahead will depend on whether other government incentives, such as tax credits from the windfall profits tax, are enough to convince private industry to proceed on its own with commercial oil shale production. If not, the Superior and Paraho designs will give DOE the updated information it needs to move forward with full-scale demonstration. During its 19-month design effort, Superior will get about $5.6 million from DOE and will contribute $1.9 million of its own money. Paraho will get about $4.4 million in federal funds and will commit $3.7 million of its own to its 18-month design project. Paraho's proposed module would process about 18,000 tons of oil shale per day, producing up to 11,000 barrels of crude shale oil. The basic features of Paraho's concept have been tested in smaller retorts at a pilor facility near Rifle, Colo. Superior's demonstration module would process 20,000 tons of shale per day, producing about 13,000 barrels per day of synthetic crude oil. A third company, Tosco Research Inc. of Denver, had also been negotiating since December with DOE on a design contract. The department said Tosco's proposal was also technically sound, but DOE was unable to reach satisfactory business arrangements with the company. .IM.I.I,. ... . .11 J |