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Show Oil shale problems explained at SLC hearing .a Oil shale company 7i Stives testifying at a field ??f rf the House Interior Com- mines and mining sub-i,M!t sub-i,M!t to Salt Lake City said ?7 thev have the technology to Laliv produce oil from shale fZ&. but need legislative Siffipfing a morass oT regulations tt)eir efforts. subcommittee heard testimony ,il of Utah's congressional !"Satives, and from Gov. Scott 'Seson, all of whom urged Sessional help in expediting Jpment of Utah's oil shale and tar ids- ,M Matheson told the group Friday mfsn potential from Utah's shale m sands is "almost staggering." stimated 50 billion barrels of shale ultimately be recoverable, he Id with an additional 5 to 10 billion ffjls from tar sands. njle Utah has tried to foster a tijuing interest by the federal smment in synthetic fuels, "that lera! interest continues to be Ileal, with vast stretches of total iflerence punctuated by frenzied to when gas lines develop," he said. flow that the federal government icontractedsynfuel fever, we have a jtimate fear that our economic; ial and environmental well-being be considered a small price to pay imperceptibly slow the armade of lb oil tankers," he said. le governor especially criticized federal government for historically filiating Utah tar sands "to the, torn of federal energy priorities," jug to provide the attention and ding necessary to develop com-rcial com-rcial operations of extracting oil ii those sands. Ie called for enactment of better ling procedures of tar sands on land trolled by the Bureau of Land lagement (BLM), and an extensive arch program of drilling, coring assaying to determine the extent of osits in the state. ealso urged the committee to press passage of economic incentives for gy companies and for clarification egulations on pollution and safety. ov. Matheson told the committee Utah would look to congress for ncial help in controlling the impact je increased population in areas of state where synthetic fuel Itions may be developed. N, (said a new Department of Energy indicates the "socioeconomic jrption capacity of our oil shale Ion is low, requiring careful plan-, plan-, extensive cooperation between the community and developers, ' adequate lead times and generous financial assistance. We are working now on the planning ; we will look to you for financial assistance." Both Gov. Matheson and Dr. Alex ! Oblad, a tar sands expert, from the ' University of Utah, stressed before the committee that Utah's resources are vast, but that synthetic fuel will be only a drop, or possibly a "teaspoon," in the energy consumption bucket. It may take years for even that teaspoon to be produced, Dr. Oblad said. "There is just no way synfuels or I other alternate energy forms will have any impact for a minimum of 15 1 years," he said. "And by impact, I f mean even as much as being 1 to 5 percent of our total energy use." If Americans are to maintain their current lifestyles, he said, the United States will have to "pull out all the stops" in producing energy from coal, oil and gas. Dr. Oblad also told the committee a major problem in rapid production of synthetic fuels is obtaining funding for research and pilot plants. Noting his years of work in the oil industry and the nation's top research programs, he said "with my track record, it seems a little strange that I have to spend over half my time trying to get funds for research in an area as critical as this." Representatives from the oil and oil shale companies, as well as Dr. Oblad, said research has come to the point where oil shale extraction can go into commercial development, and where ' tar sands extraction can be started in pilot programs. Dr. Oblad estimated oil could be produced from tar sands for $15 a barrel, not including mine development costs. H.E. Bond, president of Arco Coal Co., estimated oil could be extracted ex-tracted from oil shale for between $25 and $30 a barrel, a price which includes a "reasonable profit," Mr. Bond and other company representatives told the committee, however,, that problems with land leases, obtaining permits, meeting environmental regulations, and getting federal funding to lighten their costs are stifling their efforts. John Downen,, vice president of Geokinetics, a company already producing small amounts of oil from shale, told the committee "we are sitting on a one-mile postage stamp surrounded by unleased federal' acreage oh all sides,""ecausei'Brthe problems in obtaining such leases. Mr. Downen said land needs to be made available on a "continuing, ordinary or-dinary basis," so that companies can plan future operations. |