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Show Federal Judge orders release of oil shale funds Federal Judge Bruce Jenkins has ordered $123 million in Utah oil shale lease payments and interest released from a bank account, with the funds to be split between the federal and state governments. The lease payments were ordered placed in the bank in 1974, after Utah sued the Interior Department in an effort ef-fort to gain ownership of 157,000 acres of lands in the energy-rich Uintah Basin. But the U.S. Supreme Court ruled against the state in May of 1980, saying Utah could not unilaterally claim the oil ehalp citAC fnr ITtnh lanHc talrpn hv thp federal government for the creation of national parks and recreation areas, military reservations and reclamation projects. Following the Supreme Court's decision, deci-sion, the federal government asked that the lease funds be released. And the Utah Attorney General's office supported sup-ported the motion. Assistant Utah Attorney General Richard Dewsnup said the Justice Department's motion calls for distribution distribu-tion of the funds "under existing law," which means the state would receive half of the money more than $60 t million. A small percentage of the $70 million in lease payments and $53 million in interest in-terest would be paid to the banking firm, in the form of a holder's fee. Standard Oil Co. (Ohio), had asked Jenkins not to release the impounded funds. Sohio said it wanted its lease payments held by the bank until the ownership question was settled. But last June Jenkins dismissed the Ute Tribal Council's suit involving the lands, and the judge said Sohio failed to state a damage claim in its motion and did not bring up any point of law to support sup-port its motion. The Utes have appealed Jenkins' June ruling to the 10th Circuit Court in Denver and Sohio could also appeal his latest decision to the higher court. |