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Show BLAA gives oil shale bonus bid check to state A check payable to the State of Utah for $48.5 million was delivered to Governor Scott Matheson Jan. 12 by state BLM Director Roland Robison, the largest mineral royalty check in the state's history. The check represents bonus payments on the Ua and Ub prototype oil shale leases located south of Bonanza in Uintah County. The size of the check reflects Secretary of Interior James Watt's administrative decision that the state is entitled to only 37.5 percent of the total bonus payments and accrued interest. Governor Scott Matheson said the state will appeal that recommendation to the Comptroller General of the U.S. Treasury, arguing that Utah should receive 50 percent of the total bonus .money. In 1974, competitive bidding was held by the Department of Interior for rights to develop two prototype oil shale tracts in Uintah County, each of them 5,120 acres. At the time, $75 billion was bid for Ua and $45 million bid for Ub. The federal prototype program allowed for payment of the bonus money in thirds. To date, $72 million has been paid; $48 million is outstanding. However, the program allows the outstanding amount to be spent on tract development develop-ment in lieu of cash payments. Since title to the lands was in question at the time, Federal Judge Willis Ritter impounded the bonus payments. With interest, the amount has grown to over $129 million since then. The issue which Governor Matheson will argue is whether the state is entitled en-titled to 37.5 percent of the bonus payments or 50 percent. Although federal law required the Interior Department to share 37.5 percent of all mineral royalties with the state when the bids were made, the law has since been changed to entitle states to 50 percent of mineral royalties. In anticipation of receiving the bonus payments, Governor Matheson said in his budget message last week, "Our natural resources must be developed prudently, but they must be developed. For example we are expecting to receive at least $48 million in bonus money over the Ua and Ub oil shale tracts. We must be extremely cautious in any appropriations of these funds. I urge a full and complete analvsis of all options and legal obligations before any decisions are made." |