OCR Text |
Show Synfuel board meets, local projects on list The Board of Directors of the United States Synthetic Fuels Corporation will meet Thursdsay, in a telephone conference con-ference to review maturity and strength of project of seven synthetic fuel projects the bulk of which are in the Uintah Basin. Project advanced to strength review in the third solicitation are the Seep Ridge Project and White River Project both in Uintah County. Both projects are oil shale proposals. The Seep Ridge Project, sponsored by Geokinetic Inc., is located south of Vernal. Ver-nal. Construction is scheduled to begin in 1983. Both a loan guarantee and price guarantee have been requested. The White River Project is proposed by Phillips Petroleum Co., Sunoco Energy Development Corp. and Sohio. Ultimate production is 100. 0CC barrels per day shortly after the year 2000. Projects undergoing maturity review-in review-in the third solicitation are the Big Horn Project, Cottonwood Wash. Paraho-Ute Project, and Wolf Den Project all in Uintah Uin-tah County. Under provision of title I of the the Energy Security Act, the SFC can provide pro-vide financing in the form of price guarantees for the price of the oil, purchase pur-chase agreements or loan guarantees, loan up to 49 percent of initial total estimated project cost and joint venture arrangements. To date the board has awarded no financial aid to an oil shale project in Utah. The third solicitation is the last general solicitation to be offered to snythetic fuel projects, but six projects, two in Uintah County, have applied for the Corporation's Corpora-tion's Competitive Solicitation for Oil Shale Projects. Projects applying under the target solicitation are Syntana-Utah Project, and the White River Project. Under the terms of the Competitive Solicitation projects eligible for an award of financial assistance in this competition must have a minimum production capability of 10.000 barrels per day of synthetic fuel product and plan to start operation before 1990. Other projects applying under the special solicitation are Cathedral Bluffs Project in Rio Blanco County, Colo., Union Oil Parachute Creek Shale Program. Pro-gram. Phase II in Garfield County. Colo.; Edwards Engineering at an undetermined site and Montex Oil Shale also at an undetermined site. The Union Oil Parachute Creek Shale Project will start up its oil shale mine and 10.000-barrel-daily retort this fall to begin the first commercial production of shale oil in the nation. Union Oil Company Com-pany of California has proposed a 20.000 BPD Phase III expansion of its 10.000 BPD module. Phase I of the project was awarded price and purchase incentives by the Department Depart-ment of Energy in July 1981 and currently current-ly is being monitored by the SFC. The support price is at $42.50 a barrel of refined refin-ed product or about $1.01 a gallon. The floor price remains even though world oil prices fall as they have in recent weeks. The White River project in Uintah County is a three-phase staged development develop-ment planned to ultimately result in production pro-duction of 106.000 BPD of synthetic crude. SFD assistance is requested for Phase I only which is designed to produce pro-duce 16.500 BPD of synthetic crude by 1989. The project represents three major oil companies, Phillips Petroleum Co., Sunoco Energy Development and Sohio. The corporation intends to award up to $1.6 billion of obligational authority in loan guarantees, price guarantees, or a combination of the two under the speical solicitation. The SFC is expected to select award financial assistance this fall. |