Show P fI f I I. I i Colorado oil shale water agreement signed A 24 month option for tor conditional con con- 1957 1951 Industrial water rights decrees owned by the Rocky Power Company of Denver benver on the the- White River in north northwestern western Colorado for tor an anticipated minimum of annual feet acre of 01 water could lead to a purchase of more than 45 million by the Rio Blanco Oil Shale Project of 01 Gulf Gull Oil OU corporation and Standard Oil Company Indiana as the result of 01 an agreement signed 15 with Although only annual feet acre of 01 water is expected tobe to tobe tobe be needed or the Projects Project's planned prototype barrel barre per day shale oil oU plant on Federal Tract C C-a C a in Rio Blanco Bianco County Colorado the additional additional additional ad ad- water would be used for development increases up to barrels per day in later years Rio Blanco expects to begin producing shale oil oU from the prototype plant in 1980 IN ANNOUNCING the We water option Walter T T. Herget Rio Blanco President explained that a barrel per day ultimate development for Tract C-a C was included in the Preliminary Development Plan submitted to the U U. S. S Department Department Department Depart Depart- ment of 01 the Interior in January of 1974 He lie said that while it isn't known if the project will willi i reach this magnitude the nature of 01 Colorado water law lawand lawand lawand and technical and economic requirements make It advisable to establish water rights 11 as soon snort as possible The Federal Prototype Program is designed to test he economic and environmental feasibility of 01 oil shale development Until W we c in our environmental and engineering studio studies and the first plant is stream on-stream no one can be sure what future development will occur Nevertheless we wil wll have to tomake tomake tomake make a decision on our water option before belore the first plant is constructed This is another factor which underscores the h heavy c d investment of this project Herget said TIlE THE CONDITIONAL water rights right's optioned by Ufo Rio Blanco are ar are classified l industrial and will not take any water from agricultural water right owners Rio Blanco plans to seek seck approval to divert the water f from rom the WhiteRiver at a point 20 miles below the town of Meeker Colorado instead of the original diversion points located in currently projected federal wilderness areas of the White River National Forest Terms of the agreement call for lor Gulf and Standard to pay a minimum of million to if II engineering studies show that at least annual feet acre of 01 water willbe will willbe be available if it approval Jor for diversion changes is obtained from rom the Colorado Water Water Court Court and if II Rio Blanco chooses to exercise the option SINCE PRESENT technology indicates that about annual feet acre-feet of 01 water would be needed for lor development to barrels of oil per day in later years Herget said it is hoped that studies will show this amount is available from the tho optioned water right Additionally Additionally Ad Ad- two underground aquifers below the tract are expected to provide useable ble water Studies of the theun underground un- un water are currently underway |