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Show 1 1 Vernal ExpressAdvertiser Geo time ics tfo move info commercial production ft "S'l-" 4' If f4ht .. ;; --" & S ' -: ewSlaiil ' in iw mil mmumn ink Li .. " SHALE 01 L flows from spigot near an electric submersible pump at the underground retort at Geokinetic Kamp Kerogen Test Site. - r-;f . - iw. ... . lAB AT Kamp Kerogen Test Site in oil from underground retorts. cnooflp nun I ..- . " ' ! ' : .' v viisfe' :.:;.;.. . v . i . - - -8 N' 1 . ' f ' . . .V . , , "i ?t ,- , - ' , , " ' ' , - ' " ONE OF THE first collection tanks for an underground retort is preserved as sort of a reminder of the project's mom and pop beginnings. . Wednt'ici .: . jonuary 25, 1984 the Book Cliffs daily test shale Hi 1 In one of the remotest parts of Uintah Uin-tah County a small but significant oil shale operation has something unique it is the only place in the state where you can turn on a tap from a hole in the ground and out runs shale oil. Since 1975, Geokinetics is the only oil shale project in Utah to produce significant quantities of shale oil and the only company in the state that has paid royalties on the shale oil-something oil-something other larger companies have yet to achieve. During 1983 Geokinetics fulfilled a contract with the U.S. Department of Defense to sell 25,614 barrels of crude shale oil for use in ground tests of high performance engines and in flight tests. Another major accomplishment in 1983 was securing a letter of intent from the U.S. Synthetic Fuels Corporation Cor-poration (SFC) for $45 million in price and loan guarantees which will allow the project to move into commercial operation independent of the current market price of oil. The SFC pledges to guarantee Geokinetics $42.50 per barrel of shale oil. The current market price of oil is between $27 and $30 per barrel. "The most significant aspect of the letter of intent is the price guarantee," said Jim Lekas, project manager. "It takes the real risk out of moving to a commercial production." Currently at Geokinetics Kamp Kerogen test site, about 70 miles southeast of Vernal, 300 barrels of shale oil per day is produced on two in situ retorts. The secret to Geokinetics' success is a process patented by Mitchell A. Lekas, president of Geokinetics. The process is called LOFRECO, an acronym for Low Front End Cost. Unlike other oil shale processes, the LOFRECO process was developed for the mineral lease. In 1970, when the United States Government opened federal land for oil shale leasing, Geokinetics united 10 independent oil companies to bid on oil shale tracts in Utah and Colorado. "Unfortunately for Geokinetics, the Arab oil embargo began and the big oil companies also jumped into the bidding," bid-ding," said Jim Lekas. Geokinetics bid $52.5 million for C-b C-b in Colorado and $11.5 million for U-b. U-b. In both cases they came in second. "All the joint oil companies said, 'It as a good idea, but the bids only come once,'" Lekas said. All dropped out except Signal Oil, who said that if Geokinetics could lower the costs of getting into the oil shale business and find a tract, they were still interested. There were some state school sections sec-tions for lease, so Geokinetics settled for them. "We jumped into our pickups and drove out to see what we had," Lekas said. "We found a low grade bed of oil shale no one else wanted." That's where the LOFRECO process comes into play. Mitchell A. Lekas developed the process pro-cess based on knowledge he had gained gain-ed while employed with the Atomic Energy Commission on a project to find peaceful uses of the nuclear blasts. The project that caught his interest was the use of a nuclear blast to ignite and burn oil shale. Since the environmental movement, any nuclear blast on American soil has been ruled out, but Geokinetics LOFRECO process is somewhat similar, using conventional explosives. In the LOFRECO process, a pattern of blastholes is drilled from the surface, sur-face, through the overburden (about 30 feet), and into the oil shale bed. The holes are loaded with explosives and fired, using a carefully planned blast system. The initial blast creates a void in the shale bed and subsequent blasts fragment frag-ment the shale. The fragmented zone constitutes an in situ retort. The bottom is sloped to provide drainage for the oil to a sump where it is lifted to the surface by a number of oil production wells. Air injection holes are drilled at one end of the retort, and off gas recovery wells are drilled at the other end. The oil shale is ignited at the air injection wells, and air is injected to establish and maintain a burning front that occupies oc-cupies the full thickness of the fragmented zone. Each retort will produce about 150 barrels of shale oil per day. When the project moves into full scale commercial commer-cial production of 1,000 barrels per day, seven acre-size retorts will be burning simultaneously. While the seven retorts are burning seven other retorts will be built for the subsequent year. The process requires not water or mining unlike other processes. Project land is reclaimed after the retort is burned. Since only 17 percent of the organic material is removed from the shale bed, cave-ins will not result from the underground burning. Ammonia and hydrogen sulfide Cold temperatures cause problems for motorists Extremely cold temperatures have caused not only an increase in the number of accidents investigated by the sheriff's office but also the number of motorists' assists. Between Jan. 17-21 there were six traffic accidents with no injuries and six motorists' assists. To aid motorists in need, the sheriff's officers have been issued containers of gasoline treatment fuel to evaporate water from gas lines, and to prevent patrol cars gas lines from freezing. One of the motorists that was assisted by the sheriff's office was Shirley Murray of Roosevelt. Mrs.' timer ' ?-il .. ?-Si35l?s. mir urn " ii 9-m , ALL OF THE retorting at the Geokinetics site in ment to deal the Book Cliffs area cannot be seen as it occurs underground underground, but what can be seen is the equip- gasses released by tne burning oil shale- are treated to meet EPA standards. As Geokinetics moves into commercial commer-cial production, the workforce will expand ex-pand from 30 to 110 at the site. None of the workers live at the project site, but will spend a night and travel home the next night. Employee families are not allowed to live on the project site. At the $42.50 per barrel guaranteed by the SFC, Lekas said, the project will make a small amount of profit. The guarantee is essential, especially when oil prices are predicted to decline in the next two years before going go-ing up. As a memorial to the initial test retort, which the Lekases built while January Clearance Sale r V Hide-A-Bed Hide-A-Bed Hide-A-Bed Sofa Regularly $689.95 Now $499 Wood Rockers Recliners Reg. $159.95 NOW $135 Reg. $149 Now $124.88 Reg. $229 1 Now $169 Reg. $179 Now $149.00 Reg $369 Now $329 Reg. $239 Now $199.00 Reg $429 Now $344 Nielsen Furniture 130 East Lagoon Roosevelt 722-2239 SALE Murray's truck became stuck on Independence In-dependence Road at the intersection to Hartford. Mrs. Murray reported that when her truck became stuck she left the vehicle vehi-cle to search for help. When she returned to her truck she found that it had been burglarized. Missing from the vehicle are a tool box, a sleeping bag and jumper cables. The sheriff's department wants to remind re-mind citizens that if they must abandon aban-don their vehicles, they should make sure the vehicle has been secured before leaving the area. S IF . y.- ----,kw Ar-if- living in tents on the project site, old air and oil pipes still stick out of the ground. "Then we didn't know how much oil to expect out of that first retort," Jim Lekas said. "After it started burning, we filled every container in camp and had to go to town to get some barrels." No wonder the SFC included Geokinetics when it was giving out price and loan guarantees it is quite unique. If you have a News Item call the Vernal Express 789-3511 llilililii 1 I T UH 4 Regularly $389.95 Regularly $499.95 Regularly $769.95 Queen Hide-A-Bed and Love Seat Regularly $1269.95 it "! 1 Trails ENDS JANUARY 31 Read it first I in the J A Express j X Subscribe to the IT nt HmA Expnii i yf 789-3511 I I f f with the gases that result in the burning of the oil shale, v x TEMPERATURES Date Hi Lo Pet. Jan. 17 11 -8 Tr. Jan. 18 0 -16 - Jan. 19 -5 -26 Jan. 20 -3 -24 Jan. 21 -4 -22 Jan. 22 5 -9 Jan. 23 15-8 Courtesy Sky West Airlines Now $319.95 Now $419.95 Now $649.95 6-Piece Sofa Set Regularly $999.95 Now $799.95 mi |